Annual report 2014

CAP Annual Report 2014

Lifting people out of debt and poverty

2 CHRISTIANS AGAINST POVERTY AUSTRALIA | ANNUAL REPORT 2014

About this report

Charitable Status

Tax concessions and Fundraising

This annual report shows our activities and performance for the period 1 January 2014 to 31 December

2014. It has been prepared to comply with legal obligations and to support the ACNC objective to build

greater accountability and trust in the Australian not-for-profit sector.

Providing information and transparency through this report is one of the ways we seek to build trust with

our partners and supporters. We recognise the importance of the strength of these relationships for the

charity’s long-term growth and sustainability, ultimately resulting in more beneficiaries been reached.

Public Benevolent Institution (PBI) and endorsed by the Australian Taxation Office as a Deductible Gift

Recipient (DGR)

Fundraises throughout Australia and registered under fundraising legislation as required:

• NSW: Registration no. CFN20220

• ACT: Registration no. 19000312

• QLD: Registration no. 7882706442

• VIC: Registration no. 12195

• TAS: Registration no. 19000312

• SA: Licence no. CCP1406

• WA: Licence no. 21669

Christians Against Poverty, AustraliaABN 92 104 471 516 Level 1, 451 Hunter Street, Newcastle, New South Wales

Registered charity with the Australian Charities and Not-for-profit Commission (ACNC)

3CHRISTIANS AGAINST POVERTY AUSTRALIA | ANNUAL REPORT 2014

Contents

4 | Who we are6 | Message from the Board7 | Message from the Chief Executive8 | The need9 | The approach of CAP10 | Our programs16 | Our people18 | Our supporters22 | The people we serve24 | Strategy and performance34 | Governance and management38 | Financial performance42 | Auditor’s report63 | Glossary of terms

4 CHRISTIANS AGAINST POVERTY AUSTRALIA | WHO WE ARE | ANNUAL REPORT 2014

C hristians Against Poverty (CAP) in Australia is part of an international CAP Partnership operating

in four countries around the world. [Further information regarding CAP International page 12.] CAP

began in Bradford, UK in 1996. John Kirkby, the organisation’s founder, was challenged to give up his ca-

reer in finance to assist people who were struggling with overwhelming debt. Using his industry expertise,

John established a free system for people to access. This system enabled staff to negotiate with creditors

on a client’s behalf, set up budgeting systems and ultimately provide a lifeline to those trapped in debt.

John saw that people across the country were struggling in similar ways; parents who couldn’t feed their

children, families facing eviction, and desperate people living in fear and without hope.

CAP identified five pathways to poverty which are: serious personal debt, unemployment & dependency, addiction, family breakdown and education failure.

Through partnership with local churches and a growing team of trained debt counsellors, John set out to

replicate his work allowing more people to access the service. By 1998, four more CAP Debt Centres had

opened. As the network continued to grow, the introduction of the CAP Money Course meant that free

training could be given to people to prevent unmanageable debt.

During a trip to Australia, John visited a local church and CAP Australia commenced in Newcastle, NSW

in 2000.

Who we are

5CHRISTIANS AGAINST POVERTY AUSTRALIA | WHO WE ARE | ANNUAL REPORT 2014

Mission

Vision

W e are passionate about releasing people in our nation from a life sentence of debt, poverty and its

causes. Working with the church we bring good news, hope and freedom. We are Christians

Against Poverty.

O ur vision is to bring good news, hope and freedom to people in every Australian community. We will

do this by tackling debt, poverty and its causes through a network of local churches running 1,000

CAP projects in Australia by 2021, the 25th anniversary of CAP International.

“I am overwhelmed by what God has done. To see thousands of lives changed every year is truly wonderful. I do believe that God has given us a 21st century answer to one of the most pressing needs in society today.”

John Kirkby - Founder and CAP International Director

6 CHRISTIANS AGAINST POVERTY AUSTRALIA | MESSAGE FROM THE BOARD | ANNUAL REPORT 2014

T he Board of Directors would like to thank

everyone that has been involved with the

work of Christians Against Poverty in the past

year; every individual, supporter and church that

has contributed their time, prayers and finances

have helped see this life transforming ministry

grow. Because of those that support our vision,

we have seen thousands of clients and delegates

helped through our Debt Management support

and CAP Money Courses. Our CAP Debt Centre

network has grown to 43 centres throughout

every state, and we now serve 119 communities

through the CAP Money Course partnerships—all

from local churches.

This encouraging growth is a result of the

effective strategy we employed over the past 12

months (see page 27). It is this simple mandate

to equip churches with the resources and skills

needed to reach out to their local communities

that will carry CAP confidently into 2015 and see

us continue to empower more people with hope

and a practical financial solution. With the

support of those behind our vision, we will

continue to provide life transforming help in new

areas and see more families set free from debt

and poverty in Australia.

In the next yearLooking forward, Christians Against Poverty

continues to be committed to tackling the five

pathways to poverty in Australia: serious

personal debt, unemployment, addiction,

family breakdown and educational failure. We

will continue to partner with churches

throughout Australia to provide our life

transforming services and help prevent families

falling into debt. More information on our

approach to tackling the rising issue of debt and

poverty in Australia can be found on page 20.

Alongside the current strategy, it is with great

excitement that we look to launch CAP Job

Clubs within the next year. This new service,

which has seen incredible success within CAP

UK, will provide vital support for people looking

for employment. This allows us to tackle another

of the five pathways to poverty and adds

another resource for churches looking to reach

out to their local community.

We continue to focus forward on our vision to

see 1,000 CAP services* (Debt Centres, Money

Courses, Job Clubs and other services) across

Australia by 2021, which will mark the 25th

anniversary of CAP International. Together, we

will continue to work towards this goal.

On behalf of the Board of Directors, I’d like to

express our continued commitment to this

worthy and truly exciting cause.

Message from the Board

Kenneth O’Donnell Chairman of the BoardCAP Australia

“This encouraging growth is a result of the effective strategy we employed over the past 12 months.”

7CHRISTIANS AGAINST POVERTY AUSTRALIA | MESSAGE FROM THE CHIEF EXECUTIVE | ANNUAL REPORT 2014

A s I write this introduction to our annual

report and reflect on the past twelve

months, I am continually overwhelmed by the

generosity and support of faithful Australians

who have given their time, prayers and finances

to support this ministry. As Christians Against

Poverty continues to provide the very best

service to those with the very least, I am hugely

inspired by the results we have seen this year.

This amazing support has enabled us to see

continued growth across the charity, both

in the number of CAP Debt Centres opened

and the number of churches we partner with to

provide the CAP Money Course to communities.

As I meet CAP teams all across Australia, I am

humbled by the stories I hear; reports of families

released from the burden of debt, lives

transformed and individuals finding hope. It is

only through the support of individuals sowing

into this ministry, the incredibly passionate staff

and volunteers and the commitment of churches

partnering with us, that we are able to achieve

these incredible results.

These are just a few of the countless highlights

we have seen over the past year at CAP. We

opened our first CAP Debt Centre in Tasmania.

This centre in Devonport means CAP is now truly

a national ministry, reaching families in every

state and territory of Australia. We now have 43

CAP Debt Centres in operation across the

country.

We celebrated 327 people becoming debt free

last year. This is a phenomenal result, and our

highest ever number.

We have reached a huge milestone with over

500 churches trained to run CAP Money

Courses. This is a significant objective for the

debt prevention arm of the charity, creating

generational change and helping families to

become better stewards of their money.

In response to help received from CAP, 115 clients

made the decision to follow Christ in the past

year. We truly are Christians Against Poverty!

As you read in detail the results of the past year,

it is my hope that you will share our excitement

at what has been achieved through Christians

Against Poverty, the churches we partner with

and the grace of God. I am eternally grateful to

all the staff, volunteers and supporters that help

make this great work possible.

Message from the Chief Executive

Ross Buttenshaw

Chief ExecutiveCAP Australia

“We now have 43 CAP Debt Centres in operation across the country. We celebrated over 300 people becoming debt free last year.”

8 CHRISTIANS AGAINST POVERTY AUSTRALIA | OUR APPROACH | ANNUAL REPORT 2014

The need

A ccording to the Australian Council for Social Service 2014 Report on poverty in Australia, a

growing percentage of Australians are falling into poverty. While unmanageable debt can affect

people across the economic spectrum, the groups most at risk of living in poverty are those that are most

marginalised and least able to fully participate in the community. These include people who are

struggling with unemployment, single parents, women and children, people with disabilities, the old, the

young, Aboriginal and Torres Strait Islanders, and migrants.

Debt and poverty in Australia

Snapshot of poverty

Snapshot of debt

(ABS December 2014)

The ABS reported that at

the end of 2013

household debt in

Australia totalled $1.84

trillion. This averages to

about $79,000 per

person.

Household debt

increased steadily from

1993 until 2007. This has

largely been influenced

by rising property prices

and low interest rates.

The current Australian

unemployment rate is

6.1% and is the biggest

factor threatening to push

household debt to the

point of being

unmanageable.

2.5 million Australians, or

13.9%, are classified as

living below the

poverty line. This number

has increased by 0.9%

since 2010.

The number is even

higher for children with

over 600,000, or 17.7%,

living in poverty.

Over 60% of households

classified as being below

the poverty line are

affected by

unemployment.

9CHRISTIANS AGAINST POVERTY AUSTRALIA | OUR APPROACH | ANNUAL REPORT 2014

The approach of CAP

Partner countriesThe work of CAP operates in four partner countries. The largest

office in Bradford, UK is responsible for developing and rolling out

CAP programs to partner countries.

CAP Money Course CAP Debt Help

Local churchesThese are churches that have volunteers who are trained to deliver

the two CAP programs, the CAP Money Course and CAP Debt

Centres. Staff and volunteers from these churches meet directly

with clients in their homes, and with CAP Money delegates,

providing additional support.

ProgramsCAP Australia currently offers two programs: the CAP Money

Course, which provides simple and practical training for anyone who

wants to manage their money better, and Debt Management which

assists clients struggling with unmanageable debt.

ClientsThese are people struggling with overwhelming debt who need

long-term assistance. A dedicated caseworker can provide a budget

for them and deal with creditors on their behalf, or for those clients

in extreme debt, they are supported through an insolvency process.

SupportersSupporters are those people who give financially to the work of

CAP. CAP finished 2014 with 3,300 regular givers, called Life

Changers.

Referral agenciesThese are agencies that local churches will engage with to promote

the work of CAP so that clients can find out about us. These include

Centrelink, Department of Housing, medical centres, etc.

National Head OfficeThe Australian CAP National Head Office is based in Newcastle

and is responsible for building and supporting the church partners

network in Australia, for managing the debt repayment process and

insolvency process for clients, and for developing fundraising

initiatives and engaging with Australian supporters.


C AP Debt Centres are the spearhead in our

fight against poverty in Australia.

We finished the year with 43 CAP Debt Centres in operation across Australia, and we are continuing to grow.

A CAP Debt Centre brings essential care to

struggling families. We offer face to face home

visits and ongoing care to our clients.

Our Centre Managers are in constant contact with

our experts at the CAP Head Office - trained debt

specialists who advocate for our clients by

negotiating with creditors, seeing interest

payments stop, and creating budgets and

payment plans to help clients out of debt.

O ur debt prevention arm of Christians

Against Poverty is called CAP Money. This

is a free course that teaches budgeting skills

through a simple, cash-based system.

Typically run over three sessions, the course

teaches delegates how to get to grips with their

finances so they can budget, save and prevent

unmanageable debt.

We currently have 236 active CAP Money Churches running the course and have seen 2,422 Australians go through 475 courses this year.

CAP Money is an effective and practical resource

for churches to empower their communities.

CAP Debt Centres CAP Money Courses

CAP Debt Centre growth CAP Money Courses run

Our programs

50

45

40

35

30

25

20

15

10

5

02011 2012 2013 2014

500

450

400

350

300

250

200

150

100

50

02012 2013 2014

“It took 2 years to become debt free. We feel more hope than we have ever felt in our whole lives.”

Ben and Ali - former CAP clients

12 CHRISTIANS AGAINST POVERTY AUSTRALIA | CAP INTERNATIONAL | ANNUAL REPORT 2014

CAP InternationalOverview

C AP was founded in the UK in 1996, and today CAP Australia forms one of three partner countries

planted out of the founding office. While CAP Australia operates as an independent entity, the

organisation remains closely tied to the UK international office. International teams meet to discuss and

share ideas, vision and strategy.

CAP UK | Launched 1996

CAP New Zealand | Launched 2008 CAP Canada | Launched 2013

239 CAP Debt Centres

4 CAP Debt Centres26 CAP Debt Centres

CAP Australia | Launched 2000

43 CAP Debt Centres

“You will be secure, because there is hope...”

Job 11:18 (NIV)


Elizabeth

Colac

Hoppers Crossing

Noble Park

Seaford

Vermont

WarragulBlackburn North

CAP Australia

2014 was a year of strength, hope and dedication as CAP has moved toward our vision of

seeing debt and poverty released from families across Australia. Part of our vision is

to see CAP represented in every state across our great nation. As of this year we have been able to fully

realise that part of our vision, with the establishment of our first CAP Debt Centre in Tasmania.

This means that Christians Against Poverty has a greater reach for families and people struggling with

debt. With over 5,000 clients reached (since recording began in 2006), we are confident that this growth

through 2014 has made a positive impact on families and communities around Australia and will continue

on through 2015.

327 families became debt free in 2014 with more than $1 million of debt waived in 2014 alone. $4.93 mil-

lion was paid off debts across the nation as our client services team have been hard at work negotiating

with creditors and constructing sustainable budgets for the many families struggling with debt.

CAP Debt Centre network

Overview

WANSW

QLD

ACT

VIC

SA

NT

TAS

Cockburn CentralBensville

Brassall

Mt. Annan

Fairfield

Robina

Charlestown

Currumbin Waters

Port Macquarie

Mackay

Kingswood

Everton Hills

Ryde

Mudgeeraba

Darwin

Devonport

Perth CentralCarlingford

Buderim

Oxford Falls

Kearney Springs

SpringfieldBundaberg

Darlinghurst

Enoggera

Port Stephens

Mackenzie

Canberra

Blackburn

Menai

Menai

Silverwater

Park Ridge

Silverwater

Windsor

15CHRISTIANS AGAINST POVERTY AUSTRALIA | OUR APPROACH | ANNUAL REPORT 2014

14DEBT CENTRESIN NSW

1 DEBT CENTREIN THE ACT

8DEBTCENTRESIN VIC

1DEBTCENTREIN TAS

1DEBT

CENTREIN THE NT

1DEBT

CENTREIN SA2

DEBTCENTRES

IN WA

15DEBT CENTRESIN QLD

We are excited to see CAP Money grow from our 236 currently active CAP Money Churches, as well as

seeing an increase in the 1,622 trained CAP Money Coaches.

We are optimistic about our future as Christians Against Poverty continues to grow. CAP will continue to

lift those struggling with overwhelming debt out of their situation and further extend our preventative

arm out to communities that need education and empowerment.

16 CHRISTIANS AGAINST POVERTY AUSTRALIA | OUR PEOPLE | ANNUAL REPORT 2014

O ur team is made up of people passionate

about seeing Australian’s released from

poverty, crippling debt and its causes. We

recognise the diverse backgrounds of our staff

and volunteers and the richness that this brings

to the organisation.

National Head OfficeOver 30 staff are based at the Head Office

in Newcastle. These team members offer direct

assistance to clients, generate national

fundraising initiatives, and equip regional centres

with training and resources. The team is made up

of a combination of full-time and part-time

employees as well as interns from the CAP

international office in the UK. The Head Office is

also assisted by volunteers who help with

administrative tasks as needed.

Centre Managers and Debt CoachesCentre Managers and Debt Coaches work from

local church-based CAP Debt Centres, are

recommended by church leadership and

recruited by CAP management. They receive

comprehensive training in the areas of debt

counselling, team management and administra-

tion. Several Centre Managers are previous CAP

clients who are now debt free and passionate

about reaching out to people in their community.

CAP Money CoachesCAP Money Coaches are volunteers trained to

deliver the CAP Money Course to people in their

local community. Coaches are members of the

local church responsible for delivering the

budgeting course.

Support Workers and Volunteers Support Workers can assist on a paid or

volunteer basis to help the Centre Manager or

Debt Coach in directly supporting clients in need.

This includes undergoing CAP training, visiting

clients in their homes and providing ongoing

practical assistance to clients as needed.

Volunteers can also assist CAP Money Coaches

in the running of the CAP Money courses. Vol-

unteers also help with administrative tasks at the

National Head Office.

Our people

17CHRISTIANS AGAINST POVERTY AUSTRALIA | OUR PEOPLE | ANNUAL REPORT 2014

National Head Office staff CAP Debt Centre staff

Full-time

Support WorkersPart-time

Casual

Volunteer

Volunteers dedicate their

time and skills to support

CAP when they are able.

Their passion and

dedication is invaluable.

MenWomen

18 CHRISTIANS AGAINST POVERTY AUSTRALIA | OUR SUPPORTERS | ANNUAL REPORT 2014

C AP Australia receives no government

funding and relies on the generosity of our

supporters to ensure our operation can

continue and that services can be provided, free

of charge, to people in need. The organisation is

69 per cent funded through regular donations.

Individuals giving regularly to CAP are called Life

Changers and generate around 70 per cent of

the regular giving amount. A number of current

and past clients also choose to become Life

Changers, and 98 per cent said they would

recommend the CAP service to others. The

remaining 30 per cent of regular giving is

through other sources.

Most of our supporters are aged between 25-65

years of age, and would affiliate themselves with

the Christian faith. Many regularly attend church

once a month or more. The majority of

supporters (54 per cent) live in NSW, followed

by QLD (20 per cent), however as the CAP

network expands, the percentage of supporters

from other regions is growing.

The remaining 31 per cent of funding is achieved

through appeals, one-off donations, and trusts

and grants.

Our supporters

“I love supporting CAP because I know that they steward my giving well and that families genuinely benefit as a result. When I first heard a client speak about the impact CAP had made in their life, I knew my Life Changer contribution was worthwhile.”

Rebecca, CAP Supporter from Newcastle

19CHRISTIANS AGAINST POVERTY AUSTRALIA | OUR SUPPORTERS | ANNUAL REPORT 2014

0.1 % INTERNATIONAL DONATIONS

0.5% NT

3% SA

3% WA

TOTAL FUNDING REGULAR FUNDING

REGULARFUNDING

APPEALS,DONATIONS,TRUSTS AND

GRANTS

OTHER

LIFE CHANGERS(INDIVIDUAL REGULAR GIVERS)

20% QLD

2.6% ACT

15.3% VIC

54% NSW

1.5% TAS

Supporters in the states and territories

20 CHRISTIANS AGAINST POVERTY AUSTRALIA | OUR SUPPORTERS | ANNUAL REPORT 2014

Corporate partners

C AP partners with businesses who provide regular financial support to the ministry. These

organisations have a particular heart for our work, both locally and nationally, and we seek to build

and maintain strong relationships with them. Our corporate partners not only provide the vital funds we

need to continue providing our services free of charge, but also promote our work through networking

and publicity.

C AP is a church-based ministry that

partners with churches of many Christian

denominations across Australia. We are currently

connected with around 3,500 churches, however

the level of our engagement with these churches

varies.

Partner Churches: A Partner Church is one where approved church

members have received training from CAP and

have now opened a CAP Debt Centre, providing

face-to-face assistance for clients. There are 43

Debt Centre partner churches nationwide, with a

presence in every state and territory. These

partners also regularly contribute financially to

CAP.

CAP Money Partner Churches:There are 119 active CAP Money Partner

Churches trained by CAP to run the CAP Money

Course for people in their congregation and

community to learn to budget. These partners

also choose to financially contribute to CAP on a

regular basis.

CAP Money Associate Churches:There are currently 394 trained CAP Money

Associate Churches. These are churches that

have paid a one-off registration fee in return for

the CAP Money Church Kit and training for up to

five Money Coaches. They are then able to run

the CAP Money Course in their church and

community.

Associate Churches:Associate Churches don’t run any of the CAP

programs but still support CAP with a regular

donation. There are also churches that don’t fall

into these categories however they remain on

our database to receive information and updates

about our services.

Churches

T hrough identifying the five pathways to poverty*, CAP realised the need to bring basic money

management and budgeting principles to the next generation. With no specific financial education

on the current school curriculum, CAP developed the CAP Money Youth program – adapting the

successful principles of the CAP Money Course to be used in the classroom and youth groups. This was

aimed at a teenage audience.

Schools

“Since CAP I feel more hopeful. I know I can have a life. In fact, I’m now also a CAP Support Worker.”

Sandy - CAP Client

22 CHRISTIANS AGAINST POVERTY AUSTRALIA | THE PEOPLE WE SERVE | ANNUAL REPORT 2014

Clients

The people we serve

A s of 31 December 2014, CAP was assisting

768 clients from around Australia. While

CAP clients are from diverse backgrounds, many

represent marginalised sections of the

community and struggle with similar issues as a

result of poverty and debt.

A 2014 CAP client survey showed that

approximately 70 per cent of clients experienced

depression and 93 per cent experienced anxiety

and stress. 79 per cent admitted to missing meals

due to debt.

The survey also showed that approximately

47 per cent of clients live in NSW, followed by

around 35 per cent from QLD, 8 per cent from

VIC. These percentages are beginning to trend

towards the less represented states and territories

as more CAP Debt Centres open in these regions.

Nearly 40 per cent of clients described the

assistance of CAP as life transforming, and 59 per

cent described it as a great help.

768clients across Australia*

*As at end of 2014

Snapshot of the clients we serve

NSW | 47%

QLD | 35%

VIC | 8%

10%OTHER STATES

AND TERRITORIES

D elegates are not necessarily people who are struggling with unmanageable debt but are people

wanting to improve their personal budgeting. These can be people from all walks of life, and

although the course is conducted by local churches, it is designed to assist people across the wider

community.

CAP Money delegates

23CHRISTIANS AGAINST POVERTY AUSTRALIA | THE PEOPLE WE SERVE | ANNUAL REPORT 2014

79% of clients admitted to missing

meals due to debt.

84% lived in fear from financial

pressure prior to working with CAP.

61% said their housing was at risk due

to their financial state.

33% had a relationship breakdown due

to their financial state.

70% of clients experienced depression

before seeking the assistance of CAP.

1 in 3 clients considered or

attempted suicide.

40% of clients described the

assistance of CAP as life transforming.

59% of clients described the

assistance of CAP as a great help.

24 CHRISTIANS AGAINST POVERTY AUSTRALIA | STRATEGY AND PERFORMANCE | ANNUAL REPORT 2014

Strategy and performance objectives

T he client services team have continued to

bring hope and sustainable support to our

clients this year.

In 2014 the team opened 485 new accounts,

helping an estimated 1,455 individuals. Our total

number of active clients has slightly decreased

through the year showing the success in taking

clients through the system and seeing them

become debt free.

We have seen 327 clients become debt free

representing over 900 adults and children

waking up knowing they are completely free from

the debt that had entangled them.

We have seen our clients pay back $4.93 million

worth of debt this year, an amazing achievement

for our clients and our dedicated client

services staff.

1. Relieving poverty

Client debt paid off **through debt management

Active and debt free clients

Clients active Clients debt free

2012 2013 2014

$4.93 Million

$4.84 Million

$4.19 Million

Objective for 2014:To continue the vision of having a CAP Debt

Centre in every major town and city by

opening 12 new CAP Debt Centres.

Aim for 2015:To pursue our vision of national coverage

by having a CAP Debt Centre in every major

town and city by growing to 50 CAP Debt

Centres by the end of 2015.

25CHRISTIANS AGAINST POVERTY AUSTRALIA | STRATEGY AND PERFORMANCE | ANNUAL REPORT 2014

F or Patricia, escaping conflict in Nicaragua to

forge a new life in Australia meant leaving

behind everything she knew; her family, friends

and community.

In a new country, where everything was different

– the language, the culture and customs, Patricia

was determined to overcome the challenges and

build a new life. “English is my second language,”

she explains, “It’s not perfect and I can’t

understand people all the time. I thought if I learn

to write and speak English, I’ll be okay.”

With courage and determination, she learned

English, gained employment and even bought her

own home. But unfortunately, through a

series of tragic events, Patricia found the life she’d

worked so hard to build unravelling around her.

Her hours of employment became

sporadic, her partner was emotionally abusive

and she struggled to afford the basics she

needed to live. That’s when Christians Against

Poverty stepped in. When she was lost and

confused, turning everywhere for help, Patricia

describes how she finally found CAP and reached

out.

“I thought people would be happy if I just

disappeared; I was so frustrated. I saw a

pamphlet in the Centrelink centre and rang the

number to make an appointment. I was so

confused and nervous.”

It was that call that connected Patricia not only to

the practical help she needed to break free from

her situation, but also the care and compassion of

the local church.

Emma, the CAP Debt Coach at Red Door

Community Church in Perth, connected Patricia

with loving and supportive people who helped

her in her time of need. Her faith was

strengthened as members of the Red Door

church stepped forward to support her, providing

not only a car, but also somewhere for her to live.

“When Emma, my Debt Coach, walked through

the door, she was like an angel,’ says Patricia. ‘I

felt so lost and didn’t know what to do or who to

turn to, but now I have hope for the future where

I didn’t before.”

Now, not only can Patricia look forward to

freedom from debt and poverty, but she can see

the love of God in her life and know she is not

alone. “It’s still hard, but I know God is with me,”

she says. “I know He is in my heart and I have

faith in Him; that is what is most important to

me.”

Debt counselling: Patricia’s story

“I lost my house, I lost my car; I lost everything. I was looking everywhere for help. I needed people that believed in more than just money. I needed wonderful people.”

Patrica with her CAP Debt Coach, Emma


T he CAP Money Course is a free course that

teaches people budgeting skills using a

simple cash-based system that works.

Training is provided for representatives from

churches. These churches will then promote and

conduct the courses in their local community.

Since 2009, around 500 churches have been

trained to present the CAP Money course. In

2014, a total of 10 training sessions were conduct-

ed throughout the states and territories resulting

in 124 churches trained and equipped to take the

course to their community, and 475 courses run.

There were 2,422 people who were CAP Money

delegates in 2014, participating in the CAP Money

Course across Australia, and 236 churches

actively facilitated CAP Money Courses during

the year.

The course is even available for youth, teaching

teenagers how to budget for the future with the

launch of CAP Money Youth mid-2014.

The CAP Money Youth workshop lasts for around

an hour and can be easily presented alongside

existing curriculum. It teaches the basics of

looking after money through engaging activities,

a relatable case study and interactive multimedia.

Most importantly, it provides the tools for

teenagers to begin putting what they’ve learned

into practice. The feedback from those who have

run CAP Money Youth in schools has been very

positive.

2. Financial education

Objective for 2014:Train a further 300 CAP Money Coaches from

120 new churches, enabling them, along with

the already trained churches, to deliver courses

to an estimated 2,000 delegates, including the

introduction of the CAP Money Youth program.

Aims for 2015:Continue to tackle the cause of debt by

bringing the CAP Money Course to more

churches, and to continue to expand the CAP

Money Youth program into more schools and

youth groups.

people were CAP money delegates in 2014

CAP Money Churches (per state & territory)

churches actively facilitated* the CAP Money Course in 2014 running 475 courses.

*’Active’ churches are those that have run a course in the last 12 months

0NSW QLD VIC SA WA ACT TAS NT

20

40

60

80

100

120

140

160

180

200 193

100 102

28 25

9 141


F or Dave and Rosie, the decision to take a

disciplined approach to managing their

money stemmed from a mutual desire to be

generous to others. “Our first year of marriage

was great!” said Dave. “We were being generous

where we could, we set up budgets and made

sure we lived within our means. At university I

spent money poorly. In fact my overspending

sometimes meant I struggled to pay my bills. I’m

glad I made the change as this hasn’t just

impacted me, but also my wife.”

Several years into their marriage, the decision to

change jobs meant they needed to re-evaluate

their budgets. Rosie decided to leave her job as a

physiotherapist and begin working for Christians

Against Poverty. The charity was based in the

couple’s home town of Bradford in the UK and

the money management principles promoted by

CAP resonated strongly with them. Some months

later, Dave too finished work as a teacher to also

work for CAP. The change in salary called for a

new approach to their finances.

Fortunately in the lead up to these job changes,

Dave and Rosie were introduced to the CAP

Money Course. The principles they learned during

the course helped to further strengthen the

budgeting techniques they were already using,

allowing them to save and still pay their bills on

time, while also supporting vulnerable girls from

broken homes and giving them a safe place to

live. “In all we saw 5 to 6 young girls come to live

with us for some months – and in some cases,

years. They became part of our family,” said

Rosie.

Shortly after their first child was born, Dave and

Rosie moved and took up positions in the Head

Office of CAP Australia. This meant giving up

family, friends, their home and the majority of

their possessions and moving to the other side

of the world. Again, this called for a look at their

finances to see if they could afford the moving

and set up costs. “We arrived in Australia with

no house, no car, no family and no friends – but

we still had the financial principles we learned

through CAP,” said Dave.

At the end of 2014, their second child was born,

and yet the couple still found their budget

stretching to meet their needs. “It doesn’t

matter if you feel you’re budgeting well or not,

CAP Money is an incredible course that will leave

you feeling more in control of your finances. In

our case it’s meant that our budget has been

created to meet our needs as a growing family

but still bless people, I love that. Generosity is one

of the things that I hope defines us as family,” said

Rosie.

CAP Money: Dave and Rosie’s story

“The CAP Money Course was so practical and we could tailor our budget for our lifestyle – and we wanted a lifestyle of generosity.”


CAP Money Youth: Adina’s story

P enrith teenager, Adina, isn’t complaining

about a lack of pocket money. After

completing a CAP Money Youth Course at her

local church, Adina’s part-time job at KFC started

providing more than just a little bit of extra cash.

“Without the CAP Money Course, I don’t think I’d

have saved as much as I have. I look at my

account and I don’t know how I got all this

money!”

Adina completed the course around the same

time as she began her part-time job, and the

timing couldn’t have been better.

“I set up my bank account just before I started my

job and I decided to open a second bank account

just for my savings, following the budgeting tips

I learned in the course,” said Adina. “It’s great to

have that second account. I’m saving for

Christmas presents, but eventually I want to buy a

car because I turn 16 next year. And later on, I can

start saving for university.”

The CAP Money Youth Course was run over two

nights at the church youth group shortly after a

similar course was run for adults at the church.

And Adina is convinced that the course works.

“I think that all young people should do a course like this. When you do start earning money and putting the principles into practice, it’s so much better than you even thought it would be!”

“I have my drive back and wouldn't be where I am without the support of CAP.”

Ivan - CAP Client


3. Our work with the Church

O ur clients face spiritual poverty, isolation

and emotional struggles. These are often

a result of the overwhelming burden of debt and

many other causes. We believe the church is

perfectly positioned to provide the emotional and

spiritual support that they desperately need.

CAP relies on trained staff and volunteers at

church-based CAP Debt Centres to provide the

face to face connection between CAP and the

clients. Three training sessions were conducted

throughout 2014 resulting in an additional nine

Debt Centres opening. There were 43 Debt

Centres in operation by 31 December.

Objective for 2014:To continue to support the local church as

they reach out into their communities, giving

clients the opportunity to respond to an

invitation to join a local church community if

they desire to.

Aims for 2015:Continue to raise awareness of debt and

poverty in Australia, and inspire churches to

partner with us through church presentations,

exhibiting at conferences and through a variety

of communication streams.

*As of 31 December 2014

= 100 churches

Connected Churches

= 1 partner church

CAP Money Partner Churches Church-based CAP Debt Centres*

= 10 churches

Active CAP Money Churches

122

3,500 236

43


I n 2008 the team at Life Unlimited Church in

Canberra wanted to explore other ways of

being involved in their local community. The

church already operated an Op Shop, Food Care

and a Charity Computers initiative but the con-

gregation wanted to do more than just meet

existing needs and become a refuge; they wanted

a way to help people break free from the cycle of

poverty and debt.

That’s when, as a church, they decided to

partner with CAP to become the first Debt Centre

in the ACT. “CAP has allowed us to reach into the

homes of people we wouldn’t otherwise meet,”

said Life Unlimited pastor, Sean Stanton.

The church rallied and soon appointed a

Centre Manager, Danielle, and a passionate group

of Support Workers and volunteers. The Centre

began to grow, assisting scores of families in the

Canberra area. Today, Danielle overseas all of the

church outreach ministries, while the Debt Centre

is managed by another church member, Amy.

“I initially trained as a CAP Debt Coach and after

a few months I was offered the opportunity to

become Centre Manager,” said Amy. “I’ve been

passionate about financial literacy since I was a

teenager so CAP is a natural fit for me as a link to

our community.”

“One of my first clients was a single mum of two

teenagers, overwhelmed with debts. It was a

special moment for me to watch her response of

relief and amazement as I walked her through her

budget and explained how we could help her. She

was relieved not to be constantly hassled by

creditors and amazed that she could be debt free

in about a year – a lot sooner than she realised,”

said Amy.

The church also began to run CAP Money

Courses, offering members of the church and the

local community the opportunity to receive free

training in personal budgeting skills. “We found

that the CAP Money Course provided an

educational alternative for people who might not

be in debt but needed help on how to budget,”

said Ps Sean. “Many people in our church have

taken part in a CAP Money Course and found

great benefit in learning how to better manage

their own finances.” Life Unlimited continues to

grow and assist people in the ACT as one of 43

CAP Debt Centres around Australia.

Church engagement: Life Unlimited Church

“It helps us to be outward looking and have a positive impact in our community.”

From left: Pastor Sean Stanton, Danielle Bate (previous CAP Centre Manager, now

Community Programs leader ), Anne Hazell (volunteer), Amy Dunski (current CAP Centre

Manager)


C AP receives no government funding so we

place strong focus on appeals to generate

one-off and regular financial gifts. Our regular

givers or Life Changers, along with partner and

associate churches regularly support the ministry.

This means that CAP is 69.5 per cent regularly

funded.

Three appeals were run in 2014 and generated

over $250,000 worth of one-off income,

including a gift match fund for the June appeal

that resulted in over $150,000.

Five fundraising dinners were conducted

throughout the year. Brisbane and Melbourne

dinners ran in May, the first ever CAP Perth

fundraising dinner occurred in October and was

very generously supported and the Sydney and

Newcastle dinners took place in November.

The attendance and response at all these dinners

were a huge encouragement and a testament to

the generosity of our supporters.

Our regular communication has continued to

raise awareness of debt and poverty in Australia.

This has inspired churches to partner with us to

open Debt Centres and individuals to support our

work. There were 72 church talks that took place

throughout the year and these generated 350

regular gift commitments (Life Changers).

In 2014 we exhibited at the C3 Presence

Conference and Hillsong Conference. These

events enabled us to meet face-to-face with

hundreds of people representing churches from

across Australia. These conferences were an

integral opportunity to continue our efforts to

raise further awareness of debt and poverty in

Australia and the services CAP offers.

4. Raising awareness of debt and poverty in Australia

Objective for 2014:

Continue to raise awareness of debt and

poverty in Australia and inspire churches

to partner with CAP through speaking at

churches, exhibiting at conferences, regular

communication with supporters and through

electronic media.

Aims for 2015:

Continue to raise awareness of debt and

poverty in Australia and inspire churches to

partner with us through speaking at churches,

exhibiting at conferences and through a

variety of communication streams.

2013 Total new Life Changers =

Year end 2013 = 3,166

2014Total new Life Changers =

*350 came from Church Talks

Year end 2014 = 3,323

34 CHRISTIANS AGAINST POVERTY AUSTRALIA | GOVERNANCE AND MANAGEMENT | ANNUAL REPORT 2014

T he Board of Directors meet five times a year to review strategy and operational/financial

performance in conjunction with the charity’s Founder and International Director, it’s Chief Executive

Officer and other members of the Leadership Team.

These meetings are also attended by a staff representative so their views can be taken into consideration

through the decision making process.

Governance and management

Our board

Chief Executive CAP Australia

Ross Buttenshaw

Board memberPaul Derham

Board memberRob Fryer

Company secretaryJanelle Hines

International Founder and

DirectorJohn Kirkby

Chairman of the Board

Kenny O’Donnell

Risk managementThe Board of Directors actively review the major risks that the charity faces on a regular basis, together

with the controls over key financial systems carried out through an internal audit program. The Board has

also examined other operational and business risks that the charity faces and confirm they have

established systems to mitigate the significant risk.

ResponsibilitiesThe day-to-day implementation of the strategic plan, together with the development of strategy is led by

the Chief Executive and Leadership Team, consisting of members of each area of the charity. Key

performance indicators are used to measure and review performance against the strategic plan, with

monthly meetings ensuring that corrective action is taken where needed. Monthly management accounts

are also used to ensure that financial targets are being met. If any significant matters of policy or key

decision-making arise during these meetings, these will be referred to the Board for approval.

35CHRISTIANS AGAINST POVERTY AUSTRALIA | GOVERNANCE AND MANAGEMENT | ANNUAL REPORT 2014

Our leadership team

Chief ExecutiveRoss Buttenshaw

Operations DirectorRosie Kendall

Communications DirectorAmy Lanham

Church Partnerships DirectorAlison Buttenshaw

Corporate Services DirectorJanelle Hines

The Church Partnerships team is comprised of regionally based staff in Queensland, New South Wales

and Victoria who are managed centrally from CAP Head Office in Newcastle. The team is responsible for

engaging with churches in their area to generate more church-based CAP Debt Centres, more

partner and associate churches trained to run CAP Money Courses, and church and event talks to inspire

further awareness and support of CAP.

The Communications team generates awareness and support of CAP through fundraising appeals, the

website and social media, design and video production, trust and grant writing, advertising and

promotional campaigns, donor relations, and fundraising dinners across Australia. As well as servicing

current regular givers and key supporters. The Communications team also provides resources to other

organisational departments and church partners.

The Operations team is responsible for directly assisting clients. Potential clients are initially assisted by a

First Solutions team member who assesses their situation over the phone. For clients needing long-term

debt management, they are referred to their local Debt Centre and to a personal case worker in the CAP

Debt Management team. Other clients may need to be directed towards insolvency. The team also

manages and trains the network of CAP Debt Centres whose staff and volunteers offer face-to-face

assistance to clients; as well as partner and associate churches, equipping them to provide the CAP

Money budgeting course to people in their local community.

The Corporate Services team includes the Finance and HR sections, which support the practical

outworking of the organisation. The portfolio of work specifically covers; managing the CAP Account on

behalf of clients, invoicing and creditors, staff and volunteer recruitment, risk management, workplace

health and safety (WHS) and corporate event planning.

36 CHRISTIANS AGAINST POVERTY AUSTRALIA | GOVERNANCE AND MANAGEMENT | ANNUAL REPORT 2014

Organisational structure

T he last 12 months have been a period of significant change for CAP. Sustained growth over several

years created a need for recruitment for both new and existing positions, including an expanding

regionally based Church Partnerships team. Overall organisational structure was also evaluated during

this time. The decision was made to amalgamate two departments, resulting in the creation of the

Operations Team.

I.T.Services

Board ofDirectors

RegionalManagers

Evangelism &

Dicipleship

DebtManage-

ment

FirstSolutions

Insolvency& Specialist

advice

CentreDevelopment

ManagerClient

ServicesManager

CAPMoney

CorporateService

Assistant

SupporterRelations

Design

Fundraising

Media

Events

NSWChurch

RelationshipManager

QLDChurch

RelationshipManager

VICChurch

RelationshipManager

Corporate services

ChurchPartnerships

Operations

37CHRISTIANS AGAINST POVERTY AUSTRALIA | GOVERNANCE AND MANAGEMENT | ANNUAL REPORT 2014

Staff

T he work of Christians Against Poverty

relies on the commitment and hard work of

its valued staff, both those directly employed at

our Head Office and also those employed by our

partner churches in our CAP Debt Centres. At the

end of the year more than 80 people were direct-

ly involved in delivering the service of Christians

Against Poverty, the part played by each one

being vital to the charity’s success.

Regular communication with staff through

monthly staff meetings, team meetings,

podcasts and the organisational intranet ensure

they are kept informed by any decisions made by

the Board, and our annual staff surveys

consistently show a high level of job satisfaction.

Full training is given to each member of staff in

their specific roles. We are committed to equality

in recruiting, training, promotion and career

development, and continually seek to promote

from within before seeking external candidates.

Volunteers

C AP values the work of its volunteers at

our Head Office in Newcastle and across

Australia. Appropriate policies and procedures

clarifying the extent of the volunteer’s remit and

providing check and balance in relation to the key

areas of the manager and HR strategy, have been

introduced and a dedicated person appointed to

oversee their work and well-being.

During the year, 12 volunteers worked at the CAP

Head Office in Newcastle. They performed

various part-time administrative and support

roles. In total these volunteers provided 1,357

hours of invaluable support to us. We estimate

the value of this work to be in the region of $29K.

The number of volunteers within our Debt Centre

network is far more difficult to quantify, but we

acknowledge that, without the invaluable

contribution of the support workers and prayer

teams at our Debt Centres, clients would not

receive the help and support they do. There is an

enormous contribution made by employees and

volunteers at both Head Office and in Debt

Centres around the country.

Our staff and volunteers

90% of CAP employees stated they feel appreciated and valued for the work they do.

(2014 staff survey)

90% of CAP employees stated they feel enthusiastic about their job

(2014 staff survey)

12 volunteers

1,357 hours

38 CHRISTIANS AGAINST POVERTY AUSTRALIA | FINANCIAL PERFORMANCE | ANNUAL REPORT 2014

Financial performance

Statement of income for 2014

Total income: $2,526,364

$1,000,985from Life Changers

(regular giving program)

$159,930from trusts and grants

$123,429from companies

$95,908from charitable

activites (CAP Money, client donations, etc)

$25,382from interest

$679,573from generating funds (individual donations,

fundraising, etc)

$441,157from Church Partnership

39CHRISTIANS AGAINST POVERTY AUSTRALIA | FINANCIAL PERFORMANCE | ANNUAL REPORT 2014

Total expenditure: $2,250,546

Statement of expenditure for 2014

$1,630,890spent on debt

counselling direct aid and raising awareness

$366,530 spent on fundraising

$148,341spent on facilities admin

$104,785spent on CAP Money


Income

The Directors are pleased to report another year

of strong financial growth.

CAP continues to rely on voluntary donations

from individuals and organisations as its

principal source of funding. Total income for

the year increased by 10.9% to $2.53m (2013:

$2.28m).

Our regular giving program – Life Changers –

generated income of $1.00m (2013:$915k) an

increase of 8.5%. At the end of 2014, there were

more than 3,320 Life Changers, each giving an

average of $26 per month. We will continue to

put all our efforts into increasing the number of

Life Changers so that the charity has a solid

foundation of support on which it can grow.

Regular church giving continues to be an

important source of funds, particularly from our

partner churches, and over the year, totalling

$441k (2013:$445k).

Overall regular monthly giving, whether from

individuals or churches represented 62%

(2013:65%) of our total income. This is 69%

(2013:71%) of total expenditure for the year. This

is in line with the Directors’ and Management’s

strategy to increase the level of regular giving in

order to reduce the need for increasingly large

levels of one-off income as the charity grows.

Whilst every effort is put into increasing the level

of regular giving, there is still a need for

significant one-off income and, in 2014, total

one-off gifts from individuals totalled $805k

(2013: $744k). Many individuals who already make

regular Life Changer donations gave additional

gifts that are part of this $805k.

Income from Charitable Trusts continues to be an

important income stream for the charity and in

2014 we received $159k (2013:$60k), an increase

of 165%. We are grateful to the many trusts that

agreed to support our work in this way.

Total one off income from all sources was $964k

(2013:804k)

The Directors wish to thank all our supporters for

the financial contribution they have made

towards the success of the charity.

Expenditure

Total expenditure increased by 8.2% to $2.25m

(2013:$2.08m) as a result of the increased activity

of the charity and further investment for future

growth. $1.74m (2013:$1.73m) related directly to

charitable activities representing 77% (2013:82%)

of total expenditure. The costs of generating

funds were $366k (2013 $258k) representing

16.3% (2013:12.2%) of total expenditure, whilst

essential support costs of $148k (2013: $139k)

have been allocated to activities on the basis of

head count. Staff costs of $1.33m (2013:$1.23k)

represented 59% (2013:58%) of the total

expenditure

From the Finance Director

Tota

l exp

endi

ture

Tota

l inc

ome

$2 .5

3 M

$2.2

5 M

10.9

%

8.2

%


Balance sheet

The surplus for the year had a very positive effect

on the strength of the Balance Sheet. A strong

cash position at the end of the year resulted in

net assets of the charity at 31 December 2014

being $299k (2013:$23k)

Reserves policy

The Directors of the charity continually aim to

maintain the correct balance between the strong

growth strategies of the charity with the desire to

achieve a prudent level of reserves. The fact that

CAP has a high percentage of unrestricted

regular private income is, in many respects, one

of the strongest long term reserves we could

hope for. With over 3,320 people giving an

average of $26 per month, this income

represents 40% (2013:40%) of our total income.

Total regular income represented 69% (2013:71%)

of expenditure. The charity will continue its strat-

egy to increase this percentage to 75-80% of

total expenditure.

The increase in regular giving, coupled with the

substantial one-off gifts raised during the year,

resulted in a net asset balance at the end of the

year of $299k (2013:$23k).

The Directors are confident that on this platform,

combined with the continued drive to increase

regular income, it will enable the charity to

continue with its current growth strategy.

Tota

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ome

$2.5

3 M

40

% =

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Chang

ers

69%

= reg

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Auditors report



The directors of the Company declare that:

1. The financial statements and notes, as set out on pages 38 - 62, are in accordance with the

Corporations Act 2001 and:

a. comply with Accounting standards - Reduced Disclosure Requirement; and

b. give a true and fair view of the financial position as at 31 December 2014 and of the

performance for the year ended on that date of the Company.

2. In the directors’ opinion, 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 Board of Directors.

Dated 17 February 2015

Director

Director

Christians Against Poverty (Australia) LimitedDirectors’ Declaration

“The CAP Money Course was so practical and we could tailor our budget for our lifestyle – and we wanted a lifestyle of generosity.”

Dave and Rosie - CAP Money delegates


Statement of changes in equity

Statement of profit or loss and other comprehensive income

Note 2014 ($) 2013 ($) 2012 ($)

Revenue 2 2,528,091 2,280,761 2,083,990

Employee benefits expense (1,357,581) (1,238,120) (1,209,170)

Depreciation and amortisation expense (48,851) (42,592) (39,148)

Other expenses (836,672) (840,266) (744,023)

Finance costs (7,906) (7,914) (9,811)

Surplus before income tax 277,081 151,869 81,838

Income tax expense - - -

Surplus for the year 277,081 151,869 81,838

Other comprehensive income - - -

Total comprehensive income for the year 277,081 151,869 81,838

2014 Note Retained Surplus Total

Balance at 1 January 2014 22,511 22,511

Surplus attributable to members of the entity 277,081 277,081

Balance at 31 December 2014 299,592 299,592

2013

Balance at 1 January 2013 (129,558) (129,558)


Balance at 31 December 2013 22,511 22,511

2012

Balance at 1 January 2012 (212,103) (212,103)


Balance at 31 December 2012 (129,558) (129,588)


Statement of financial position

Assets Note 2014 ($) 2013 ($) 2012 ($)

Current assets

Cash and cash equivalents 3 361,435 117,247 69,864

Trade and other receivables 4 32,017 38,165 50,824

Inventories 5 7,466 5,496 6, 734

Other assets 6 24,128 24,251 15,967

Total current assets 425,046 185,159 143,389

Non-current assets

Property, Plant and Equipment 7 109,554 120,933 141,829

Total non-current assets 109,554 120,933 141,829

Total assets 534,600 306,092 285,218

Liabilities

Current liabilities

Trade and other payables 8 52,348 60,570 170,295

Borrowings 9 29,510 19,559 17,893

Employee benefits 10 83,242 83,596 51,643

Total current liabilities 165,100 163,725 239,831

Non-current liabilities

Trade and other payables 8 11,192 28,570 46,727

Borrowings 9 25,302 47,130 67,092

Employee benefits 10 33,414 44,156 61, 126

Total non-current liabilities 69,908 119,856 174,945

Total liabilities 235,008 283,581 414,776

Net assets 299,592 22,511 (129,558)

Equity

Retained surplus 299,592 22,511 (129,558)

Total equity 299,592 22,511 (129,558)


Statement of cash flows

Cash flows from operating

activitiesNote 2014 ($) 2013 ($) 2012 ($)

Receipts from customers 2,508,898 2,267,602 2,126,180

Payments to suppliers and employees (2,232,471) (2,198,330) (2,106, 100)

Interest received 25,382 26,018 32,206

Finance costs (7,906) (7,914) (9,811 )

Net cash provided by operating activities 293,903 87,376 42,475

Proceeds from sale of plant and equipment 25,500 - -

Purchase of property, plant and equipment (63,337) (21,696) (92 ,300)

Net cash used in investing

activities(37,837) (21,696) (92,300)

Cash flows from financing

activities

Proceeds from borrowings 37,979 - 43,273

Repayment of borrowings (49,858) (18,156) (13,158)

Net cash (used in)/provided by financing

activities(11,879) (18,156) 30,115

Net increase/ (decrease) in cash and cash equivalents held 244,187 47,524 (19,710)

Cash and cash equivalents at beginning of year 117,248 69,724 89,434

Cash and cash equivalents at end of

financial year17 361,435 117,248 69,724


Notes to the financial statementsThe financial statements are for Christians Against Poverty (Australia) Limited as a not-for-profit individual entity. The functional and presentation currency of Christians Against Poverty (Australia) Limited is Australian dollars.

Summary of Significant Accounting Policies

(a) Basis of Preparation

The financial statements are general purpose

financial statements that have been prepared in

accordance with Australian Accounting

Standards- Reduced Disclosure Requirements

and the Corporations Act 2001.

Material accounting policies adopted in the

preparation of these financial statements are

presented below and have been consistently

applied unless otherwise stated.

The financial statements have been prepared

on an accruals basis and are based on historical

costs modified, where applicable, by the

measurement at fair value of selected

non-current assets, financial assets and financial

liabilities.

(b) Comparative Amounts

Comparatives are consistent with prior years,

unless otherwise stated.

(c) Income Tax

No provision for income tax has been raised as

the Company is exempt from income tax under

Div 50 of the Income Tax Assessment Act 1997.

(d) Leases

Leases of fixed assets where substantially all the

risks and benefits incidental to the ownership

of the asset, but not the legal ownership that

are transferred to the Company are classified as

finance leases.

Finance leases are capitalised by recording an

asset and a liability at the lower of the amounts

equal to the fair value of the leased property or

the present value of the minimum lease

payments, including any guaranteed residual

values. Lease payments are allocated between

the reduction of the lease liability and the lease

interest expense for that period.

Leased assets are depreciated on a straight-line

basis over their estimated useful lives where it is

likely that the Company will obtain ownership of

the asset or over the term of the lease.

Lease payments for operating leases, where

substantially all of the risks and benefits remain

with the lessor, are charged as expenses on a

straight-line basis over the life of the lease term.

Lease incentives under operating leases are

recognised as a liability and amortised on a

straight-line basis over the life of the lease term.

(e) Revenue and other income

Revenue is recognised when the amount of the

revenue can be measured reliably, it is probable

that economic benefits associated with the

transaction will flow to the entity and specific

criteria relating to the type of revenue as noted

below, has been satisfied.

Revenue is measured at the fair value of the

consideration received or receivable and is

presented net of returns, discounts and rebates.

All revenue is stated net of the amount of goods

and services tax (GST).


DonationsDonations and bequests are recognised as

revenue when received.

Interest revenueInterest is recognised using the effective interest

method.

(f) Goods and Services Tax (GST)

Revenue, expenses and assets are recognised net

of the amount of goods and services tax (GST),

except where the amount of GST incurred is not

recoverable from the Australian Taxation Office

(ATO).Receivables and payable are stated

inclusive of GST. The net amount of GST

recoverable from, or payable to, the ATO is

included as part of receivables or payables in the

statement of financial position.

Cash flows in the statement of cash flows are

included on a gross basis and the GST

component of cash flows arising from investing

and financing activities which is recoverable from,

or payable to, the taxation authority is classified

as operating cash flows.

(g) Inventories

Inventories are measured at the lower of cost and

net realisable value. Cost of inventory is

determined using the first-in-first-out basis and

are net of any rebates and discounts received.

Net realisable value is the estimated selling price

in the ordinary course of business, less the

estimated costs of completion and the costs

necessary to make the sale. Net realisable value

is estimated using the most reliable evidence

available at the reporting date and inventory is

written down through an obsolescence provision

if necessary.

(h) Property, Plant and Equipment

Classes of property, plant and equipment are

measured using the cost or revaluation model as

specified below. Where the cost model is used,

the asset is carried at its cost less any

accumulated depreciation and any impairment

losses. Costs include purchase price, other

directly attributable costs and the initial estimate

of the costs of dismantling and restoring the as-

set, where applicable.

Assets measured using the revaluation model are

carried at fair value at the revaluation date less

any subsequent accumulated depreciation and

impairment losses. Revaluations are performed

whenever there is a material movement in the

value of an asset under the revaluation model.

Freehold land and buildings that have been

contributed at no cost, or for nominal cost are

valued and recognised at the fair value of the

asset at the date it is acquired.

Plant and equipment

Plant and equipment are measured using the cost

model.

Plant and equipment that have been contributed

at no cost, or for nominal cost are valued and

recognised at the fair value of the asset at the

date it is acquired.

Depreciation

The depreciable amount of all property, plant and

equipment, except for freehold land is depreciat-

ed on a straight-line method from the date that

management determine that the asset is available

for use.

Assets held under a finance lease and leasehold

improvements are depreciated over the shorter of


the term of the lease and the assets useful life.

The depreciation rates used for each class of

depreciable asset are shown:

At the end of each reporting period, deprecia-

tion method, useful life and residual value of each

asset is reviewed. Any revisions are accounted for

prospectively as a change in estimate.

(i) Financial instruments

Initial recognition and measurement

Financial assets and financial liabilities are

recognised when the entity becomes a party

to the contractual provisions of the instrument.

For financial assets, this is the equivalent to the

date that the Company commits itself to either

the purchase or sale of the asset i.e. trade date

accounting is adopted.

Financial instruments are initially measured at fair

value plus transactions costs, except where the

instrument is classified ‘at fair value through profit

or loss’ in which case transaction costs are

expensed to profit or loss immediately.

Classification and subsequent measure-ment

Financial instruments are subsequently

measured at either fair value, amortised cost

using the effective interest rate method, or cost.

Fair value represents the amount for which an

asset could be exchanged or a liability settled,

between knowledgeable, willing parties in an

arm’s length transaction. Where available, quoted

prices in an active market are used to determine

fair value. In other circumstances, valuation tech-

niques are adopted.

Amortised cost is calculated as:

(a) the amount at which the financial asset or

financial liability is measured at initial recognition;

(b) less principal repayments;

(c) plus or minus the cumulative amortisation of

the difference, if any, between the amount initially

recognised and the maturity amount calculated

using the effective interest method; and

(d) less any reduction for impairment.

The effective interest method is used to allocate

interest income or interest expense over the

relevant period and is equivalent to the rate that

exactly discounts estimated future cash

payments or receipts (including fees, transaction

costs and other premiums or discounts) through

the expected life (or when this cannot be reliably

predicted, the contractual term) of the financial

instrument to the net carrying amount of the

financial asset or financial liability. Revisions to

expected future net cash flows will necessitate an

adjustment to the carrying value with a

consequential recognition of an income or

expense in profit or loss.

The classification of financial instruments

depends on the purpose for which the invest-

ments were acquired. Management determines

the classification of its investments at initial

recognition and at the end of each reporting peri-

od for held-to-maturity assets.

Fixed asset class Depreciation rate

Furniture, Fixtures and Fittings

15 - 50 %

Motor Vehicles 25 %

Office Equipment 40 - 50 %

Computer Equipment 20 - 66 %

Computer Software 50 %

“It’s not just about a spiritual journey, it’s a financial journey too… CAP has been a blessing

from beginning to end.”Craig and Libby - former CAP Clients


The Company does not designate any interest as

being subject to the requirements of

accounting standards specifically applicable to

financial instruments.

(i) Financial assets at fair value through profit or loss

Financial assets are classified at ‘fair value

through profit or loss’ when they are either held

for trading for the purpose of short-term profit

taking, derivatives not held for hedging purposes,

or when they are designated as such to avoid an

accounting mismatch or to enable performance

evaluation where a group of financial assets is

managed by key management personnel on a fair

value basis in accordance with a documented risk

management or investment strategy. Such

assets are subsequently measured at fair value

with changes in carrying value being included in

profit or loss.

(ii) Loans and receivables

Loans and receivables are non-derivative financial

assets with fixed or determinable payments that

are not quoted in an active market and are

subsequently measured at amortised cost.

Loans and receivables are included in current

assets, except for those which are not expected

to mature within 12 months after the end of the

reporting year.

(iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative

financial assets that have fixed maturities and

fixed or determinable payments, and it is the

Company’s intention to hold these investments

to maturity. They are subsequently measured at

amortised cost.

Held-to-maturity investments are included in

non-current assets, except for those which are

expected to be realised within 12 months after the

end of the reporting period, which will be

classified as current assets.

If during the period the Company sold or

reclassified more than an insignificant amount of

the held-to-maturity investments before maturity,

the entire held-to-maturity investments category

would be tainted and reclassified as available

for-sale.

(iv) Available-for-sale financial assets

Available-for-sale financial assets are

non-derivative financial assets that are either not

suitable to be classified into other categories of

financial assets due to their nature, or they are

designated as such by management. They

comprise investments in the equity of other

entities where there is neither a fixed maturity nor

fixed or determinable payments.

Available-for-sale financial assets are included in

non-current assets, except for those which are

expected to be sold within 12 months after the

end of the reporting period.

(v) Financial liabilities

Non-derivative financial liabilities (excluding

financial guarantees) are subsequently measured

at amortised cost. Fees payable on the

establishment of loan facilities are recognised as

transaction costs of the loan.

Borrowings are classified as current liabilities

unless the Company has an unconditional right

to defer settlement of the liability for at least 12

months after the reporting date.

Impairment of financial assets

At the end of the reporting period the Company


assesses whether there is any objective evidence

that a financial asset or group of financial assets

is impaired.

Financial assets at amortised cost

If there is objective evidence that an impairment

loss on financial assets carried at amortised cost

has been incurred, the amount of the loss is

measured as the difference between the assets

carrying amount and the present value of the

estimated future cash flows discounted at the

financial assets original effective interest rate.

Impairment on loans and receivables is reduced through the use of an allowance accounts, all other impairment losses on financial assets at amortised cost are taken directly to the asset.

Available-for-sale financial assets

A significant or prolonged decline in value of an

available-for-sale asset below its cost is objective

evidence of impairment, in this case, the

cumulative loss that has been recognised in other

comprehensive income is reclassified from equity

to profit or loss as a reclassification adjustment.

Any subsequent increase in the value of the asset

is taken directly to other comprehensive income.

(j) Cash and cash equivalents

Cash and cash equivalents include cash on hand,

deposits held at call with banks, other short-term

highly liquid investments with original maturities

of three months or less, and bank overdrafts.

Bank overdrafts are shown within short-term

borrowings in current liabilities on the statement

of financial position.

The company holds $716,652 (2013: $751 ,685)

on behalf of clients and is not available for use by

the company. These funds are not included in the

Statement of Financial Position.

(k) Employee benefits

Provision is made for the Company’s liability for

employee benefits arising from services rendered

by employees to the end of the reporting period.

Employee benefits that are expected to be

settled within one year have been measured at

the amounts expected to be paid when the

liability is settled.

Employee benefits expected to be settled more

than twelve months after the end of the

reporting period have been measured at the

present value of the estimated future cash

outflows to be made for those benefits. In

determining the liability, consideration is given to

employee wage increases and the probability that

the employee may satisfy vesting requirements.

Cash-flows are discounted using market yields on

national government bonds with terms to

maturity that match the expected timing of

cash-flows. Changes in the measurement of the

liability are recognised in profit or loss.

Employee benefits are presented as current

liabilities in the statement of financial position

if the Company does not have an unconditional

right to defer settlement of the liability for at least

12 months after the reporting date regardless of

the classification of the liability for measurement

purposes under AASB 119.

(I) Critical accounting estimates and judgments

The directors evaluate estimates and judgements

incorporated into the financial statements based

on historical knowledge and best available

current information. Estimates assume a

reasonable expectation of future events and are

based on current trends and economic data,

obtained both externally and within the company.


(m) Going concern

Donations represent the majority of revenue

generated by the Company. As at 31 December

2014, the Company’s net assets returned to

surplus.

The financial statements have been prepared on

a going concern basis which contemplates the

realisation of assets and the extinguishment of

liabilities in the ordinary course of business.

The directors of the Company have considered

the going concern assumption appropriate with

consideration to the following:

• The Company’s strategic forecast for 2015 has

estimated a surplus of $12.5k which includes

depreciation expense of $42k;

• The Company has paid out two of its five

financial leases during the year;

• The Company continues to receive ongoing

financial support from all of its regular donors

and creditors to assist the Company meet its

short and long term objectives; and

• The Company has received written

confirmation that financial support from

Christians Against Poverty (UK) will continue

for the foreseeable future.

It is with full consideration of the factors noted

above that the financial statements have been

prepared on a going concern basis.

(n) Adoption of new and revised accounting standards

During the current year, the following applicable

standards became mandatory and have been

adopted retrospectively by the Company:

• MSB 12 Disclosure of Interests in Other

Entities

• AASB 13 Fair Value Measurement

• MSB 119 Employee Benefits

• MSB 2012-2 Amendments to Australian

Accounting Standards - Disclosures -

Offsetting Financial Assets and Financial

Liabilities

The accounting policies have been updated to

reflect changes in the recognition and

measurement of assets, liabilities, income and

expenses and the impact of adoption of these

standards is discussed below.

MSB 13 Fair Value Measurement does not change

what and when assets or liabilities are

recorded at fair value. It provides guidance on

how to measure assets and liabilities at fair value,

including the concept of highest and best use for

non-financial assets. AASB 13 has not changed

the fair value measurement basis for any assets

or liabilities held at fair value, however additional

disclosures on the methodology and fair value

hierarchy have been included in the financial

statements.

AASB 119 Employee benefits changes the basis

for determining the income or expense relating

to defined benefit plans and introduces revised

definitions for short-term employee benefits and

termination benefits.

The Company reviewed the annual leave liability

to determine the level of annual leave which is

expected to be paid more than 12 months after

the end of the reporting period. Whilst this has

been considered to be a long-term employee

benefits for the purpose of measuring the leave

under MSB 119, the effect of discounting was not

considered to be material and therefore has not

been performed.

In accordance with the transition provisions in

the standard, the comparative figures have been

restated.


2014 ($) 2013 ($) 2012 ($)

Finance income

- Interest received 25,382 26,018 32,206

Other revenue

- Donations 2,401,792 2,180,192 1,989,171

- CAP Money 97,400 71,587 61,870

- Other revenue 3,517 2,964 743

Total 2,502,709 2,254,743 2,051 ,784

Total Revenue 2,528,091 2,280,761 2,083,990

2. Revenue and other income

3. Cash and cash equivalents

2014 ($) 2013 ($) 2012 ($)

Cash at bank and in hand 361,435 117,247 69,864

Total cash and cash equivalents 361,435 117,247 69,864

2014 ($) 2013 ($) 2012 ($)

CURRENT

Deposits 15,583 15,583 15,583

Current tax receivable 16,434 22,582 35,241

Total current trade and other receivables 32,017 38,165 50,824

2014 ($) 2013 ($) 2012 ($)

CURRENT

At cost:Inventory 7,466 5,496 6,734

Total 7,466 5,496 6,734

4. Trade and other receivables

5. Inventories

2014 ($) 2013 ($) 2012 ($)

CURRENT

Prepayments 24,128 24,251 15,967

Total 24,128 24,251 15,967

6. Other non-financial assets

“It is because of CAP that I now have a savings plan and a way forward! ...I never believed that I could achieve that!”

Mia - CAP Client


2014 ($) 2013 ($) 2012 ($)

Plant and equipment:

At cost 135,777 134,474 128,186

Accumulated depreciation (102,495) (93,917) (80,358)

Total plant and equipment 33,282 40,557 47,828

Motor vehicles:

At cost 79,461 94,658 94,658


Total motor vehicles 45,208 55,301 73,735

Computer equipment:

At cost 72,778 47,188 27,598


Total computer equipment 28,832 24,291 17,263

Computer software:

At cost 6,390 3,280 2,782


Total computer software 2,232 784 867

Total property, plant and equipment 109,554 120,933 139,693

7. Property, plant and equipment

(a) Movements in carrying amountsMovement in the carrying amounts for each class of property, plant and equipment between the

beginning and the end of the current financial year:

Plant and equipment

($)

Motor vehicles ($)

Computer equipment

($)

Computer software ($)

Total ($)

Year ended 31 Decemeber 2014

Balance at the beginning of the year 40,557 55,301 24,291 784 120,933

Additions 1,303 33,334 25,590 3,110 63,337

Disposals - written down value - (25,866) - - (25,866)

Depreciation expense (8,577) (17,562) (21,049) (1,662) (48,850)

Balance at the end of the year 33,283 42,207 28,832 2,232 109,554


2014 ($) 2013 ($) 2012 ($)

CURRENT

Trade payables 3,511 10,533 15,813

Accrued expense 4,260 5,804 103,941

Other payables 44,577 44,233 50,541

Total 52,348 60,570 170,295

NON-CURRENT

Related party payables - 8,623 13,864

Other payables 11,192 19,947 32,863

Total 11,192 28,570 46,727

8. Trade and other payables

2014 ($) 2013 ($) 2012 ($)

CURRENT

Secured liabilities:

Lease liability 29,510 19,559 17,893

Total current borrowings 29,510 19,559 17,893

NON-CURRENT

Secured liabilities:

Lease liability 25,302 47,130 67,092

Total non-current borrowings 25,302 47,130 67,092

Leased liabilities are secured by the underlying leased assets.

9. Borrowings

2014 ($) 2013 ($) 2012 ($)

CURRENT

Annual leave 34,055 46,736 -

Long service leave 49,187 36,860 51,643

Total 83,242 83,596 51,643

NON-CURRENT

Long service leave 33,414 44,156 61, 126

Total 33,414 44,156 61,126

10. Employee benefits


12. Financial risk management

The main risks Christians Against Poverty (Australia) Limited is exposed to through its financial

instruments are credit risk, liquidity risk and market risk consisting of interest rate risk, foreign currency

risk and equity price risk.

The Company’s financial instruments consist mainly of deposits with banks, local money market

instruments, short-term investments, accounts receivable and payable, bank loans and overdrafts, loans

to and from subsidiaries, bills, leases, preference shares, and derivatives.

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed

in the accounting policies to these financial statements, are as follows:

Fair value estimationFair values are those amounts at which an asset could be exchanged, or a liability settled, between

knowledgeable, willing parties in an arm’s length transaction.

Fair values derived may be based on information that is estimated or subject to judgment, where changes

in assumptions may have a material impact on the amounts estimated. Areas of judgment and the

assumptions have been detailed below. Where possible, valuation information used to calculate fair value

2014 ($) 2013 ($) 2012 ($)Minimum lease payments under non-cancellable operating leases:

- not later than one year 5,304 5,304 5,306

- between one year and five years 12,376 17,680 22,994

Total 17,680 22,984 28,300

An operating lease has been taken out for the photocopier for a period of 5 years.

2014 ($) 2013 ($)

Financial assets

Cash and cash equivalents 361,435 117,248

Total financial assets 361,435 117,248

Financial liabilities

Financial liabilities at amortised cost

- Trade and other payables 52,308 60,570

- Borrowings 54,812 66,689

Total financial liabilities 107,120 127,259

11. Leasing commitments(a) Operating leases


is extracted from the market, with more reliable information available from markets that are actively

traded. In this regard, fair values for listed securities are obtained from quoted market bid prices. Where

securities are unlisted and no market quotes are available, fair value is obtained using discounted cash

flow analysis and other valuation techniques commonly used by market participants.

13. Members’ guarantee

The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If

the Company is wound up, the constitution states that each member is required to contribute a maximum

of $10 each towards meeting any outstandings and obligations of the Company.

14. Key management disclosuresThe total remuneration paid to key management personnel of the Company is $442,491 (2013: $334,495).

15. ContingenciesIn the opinion of the Directors, the Company did not have any contingencies at 31 December 2014 (31

December 2013: None).

16. Related partiesTransactions between related parties are on normal commercial terms and conditions no more

favourable than those available to other parties unless otherwise stated. Related party transactions for

fees in respect of travel reimbursements and a public seminar course of which costs were provided by

Holley Nethercote (Paul Derham is a partner) to the amounts of $1,307 which are on normal commercial

terms and conditions.

Key Management Person Position

John Kirkby Director

Ross Buttenshaw Chief Executive Officer

Janelle Hines Corporate Services Director (assigned)

Rosemary Kendall Operations Director

Alison Buttenshaw Church Partnership Director

Amy Lanham Communications Director

George Jose Corporate Services Director (resigned)

Troy Carthew Client Services Director (resigned)

Emma Hawkin Partnership & Communications Manager (resigned)


17. Cash flow information(a) Reconciliation of cash

18. Events occurring after the reporting date

The financial report was authorised for issue on by the Board of Directors.

No matters or circumstances have arisen since the end of the financial year which significantly affected

or may significantly affect the operations of the Company, the results of those operations or the state of

affairs of the Company in future financial years.

2014 ($) 2013 ($)

Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement of financial position as follows:

Cash and cash equivalents 361,435 117,248

63CHRISTIANS AGAINST POVERTY AUSTRALIA | GLOSSARY OF TERMS | ANNUAL REPORT 2014

CAP AccountActs as a simple bank account for CAP Debt

Centre clients and CAP Money Plus clients

allowing them to make an agreed regular

payment into this account which CAP distributes

on their behalf.

CAP Debt CentreA partner church equipped to offer CAP’s

all-encompassing debt counselling program.

CAP Money CoachA member of a CAP Money Church trained by

CAP to facilitate the CAP Money Course.

CAP Money CourseA basic money education course designed to give

delegates opportunities to learn skills in

budgeting.

CAP Money Plus A basic telephone and email based debt

management service offered to assist people with

unmanageable debt.

CAP Money Youth An extension pack of the CAP Money Course

designed to introduce the concepts of budgeting

to young people of high school age.

CaseworkerQualified staff member based at CAP Head Office

providing ongoing advice and debt negotiations

on behalf of CAP clients.

Client AdvocateQualified staff member based at CAP Head Office

providing ongoing advice and debt negotiations

on behalf of CAP clients.

Centre ManagerA member of a CAP Debt Centre church,

appointed and trained by CAP, to communicate

CAP services and manage a local team of

volunteers to support clients.

Client ActivationThis occurs when a client has received a CAP

produced debt solution, has signed the relevant

paperwork and their CAP Account has been

activated.

Debt CoachA member of a CAP Debt Centre church,

appointed and trained by CAP, to communicate

CAP services under the management of a CAP

Centre Manager.

Head OfficeHeadquarters of CAP Australia based in

Newcastle, NSW.

Support WorkerA member of a CAP Debt Centre church

volunteering time to support clients locally.

Glossary of terms

“... I think I needed that love from them more than the financial help at that point because I was falling apart.”

Kim - CAP Client


Company secretary

Janelle Hines

Registered office

CAP Australia Head Office

Level 1, 451 Hunter Street

Newcastle NSW 2300

ABN 92 104 471 516

Auditors

Kilpatrick Lake Mackenzie Pty Ltd

Accountants, Business and Financial Advisors

313 Charlestown Road

PO BOX 875

Charlestown NSW 2290

ABN 90 002 223 565

Solicitors

Holley Nethercote Commercial Lawyers

GPO BOX 3045

Melbourne VIC 3001

ABN 30 339 960 335

Bankers

Westpac Banking CorporationShop LG 8020 Charlestown Square Charlestown NSW 2290ABN 33 007 457 141


Speak up

Speak up

”

for those who cannot speak for themselves,for the rights of all who are destitute.

and judge fairly; defend the rights of the poor and needy.

Proverbs 31:8-9 (NIV)

“

[email protected]

CAPAustralia

@CAPAustralia@CAPAustralia

@CAPAustralia

All rights reserved. PO Box 298, Hunter Region MC NSW 2310ABN: 92 104 471 516 ACL: 426594 [email protected] capaust.org t: 1300 303 929Client Helpline: 1300 227 000

Documents

Annual report 2014