ANNUAL REPORT 2015 - Access Housing · 2015-11-09 · Fremantle the Honourable Jim McGinty AM and Debra Bakker, who has an impressive resume in international finance and the resources

ANNUAL REPORT 2015

CONTENTS

HIGHLIGHTS 1

ABOUT ACCESS HOUSING AUSTRALIA LTD 2

VALUES, PRINCIPLES, STRATEGIC PILLARS 4

CHAIRMAN’S REPORT 5

BOARD PRIORITIES 7

PATRON & BOARD DIRECTORS 7

COMMITTEES AND SUBSIDIARY BOARDS 9

CHIEF EXECUTIVE OFFICER’S REPORT 10

TENANT SATISFACTION 18

EXECUTIVE TEAM 20

ACCESS HOUSING REALTY PTY LTD 21

COMMUNITY 22

AWARDS 23

VALUED PARTNERS 24

FINANCIAL REPORT 25

ABOUT ACCESS HOUSING AUSTRALIA LTD

1,742ACCESS HOUSING AUSTRALIA LETTABLE AREAS UNDER MANAGEMENT

91%TENANT SATISFACTION

151TOTAL DWELLINGS COMPLETED SINCE 2013

156ACCESS HOUSING AUSTRALIA NRAS INCENTIVES ACTIVATED AS AT 30 JUNE 2015

29%SUPPORTED TENANCIES

$128MBALANCE SHEET EQUITY

159PROPERTIES UNDER MANAGEMENT

$40MNEW COMMONWEALTH BANK LOAN FACILITY TO FINANCE OUR PROPERTY DEVELOPMENT PROGRAM

REFURBISHMENTS AND IMPROVEMENTS TO MORE THAN 140 DWELLINGS

FINALISATION OF ACCESS HOUSING’S PRIVATE EQUITY INVESTMENT STRUCTURE (ACCESS CCIN LTD)

$14MSOCIAL VALUE INDICATOR

Alleviating poverty by providing affordable housing

Reduction of living costs delivered to tenants through an average 54% reduction of rents.

$4.9MROYALTIES FOR REGIONS FUNDING AWARDED FOR TWO SENIORS’ HOUSING PROJECTS IN BOYANUP AND DARDANUP

$20.12MTOTAL INCOME

AUSTRALASIAN HOUSING INSTITUTE (WA) AWARD WINNERS

Three AHI Awards for Professional Excellence in Housing at the Western Australian State Awards

• Outstanding AchievementSu Groome (General Manager – Property Assets)

• Inspirational Team MemberMichelle Shaw (Policy Officer)

• Excellence in Social HousingJoint winners with City of Perth

Access Housing Australia Ltd is one of Western Australia’s leading providers of affordable housing and works across the housing spectrum in the Perth metropolitan area and Peel and South West regions. We provide:

1) PROPERTY AND TENANCY MANAGEMENT SERVICES

affordable rental options for low to moderate income earners; and

social rental housing for people on benefits or very low incomes

2) AFFORDABLE HOUSING PROPERTY DEVELOPMENT

properties to be retained by Access Housing for social and affordable rental housing;

properties for sale to investors under the National Rental Affordability Scheme (NRAS) to increase the provision of affordable rental housing; and

properties for sale for affordable home ownership

Our development projects are driven by local demand and assist a range of client groups including people with disabilities, seniors, families and singles.

Established in 2007 under the Corporations Act as a not-for-profit (NFP) company limited by guarantee, Access Housing is a public benevolent institution, an income tax exempt charity and deductible gift recipient.

Access Housing is a registered Growth Provider with the WA Department of Housing. Growth Providers are NFP housing companies with a proven track record in property and tenancy management that have the financial capacity and capability to undertake property development to increase the supply of affordable housing in WA.

In 2016 Access Housing will celebrate 10 years of service to the Western Australian community.

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2015ACCESS HOUSING ANNUAL REPORT


VALUES, PRINCIPLES, STRATEGIC PILLARS

VISIONAccess Housing Australia is a leading affordable housing provider delivering strong growth in housing options which make a difference to people’s lives

PURPOSETo enhance opportunities for people in need through the provision of affordable housing solutions and quality services

OUR VALUESFairness

Respect

Integrity

Sustainability

Cooperation

PRINCIPLES AND BUSINESS PHILOSOPHY Making a Difference

Opportunity and Choice

Quality Services

Customer Focus

Independence and Sustainability

No Free Kicks

Commercial Viability

Liveable Communities

Strategic Alliances and Partnerships

STRATEGIC PILLARSAccess Housing has developed a new Strategic Business Plan for 2015-2020 that will build on its achievements.

Making a Difference (Creating Choices)

Sustainable Growth and Capacity (Creating Homes)

Strategic Leadership (Creating Awareness)

Sector Development and Innovation (Creating New Markets)

3 4


CHAIRMAN’S REPORT

Former Chairman Greg Joyce stepped down from the Board at the October 2014 Annual General Meeting and I was elected as his replacement at that time (with some big shoes to fill). Greg successfully steered Access Housing through a phenomenal growth period from 2010 to 2014. We also received the resignation of Director Kylie Gilbey, who had chaired the Finance and Audit Committee and established a rigorous governance regime in respect to the financial performance of the company. I wish Greg and Kylie the very best for the future and thank them for their valuable contributions to the Access Housing cause.

The vacancies created by Greg and Kylie’s resignations saw the Board welcome former State Attorney-General, Health Minister and Member for Fremantle the Honourable Jim McGinty AM and Debra Bakker, who has an impressive resume in international finance and the resources and mining sectors. Both have hit the ground running and contributed strongly to the Board’s work during the year.

The Board and executive management found itself operating in a challenging political and economic environment during 2014/15. The Perth property market peaked in the first quarter of the reporting period and has been steadily readjusting since then. The residential property investment climate softened in the second half of the year. Both of these realities need to be factored into Access Housing’s property development program, which has significant sales targets to achieve in 2015/16.

At a political level we saw the Commonwealth Government retreat from the social housing space during 2014, which has been well documented. We await the outcome of the Federation White Paper

review with some interest. At the State Government level the strong commitment to growing the community housing sector by the Department of Housing in the 2009-2013 period, as witnessed through substantial capital works programs and management and asset transfers, has been pared back. It was against this environment that the Board undertook a root and branches review of its strategic and business priorities and determined Access Housing needed to adopt a strong strategic leadership and sector development role. The investment in research and innovation and the related establishment of Access CCIN Ltd continues and is expected to bear fruit over the ensuing period.

We remain committed to growing new housing supply but in a broader strategic framework of sustainable growth and capacity, with an emphasis on scalable housing solutions and continuing to diversify our revenue and capital base. Our commitment to efficient and effective customer services and sustaining tenancies remains, but within a more enriched aim of making a difference to people’s lives by facilitating opportunities and choices to improve their circumstances and, where feasible, to transition people out of social housing into home ownership.

The changes reflect the growing maturity of the company, with a balance sheet and financial capacity to invest in social leverage and growth programs, research and innovation and new business development opportunities. The Board, executive and staff are excited by these new priorities and the direction we have set for the next few years.

From a governance perspective the Board ensured the company’s legislative, contractual and regulatory compliance and reporting obligations were met during the year. We reviewed the Access Housing Australia Constitution, making changes to the company’s membership structure. We continued to operate three sub-committees to oversee and monitor key areas of business activity and risk – Governance, Finance and Audit and Property Development. These committees have been effectively engaged during the year and I’d like to thank the Committee Chairs, respectively Malcolm O’Dell, Geoff Lotter and Matt Raison for the extent of their time commitment and the excellent leadership they have provided. Committee members, including Board and independent representatives, executive management and staff have worked tirelessly to help guide Board and executive decision making and review important aspects of the business.

We remain committed to growing new housing supply but in a broader strategic framework of sustainable growth and capacity.

The Board also kept governance oversight over Access Housing’s two subsidiary companies, Access Housing Realty Pty Ltd and Access CCIN Ltd. Both have independent Boards appointed by Access Housing that report back to the Access Housing Board on a regular basis. My thanks to the Board Chairs, respectively Garry Ellender and Malcolm O’Dell, and the other company directors.

The business highlights and Board priorities for the year included:

Implementation of the key recommendations from the independent evaluation of the Board, which was undertaken in the first half of 2014. This included the review of Access Housing’s strategic objectives and business priorities highlighted above, adoption of a Board Charter and negotiation of a new five year contract with Chief Executive Officer Garry Ellender, effective from 1 July 2014, to provide executive leadership stability.

Establishment of a new corporate loan facility with the Commonwealth Bank of Australia, which helps Access Housing continue to develop new housing and deliver on its contractual commitments to the State and Commonwealth Governments for social and affordable rental housing.

Further, the Board approved new seniors’ housing projects to proceed in Boyanup and Dardanup following our successful seniors’ projects in Capel and Eaton. Access Housing was awarded State Government support through the Royalties for Regions (RFR) fund towards the sales component of these projects, the proceeds of which will then be rolled into future seniors’ housing projects in the South West. This is a terrific example of how government funds can be successfully leveraged to ensure further investment in WA regional communities.

Governance oversight of the development of Access Housing’s private equity investment structure (CCIN) and commencement of the Access CCIN Ltd subsidiary company entity via provision of a loan by parent company Access Housing for consultancy and legal expenses to enable commencement of the first development program.

The year ahead offers some exciting prospects, with the continuation of our housing development programs, the delivery of our private equity investment structure pilot project, working with new strategic alliance partners in the disability housing sphere, the possibility of commencing an Access Housing shared equity home ownership scheme and working closely with other NFPs to provide opportunities for homeless or at-risk clients to obtain secure, supported affordable rental housing.

In reflecting on my initial term as Board Chair I am impressed by the professionalism and commitment of my fellow directors, the CEO, executive management team and the Access Housing staff. Access Housing continues to find the balance between pushing the boundaries and innovation whilst ensuring that its core customer services and back-end financial and corporate support are of the highest order. My sincere thanks to everyone involved.

David LantzkeChairman

Access Housing Australia Ltd

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BOARD PRIORITIESDuring 2014/15 the Board was primarily focussed on:

The review of Access Housing’s strategic objectives and business priorities

The approval of a new corporate loan facility

Governance oversight including financial management

Strategic oversight of the development of a private equity investment structure (CCIN)

The oversight of Access Housing’s property development growth targets including new seniors’ housing projects in regional WA

Implementing changes to the Access Housing Constitution in respect to its membership structure.

THE HONOURABLE ANTOINETTE KENNEDY AOPATRON

PATRON & BOARD DIRECTORS

MICHAEL MITCHELLDIRECTOR

CHRIS PARKINSON DIRECTOR

MATT RAISONDIRECTOR

REBECCA STROMDIRECTOR

DAVID LANTZKECHAIRMAN

MALCOLM O’DELL DEPUTY

CHAIRMAN

DEBRA BAKKERDIRECTOR

GEOFF LOTTERDIRECTOR

THE HONOURABLE JAMES (JIM) MCGINTY AMDIRECTOR

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CHIEF EXECUTIVE OFFICER’S REPORT

With residential property markets easing during the year and the Federal and State Government policy and funding environments remaining difficult, Access Housing operated in a constrained and challenging climate. The Board’s review of Access Housing’s strategic business priorities was undertaken within this context.

Four new strategic objectives were agreed upon to support a revised purpose to enhance opportunities for people in need through the provision of affordable housing solutions and quality services. These new objectives are:

To provide strategic leadership on housing affordability issues to influence government strategies and policies, raise public awareness and increase Access Housing’s public profile.

To ensure sustainable growth and capacity to significantly increase social and affordable housing choices in local communities, create scalable housing solutions and diversify our revenue and capital base.

To make a difference to people’s lives through the provision of customer focussed, best practice affordable housing services that offer genuine choices and opportunities whilst also facilitating effective pathways into and out of social housing.

To drive sector development and innovation to diversify client markets and services and expand the role of the community housing sector, particularly in regional and rural communities.

The new strategic directions approved by the Board have provided a clear framework and focus for the work of the executive and staff during the reporting period.

STRATEGIC LEADERSHIP (CREATING AWARENESS)Given that Western Australia’s community housing sector peak advocacy body was de-funded during the year, this particular new strategic focus for Access Housing was timely. We ramped up our external promotional and media activities including speaker engagements at housing affordability and homelessness conferences and forums, revamped our website (http://www.accesshousing.org.au), engaged more actively with State and Federal members of parliament and continued to work collaboratively with government agencies including the Department of Housing, LandCorp, the Disability Services Commission and the Mental Health Commission on a range of project, contractual and policy matters. We also took a NFP sector leadership role, both nationally and locally, holding forums and workshops on key community housing and tenancy support issues throughout the year to inform our engagement with government. A special thanks to our Manager of Strategic Projects Lyn Brun and her team for raising the bar in terms of our media, promotional and market research activities during the year.

As CEO, the highlight for the year was the opportunity to attend the International Housing Partnership Conference in London in October 2014 and to present a State of the Nation report at the opening plenary session. The four day conference provided an excellent platform to network and share ideas on building a sustainable social housing sector. I also undertook a week long study tour of UK housing associations with colleagues from other community housing providers

COMMITTEES

PROPERTY DEVELOPMENT COMMITTEEMatt Raison (Chair)

David Lantzke

Ivor Byrde

Louise Ainsworth

Garry Ellender*

Su Groome*

Ian Aiyathurai*

FINANCE & AUDIT COMMITTEEGeoff Lotter (Chair)

Chris Parkinson

Debra Bakker

Tracy Destree

Garry Ellender*

Ian Aiyathurai*

GOVERNANCE COMMITTEEMalcolm O’Dell (Chair)

Antoinette Kennedy

Michael Mitchell

Rebecca Strom

Garry Ellender*

Lyn Brun*

* Executive

ACCESS HOUSING REALTY PTY LTD BOARDGarry Ellender (Chair)

Allan Wilkerson

Terry Foster

Liz Waterhouse (Company Secretary)

ACCESS CCIN LTD BOARDMalcolm O’Dell (Chair)

Garry Ellender (resigned 30/03/15)

Jim McGinty (appointed 30/03/15)

David Lantzke

Debra Bakker

Mark Roberts

Liz Waterhouse (Company Secretary)

SUBSIDIARY BOARDS

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29%of tenancies are supported tenancies

OUR COMMUNITY HOUSING PORTFOLIO

Peel Region

524

South West Region

193

Perth Metro

1025

62% 38%

3%

34%

39%

24%

TENANT PRIMARY INCOME SOURCE

WAGES

CENTRELINK

OTHER

PRIMARY TENANT AGE GROUPS

15 to 24 years

25 to 44 years

45 to 64 years

65 & over

13%

83%

4%

18% Mental Illness

9% Disability

2% Crisis

GENDER OF PRIMARY TENANTS

from around Australia. This gave us firsthand insight into the operations of these housing associations, a number of which are larger than our State Housing Authorities. Some of the learning and inspiration from the trip provided valuable input into Access Housing’s strategic review, particularly the choice and opportunities framework around customer services and the reinforcement that scalable non-government models of social housing provide cost effective, alternative solutions to our State run monopolies.

SUSTAINABLE GROWTH AND CAPACITY (CREATING HOMES) At a time when governments are cutting costs to reduce budget deficits, traditional avenues of capital to increase social and affordable housing supply have diminished. With little incentive for the private sector to fill the vacuum following the abolition of the National Rental Affordability Scheme (NRAS), Access Housing’s innovation in establishing a private equity investment structure via its subsidiary company vehicle (Access CCIN Ltd) may prove pivotal in driving a delivery pipeline of new housing. In respect to the CCIN program, it was a year of frustration as timelines and decision making processes outside of Access Housing’s control stretched right through the year. However, as the year drew to a close, we remained optimistic that a trial project with an investment value of approximately $37 million would commence in 2015/16. The work of consultant Mark Roberts and his team in developing the investment structure has been exceptional. I’d also like to recognise Alan Churley at Corrs Chambers Westgarth for his continued support and wisdom in advancing this transaction and Barrister Jonathon Leek for his excellent taxation and financial advice.

Whilst the CCIN project experienced delays, it was full steam ahead for our Property Development team under the guidance of General Manager – Property Assets Su Groome. Last year’s investment in in-house design and recruitment of experienced property development and contract management personnel has built considerable capability within the company.

During the year we completed three projects at Mandurah, Hilton and Carey Park for a total of 39 dwellings. At year’s end a further nine projects (158 dwellings) were at various stages of planning or construction.

At 30 June 2015 we had completed 151 construction and acquisition units since 2013, retaining 120 for social rental housing. Of our approved NRAS incentives, 156 dwelling constructions had been completed and activated by Access Housing and various other parties as at 30 June 2015.

Artist impression renders of apartments and townhouses

currently under construction in Rockingham. This project

– located on the corner of Market and McNichol Streets –

is scheduled for completion in late 2016.

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Securing well located, affordable land has been a focus of the business for the past three years. We worked closely with LandCorp to purchase suitable group housing sites in Rockingham, Waikiki and Coolbellup in 2013/14, with a combined yield of 57 dwellings. During 2014/15 we secured further sites in White Gum Valley and Waikiki (to yield 21 dwellings). The White Gum Valley project (12 units) is to provide affordable rental accommodation in specially designed work studio / apartments for local artists who have been squeezed out of the Fremantle private rental market. This is an exciting example of how Access Housing is working across the market spectrum to house people experiencing housing affordability pressures, who may not fit into a traditional public housing option and who are aspiring to purchase their homes in the future.

We also acquired sites from the Shire of Capel and Shire of Dardanup in the South West to undertake two housing developments for seniors (26 dwellings) and were awarded Royalties for Regions funding in February 2015 towards the sales components of these projects. The intent is for sales proceeds to be rolled forward into a future housing project for seniors in the South West. We are greatly appreciative of the support from Royalties for Regions and particularly the Minister for Regional Development, Hon Terry Redman MLA and the Department of Regional Development.

My thanks to Su and her team for another outstanding 12 months.

MAKING A DIFFERENCE (CREATING CHOICES)An enduring focus for Access Housing has been to ensure that our social housing services are underpinned by a philosophy of sustaining tenancies and providing security of tenure. Whilst this remains fundamental, the Board recognised that, in a changing service environment, we need to reshape our customer focus towards a more competitive, choice based framework. The Board also concluded that, given our growth and consolidation in recent times, we have the resource foundations to enable us to work with strategic partners to facilitate tenant access to education, training and employment options and to create pathways into and out of the social housing system. This will become a priority from 2015/16.

The early part of the year for our Tenancy and Property Services divisions was strongly focussed on bedding down our new OneHousing IT system, which went live on 1 July 2014. It has been a significant resourcing task to adapt and refine the system to optimal functionality. Big strides were made during the year with efficiency gains in reporting and compliance capability and processes and the trialling of mobile applications and devices for standard tenancy and property services tasks such as Property Condition Reports and Building Condition Assessments.

Operationally the Tenancy Services team, managed by General Manager - Tenancy Services Allan Wilkerson:

moved to a more intensive property inspections regime in 2014/15 to take a more proactive approach in dealing with property standards issues;

continued to drive case management and early intervention strategies in respect to rent arrears and tenant debts;

continued to case manage at-risk tenancies and respond quickly to neighbourhood complaints, particularly in respect to anti-social behaviour;

finalised implementation of changes to Tenancy Agreements required under 2013 amendments to the Residential Tenancies Act; and

reviewed and implemented changes to the Access Housing rent policy.

Our total expenditure on property development and acquisition programs since 2013 had reached $31 million by year’s end. This figure will nearly double in 2015/16 with an anticipated expenditure of $26.3 million - hence the need for an increased debt facility that the Board approved during the year. Much of this expense will be contingent on successful presales being reached on our three largest projects at Baldivis, Rockingham and Coolbellup early in the 2015/16 financial year.

During the year we had the privilege of hosting official Ministerial opening ceremonies for our Waverley Road, Coolbellup project (38 dwellings, completed in late June 2014) and our Carey Park project in the South West (20 dwellings, completed in April 2015). My thanks to respective Housing Ministers, Hon Bill Marmion MLA and Hon Colin Holt MLC for taking time out from their busy schedules to do the honours and talk with staff, tenants, our project partners and local community members at the openings.

We continue to have an excellent relationship with builders BGC and Coastline Building Group. I’d like to also acknowledge Niche Living for constructing our project in Hilton utilising the innovative Structural Insulated Panel System (SIPS), which provides strength, versatility and exceptional insulation properties.

Hines Road, Hilton development. Access Housing CEO Garry Ellender and Minister for

Housing Hon Colin Holt MLC officially opened the

Carey Park development in May 2015.

Allnutt Street, Mandurah development.

Locke Street and Winton Street, Carey Park development.

Artist's impression of Access Housing's Juliet Road,

Coolbellup project.

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Access Housing manages a significant portfolio of supported properties, particularly for people with a mental health illness. An important part of the success of these programs is the annual funding we receive from the Mental Health Commission and the close working relationships between our staff and more than 50 support agencies. Without this invaluable support there would be many more people facing the harrowing prospect of homelessness.

My thanks and appreciation to Allan, Regional Managers Kathryn Moorey (Peel and the South West) and Luli Kastrati (Perth Metro) and the Tenancy Services staff for their dedication and commitment over the year in what, at times, has been a stressful service environment. The challenge for the team in 2015/16 will be delivering on the Board’s new strategic directions to improve customer choices and opportunities and to create realistic pathways into and out of the social housing system.

Complementing the work of our Tenancy Services department, the Property Services division has focussed on ensuring Access Housing provides responsive and effective property maintenance services. We increased the staffing levels attached to our Maintenance Hotline in response to customer feedback from the 2014 Tenant Survey and have been closely monitoring the issuing of job orders and contractor response times. In the latter part of 2013/14 we re-tendered plumbing and electrical maintenance contracts, moving to contractors with greater scale. During the reporting period we progressively reviewed and re-tendered the remaining trades. The first full year of implementation has given us greater visibility and control over contractor performance including pricing, quality, timeliness and customer service.

We also continued to implement our major refurbishments program, upgrading more than 140 dwellings at a cost of $1,117,203 in order to ensure equitable property standards across our housing portfolio.

The Property Services division also commenced coordinating maintenance services for the City of Perth Key Worker Housing Project, which is managed by Access Housing Realty. Effective maintenance coordination and service capability provides Access Housing with a future revenue opportunity with the potential to offer services to other NFP organisations, local government authorities and State Government agencies.

COMMUNITY HOUSING SECTOR DEVELOPMENT AND INNOVATION (CREATING NEW MARKETS) There is no certainty about future government support for, or investment in, scalable community housing models despite the continuing stresses on the public housing systems around the nation. It is therefore important for leading affordable housing providers like Access Housing to work with strategic partners to continue to build a strong sector and expand housing options for new client and locational markets. Three initiatives in particular were pursued during the reporting period in response to this Board priority.

Access Housing increased its role in providing housing options for people with disabilities, taking on more tenancy leases under the Department of Housing’s Combined Capital Bid program and negotiating a management contract under their Ancillary Dwellings My Way initiative. Access Housing’s Property Development division also commenced work on a small housing project for Disability Services Commission clients in Busselton. The development team is incorporating universal design principles into several projects planned for 2015/16 that will showcase Liveable Housing Standards, including at a development at Waikiki that is being jointly promoted by the Housing Industry Association and the Disability Services Commission.

1%EVICTION RATE

2.68%RENT ARREARS

An internal review of our tenancy services productivity and efficiency, including how we structure our roles and services, commenced in the second half of the year. Changes are to be considered in 2015/16.

Our South West Tenancy Services team had a challenging year as they completed their second full year of managing a 38 room lodging house in central Bunbury. Prior to residing at the lodging house most clients were homeless with high support needs and often came with little to no funded support. We trialled an in-house Tenancy Support Officer position to work closely with the lodging clients to identify issues, link in community supports and develop practical strategies to improve community engagement, with the aim of assisting people into work. The extent of incidences reduced after the position became established and the six month trial was extended later into the year. Nonetheless, there remains a question mark as to whether the lodging environment can continue to take in such a high proportion of unfunded, high needs clients. Access Housing will conduct a formal review into this matter in 2015/16.

PROPERTIES (LETTABLE AREAS) UNDER MANAGEMENT

20

05

/06

20

06

/07

20

07

/08

20

08

/09

20

09

/10

20

10/1

12

011

/12

20

12/1

32

013

/14

20

14/1

5

5000 1000 1500 2000

440

462

531

684

947

1379

1446

8

26

121

159

1540

1703*

1742

CHANGE%

+5

+15

+29

+38

+46

+5

+8

+16

+4

Access Housing Australia

Access Housing Realty

* the 2013/14 figure has been adjusted from last year’s report

COMMUNITY HOUSING: NUMBER OF LETTABLE AREAS MANAGED AND PEOPLE ASSISTED

2013 - 14

2014 - 15

3,000

1,703

3,125

1,742

HOUSEHOLD COMPOSITION

Single person

Sole Parent plus child/ren under 16

Couple only

Couple plus child/ren under 16

Family

Group/non-related

55%10%

13%

17%

3%

2%

ScaleChecked by

Drawn by

Date

Project number

ON A3 SHEET

Sheet Number Current Revision

Project Name

17/0

9/2

015 1

2:4

9:2

4

6

COVER

8387 - 15

SEPTEMBER 2015

AR

RV / PR

A000

PROPOSED 2 UNITSLOT 18, (#176) KENT STREET, BUSSELTONFOR ACCESS HOUSING

No. Description Date1 ISSUED FOR DA. 09.07.15

2 RE-ISSUED FOR DA. 13.07.15



5 REV. ROOM SIZES 27.07.15

6 ISSUED FOR STR. COMMENTS 17.09.15

PROPOSED TWO UNITSLOT 18, (#176) KENT STREET, BUSSELTON

Artist impression render of Access Housing’s project for

Disability Services Commission clients in Busselton.

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Towards the end of the financial year Access Housing issued an Expression of Interest, seeking to enter into a formal strategic alliance with a leading edge organisation that has substantial disability support service experience. Rise Inc. was selected and meetings between our organisations commenced to identify key areas where Access Housing and Rise can work collaboratively to increase service options and opportunities. During 2015/16 the parties will have a specific focus on opportunities in respect to the National Disability Insurance Scheme roll out in the Cockburn-Kwinana district. We are looking forward to working closely with Rise over the long term.

Access Housing also collaborated with the Central Eastern Aged Care Alliance (CEACA) on behalf of 11 Wheatbelt Shires, with the aim to increase affordable housing options for seniors in a number of local communities. Access Housing provided consultancy services and assisted CEACA to prepare Royalties for Regions submissions. The first submission was successful, resulting in funds being received to enable land assembly and site servicing of an initial 54 sites for future construction of Independent Living Units. Access Housing will continue to work with CEACA during 2015/16 and has encouraged the Shires to establish a NFP association to manage and maintain their collective social and affordable housing assets.

FINANCIAL PERFORMANCETotal revenue for the year was $20.12 million. Our core transactional businesses (Community Housing and Access Housing Realty) remained solid. Access Housing Realty’s revenue increased by 43.6% to $554,700 and is anticipated to grow by a further 51.2% in 2015/16 to $839,400. The Community Housing division’s revenue grew by 14% to $18.2 million and will grow by 4% to $18.89 million in 2015/16.

Property sales revenue was limited due to a decision to retain all completed property development units for social and affordable rental purposes.

The net profit position of the recurring business was healthy at $3.33 million, however depreciation on property assets, non-recurring expenditure on consultancy and legal services to establish our private investment structure and to bed down our new IT system reduced the overall net profit position to $911,000. The EBITDA result of $4.26 million reflects the strong performance of the recurring business and the healthy cash flows coming into the business.

Looking forward, we anticipate that our revenue will increase to $27.78 million in 2015/16, with a net profit of $4.06 million and EBITDA of $7.67 million. This continues the healthy and sustainable growth and diversification of the company over the past five or six years. Social housing rents, which reflected 95% of revenue in 2010, represent around 54% of anticipated revenue in 2015/16.

Our OneHousing IT system went live on 1 July 2014 without any major incidents, although we have had to continue to invest significant resourcing time into redesigning some business processes and developing a powerful suite of reports for business management, planning, reporting and compliance purposes. An independent audit of the system’s implementation, focussing on data migration and system controls, was completed during the year by Bentleys. No major problems were identified.

During the second half of the year we engaged consultant Brayden Briggs from Resilient Safety Systems to undertake a Workplace Health and Safety audit. This was completed in March 2015. The consultant’s report identified strengths and risk areas and at year’s end we had progressed around 85% of the report’s recommendations. We also commenced the renegotiation of our Enterprise Bargaining Agreement (EBA) with staff and union representatives. The current EBA expires in October 2015.

My thanks to Chief Financial Officer Ian Aiyathurai for his excellent guidance throughout the year and in particular his close working relationship with the Finance and Audit Committee to ensure that we have a more strategic overview of our finances, with a more detailed understanding of the productivity drivers and opportunities within the business. A special thanks also to consultant Tony Benson for effectively managing the challenges of the OneHousing implementation and to Human Resources Manager Jane House. Jane has been the sole HR resource for many years at Access Housing and was looking forward to recruiting an additional HR staff person in 2015/16, who has since joined the company.

TENANT SATISFACTION

‘Always nice to deal with friendly

people from Access

Housing’

‘I'm now in a better place,

thank you guys’‘Staff has

outstanding customer service’

‘Thank you for my beautiful

home’

‘Access Housing maintenance is spot on and my house manager is a very

nice friendly person who treats me with respect’

‘Have found dealing with

Access Housing excellent’

‘Have never in the six years of living here had any problems with Access Housing customer service and appreciate the friendly and

happy service you provide’

Access Housing conducted its annual Tenant Survey mid-year in order to understand tenants’ levels of satisfaction with the services provided by Access Housing and to determine how those services could be improved in the future. This feedback gave the company great insight relating to our Customer Service, Property Maintenance, Communication and Overall Tenant Satisfaction over the 12 months preceding the survey.

This year we received 392 completed surveys (a 23% response rate). The findings and feedback from the survey showed a high level of satisfaction amongst the tenants that completed and returned the survey to Access Housing.

In addition to rating their satisfaction with Access Housing, some tenants also provided additional feedback. Here is a selection of their comments:

2015 Satisfaction Rate

Access Housing (overall) 91%

Property condition 92%

Communication from Access Housing

91%

Staff helpfulness with regards to your most recent request

89%

Maintenance services 85%

Contractor effectiveness 83%

Repairs done by contractors 83%

Tenancy Services 89%

Maintenance Hotline 86%

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LOOKING AHEADThe new Strategic Objectives approved by the Board during the year have established a clear framework to guide the priorities of the company over the next three to five years. The Board, executive and staff are excited by the challenges and opportunities that this presents.

Over the next year or two in particular we will:

hope to influence and reshape State and Commonwealth Government social and affordable housing strategies and policies in support of scalable community housing service models;

continue to deliver new quality, affordable housing through our property development programs;

implement our private equity investment structure model through Access CCIN Ltd via an initial pilot project of approximately 120 dwellings. We hope to ‘mainstream’ the model with further tranches of housing supply;

explore models and opportunities to substantially grow Access Housing’s scale and capacity, including looking at national expansion;

continue to diversify Access Housing’s revenue base and, in particular, grow Access Housing Realty Pty Ltd, with a strong focus on property management, sales and strata management;

work with strategic partners to expand housing options for people with disabilities and other high needs clients; and

investigate the development of an Access Housing Shared Equity Home Ownership Scheme to establish an exit pathway from social and private rental housing.

CONCLUSIONIn looking back, 2014/15 was a challenging year on some fronts but also an invigorating one as we became clearer about what Access Housing needed to do to continue to grow as an independent and sustainable leading affordable housing provider.

In closing I would like to acknowledge the outstanding professionalism and energy of my executive team, the hard work of our dedicated and resilient staff and the continuing support and commitment of my Board Chairman and fellow Directors. I would also like to acknowledge my colleagues among our key stakeholders in the private sector, Local and State Government agencies and the NFP housing and community services sectors who all contribute to Access Housing’s success in delivering important social outcomes and making a difference to people’s lives.

Garry EllenderChief Executive Officer

Access Housing Australia LtdGARRY ELLENDER

CHIEF EXECUTIVE OFFICER

IAN AIYATHURAI

CHIEF FINANCIAL OFFICER

ALLAN WILKERSON

GENERAL MANAGER TENANCY SERVICES

SU GROOME

GENERAL MANAGER PROPERTY ASSETS

JANE HOUSE

HUMAN RESOURCES MANAGER

LYN BRUN

MANAGER STRATEGIC PROJECTS

KATHRYN MOOREY

REGIONAL MANAGER TENANCY SERVICES

(PEEL & SW)

TERRY FOSTER

LICENSEE, ACCESS HOUSING REALTY PTY LTD

EXECUTIVE TEAM

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ACCESS HOUSING REALTY PTY LTDAccess Housing Realty Pty Ltd was registered on 22 May 2013 and commenced active trading on 1 November 2013. Access Housing CEO Garry Ellender was appointed Access Housing Realty Board Chairman to see the company through its establishment phase. Allan Wilkerson was the inaugural licensee. The license was reassigned to Terry Foster in April 2014.

Throughout the year the investor property management portfolio grew from 121 residential properties under management to 159 (31% increase), plus 23 car bays and five commercial property leases. This included management of a 48 unit key worker housing complex owned by the City of Perth.

Since Terry Foster’s appointment as licensee, the role of Access Housing Realty has broadened. As well as building expertise as a leading NRAS property manager, Access Housing Realty is now offering property sales services and in 2015/16 will commence strata management. Access Housing has appointed Access Housing Realty as its primary selling agent.

During the year Access Housing Realty recorded revenue of $554,700, an increase of $168,288 on the previous year. Sales commissions contributed $74,720. The company broke even during the year. Directors had approved expenditure on staff and other resources including a strata manager to build capability as a springboard for future expansion.

There was a strong emphasis during the year on organisational culture, staff training and professional development. Bedding down key policies and procedures to ensure compliance with the Real Estate and Business Agents Act was a priority.

Access Housing Realty also had a significant NRAS compliance management responsibility during the latter part of the year.

Positive calendar and financial year audits were received for 2014/15 and 2013/14 respectively.

We anticipate a 51% growth in revenue in 2015/16 to $839,000 with a net profit estimated at $49,000. More than 80% of the revenue will come from recurring business activities (property and strata management services), with most of the remainder from sales commissions of approximately $135,000. The Directors are confident that the investment in strata management will provide substantial revenue and profits in future years.

All profits from Access Housing Realty are donated to the Access Housing Australia Ltd parent company for investment in its social purposes. This amounted to $79,000 from the 2013/14 financial year.

My thanks to Terry and his staff for their hard work through the start-up phase of the business, which currently has a market valuation estimated at $850,000. We look forward to the next development phase of this unique part of the Access Housing Group of Companies.

Garry EllenderChairman

Access Housing Realty Pty Ltd

COMMUNITY

CHARITY RUNSAccess Housing was well represented at the 2015 Chevron City to Surf and HBF Run for a Reason, with a number of staff foregoing a Sunday morning sleep in in order to pull on their runners in the name of charity.

Access Housing staff raised more than $2,000 in donations ahead of the HBF Run for a Reason, which was donated to beyondblue.

STARLIGHT CHILDREN’S FOUNDATIONAccess Housing confirmed its support of the Starlight Children’s Foundation for three years in 2014/15. Access Housing’s contributions to the charity will assist more than 120 seriously ill children to take part in the Starlight Express Room program at Princess Margaret Hospital each year.

2015 VINNIE’S CEO SLEEPOUTGarry Ellender joined more than 110 other Perth business and community leaders for a night ‘sleeping rough’ in June for the 2015 Vinnies CEO Sleepout.

The participants weathered the wintery elements to get a first-hand experience and understanding of some of the hardships homeless Australians deal with every day, in order to raise funds for the St Vincent de Paul Society.

In a bid to encourage people to donate to the cause, Mr Ellender – a passionate West Coast Eagles fan – promised to wear Fremantle Dockers pyjamas during the Sleepout, which he did. This saw him raise $8,185 for the 2015 event.

SWAGS FOR THE HOMELESSAccess Housing continued its support of frontline homelessness service providers by again donating swags for the homeless as part of National Homeless Persons Week.

The annual awareness week saw Access Housing donate 48 swags to organisations assisting the homeless across the Metropolitan area and Peel and South West regions.

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VALUED PARTNERS

Government of Western AustraliaMental Health Commission

AWARDSAccess Housing collected three Australasian Housing Institute Awards for Professional Excellence in Housing at the 2015 Western Australian regional presentation ceremony.

Access Housing General Manager – Property Assets Su Groome won the Outstanding Achievement Award and Policy Officer Michelle Shaw claimed the award for Inspirational Team Member.

Access Housing and our subsidiary for-profit Real Estate company – Access Housing Realty – shared the spoils with the City of Perth in taking out the Excellence in Social Housing Award for the City’s ‘Penny Lane’ Key Worker accommodation complex. Access Housing has been involved with the project since its inception and Access Housing Realty property manages the complex for the City of Perth.

The Awards for Professional Excellence in Housing recognise the contributions and achievements of housing professionals in the many disciplines that make up the housing profession. The 2015 AHI Awards featured eight categories, including nominations for individuals and teams working in the social housing industry, as well as tenants. Regional winners from each Australian State and Territory and New Zealand go on to compete for the overall 2015 Australasian Awards in their respective categories. Inspirational Team Member Award winner Michelle Shaw (left).

Access Housing General Manager – Tenancy Services Allan Wilkerson

(left) joins City of Perth Deputy Lord Mayor Rob Butler (centre)

to collect the Excellence in Social Housing Award.

Outstanding Achievement Award winner Su Groome.

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FINANCIAL REPORTACCESS HOUSING AUSTRALIA LIMITEDABN: 67 128 888 157

DIRECTORS’ REPORTYour directors present this report on the company for the financial year ended 30 June 2015.

DIRECTORSThe names of each person who has been a director during the year and to the date of this report are:

Malcolm O’Dell appointed (13/04/2010)

David Lantzke (Chairperson) appointed (26/10/2010)

Michael Mitchell appointed (26/10/2011)

Rebecca Strom appointed (28/08/2013)

Christopher Parkinson appointed (30/10/2013)

Matthew Raison appointed (30/10/2013)

Geoff Lotter appointed (30/10/2013)

Debra Bakker appointed (01/12/2014)

Hon. James (Jim) McGinty AM appointed (01/12/2014)

The following directors resigned during the year:

Kylie Gilbey resigned (29/10/2014)

Gregory Joyce resigned (27/08/2014)

PRINCIPLE ACTIVITIESThe principle activities of the entity during the year were:

The management of social and affordable housing in Perth, Peel and the South West;

Expansion of the portfolio of social and affordable housing stock under management;

A property development program to provide additional social and affordable housing;

Establishment of a diversified housing supply business;

Broadening of Access Housing Realty Pty Ltd services, a for-profit real estate company; and

Development of a private equity investment structure for the purpose of financing affordable housing supply.

REVIEW OF OPERATIONS AND RESULTSIn pursuing the strategic objectives the company achieved the following key results:

Total income for the year was $20.118 million (FY’2014: $33.744 million) and the group delivered profit of $0.917 million (FY’2014: $17.120 million).

On a recurring basis, year over year increase in income excluding contributions from gifted properties and non-recurring grants reflects an increase from $17.596 million in FY’2014 to $18.972 million in FY’2015.

BOARD PRIORITIESDuring 2014/15 the Board has been primarily focused on:

Review of Access Housing’s strategic objectives and business priorities;

Approval of a new corporate loan facility;

Governance oversight including financial management;

Strategic oversight of the development of a private equity investment structure (CCIN);

Oversight of Access Housing’s property development growth targets including new senior’s housing projects in regional WA;

Implementing changes to the Access Housing Constitution in respect to its membership structure.

INFORMATION ON DIRECTORS:David LantzkeChairperson (Chairperson from 27/08/2014)

David Lantzke is the General Manager of Ardross Group of Companies; a family owned diversified property and land development group. He is a qualified Chartered Accountant, a Fellow of Leadership Western Australia, has completed the Advanced Management Program at Harvard Business School and has extensive experience in infrastructure planning, project facilitation, asset management, town planning, land and property development.

Malcolm O’DellDirector

Malcolm O’Dell is the Principal Legal Officer at Central Desert Native Title Services Ltd where he provides advice and legal expertise on corporate governance issues. He has a comprehensive understanding of the housing and broader social issues faced by many indigenous Western Australians and is strongly committed to providing sustainable solutions.

Michael MitchellDirector

Michael, ex AFL player, holds a Bachelor Degree of Applied Science in Indigenous Community Health specialising in Mental Health. He is the Program Manager for the Specialist Aboriginal Mental Health Service (Metropolitan). Michael believes that one of the key factors in improving mental health is the availability of secure housing and a holistic approach to sustaining tenancies wherever possible.

Rebecca StromDirector

Rebecca Strom is currently a partner at law firm, Corrs Chambers Westgarth, where she has worked for over 12 years. Rebecca’s area of focus is commercial property and infrastructure, specialising in complex sales and acquisitions, major leasing, and project structuring and delivery. Rebecca’s current clients include Woolworths, BP, Bankwest and Mirvac. Rebecca is a member of the Property Council of Australia, the Urban Development Institute of Australia, the Law Society of Western Australia and the Australian Institute of Company Directors.

She is also a keen sportsperson, having previously participated in netball, athletics, basketball and touch football at representative levels, representing Australia in Indoor Netball for over 10 years and captaining her team to a World Cup Victory.

Christopher ParkinsonDirector

Chris Parkinson is the Chief Financial Officer and Company Secretary of PDC Group, an engineering design and detailing business with operations in Australia, the Philippines and the USA. Prior to joining PDC in 2013, Chris was the Chief Financial Officer and Company Secretary of an Australian Securities Exchange listed mineral exploration company. He was previously a partner of a global accounting and advisory firm, working with private and public companies in Australia and the United Kingdom on transaction services, mergers and acquisitions and valuation matters.

Chris is a Graduate Member of the Australian Institute of Company Directors and a member of the Institute of Chartered Accountants in Australia.

Matthew RaisonDirector

Matt Raison is a qualified Civil and Structural Engineer with 15 years experience in property and project management.

Matt has worked for Peet and Company as a Project Manager on various master planned projects and Mirvac, as Senior Development Manager responsible for all Mirvac’s WA land subdivision projects and head of New Business. Matt oversaw the acquisition and project establishment of a wide range of broad acre, integrated housing, luxury apartments, mixed use and tourism projects. Matt played a key role in the establishment of Mirvac’s first residential development fund in Western Australia.

In 2007 Matt established Generation Projects, a boutique project management and property development consultancy, involved in a wide range of residential, commercial, mixed use, retail and industrial projects. In 2012 Generation Projects joined with Modus Project Management to form GMPM Consulting. Recognised as one of Perth’s leading project managers in the property development industry, its key projects include the Knutsford Redevelopment, Vale Town Centre and The Richardson.

Geoff LotterDirector

Geoff Lotter is a partner at Ernst & Young with more than 30 years’ experience auditing medium to large corporate entities. A Chartered Accountant and Registered Company Auditor, Geoff manages a large portfolio of clients, providing a full assurance offering across the real estate, construction & hospitality and consumer and industrial products sectors. He has a particular focus on the emerging and owner managed private companies, and audits a number of non-for-profit entities.

Geoff has provided audit and accounting advice on a number of property related transactions, predominately in the retail and hospitality sectors. In addition to audits, Geoff’s expertise includes investigations, due diligence and independent accountant reports. Geoff is a member of the AICD. Prior to joining Ernst & Young, Perth in 1999, Geoff spent 17 years with KPMG South Africa.

Debra BakkerDirector

A highly credentialed and experienced resources-industry banking and corporate finance professional, Debra Bakker is the Western Australian representative of global physical precious metals merchant Auramet Trading LLC.

Debra has extensive experience as a banking financier and deal maker in the resources industries in Australia, the United Kingdom and the Americas. She has a deep and broad understanding of most aspects of the resources industry and services to industry in Australia and globally thanks to her time spent in Sydney, London, Chicago, New York and Perth structuring and executing corporate finance transactions.

Debra’s financial acumen includes corporate advisory, negotiation, cross-border, JVs and partnerships and project finance.

The Honourable James (Jim) McGinty AMDirector

The Honourable Jim McGinty AM joins the Access Housing board after a decorated career in the Western Australian Parliament including as Attorney-General and Minister for Housing, Health, Services, Construction, Heritage, Justice, Legal Affairs, Electoral Affairs, Peel, South West and Environment at different times during his 18 years as Member for Fremantle until his retirement from politics in 2008. During this time he also held a range of Shadow portfolios while in Opposition, including as Leader of the Opposition.

25 26



In addition to his directorship with Access Housing, Jim also sits on the boards of the Telethon Kids Institute, Brightwater Group Inc and is a volunteer with Fremantle Sea Rescue.

Gregory JoyceChairperson (resigned on 27/08/2014)

Greg Joyce has had a long and involved career in social housing. He was formerly the Director General of the Department of Housing and Works. During his 15 year tenure as the Director General, Greg instigated a number of programs including the “New Living” program to reduce concentrations of social housing in poorer suburbs and progressed large scale private and public joint ventures with major land developers to develop new, affordable housing estates including ‘Ellenbrook’ in Western Australia.

Greg is currently also Chairman of Workcover WA. He has served on several boards and committees including the Treasury Corporation Board and Chairman of the Justice Reform Implementation Committee. He has a law degree from the University of Western Australia and is qualified to practice as a barrister and solicitor.

Kylie GilbeyDirector (resigned on 29/10/2014)

Kylie Gilbey has extensive experience within the Australian and overseas banking and finance industry, focusing on Property Finance and Corporate Banking, and most recently Business Development Director at a national, strategic financial advisory firm. Kylie spent her early career, gaining comprehensive international banking and cultural experience working in positions in London, Sydney, Asia and Perth.

She has previously established two start-up businesses (Singapore and Perth) and is a graduate of the Australian Institute of Company Directors, Fellow of Financial Services Institute of Australasia, Chair of Access Housing’s Finance and Audit Committee and member of Access Housing’s Investment Project Control Group.

Liz WaterhouseCompany Secretary

Liz Waterhouse BA (Hons), Cert Gov (Risk) has a strong background in Social and Affordable Housing with over a decade’s experience working across the housing, policy and corporate areas in Fremantle Housing Association Inc. and Access Housing Australia Ltd. Liz graduated with a BA (Hons) in Politics and Philosophy in 2000 and undertook Honours in 2001-2 to examine discrimination and disadvantage. Liz completed a Certificate IV in social housing in 2004-5 and a Certificate in Governance and Risk Management in 2014.

MEETINGS OF DIRECTORSDuring the financial year, 10 meetings of directors were held. Attendances by each director were as follows:

DIRECTORS’ MEETINGS

No. Eligible to attend

No. attended

Gregory Joyce (Chairperson to 27/08/2014)

1 1

David Lantzke (Chairperson from 27/08/2014)

10 9

Malcolm O’Dell 10 7

Kylie Gilbey 3 3

Michael Mitchell 10 8

Rebecca Strom 10 7

Christopher Parkinson 10 9

Matthew Raison 10 8

Geoff Lotter 10 8

Debra Bakker 6 5

Hon. James (Jim) McGinty AM 6 4

Director’s fees were set at $200 per Board meeting attended. The directors have chosen not to accept payments and, in lieu of this, an equivalent amount has been donated or set aside for charitable purposes.

The entity 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 $1 each towards meeting any outstanding obligations of the company. At 30 June 2015 the collective liability of members was $9 (2014: $1).

SUBSEQUENT EVENTSNo material events have occurred subsequent to the reporting period.

CHANGES IN STATE OF AFFAIRSOn 30 July 2014, the entity’s constitution was amended by the member, Access Housing Association Inc., to appoint the company’s directors as members. Following this constitutional change, Access Housing Association Inc. resigned as a member of the entity, and was subsequently wound up. Other than the above, there was no significant change in the state of affairs of the Group during the financial year.

AUDITOR’S INDEPENDENCE DECLARATIONThe auditor’s independence declaration for the year ended 30 June 2015 has been received and can be found on page-6 of the financial report.

Signed in accordance with a resolution of the Board of Directors.

Director

David William LantzkeDated this 30th day of September 2015

AUDITORS INDEPENDENCE DECLARATION

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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEfor the year ended 30 June 2015 Access Housing Australia Limited

NOTE2015

$2014

$

Revenue 2 19,841,959 33,551,241

Other Income 275,824 192,362

20,117,783 33,743,603

Employee benefits expense (6,942,218) (5,708,784)

Depreciation and amortisation expense 3 (2,669,514) (2,354,707)

Doubtful debts expense 3 (305,829) (368,613)

Vehicle running expense (170,376) (131,269)

Rental expense 3 (354,966) (341,125)

Staff training expenses (74,633) (50,171)

Audit, legal and consultancy expenses (689,198) (1,000,292)

Property expenses 3 (3,393,587) (2,936,119)

Ongoing maintenance expenses 3 (2,621,029) (2,511,049)

Finance expenses (428,502) (188,238)

Other expenses (1,774,137) (1,356,677)

Gain on disposal of property, plant and equipment 217,406 134,958

Share of net profit from Joint Venture operations 10 - 188,403

Profit before income tax expense 911,200 17,119,920

Income tax benefit 4 5,951 -

Profit for the year after tax 917,151 17,119,920

Other comprehensive income - -

Total comprehensive income for the year 917,151 17,119,920

The accompanying notes form part of these financial statements.

STATEMENT OF FINANCIAL POSITIONas at 30 June 2015 Access Housing Australia Limited

NOTE2015

$2014

$

CURRENT ASSETS

Cash and cash equivalents 5 3,282,717 3,447,085

Trade and other receivables 6 2,647,529 1,222,969

TOTAL CURRENT ASSETS 5,930,246 4,670,054

NON CURRENT ASSETS

Deferred tax assets 4 11,548 -

Property, plant and equipment 7 131,152,589 126,504,992

Development projects under work in progress 8 8,059,231 4,536,038

Intangible assets 9 856,578 839,144

Investment in Joint Venture 10 54,372 322,524

TOTAL NON CURRENT ASSETS 140,134,318 132,202,698

TOTAL ASSETS 146,064,564 136,872,752

CURRENT LIABILITIES

Trade and other payables 11 4,849,551 2,178,526

Financial liabilities 12 - 500,000

Current tax liabilities 4 5,597 -

Provisions 13 546,272 402,449

TOTAL CURRENT LIABILITIES 5,401,420 3,080,975

NON-CURRENT LIABILITIES

Provisions 13 94,125 139,909

Financial liabilities 12 13,000,000 7,000,000

TOTAL NON-CURRENT LIABILITIES 13,094,125 7,139,909

TOTAL LIABILITIES 18,495,545 10,220,884

NET ASSETS 127,569,019 126,651,868

EQUITY

Retained earnings 127,569,019 126,651,868

TOTAL EQUITY 127,569,019 126,651,868


STATEMENT OF CASH FLOWSfor the year ended 30 June 2015 Access Housing Australia Limited

NOTE2015

$2014

$

CASH FLOW FROM OPERATING ACTIVITIES

Rental income received 15,914,657 14,953,946

Other receipts 473,307 537,155

Receipt of grants 4,291,795 1,183,186

Interest received 29,083 49,038

Payments to suppliers and employees (15,714,614) (13,759,176)

Finance costs paid (357,137) (161,151)

Tax paid (32,787) -

Net cash generated by operating activities 16 4,604,304 2,802,998

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of property, plant and equipment 785,588 1,052,068

Payment for property, plant and equipment (11,055,525) (7,498,296)

Payment for intangible assets (198,735) (507,671)

Investments in Joint Ventures - (666,625)

Distributions from Joint Venture 200,000 2,412,795

Net cash used in investing activities (10,268,672) (5,207,729)

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from borrowings 5,500,000 4,000,000

Net cash used in financing activities 5,500,000 4,000,000

Net (decrease)/ increase in cash held (164,368) 1,595,269

Cash and cash equivalents at the beginning of the financial year 3,447,085 1,851,816

Cash and cash equivalents at the end of the financial year 5 3,282,717 3,447,085


STATEMENT OF CHANGES IN EQUITYfor the year ended 30 June 2015 Access Housing Australia Limited

RETAINED EARNINGS

$

Balance as at 1 July 2013 109,531,948

Profit for the year 17,119,920

Other comprehensive income for the year -

Total comprehensive income for the year 17,119,920

Balance at 30 June 2014 126,651,868

Balance as at 1 July 2014 126,651,868

Profit for the year 917,151

Other comprehensive income for the year -

Total comprehensive income for the year 917,151

Balance at 30 June 2015 127,569,019


NOTES TO THE FINANCIAL STATEMENTSfor the year ended 30 June 2015 Access Housing Australia Limited

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements comprise the consolidated financial statements of the Group. Access Housing Australia Limited (Access Housing) is incorporated and domiciled in Australia. Access Housing Australia Limited is a not-for-profit Company limited by guarantee and governed by the Corporations Act 2001 and the Australian Charities and Not-for-profits Commission Act 2012. The address of its registered office and its principal place of business is Level 1, 39 Adelaide Street, Fremantle WA 6959.

BASIS OF PREPARATIONThe financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Corporations Act 2001.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions to which they apply. Material accounting policies adopted in the preparation of this financial report are presented below. They have been consistently applied unless otherwise stated.

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The financial report has been prepared on an accruals basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

The financial statements were authorised for issue on 30 September 2015 by the directors of the Group.

ACCOUNTING POLICIESBASIS OF CONSOLIDATIONThe consolidated financial statements incorporate the financial statements of the Group and entities (including structured entities) controlled by the Group and its subsidiaries. Control is achieved when the Group:

has power over the investee;

is exposed, or has rights, to variable returns from its involvement with the investee; and

has the ability to use its power to affect its returns.

The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

When the Group has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Group considers all relevant facts and circumstances in assessing whether or not the Group’s voting rights in an investee are sufficient to give it power, including:

the size of the Group’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;

potential voting rights held by the Group, other vote holders or other parties;

rights arising from other contractual arrangements; and

any additional facts and circumstances that indicate that the Group has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.

Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Group gains control until the date when the Group ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income are attributed to the owners of the Group and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Group and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies.

All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

A. REVENUEGrant revenue is recognised in the Statement of Profit or Loss and Other Comprehensive Income when the Group obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the Group and the amount of the grant can be measured reliably.

When grant revenue is received and the Group incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt.

Access Housing receives non-reciprocal contributions of assets from the Government for no nominal value. These assets are recognised at fair value on the date of acquisition in the Statement of Financial Position with a corresponding amount of income recognised in the Statement of Profit or Loss and Other Comprehensive Income. The gain or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal.

Donations and bequests are recognised as revenue when received.

Access Housing has contractual relationships with the Department of Housing of Western Australia (Department of Housing) where Access Housing has management rights to Department of Housing properties. Access Housing is entitled to receive rental income from these properties and has an ongoing commitment to ensure that they are maintained on an ongoing basis, which depending on the condition and age of the properties will include some extensive renovation costs on a cyclical basis.

Revenue including rental income is recognised upon the delivery of the service to the customer.

All revenue is stated net of the amount of goods and services tax (GST).

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.

Dividend income is recognised at the time the right to receive payment is established.

B. INVESTMENTS IN ASSOCIATES AND JOINT VENTURESAn associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

The results and assets and liabilities of associates or joint ventures are incorporated in these consolidated financial statements using the equity method of accounting, except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for in accordance with AASB 5. Under the equity method, an investment in an associate or a joint venture is initially recognised in the consolidated statement of financial position at cost and adjusted thereafter to recognise the Group’s share of the profit or loss and other comprehensive income of the associate or joint venture. When the Group’s share of losses of an associate or a joint venture exceeds the Group’s interest in that associate or joint venture (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate or joint venture), the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.

An investment in an associate or a joint venture is accounted for using the equity method from the date on which the investee becomes an associate or a joint venture. On acquisition of the investment in an associate or a joint venture, any excess of the cost of the investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognised immediately in profit or loss in the period in which the investment is acquired.

The requirements of AASB 139 are applied to determine whether it is necessary to recognise any impairment loss with respect to the Group’s investment in an associate or a joint venture. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with AASB 136 Impairment of Assets as a single asset by

comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. Any impairment loss recognised forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognised in accordance with AASB 136 Impairment of Assets to the extent that the recoverable amount of the investment subsequently increases.

The Group discontinues the use of the equity method from the date when the investment ceases to be an associate or a joint venture, or when the investment is classified as held for sale. When the Group retains an interest in the former associate or joint venture and the retained interest is a financial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with AASB 139. The difference between the carrying amount of the associate or joint venture at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the associate or joint venture is included in the determination of the gain or loss on disposal of the associate or joint venture. In addition, the Group accounts for all amounts previously recognised in other comprehensive income in relation to that associate or joint venture on the same basis as would be required if that associate or joint venture had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognised in other comprehensive income by that associate or joint venture would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) when the equity method is discontinued.

The Group continues to use the equity method when an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate. There is no remeasurement to fair value upon such changes in ownership interests.

When the Group reduces its ownership interest in an associate or a joint venture but the Group continues to use the equity method, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognised in other comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified to profit or loss on the disposal of the related assets or liabilities.

When a group entity transacts with an associate or a joint venture of the Group, profits and losses resulting from the transactions with the associate or joint venture are recognised in the Group’s consolidated financial statements only to the extent of interests in the associate or joint venture that are not related to the Group.

31 32



C. PROPERTY, PLANT AND EQUIPMENTEach class of plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.

PROPERTYFreehold land and buildings that have been contributed at no cost are recognised at the fair value of the asset at the date that it is received.

PLANT AND EQUIPMENTPlant and equipment are measured on the cost basis and therefore carried at cost less accumulated depreciation and any accumulated impairment. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount. A formal assessment of recoverable amount is made when impairment indicators are present.

The carrying amount of plant and equipment is reviewed annually by the directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of depreciated replacement cost.

The cost of fixed assets constructed within the Group includes the cost of materials, direct labour and borrowing costs.

Plant and equipment that have been contributed at no nominal cost are recognised at the fair value of the asset at the date that it is acquired.

DEPRECIATIONThe depreciable amount of all fixed assets, including buildings but excluding freehold land, is depreciated on a straight-line basis over the assets useful life to the Group commencing from the time the asset is available for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset Depreciation Rate

Buildings and improvements 2.5% - 12.5%

Plant and equipment 10% - 50%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of profit or loss and other comprehensive income.

CAPITAL WORK IN PROGRESSCapital work in progress is measured at cost. Cost includes both the fixed and variable cost relating to the specific contracts and those costs that are attributable to the contract activity in general and that can be allocated on a reasonable basis.

REVALUATIONSThe Group’s policy is to have its secured properties valued on at least a three year basis in compliance with the finance facility agreement. The directors elected to value the non-secured properties on a three year basis or where it believes there is an indication that its property assets have been impaired.

EQUITY PROJECTSEquity projects represent the investments in properties jointly owned by the Group and the Department of Housing. The Group has contributed between 2% and 20% of the capital value of the properties. These are recognised at cost.

D. BORROWINGSBorrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the income statement over the period of the borrowings using the effective interest method.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

E. BORROWING COSTSBorrowing costs directly attributable to the acquisition or construction of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of the assets, until such time as the assets are substantially ready for their intended use.

All other borrowing costs are recognised in Statement of Profit or Loss and Other Comprehensive Income in the period in which they are incurred.

F. LEASESLease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the lease term.

G. FINANCIAL INSTRUMENTSINITIAL RECOGNITION AND MEASUREMENTFinancial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the Group 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 transaction 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 MEASUREMENTFinancial instruments are subsequently measured at fair value, amortised cost using the effective interest method, or cost.

Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method.

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

Financial assets are classified at fair value through profit or loss when they are 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 personal 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 fair value (i.e. gains or losses) being recognised 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.

(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 Group’s intention to hold these investments to maturity. They are measured at amortised cost using the effective interest method less any impairment.

(iv) Financial LiabilitiesNon-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost.

(v) Impairment At the end of each reporting period, the Group assesses whether there is objective evidence that a financial instrument has been impaired.

In the case of available-for-sale financial assets, a prolonged decline in the value of the instrument is considered to constitute a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point.

(vi) DerecognitionFinancial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the Group no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are

discharged, cancelled or expired. The difference between the carrying value of the financial liability, which is extinguished or transferred to another party and the fair value of consideration paid, including the transfer on non-cash assets or liabilities assumed, is recognised in profit or loss.

H. IMPAIRMENT OF ASSETSAt the end of each reporting period, the Group reviews the carrying value of its tangible and intangible assets to determine whether there is any indication that those assets may have been impaired. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss.

Where the future economic benefits of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and when the Group would, if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciated replacement cost of an asset.

Where it is not possible to estimate the recoverable amount of an asset class, the Group estimates the recoverable amount of the cash-generating unit to which the class of assets belong.

I. EMPLOYEE BENEFITSProvision is made for the Group’s liability for employee benefits arising from services rendered by employees to the end of the reporting period.

Contributions are made by the Group to an employee superannuation fund and are charged as expenses when incurred.

J. MAINTENANCE COSTSDay to day servicing costs or maintenance are charged to profit or loss when expenses are incurred, except where they relate to the replacement of a part or components of an asset, which extends its life or increases the value of the asset in which case the costs are capitalised within property plant and equipment.

K. CASH AND CASH EQUIVALENTSCash and cash equivalents include cash on hand, deposits available on demand with banks and other short-term highly liquid investments.

L. GOODS AND SERVICES TAX (“GST”)Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office (“ATO”).

Receivables and payables are stated inclusive of the amount of GST. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position.

33 34



Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.

M. INCOME TAXIncome tax expense represents the sum of the tax currently payable and deferred tax.

CURRENT TAXThe current income tax payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the consolidated statement of profit or loss and other comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

DEFERRED TAXDeferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax liabilities and assets are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

N. INTANGIBLESCOMPUTER SOFTWAREComputer software is initially recorded at cost, has a finite life and is carried at cost less any accumulated amortisation and impairment losses. It has an estimated useful life of 3 to 8 years and is assessed annually for impairment.

The development expenditure of computer software developed within the Group includes costs of services and costs of employee benefits arising from the generation of the asset.

DERECOGNITION OF INTANGIBLE ASSETSAn intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset are recognised in profit or loss when the asset is derecognised.

O. PROVISIONSProvisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.

P. TRADE AND OTHER PAYABLESTrade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the Group during the reporting period which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of the recognition of the liability.

Q. COMPARATIVE FIGURESWhere required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year.

R. FAIR VALUE OF ASSETS AND LIABILITIESThe Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the requirements of the applicable Accounting Standard.

Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.

As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.

To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability, after taking into account transaction costs and transport costs).

For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.

The fair value of liabilities and the entity’s own equity instruments (excluding those related to share-based payment arrangements) may be valued, where there is no observable market price in relation to the transfer of such financial instruments, by reference to observable market information where such instruments are held as assets. Where this information is not available, other valuation techniques are adopted and, where significant, are detailed in the respective note to the financial statements.

VALUATION TECHNIQUESIn the absence of an active market for an identical asset or liability, the Group selects and uses one or more valuation techniques to measure the fair value of the asset or liability, The Group selects a valuation technique that is appropriate in the circumstances and for which sufficient data is available to measure fair value. The availability of sufficient and relevant data primarily depends on the specific characteristics of the asset or liability being measured. The valuation techniques selected by the Group are consistent with one or more of the following valuation approaches:

Market approach: valuation techniques that use prices and other relevant information generated by market transactions for identical or similar assets or liabilities.

Income approach: valuation techniques that convert estimated future cash flows or income and expenses into a single discounted present value.

Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current service capacity.

Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the asset or liability, including assumptions about risks. When selecting a valuation technique, the Group gives priority to those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly available information on actual transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the asset or liability are considered observable, whereas inputs for which market data is not available and therefore are developed using the best information available about such assumptions are considered unobservable.

FAIR VALUE HIERARCHYAASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value measurements into one of three possible levels based on the lowest level that an input that is significant to the measurement can be categorised into as follows:

Level 1 Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3Measurements based on unobservable inputs for the asset or liability.

The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. If all significant inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one or more significant inputs are not based on observable market data, the asset or liability is included in Level 3.

35 36



The Group would change the categorisation within the fair value hierarchy only in the following circumstances:

(i) if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice versa; or

(ii) if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice versa.

When a change in the categorisation occurs, the Group recognises transfers between levels of the fair value hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the date the event or change in circumstances occurred.

S. OTHER KEY ESTIMATESThe directors evaluate estimates and judgments incorporated into the financial report 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 Group.

VALUATION OF LAND AND BUILDINGSThe Group engaged the services of an independent Valuation company approved by the finance facility provider to conduct the valuation of land and buildings. As at the end of financial year 30 June 2015 the group had undertaken valuations of approximately one third of the carrying value of the assets.

Based on these independent valuations the directors are satisfied that there has been no impairment in the year of the carrying value of these assets.

ESTIMATION OF USEFUL LIVES OF ASSETS The Group determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment, and finite life intangible assets.

The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.

IMPAIRMENT OF TRADE RECEIVABLES Included in accounts receivable is an allowance for doubtful debts of Trade Receivables of $421,526 (2014: $326,698). This is based on the historical level of bad debts written-off as unrecoverable and the age of the related debts.

CAPITALISED MAJOR MAINTENANCEThe Group capitalises major maintenance costs which are outside the scope of routine day to day maintenance. The Directors believe these costs improve the properties and allow the Group to continue to generate income from these assets.

The improvements for leasehold properties are depreciated over the shorter of the estimated useful life of that improvement and unexpired term of lease if applicable.

T. APPLICATION OF NEW AND REVISED ACCOUNTING STANDARDS NEW AND REVISED AASBS AFFECTING AMOUNTS REPORTED AND/OR DISCLOSURES IN THE FINANCIAL STATEMENTSIn the current year, the Group has applied a number of new and revised AASBs issued by the Australian Accounting Standards Board (AASB) that are mandatorily effective for an accounting period that begins on or after 1 January 2014.

AASB 10 Consolidated Financial Statements

AASB 10 supersedes the consolidation requirements in AASB 127 Consolidated and Separate Financial Statements (AASB 127) and AASB Interpretation 112 Consolidation - Special Purpose Entities. AASB 10 revises the definition of control and provides extensive new guidance on its application.

To assist not-for-profit entities applying the AASB 10, the AASB issued AASB 2013-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities – Control and Structured Entities on 31 October 2013. AASB 2013-8 added an appendix to AASB 10 to explain and illustrate how the principles in AASB 10 apply from the perspective of not-for-profit entities in the private and public sectors, particularly to address circumstances where a for-profit perspective does not readily translate to a not-for-profit perspective. Similarly, it added an appendix to AASB 12 Disclosure of Interests in Other Entities, in relation to structured entities.

Management has reviewed its control assessments in accordance with AASB 10 and has concluded that there is no effect on the classification (as subsidiaries or otherwise) of any of the Group’s investees held during the period or comparative periods covered by these financial statements.

AASB 11 Joint Arrangements

AASB 11 supersedes AASB 131 Interests in Joint Ventures (AAS 131) and AASB Interpretation 113 Jointly Controlled Entities-Non-Monetary-Contributions by Venturers. AASB 11 revises the categories of joint arrangement, and the criteria for classification into the categories, with the objective of more closely aligning the accounting with the investor’s rights and obligations relating to the arrangement. In addition, AASB 131’s option of using proportionate consolidation for arrangements classified as jointly controlled entities under that Standard has been eliminated. AASB 11 now requires the use of the equity method for arrangements classified as joint ventures (as for investments in associates). This adoption has not had any impact on the Group.

AASB 12 Disclosure of Interests in Other Entities

AASB 12 integrates and makes consistent the disclosure requirements for various types of investments, including unconsolidated structured entities. It combines the existing disclosures in AASB 127, AASB 128 and AASB 131, and introduces a range of new disclosure requirements. The adoption of AASB 12 has not had any significant impact on the Group.

AASB 2012-3 Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities

AASB 2012-3 adds application guidance to AASB 132 to address inconsistencies identified in applying some of the offsetting criteria of AASB 132, including clarifying the meaning of “currently has a legally enforceable right of set-off” and that some gross settlement systems may be considered equivalent to net settlement. The adoption of these amendments has not had a material impact on the Group as the amendments merely clarify the existing requirements in AASB 132.

AASB 2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets

These narrow-scope amendments address disclosure of information about the recoverable amount of impaired assets if that amount is based on fair value less costs of disposal.

When developing IFRS 13 Fair Value Measurement, the IASB decided to amend IAS 36 Impairment of Assets to require disclosures about the recoverable amount of impaired assets. The IASB noticed however that some of the amendments made in introducing those requirements resulted in the requirement being more broadly applicable than the IASB had intended. These amendments to IAS 36 therefore clarify the IASB’s original intention that the scope of those disclosures is limited to the recoverable amount of impaired assets that is based on fair value less costs of disposal.

AASB 2013-3 makes the equivalent amendments to AASB 136 Impairment of Assets and is applicable to annual reporting periods beginning on or after 1 January 2014.

The adoption of these amendments has not had a material impact on the Group as they are largely of the nature of clarification of existing requirements.

STANDARDS AND INTERPRETATIONS IN ISSUE NOT YET ADOPTEDAt the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective.

The Group does not anticipate that there will be a material effect on the financial statements from the adoption of these standards.

37 38



STANDARD/INTERPRETATION

EFFECTIVE FOR ANNUAL REPORTING PERIODS BEGINNING

ON OR AFTER

EXPECTED TO BE INITIALLY APPLIED IN THE FINANCIAL

YEAR ENDING

AASB 9 ‘Financial Instruments’, and the relevant amending standards 1 January 2018 30 June 2019

AASB 15 ‘Revenue from Contracts with Customers’ and AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 1 January 2017 30 June 2018

AASB 2014-3 ‘Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations 1 January 2016 30 June 2017

AASB 2014-4 ‘Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation 1 January 2016 30 June 2017

AASB 2014-9 Amendments to Australian Accounting Standards – Equity Method in Separate Financial Statements 1 January 2016 30 June 2017

AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 1 January 2016 30 June 2017

AASB 2015-1 Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012-2014 Cycle 1 January 2016 30 June 2017

AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 1 January 2016 30 June 2017

AASB 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality 1 July 2015 30 June 2016

AASB 2015-4 Amendments to Australian Accounting Standards – Financial Reporting Requirements for Australian Groups with a Foreign Parent 1 July 2015 30 June 2016

AASB 2015-5 Amendments to Australian Accounting Standards – Investment Entities: Applying the Consolidation Exception 1 January 2016 30 June 2017

AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities 1 January 2016 30 June 2017

Note that the following new Standards and Interpretations are not applicable for the Group but are relevant for the period:

AASB 14 ‘Regulatory Deferral Accounts’ and AASB 2014-1 ‘Amendments to Australian Accounting Standards – Part D: ’Consequential Amendments arising from AASB 14’ is not applicable to the Group as the Group is not a first-time adopter of Australian Accounting Standards.

AASB 1056 ‘Superannuation Entities’ is not applicable to the Group as the Group is not a superannuation entity.

AASB 2014-6 Amendments to Australian Accounting Standards – Agriculture: Bearer Plants is not applicable to the Group as the Group is not engaged in agricultural activities.

NOTE2015

$2014

$

NOTE 2. REVENUE

Revenue from government grants and other grants

- Contributions – Gifted Properties - 16,147,272

- State / federal government grants 2,924,614 1,581,727

2,924,614 17,728,999

Other revenue

- Rental income 16,314,172 15,382,993

- Property management fees 432,035 298,121

- Sundry revenue 171,138 141,128

16,917,345 15,822,242

Total revenue 19,841,959 33,551,241

NOTE2015

$2014

$

NOTE 3. EXPENSE

Doubtful debts expense 305,829 368,613

Rental expense 354,966 341,125

Property expenses 3,393,587 2,936,119

Ongoing maintenance expenses 2,621,029 2,511,049

Audit services

- Current audit fees 41,070 35,451

- Under provision from previous year 10,000 -

Directors Fees 13,800 16,200

Depreciation and Amortisation Expense

- Depreciation of Property Plant and Equipment 2,531,668 2,305,458

- Amortisation of Intangibles 137,846 49,249

2,669,514 2,354,707

NOTE2015

$2014

$

NOTE 4. INCOME TAX

(a) Income tax (benefit)/expense

Current tax 5,597 -

Deferred tax (11,548) -

(5,951) -

Deferred income tax expense included in income tax expense comprises:

- Increase in deferred tax assets (11,548) -

(11,548) -

(b) Reconciliation of income tax expense to prima facie tax payable

Profit from ordinary activities before income tax 911,200 17,119,920

The prima facie tax payable on profit from ordinary activities before income tax is reconciled to the income tax expense as follows:

Prima facie tax on operating profit at 30% 273,360 5,135,976

Add / (Less)

Tax effect of :

Profit attributable to income tax exempt entities (273,386) (5,135,976)

Non-deductible expenses 5,623 -

Movement in temporary differences (11,548) -

Income tax attributable to operating profit (5,951) -

Balance of franking account at year end nil nil

(c) Deferred tax assets

Provisions & accruals 11,548 -

Net deferred tax assets 11,548 -

39 40



NOTE2015

$2014

$

NOTE 5. CASH AND CASH EQUIVALENTS

CURRENT

Cash at bank 2,311,842 2,503,254

Short-term deposits 968,838 942,043

Cash on hand 2,037 1,788

Total cash and cash equivalents as stated in the statement of financial position 3,282,717 3,447,085

The effective interest rate on short term bank deposit varied between 2.00%-3.60%

Reconciliation of cash and cash equivalents

Cash and cash equivalents at the end of financial year as shown in the Statement of Cash Flows are reconciled to items in the balance sheet as follows:

Cash and cash equivalents 3,282,717 3,447,085

NOTE2015

$2014

$

NOTE 6. TRADE AND OTHER RECEIVABLES

CURRENT

Trade receivables 799,703 730,726

Allowance for doubtful debts (421,526) (326,698)

378,177 404,028

Prepayments 77,590 207,964

Receivable under National Rental Affordability Scheme 1,499,138 491,599

Other receivables 692,624 119,378

Total current trade and other receivables 2,647,529 1,222,969

(i) Credit Risk – Trade and Other ReceivablesThe Group does not have any material credit risk exposure to any receivable.

The following table details the Group’s trade and other receivables exposed to credit risk with ageing analysis and impairment. Amounts are considered as ‘past due’ when the debt has not been settled within the terms and conditions agreed between the Group and the customer or counter party to the transaction. Receivables that are past due are assessed for impairment by ascertaining solvency of the debtors and are provided for where there are specific circumstances indicating that the debt may not be fully repaid to the Group.

A bond not exceeding four weeks rent is held from tenants as security for costs upon vacating a property, which further reduces the credit risk to the Group. In line with the Department of Commerce requirement, bond money is lodged with the Bond Administrator no later than 14 days after the receipt of the money.

The Group believes it has adequately provided for doubtful debts.

The balances of receivables that remain within initial trade terms (as detailed in the table) are considered to be of high credit quality.

Invoices are raised with the terms of trade of 15 days. The Group has recognised an allowance for doubtful debts of 100% against items 180 days and older.

2015GROSS

AMOUNT

PAST DUE AND IMPAIRED

PAST DUE BUT NOT IMPAIRED (DAYS OVERDUE)WITHIN INITIAL TRADE TERMS<30 31 – 60 61 – 90 91-150 >150

$ $ $ $ $ $ $ $

Trade and term receivables 799,703 421,526 184,751 35,301 47,780 87,495 22,850 -

Other receivables 2,191,762 - - - - - - 2,191,762

2,991,465 421,526 184,751 35,301 47,780 87,495 22,850 2,191,762

2014GROSS

AMOUNT

PAST DUE AND IMPAIRED

PAST DUE BUT NOT IMPAIRED (DAYS OVERDUE)WITHIN INITIAL TRADE TERMS<30 31 – 60 61 – 90 91-150 >150

$ $ $ $ $ $ $ $

Trade and term receivables 730,726 326,698 123,696 108,018 33,553 138,761 - -

Other receivables 610,977 - - - - - - 610,977

1,341,703 326,698 123,696 108,018 33,553 138,761 - 610,977

NOTE2015

$2014

$

NOTE 7. PROPERTY PLANT AND EQUIPMENT

LAND AND BUILDINGS

Freehold land at cost:

- Value of gifted land at acquisition 43,507,738 44,075,920

- Value of freehold land at acquisition 4,293,147 3,417,332

Total Land 47,800,885 47,493,252

Buildings

- Freehold buildings at cost 20,988,488 14,112,673

- Gifted buildings at cost 67,282,753 67,463,443

- Less accumulated depreciation (7,008,759) (4,855,634)

Total buildings 81,262,482 76,720,482

Equity interests in properties 1,333,963 1,333,963

Total Land and Buildings 130,397,330 125,547,697

PLANT AND EQUIPMENT

Office furniture and equipment

- At cost 692,283 608,113

- Less accumulated depreciation (505,130) (406,875)

187,153 201,238

Leasehold Improvements

- At cost 1,676,913 1,561,212

- Less accumulated depreciation (1,166,881) (938,762)

510,032 622,450

Independent living programme and general furniture

- At cost 207,309 376,130

- Less accumulated depreciation (149,235) (242,523)

58,074 133,607

Total Plant and Equipment 755,259 957,295

Total Property, Plant and Equipment 131,152,589 126,504,992

41 42



Equity interests in properties represent investments in properties jointly owned by the Group and Department of Housing. Per various agreements the Group has contributed up to 20% of the capital value of these properties.

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.

NOTELAND AND BUILDINGS

PLANT AND EQUIPMENT TOTAL

$ $ $

2014

Balance at 1 July 2013 101,989,719 888,423 102,878,142

Additions 17,580,649 510,396 18,091,045

Transferred from Development Projects Under WIP 8 8,797,776 - 8,797,776

Disposals (922,727) (32,752) (955,479)

Depreciation expense (1,897,720) (408,772) (2,306,492)

Carrying amount at 30 June 2014 125,547,697 957,295 126,504,992

NOTELAND AND BUILDINGS

PLANT AND EQUIPMENT TOTAL

$ $ $

2015

Balance at 1 July 2014 125,547,697 957,295 126,504,992

Additions 842,898 199,892 1,042,790

Transferred from Development Projects Under WIP 8 6,908,730 - 6,908,730

Disposals (568,181) - (568,181)

Write-offs (162,460) (41,614) (204,074)

Depreciation expense (2,171,354) (360,314) (2,531,668)

Carrying amount at 30 June 2015 130,397,330 755,259 131,152,589

The following useful lives are used in the calculation of depreciation:

Buildings and improvements 8 - 40 years

Plant and equipment 2 – 10 years

Restricted Covenants and Caveats registered over Land and BuildingsRestricted Covenants and Caveats have been registered in favour of the Department of Housing, over certain Land and Buildings. These restricted covenants and caveats require the Department of Housing’s permission should the Group wish to deal with the properties in any way.

Assets pledged as securityLand and buildings amounting to $60,000,000 have been pledged to secure borrowings of the Group (see note 12). They have been pledged as security for the bank loans under mortgage. The Group cannot pledge these assets as security for other borrowings or sell them without approval from the mortgagee.

Measurement of the Group’s gifted land and buildingsThe Group’s gifted land and buildings are stated at cost less any subsequent accumulated depreciation on buildings and subsequent accumulated impairment losses.

The gifted land and buildings that have been contributed at no nominal cost are recognised at the fair value of the asset at the date that they are received. The Group has not subsequently fair valued the gifted land and buildings and therefore are deemed to be at cost.

Measurement of the Group’s freehold land and buildingsThe Group’s freehold land and buildings are stated at cost incurred in development less any subsequent accumulated depreciation on buildings and subsequent accumulated impairment losses.

During the year, the business contracted the Opteon Property Group, an independent valuer not related to the Group, to undertake a fair market valuation of a portion of its properties as required by the finance facility agreement. The Group has valued approximately one third of its land and buildings with a carrying amount of $44.6M as at June 2015. The fair value of the properties was determined based on the market comparable approach that reflects recent transaction prices for similar properties. These land and buildings were fair valued by Opteon at $ 59.9M which is an increase of $15.3M over the net book value as at June 2015.

NOTE2015

$2014

$

NOTE 8. DEVELOPMENT PROJECTS UNDER WORK IN PROGRESS

NON-CURRENT

Balance at beginning of year 4,536,038 8,067,303

Additions during the year 10,431,923 5,266,511

Transferred to freehold properties 7 (6,908,730) (8,797,776)

Balance at end of year 8,059,231 4,536,038

In relation to the acquisition and construction of the development projects borrowing costs amounting to $325,274 have been capitalised during the period.

NOTE 9. INTANGIBLE ASSETS

Computer software 856,578 839,144

856,578 839,144

Computer software

Cost

Balance at beginning of year 1,132,982

Additions during the period 155,280

Balance at end of year 1,288,262

Accumulated Amortisation and Impairment

Balance at beginning of year (293,838)

Amortisation expense (137,846)

Balance at end of year (431,684)

(856,578)

$ $

NOTE 10. INTEREST IN JOINT VENTURES

The Group has a 50% interest in the Eaton Joint Venture, whose principle activities are the development and construction of properties.

During the period the entity exited the Rockingham JV for which it held a 50% interest.

The interests in the Joint Ventures are accounted for in the financial statement using the equity method.

Balance at the beginning of the year 322,524 1,703,569

Investment made during the year - 755,943

Distributions received during the period (200,000) (2,412,795)

Share of profit for the year - 188,403

Elimination of profit component of properties purchased. - 87,404

Impairment of investment in Rockingham JV (68,152) -

Investment in Joint Ventures 54,372 322,524

NOTE 11. TRADE AND OTHER PAYABLES

CURRENT

Trade payables 159,357 701,745

Government grants received in advance 1,968,800 255,936

Other current payables 2,475,569 1,084,627

Employee benefits payable 245,825 136,218

4,849,551 2,178,526

All trade and other payables are unsecured and the average credit period on purchases is between 14 and 60 days.

NOTE 12. FINANCIAL LIABILITES

CURRENT- SECURED

Bank Loan - 500,000

NON- CURRENT- SECURED

Bank Loan 13,000,000 7,000,000

Total 13,000,000 7,500,000

(a) Facility The total facility available to Access Housing Australia Limited as of 30 June 2015 is the lesser of $40 million and an amount equivalent to 40% of the aggregate value of properties as specified in the loan agreement based on the valuation performed in 2013, which amounted to $60 million. There is a tripartite agreement in place between the Bank, Department of Housing and Community Housing Organisation covering this facility.

(b) Assets pledged as securityFirst ranking charge over assets pledged as security.

Fixed property mortgages over residential property portfolio valued at circa $60 million consisting of 190 properties.

(c) Interest termsInterest rates are set based on the average Bank Bill Swap Bid Rate (“BBSY”) plus a margin of 0.7% for a term equivalent to the interest period.

(d) Loan Repayment TermsAs per the extended facility arrangement that came into effect on 20 May 2015, the borrower must repay all outstanding principal amounts by the 30 November 2019, the termination date of the facility.

(e) Financial undertakings As per the extended finance facility arrangement the borrower must operate above specified hurdle ratios for interest cover and debt service.

As at 30 June 2015, the Group was in compliance with all the required financial undertakings.

43 44



2015 2014

NOTE 13. PROVISIONS $ $

CURRENT

Provision for annual leave 401,910 284,544

Provision for long service leave 144,362 117,905

546,272 402,449

NON CURRENT

Provision for long service leave 94,125 139,909

94,125 139,909

NOTE 14. EQUITY

The Group is incorporated under the Corporation Act 2001 and is limited by guarantee and has no paid up capital. The members’ guarantee is limited to $1 per member. At 30 June 2015 the number of members was 9 (2014: 1).

2015 2014

NOTE 15. COMMITMENTS $ $

Operating Lease Commitments

Non-cancellable operating leases contracted for but not recognised

Payable – minimum lease payments

- not later than 12 months 564,458 579,853

- later than 12 months but not later than 5 years 595,327 974,331

- later than 5 years - -

1,159,785 1,554,184

The property lease commitments are non-cancellable operating leases contracted for but not recognised in the financial statements with a five-year term. Increase in lease commitments may occur in line with the Consumer Price Index (CPI).

The motor vehicle lease commitments are operating leases contracted for a term of less than one year.

CAPITAL COMMITMENTSThe Group has a number of building contracts in place in relation to four development projects. The outstanding commitments on these contracts at 30 June 2015 was $9,328,905 (2014: $4,798,528). The Group had no other capital commitments at 30 June 2015.

2015 2014

NOTE 16. CASH FLOW INFORMATION $ $

Reconciliation of profit for the year to net cash flows from operating activities

Profit after tax 917,151 17,119,920

Income tax benefit recognised in profit or loss (5,951) -

Non cash flows

- Depreciation and amortisation 2,669,514 2,354,707

- Gifted properties - (16,147,272)

- Gain on disposal of property, plant and equipment (217,407) (134,958)

- Increase in provision for doubtful debts 94,828 87,256

- Share of profits of joint ventures - (188,403)

- Property, plant and equipment written off 204,074 -

- Investment impaired 68,152 -

Movements in Working Capital

- Increase/(Decrease) in trade and other payables 2,107,841 (169,294)

- Increase in trade and other receivables (1,331,937) (203,023)

- Increase in provisions 98,039 84,065

Net cash generated by operating activities 4,604,304 2,802,998

NOTE 17. CONTINGENT LIABILITIES

There are no contingent liabilities as at 30 June 2015.

NOTE 18. EVENTS AFTER THE REPORTING PERIOD

No material events have occurred subsequent to the reporting period.

NOTE 19. RELATED PARTY TRANSACTIONS

The Group’s related parties include its key management personnel and related entities as described below.

(A) REMUNERATION OF KEY MANAGEMENT PERSONNEL

Name, position held of key management personnel and their remuneration disclosed below:

NAME OF THE KEY MANAGEMENT PERSONNEL POSITION HELD

David Lantzke Director / Chairperson

Malcolm O’Dell Director

Michael Mitchell Director

Rebecca Strom Director

Christopher Parkinson Director

Matthew Raison Director

Geoff Lotter Director

Debra Bakker Director

Hon. James (Jim) McGinty AM

Director

Gregory Joyce Director/ Chairperson (resigned 27/08/2014)

Kylie Gilbey Director (resigned 29/10/2014)

Garry Ellender Chief Executive Officer

Allan Wilkerson General Manager Tenancy Services

Ian Aiyathurai Chief Financial Officer

Susan Groome General Manager Property Assets

KEY MANAGEMENT PERSONNEL REMUNERATION

2015 2014

$ $

Short term benefits 780,590 686,957

Other benefits 30,114 33,003

810,704 719,960

Of the above, $13,800 (2014: $16,200) relates to directors fees which directors have not taken in cash but have been set aside to be donated to charity.

(B) TRANSACTIONS WITH RELATED ENTITIESBalances and transactions between the company and its subsidiaries have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.

OTHER RELATED PARTY TRANSACTIONSDuring the period Access Housing incurred legal costs from Corrs Chambers Westgarth Lawyers an entity which Rebecca Strom is a Partner. Costs incurred for the financial year ended 30 June 2015 amounted to $274,241 (2014: $329,449). At 30 June 2015 $137,992 (2014: $65,503) remained unpaid.

The Group has obtained consultancy services from Private Invest an entity which Mark Roberts (Director - CCIN) is the Owner. Costs incurred for the financial year ended 30 June 2015 amounted to $364,000 (2014: $339,768). At 30 June 2015 $14,000 (2014: nil) remained unpaid.

Transactions with related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

NOTE 20. INVESTMENTS IN SUBSIDIARY AND JOINT VENTURE ENTITIES

(A) SHAREHOLDING

2015 2014

Name of the entity

Access Housing Realty Pty Ltd 100% 100%

Access CCIN Ltd 100% 100%

Eaton Joint Venture Pty Ltd 50% 50%

Rockingham Joint Venture Pty Ltd - 50%

(B) COMPOSITION OF THE GROUP

Information about the composition of the Group at the end of the reporting period is as follows:

PRINCIPAL ACTIVITY

PLACE OF INCORPORATION AND OPERATION

NUMBER OF WHOLLY-OWNED

SUBSIDIARIES

2015 2014

Provider of Real Estate services Australia 1 1

Development of Private Equity Investment structure Australia 1 1

2 2

45 46



NOTE 21. FINANCIAL RISK MANAGEMENT

The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 as detailed in accounting policies to these finacial statements, are as follows:

NOTE2015

$2014

$

Financial Assets

Cash and cash equivalents 5 3,282,717 3,447,085

Trade and other receivables 6 2,647,529 1,222,969

Total Financial Assets 5,930,246 4,670,054

Financial Liabilities

Financial Liabilities at amortised cost

Trade and other payables 11 4,849,551 2,178,526

Bank loans 12 13,000,000 7,500,000

Total Financial Liabilities 17,849,551 9,678,526

FINANCIAL RISK MANAGEMENT POLICIESThe finance and audit committee consists of five committee members, and the committee’s overall risk management strategy is to assist the Group in meeting its financial targets whilst minimising potential adverse effects on financial performance. Risk management policies are approved and reviewed by the finance committee on a regular basis. These include credit risk policies and future cash flow requirements.

SPECIFIC FINANCIAL RISK EXPOSURE AND MANAGEMENTThe main risks the Group is exposed to through its financial instruments are credit risk, liquidity risk and market risk relating to interest rate risk.

(A) CREDIT RISKExposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the Group.

The Group does not have any material credit risk exposures as its major source of revenue is the receipt of rent. Rent is largely directly debited from centrelink or client bank accounts which further mitigates credit risk.

CREDIT RISK EXPOSURESThe maximum exposure to credit risk by class of recognised financial assets at the end of the reporting period is equivalent to the carrying value and classification of those financial assets (net of any provisions) as presented in the Statement of Financial Position.

Trade and other receivables that are neither past due nor impaired are considered to be of high credit quality. Aggregates of such amounts are as detailed in Note 6.

The Group has no significant concentrations of credit risk with any single counterparty or Group of counterparties. Details in relation to the credit risk of trade and other receivables are provided in Note 6.

Credit risk related to balances with banks and other financial institutions is managed by the finance and audit committee in accordance with approved board policy. Such policy requires that surplus funds are only invested with one of the larger banking institutions in Australia.

NOTE2015

$2014

$

Cash and cash equivalents – S&P rated AA- 5 3,282,717 3,447,085

3,282,717 3,447,085

(B) LIQUIDITY RISKLiquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. The table below summarises the maturity profile of the Group’s financial liabilities at the reporting date based on contractual undiscounted repayments obligations:

2015 2014

ON DEMAND WITHIN

ONE YEAR

$

1-2 YEARS

$ 2-5 YEARS

$

5 YEARS AND

ABOVE $

TOTAL $

ON DEMAND WITHIN

ONE YEAR

$

1-2 YEARS

$

2-5 YEARS

$

5 YEARS AND

ABOVE $

TOTAL $

Trade payables 159,357 - - - 159,357 701,745 - - - 701,745

Other payables 2,475,569 - - - 2,475,569 1,084,627 - - - 1,084,627

Employee benefits payable 245,825 - - - 245,825 136,218 - - - 136,218

Bank loan - - 13,000,000 - 13,000,000 500,000 500,000 6,500,000 - 7,500,000

2,880,751 - 13,000,000 - 15,880,751 2,422,590 500,000 6,500,000 - 9,422,590

(C) INTEREST RATE RISKThe Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rate for each class of financial assets and financial liabilities comprises:

FIXED INTEREST RATE

FLOATING INTEREST RATE

NON-INTEREST BEARING TOTAL

WEIGHT EFFECTIVE INTEREST

RATE1 YEAR OR

LESS 1 TO 5 YEARS

2015 $

2014 $

2015 $

2014 $

2015 $

2014 $

2015 $

2014 $

2015 $

2014 $

2015 %

2014 %

Financial Assets

Cash 968,838 942,043 - - - - 2,313,879 2,505,042 3,282,717 3,447,085 2.35% 1.76%

Trade and other receivables -- - - - - - 2,647,529 1,222,969 2,647,529 1,222,969 NA NA

Total Financial Assets 968,838 942,043 - - - - 4,961,408 3,728,011 5,930,246 4,670,054 - -

Financial Liabilities

Trade and other payables -- - - - - - 4,849,551 2,178,526 4,849,551 2,178,526 NA NA

Bank loans -- - - 500,000 13,000,000 7,000,000 - - 13,000,000 7,500,000 3.89% 4.01%

Total Financial Liabilities - - - 500,000 13,000,000 7,000,000 4,849,551 2,178,526 17,849,551 9,678,526 - -

SENSITIVITY ANALYSISAt 30 June 2015, if interest rates had changed by -/+ 100 basis points from the weighted average rate for the year with all other variables held constant, the profit for the Group would have been $22,865 lower/higher (2014 - $16,620 lower/higher) as a result of lower/higher interest income from cash and cash equivalents.

NOTE 22. CAPITAL MANAGEMENT

Management controls the capital of the Group to ensure that adequate cash flows are generated to fund its proposed development programs and that returns from investments are maximised within tolerable risk parameters. The finance and audit committee ensures that the overall risk management strategy is in line with this objective. The finance and audit committee operates under policies approved by the Board of Directors. Risk management policies are approved and reviewed by the Board on a regular basis. These include credit risk policies and future cash flow requirements. The Group’s capital consists of financial liabilities, supported by financial assets. Management effectively managed the Group’s capital by assessing the Group’s financial risks and responding to changes in these risks and in the market. These responses include the consideration of debt levels.

The Group is in compliance with its committments to the Commonwealth Bank of Australia and the Department of Housing.

47 48



DIRECTORS’ DECLARATIONAccess Housing Australia Limited

The directors of the Group declare that:

1. The financial statement and notes, as set out on pages 7 to 36 , are in accordance with the Corporations Act 2001 and the ACNC Act 2012 and:

a) comply with Australian Accounting Standards; and

b) give a true and fair view of the financial position as at 30 June 2015 and of the performance for the year ended on that date of the Group.

2. In the directors’ opinion there are reasonable grounds to believe that the Group 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.

Director

David William LantzkeDated this 30th day of September 2015

49 50



5151


www.accesshousing.org.au

South West Office

1st Floor, 25 Victoria Street

PO Box 1539

Bunbury WA 6230

P (08) 9722 7200

F (08) 9721 7222

E [email protected]

Peel Office4 Stevenson Street

PO Box 1200

Mandurah WA 6210

P (08) 9534 0400

F (08) 9583 5173

E [email protected]

Head Office

Level 1, 39 Adelaide Street

PO Box 1334

Fremantle WA 6959

P (08) 9430 0900

F (08) 9430 5583

E [email protected]

Documents

ANNUAL REPORT 2015 - Access Housing · 2015-11-09 · Fremantle the Honourable Jim McGinty AM and Debra Bakker, who has an impressive resume in international finance and the resources