FINANCIALS – FOR THE YEAR ENDED 30 JUNE 2021

CONSOLIDATED FINANCIAL OVERVIEW FOR THE YEAR ENDED 30 JUNE 2021

We present the consolidated financial report for the year ending 30 June 2021, which includes The Trustees of the Society of St Vincent de Paul (NSW), St Vincent de Paul Society NSW and St Vincent de Paul Housing.

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KEY FINANCIAL RESULTS INCLUDE:

  • Consolidated net operating surplus excluding significant one offs as per below $25.1M (2020: Deficit $14.1M).
  • Total revenues and other income of $212.1M (2020: $232.7M), this is a decrease of $20.6M or 9% on prior year.
  • Total expenditure of $176.1M (2020: $249.8M), this is a decrease of $73.7M or 30% on prior year.
  • Government funding decreased by $34.3M or 32% on last year to $72.4M.This included a $45m decrease due to majority of the NDIS Local Area Coordination Program concluding in June 2020.The Federal Government Funded Jobkeeper Assistance Program saw an increase in funding of $13.5m from the previous year assistance was provided for an additional 2 quarters to March.
  • Vinnies Centres sales increased by $14.8M or 26% on last year to $71.1M. 70% of our centres were open for business from July 2020 with all centres gradually opening from the 1st of September following Covid‐19 lockdowns in the last quarter of FY2020.
  • In 2020‐21, the Society spent $95.2M (2020: $150.5M) directly in the areas of people in need, homelessness and mental health, disability and capacity building services and housing services.This decrease was mainly attributed to the NDIS Local Area Program concluding in June 2020.

An overview of the financial results is presented below:

Review of operations

2021
Actual
$’000
2021
Budget
$’000
2020
Actual
$’000
2021
vs.
2020
2021 Actual
vs. Budget
5 year
average %
Revenue 202,145 180,723 226,217 -11% 12% 5%
Expenditure (176,128) (188,405) (239,119) -26% -7% 6%
Operating (deficit) / surplus 26,017 (7,682) (12,902)
Transfers to related entities (860) (810) (1,216)
Net operating (deficit) / surplus 25,157 (8,492) (14,118)
Significant one-off items
Net gains on sale 6,362
Amelie Housing Profit (Loss) Share 1,232 (303)
Revaluation Gains/(Impairment Losses)
on Fixed Assets
8,730 (10,325)
Net (deficit) / surplus 35,119 (18,384)

Revenue and other income
2020–21

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Use of funds
2020–21

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Five-year financial results summary

2016-17 2017-18 2018-19 2019-20 2020-21 Average
Change (%)
Revenue & other income (‘$000)
Donations & appeals 14,337 15,337 17,375 26,459 22,893
Bequests 6,202 6,926 17,874 13,393 10,127
Sale of goods & other 68,694 67,963 69,045 57,181 71,990
Government funding 77,143 98,953 103,810 106,715 72,444
Client contributions 3,503 5,321 8,700 10,074 11,236
Gains on sale of assets 4,351 4,225 2,398 6,444 699
Other 9,329 9,564 16,103 12,395 22,718
Total revenue & other income 183,559 208,289 235,305 232,661 212,107
Year-on-year change (%) * 10.2% 13.5% 13.0% -1.1% -8.8% 5.3%
Use of funds ($’000)
Fundraising costs 3,768 4,023 3,919 4,339 3,508
Costs for centres of charity and other 47,096 49,079 52,170 50,549 50,005
People in need 29,738 23,940 40,387 29,264 25,571
Homeless, mental health and housing 41,558 50,424 55,178 64,327 48,665
Disability Services 43,932 73,546 62,319 55,312 18,996
Other costs 21,715 21,866 46,164 35,393 29,333
Impairment and losses on assets 6 3,536 435 10,645 50
Total expenditure 187,811 226,414 260,572 249,829 176,128
Year-on-year change (%) * 26.3% 20.6% 15.1% -4.1% -29.5% 5.7%
Transfers to related entities 1,143 1,178 1,708 1,216 860
Net surplus / (deficit) (5,395) (19,303) (26,975) (18,384) 35,119
Services % of total costs* 86.4% 88.4% 80.7% 83.4% 81.3% 84.1%
Services % of total income* 88.9% 94.6% 89.3% 85.7% 67.5%
Fundraising costs % of total costs* 2.0% 1.8% 1.5% 1.8% 2.0%
Fundraising & admin % of total costs* 13.6% 11.6% 19.3% 16.6% 18.7% 15.9%
Fundraising costs to donations & bequests* 18.3% 18.1% 11-.1% 10.9% 10.6%

* Net gains on sale, impairment losses and restructuring provisions have been excluded from ratios as they are one-offs.

CONSOLIDATED FINANCIAL OVERVIEW FOR THE YEAR ENDED 30 JUNE 2021

Operating position

The Group reported a net operating surplus for the year of $35.1M (2020: $18.3M deficit). Included in the net surplus are significant one off items of 1) $8.7M fair value adjustment to the St Vincent de Paul Housing properties. 2) $24.6M in Federal Government Covid‐19 Assistance under the Jobkeeper Program.

The Group also provided bushfire assistance of $1.2M from its own funds with an additional $4.1M of bushfire assistance provided with federal government funding. The bushfire assistance programs will continue in the FY2022 Financial year. As part of the approval of the 2021‐2022 budget, the Board endorsed the budget as well as the continuing of the strategic initiatives to be progressed including further development of the Retail and Fundraising Strategies, Property Strategy and Support Services review.

COVID-19 impact and measures in place

The second wave of the COVID‐19 pandemic that started in late June 2021 is having a significant impact on our revenue streams including fundraising, retail and investments and the Group has implemented a number of strategies to reduce our expenditure during this period including:

  • establishing our eligibility for Jobsaver and commencing the rollout of this scheme;
  • standing down staff in areas where operations have ceased or been significantly reduced;
  • ceasing the use of casuals where possible to support the retention of permanent staff;
  • implementing a recruitment freeze across the organisation (unless deemed business critical);
  • planning for reducing operational expenditure as well as identifying opportunities for increased revenue across each Directorate; and
  • reducing excess annual and long service leave.

We are continuously monitoring our financial position with robust and timely forecasting of key financial information to assess and put additional measures in place as appropriate.

Cash and Financial position

The Group is fortunate to be in a sound financial position with net assets at 30 June 2021 of $400M. The main components of this are property assets of $477.2M, also cash assets of $75.0M and strategic and other deposits of $42.6M.

As mentioned above the Society has developed its new three year Strategic Plan commencing 2020. The result of this process will be a three year financial plan which places the people we serve at the centre, surrounded by our mission, vision, values and spirituality thus ensuring the Society’s resources are allocated to priority service delivery areas which have been identified by the Board.

The objective of the Society’s Strategic Reserves are primarily to safeguard against the risk of major unforeseen events, ensuring the long‐term sustainability of the Society and its activities to support those most in need. Furthermore, these funds are utilised to fund major strategic initiatives presented to the Board, subsequent to review by the Audit and Finance (AF) Committee. The Society’s plan for 2021‐22 will be fine tuning and consolidating new ways of working organisational model and continuation of major transformation projects that will further build organisational capability to ultimately support service delivery to clients.

Trends and ratio analysis

Over the last five years, operating revenues have increased on average by 5%. Over the same time operating expenses have increased by 6% on average.

The ratio of service delivery costs as a percentage of total costs is in line with the 5 year average of around 84%.

The ratio of fundraising and administration costs as a percentage of total costs is in line with the 5 yr. average, ratio is 17.5% and 5 yr. average is 15.6%. It should be noted that FY2019 costs includes $7M in remediation costs incurred for properties transferred to St Vincent de Paul Housing as part of the Social and Affordable Housing (SAHF) project with no further costs expected.

Analysis of results

Sales of goods from Vinnies Centres represent a significant contribution to total revenues at 34% (2020: 24%). As observed in the wider retail sector which our shops operate, there were challenging market conditions including significant COVID‐19 restrictions which has seen the closure of all our retail outlets in early July 2021.This will significantly impact our results for FY2022.

Government funding decreased during the year to $72.4M, however representing a significant contribution to total revenues and other income at 32%. The decrease was mainly due to the conclusion of the NDIS Local Area Coordination Program which saw funding decrease by $45.3m.This was partially compensated by the Federal Government Jobkeeper assistance initiative which included increased funding of approximately $13.5M from the previous Financial Year. The Society is fortunate to receive significant funding from the Government, however many of our services are co‐funded by the Society, as can be seen by our spending of $95.2M in areas of people in need, homeless and mental health services, disability, capacity building and housing services. As such these shortfalls are sustained by surpluses generated from Vinnies Centres, donations, client contributions and cash reserves.

Donations and appeals contributed 11% to total revenues and other income (2020: 11%).The 2021 CEO Sleepout raised approximately $3.2M for crisis accommodation and specialised services for those experiencing homelessness.

Bequests performed strongly generating $10.1M (2020: $13.4M) and accounted for 5% (2020: 6%) of total revenues and other income. The Society is very appreciative of these valued gifts which are applied directly as per the instructions of the Estate. Bequests are unpredictable in nature, as such for budget purposes the Society applies a five year historical average with an appropriate growth target.

Investment income which is comprised of interest and dividends and fair value gains on investments was down on prior year at $1.6M (2020: $1.8M). The performance of the Strategic and Employee Entitlement Reserves and Term Deposits was impacted by the lower than budgeted rates of return as a result of the Covid‐19 pandemic.

Jack de Groot

Chief Executive Officer
Dated this 24th day of November 2021

Jean-Baptiste (JB) Naudet

Chief Financial Officer

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2021

2021
$
2020
$
Revenue and other income
Income from fundraising:
Donations and appeals 22,892,525 26,458,987
Bequests 10,126,774 13,393,386
Sale of goods – Vinnies Centres 71,062,382 56,269,215
Sale of goods – other 927,830 912,138
Government funding 72,443,618 106,715,250
Client contributions 11,236,183 10,074,369
Rental income 5,056,677 3,177,566
Other income 4,826,519 6,242,042
Container deposit scheme 3,669,372 2,973,562
Fair value gain on financial assets 436,177
Fair value gain on investment properties 8,729,894
Net gain on disposal of property, plant and equipment 699,488 6,444,278
Revenue and other income 212,107,439 232,660,793
Fundraising costs (3,508,345) (4,339,375)
Costs for Vinnies Centres (49,648,177) (50,357,713)
Costs for sales – other (357,278) (191,076)
People in need services (25,571,100) (29,264,382)
Homeless & mental health services (44,372,663) (62,376,700)
Disability services and capacity building (18,995,508) (55,312,175)
Housing services (4,292,834) (1,949,977)
Support and enabling function costs (25,947,142) (32,179,773)
Fair value loss on investment properties (10,325,247)
Fair value loss on financial assets (238,170)
Loss on disposal of fixed assets (49,631) (81,939)
Finance costs (3,385,403) (3,212,665)
Expenditure (176,128,081) (249,829,192)
Surplus / (Deficit) for the year 35,979,358 (17,168,399)
Transfers to related entities (860,453) (1,215,964)
Net surplus / (deficit) for the year 35,118,905 (18,384,363)
Other comprehensive Income
Other comprehensive income for the year
TOTAL COMPREHENSIVE INCOME / (LOSS) FOR THE YEAR 35,118,905 (18,384,363)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021

2021
$
2020
$
ASSETS
Current
Cash and cash equivalents 75,025,285 67,817,997
Trade and other receivables 3,871,518 1,749,364
Inventories 220,325 343,537
Other assets 8,241,589 5,937,532
Current assets 87,358,717 75,848,430
Non-current
Trade and other receivables 5,669,683 391,534
Other financial assets 45,040,676 43,329,990
Right-of-use 28,469,682 30,693,314
Property, plant and equipment 253,910,170 258,209,294
Investment properties 223,293,454 169,211,427
Intangible assets 2,921,497 4,514,671
Non-current assets 559,305,162 506,350,230
TOTAL ASSETS 646,663,879 582,198,660
LIABILITIES
Current
Trade and other payables 14,301,560 11,621,191
Other liabilities 9,205,641 22,156,005
Borrowings 430,587 391,534
Lease liabilities 5,719,925 6,552,167
Provisions 11,081,345 11,421,072
Current liabilities 40,739,058 52,141,969
Non-current
Borrowings 179,970,873 136,165,139
Lease liabilities 23,741,954 24,626,436
Provisions 1,760,400 3,932,427
Non-current liabilities 205,473,227 164,724,002
TOTAL LIABILITIES 246,212,285 216,865,971
NET ASSETS 400,451,594 365,332,689
FUNDS
Funds for social programs 373,519,082 338,400,177
Property revaluation reserve 13,581,975 13,581,975
Equity contribution 13,350,537 13,350,537
TOTAL FUNDS 400,451,594 365,332,689

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021

2021
$
2020
$
OPERATING ACTIVITIES
Receipts from:
  Donations and appeals 22,892,525 26,458,987
  Bequests 10,126,774 13,393,386
  Government grants 66,737,616 121,110,554
  Client contributions 11,236,183 10,074,369
  Sale of goods 71,990,212 57,181,353
  Dividend income 284,271 353,737
  Interest income 839,770 1,480,189
  Rental income 5,056,677 3,177,566
  Other income 3,946,252 7,839,404
Interest paid (1,345,346) (1,586,509)
Distributions from related entities (860,453) (1,215,964)
Payments to clients, suppliers and employees (168,478,854) (242,748,648)
Net cash used in by operating activities (22,425,627) (4,481,576)
INVESTING ACTIVITIES
Purchase of property, plant and equipment (7,440,824) (6,612,861)
Payments for capital expenditure work in progress (49,371,881) (63,147,546)
Payments for intangible assets (286,460) (40,250)
Proceeds from disposals of property, plant and equipment 3,845,093 10,596,817
Proceeds from long-term deposits 483,169 13,100,000
Net cash used in investing activities (52,770,903) (46,103,840)
FINANCING ACTIVITIES
Loans received 44,479,223 59,490,703
Loans paid (430,587) (351,096)
Repayment of lease liabilities (6,535,126) (7,319,791)
Net cash provided by financing activities 37,513,510 51,819,816
Net change in cash and cash equivalents 7,168,234 1,234,400
Cash and cash equivalents, beginning of year 67,426,463 66,192,063
CASH AND CASH EQUIVALENTS, END OF YEAR 74,594,697 67,426,463

DECLARATION BY THE NSW STATE COUNCIL FOR THE YEAR ENDED 30 JUNE 2021

1. In the opinion of the State Council of The Trustees of the Society of St Vincent de Paul (NSW);

a) The consolidated financial statements and notes of The Trustees of the Society of St Vincent de Paul (NSW) are in accordance with the Australian Charities and Not‐for‐profits Commission Act 2012 , including:

i) Giving a true and fair view of its financial position as at 30 June 2021 and of its performance for the financial year ended on that date; and

ii) Complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Australian Charities and Not‐for‐profits Commission Regulation 2013 , and

b) There are reasonable grounds to believe that The Trustees of the Society of St Vincent de Paul (NSW) will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the Responsible Entities:

Denis Walsh

Acting President
NSW State Council

25 November 2021

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