2005-2006 Financial Report

Annual Financial ReportFor year ended 30 June 2006

St Vincent de Paul Society Victoria Inc.

St Vincent de Paul Society Victoria Inc.ABN: 28 911 702 061 RN: A0042727Y

INCOME STATEMENTFOR THE YEAR ENDED 30 JUNE 2006

ECONOMIC ECONOMIC PARENT PARENTENTITY ENTITY ENTITY ENTITY

2006 2005 2006 2005$ $ $ $

RevenueFundraising 3 (a) 6,417,317 5,078,852 5,800,821 4,742,016Government Grants 3 (b) 19,057,839 19,389,130 1,644,873 4,120,873Sale of Goods 3 (c) 16,236,499 14,832,134 15,212,555 13,751,012Other Revenue 3 (d) 6,658,501 5,987,824 869,398 503,802Changes in Value of Investment 3 (e) 5,765 1,153 5,765 1,153Total revenue 48,375,921 45,289,093 23,533,412 23,118,856

Other IncomeNet Gain on Sale of Property, Plant and Equipment

3 (f) 869,275 698,582 921,994 407,337

Operating ExpensesCost of Sales 4 (a) (10,622,506) (9,958,007) (9,045,579) (8,391,472)Fundraising/Public Relations 4 (b) (656,462) (629,066) (656,462) (629,066)Administration 4 (c) (3,049,941) (2,473,407) (3,049,941) (2,473,407)

(14,328,909) (13,060,480) (12,751,982) (11,493,945)

Total funds available for client activities 34,916,287 32,927,195 11,703,424 12,032,248

Client Services ExpensesPeople in Need Services 4 (d) (7,203,456) (8,047,229) (7,239,939) (8,069,199)Aged Care Services 4 (e) (12,953,499) (12,661,019) - -Homelessness & Housing Services 4 (f) (7,798,384) (7,707,519) - -Support Services 4 (g) (2,243,462) (1,668,978) (2,243,462) (1,668,978)

(30,198,801) (30,084,745) (9,483,401) (9,738,177)

Total Expenses (44,527,710) (43,145,225) (22,235,383) (21,232,122)

Surplus/(Deficit) for the period 4,717,486 2,842,450 2,220,023 2,294,071

Note

The accompanying notes form part of these Financial Statements 2


BALANCE SHEETAS AT 30 JUNE 2006


2006 2005 2006 2005$ $ $ $

CURRENT ASSETSCash and cash equivalents 20,161,336 22,235,338 9,440,889 9,322,797 Trade and other receivables 2,056,680 438,246 1,607,916 132,418 Inventories 183,060 153,737 154,926 125,792 Financial assets 13,026,978 8,159,917 2,026,978 1,021,213 Other assets 414,192 489,561 270,259 298,424

TOTAL CURRENT ASSETS 35,842,246 31,476,799 13,500,968 10,900,644

NON-CURRENT ASSETSProperty, plant & equipment 53,042,409 51,020,060 21,567,132 21,640,758 Financial assets - - 50,859,829 50,859,829 Intangibles 14,122,030 13,585,744 39,382 5,192

TOTAL NON-CURRENT ASSETS 67,164,439 64,605,804 72,466,343 72,505,779 TOTAL ASSETS 103,006,686 96,082,603 85,967,312 83,406,423

CURRENT LIABILITIESTrade and other payables 1,965,704 1,333,277 1,032,099 247,107 Provisions 3,488,671 3,007,525 784,749 591,717 Other liabilities 11,076,031 9,810,617 548,940 1,130,749

TOTAL CURRENT LIABILITIES 16,530,406 14,151,419 2,365,788 1,969,573

NON-CURRENT LIABILITIESProvisions 490,972 663,363 216,350 271,699

TOTAL NON-CURRENT LIABILITIES 490,972 663,363 216,350 271,699 TOTAL LIABILITIES 17,021,378 14,814,782 2,582,138 2,241,272 NET ASSETS 85,985,308 81,267,821 83,385,174 81,165,151

EQUITYReserves 31,188,770 32,403,596 13,235,238 14,110,064 Retained earnings 54,796,537 48,864,225 70,149,936 67,055,087

Total parent entity interest 85,985,307 81,267,821 83,385,174 81,165,151 TOTAL EQUITY 85,985,307 81,267,821 83,385,174 81,165,151

912

6

Note

16

14

11

7

13

10

15

8

14

9

The accompanying notes for part of these Financial Statements 3


STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2006

ECONOMIC ENTITY

Retained Earnings

Asset Revaluation

Reserve

Capital Profits

ReserveFund-a-Future

Reserve Total$ $ $ $ $

Balance at 1 July 2004 43,864,775 32,873,560 1,557,036 130,000 78,425,371Surplus from ordinary activities 2,842,450 - - - 2,842,450

Transfer from Capital Profits reserve 1,359,000 - (1,359,000) - -Transfer from Asset Revaluation reserve 1,138,000 (1,138,000) - - -Balance at 30 June 2005 49,204,225 31,735,560 198,036 130,000 81,267,821

Surplus from ordinary activities 4,717,486 - - - 4,717,486Transfer from Asset Revaluation reserve 874,826 (874,826) - - -At 30 June 2006 54,796,537 30,860,734 198,036 130,000 85,985,307

PARENT ENTITY

Retained Earnings

Asset Revaluation

Reserve

Capital Profits

ReserveFund-a-Future

Reserve Total$ $ $ $ $

Balance at 1 July 2004 62,604,016 14,908,064 1,359,000 - 78,871,080Surplus from ordinary activities 2,294,071 - - - 2,294,071

Transfer from Capital Profits reserve 1,359,000 - (1,359,000) - -Transfer from Asset Revaluation reserve 798,000 (798,000) - - -Balance at 30 June 2005 67,055,087 14,110,064 - - 81,165,151

Surplus from ordinary activities 2,220,023 - - - 2,220,023Transfer from Asset Revaluation reserve 874,826 (874,826) - - -At 30 June 2006 70,149,936 13,235,238 - - 83,385,174

Reserves

Reserves



CASH FLOW STATEMENTFOR THE YEAR ENDED 30 JUNE 2006


2006 2005 2006 2005$ $ $ $

Cash flows From Operating Activities:Receipts from operating activities 37,623,225 29,889,117 15,296,423 8,862,889Receipts from supporters 14,829,803 13,720,488 14,829,803 13,720,488Payments to clients, suppliers and employees (51,541,836) (40,310,034) (29,750,683) (19,928,371)

1,777,512 1,410,416 589,333 349,851Other - (63,933) - (63,933)Net cash provided by operating activities 19 (b) 2,688,704 4,646,054 964,876 2,940,924

Cash flows From Investing Activities:Proceeds - sale of property, plant and equipment 2,214,728 2,596,495 1,978,493 1,638,596Proceeds from investments 138,704 - - -Payment for property, plant and equipment (5,055,797) (4,226,801) (1,772,028) (1,388,385)Payments for intangible assets (90,210) (32,104) (53,249) (2,603)Payments for investments (5,000,000) (13,057) (1,000,000) -Net cash provided by/(used in) investing activities (7,792,575) (1,675,467) (846,784) 247,608

Cash flows From Financing Activities:Repayment of finance leases - (77,148) - (77,148)Proceeds from residents' accommodation bonds 5,665,373 3,706,505 - -Repayment of residents' accommodation bonds (2,635,504) (2,924,104) - -Net cash provided by/(used in) financing activities 3,029,869 705,253 - (77,148)

Net increase/(decrease) in cash and cash equivalents (2,074,002) 3,675,840 118,092 3,111,384Cash and cash equivalents at the beginning of the financial year 22,235,338 18,559,498 9,322,797 6,211,413

Cash and cash equivalents at the end of the financial year 19 (a) 20,161,336 22,235,338 9,440,889 9,322,797

Note



NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2006

Note 1

(a) Basis of preparation

(b) Judgements and estimates

(c) Principles of consolidation

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.

The combined financial report of St Vincent de Paul Society Victoria Inc. comprises the consolidated financial reports of St Vincent de Paul Society Victoria Inc. and St Vincent de Paul Aged Care and Community Services.

The financial report is a general purpose financial report prepared in accordance with Accounting Standards, Urgent Issues Group interpretations and the Associations Incorporations Act (Vic) 1981.

The St Vincent de Paul Society Victoria Inc. is a non government welfare agency incorporated under the Associations Incorporations Act (Vic) 1981 and is domiciled in Australia. The Society operates a separate company limited by guarantee to run its aged care and community services.

The financial report has been prepared on an accruals basis and is based on historic costs modified by the revaluations of selected non-current assets and financial assets and liabilities, for whcih the fair value basis of accounting has been applied. Cost is based on the fair value of the consideration given in exchange for assets. The financial report is presented in Australian dollars. The following specific accounting policies have been consistently applied, unless otherwise stated.

The financial report covers the economic entity being St Vincent de Paul Society Victoria Inc. and St Vincent de Paul Aged Care and Community Services. The parent entity is St Vincent de Paul Society Victoria Inc.

A controlled entity is any entity controlled by St Vincent de Paul Society Inc. Control exists where St Vincent de Paul Society Inc. has the capacity to dominate the decision-making in relation to the financial and operating policies of another entity so that the other entity operates with St Vincent de Paul Society Victoria Inc. to achieve the objectives of St Vincent de Paul Society Inc. A list of controlled entities is contained in Note 9.

All inter-entity balances and transactions between entities in the economic entity have been eliminated on consolidation.

The financial statements were authorised for issue by State Council on 23rd September 2006.

In the application of AIFRS, management is required to make judgements, estimates and assumptions about carryingvalues of assets and liabilities that are not readily apparent from other sources. The estimates and associatedassumptions are based on historical experience and various other factors that are believed to be reasonable underthe circumstance, the results of which form the basis of making the judgements. Actual results may differ from theseestimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in theperiod of the revision and future periods if the revision affects both current and future periods.

Judgements made by management in the application of AIFRS that have significant effects on the financialstatements and estimates with a significant risk of material adjustments in the next year are disclosed, whereapplicable, in the relevant notes to the financial statements.

Accounting policies are selected and applied in a manner which ensures that the resulting financial informationsatisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactionsor other events is reported.

The consolidated entity changed its accounting policies on 1 January 2005 to comply with AIFRS. The transition toAIFRS is accounted for in accordance with Accounting Standard AASB 1: First-time Adoption of AustralianEquivalents to International Financial Reporting Standards, with 1 July 2004 as the date of transition. An explanationof how the transition from superseded policies to AIFRS has affected the parent entity's and consolidated entity'sfinancial position, financial performance and cash flows is discussed in Note 2.

6



Note 1

(d)

(e) Revenue

(f)

(g)

The Society is not subject to income tax.

Reconciliations of the transition from previous Australian GAAP to AIFRS have been included in Note 2 to this report.

Cash and cash equivalents

For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

Resident contributions are recognised when the service is provided.

St Vincent de Paul Society Victoria Inc. has prepared financial statements in accordance with the Australianequivalents to International Financial Reporting Standards (AIFRS) from 1 July 2005.

The accounting policies set out below have been consistently applied to all years presented. The parent andconsolidated entities has however elected to adopt the exemptions available under AASB 1 relating to AASB 132:Financial Instruments: Disclosure and Presentation, and AASB 139: Financial Instruments: Recognition andMeasurement. Refer to Note 23 for further details.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Continued

The net profit from the sale of an asset is included as revenue when control of the asset passes to the buyer. The profit or loss on disposal is calculated as the differnece between the carrying amount of the asset at the time of disposal and net proceeds.

Income Tax

The St Vincent de Paul Society Victoria Inc. is a non-profit organisation and receives a principal part of its income from donations, as cash or in kind. Amounts donated can be recognised only as revenue when the entity gains control, economic benefits are probable and the amount of the contribution can be measured reliably. State Council has the responsibility for ensuring that all voluntary and other revenues to which the Society gains control are accounted for properly. This involves establishing controls to ensure that voluntary revenue is recorded in the financial records, however at times it is impractical to maintain controls over the collection of such revenue prior to its initial entry into the financial records or to ensure that any economic benefit can be measured reliably. Therefore, voluntary revenue is recognised in these accounts when control, benefit and reliable measurement can be achieved.

Revenue from the sale of goods is recognised upon delivery of the goods to customers.

Income from the government is principally of a recurrent or capital nature and is intended to fund ongoing operations or asset acquisitions. Government grants which relate to future service provision obligations are carried forward and disclosed as grants in advance and deferred revenue.

Revenue from donations and bequests is recognised when received into the Gift Account.

First-time Adoption of Australian Equivalents to International Financial Reporting Standards

Interest revenue, from the bank and from residents with outstanding bonds, is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

In accordance with the requirements of AASB 1: First-time Adoption of Australian Equivalents to InternationalFinancial Reporting Standards, adjustments to the parent entity and consolidated entity accounts resulting from theintroduction of IFRS have been applied retrospectively to 2005 comparative figures excluding cases where optionalexemptions available under AASB 1 have been applied. These consolidated financial statements are the firstfinancial statements of St Vincent de Paul Victoria Inc. to be prepared in accordance with AIFRS.

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquidinvestments with original maturities of three months or less, and bank overdrafts.

7



Note 1

(h) Financial Instruments

Financial Assets

Held to maturity investments

Financial assets at fair value through profit and loss

Loans and receivables

Available for sale financial assets

Financial Liabilities

Fair value

Impairment

(i) Accommodation Bonds

(j)

(k)


All financial assets are initially recognised at cost, being the fair value of the consideration given and including acquisition charges associated with the investment. Where an asset is acquired at no cost, or for a nominal cost, the cost is its fair value as at the date of acquisition.

These are investments that have fixed maturities and it is the Association�s intention to hold these investments tomaturity. Any investments held to maturity by the Association are stated at amortised cost using the effective interestmethod.

A financial asset is classified in this category if it is held for trading; that is principally with the objective of selling inthe short-term with a profit making intention. In addition, any other financial assets so designated by management oninitial recognition are included in this category. Realised and unrealised gains and losses arising from changes in thefair value of these assets are included in the income statement in the period in which they arise.

Available-for-sale financial assets include all financial assets not included in the above categories. Available for salefinancial assets are reflected at fair value. Unrealised gains and losses arising from the changes in fair value aretaken directly to equity.

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arms length transactions, reference to similar instruments and pricing models.

Financial liabilities, including loans and borrowings, are recognised at amortised cost, comprising original debt less principal payments and amortisation.

At each reporting date, the directors assess 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 determine whether an impairment has arisen. Impairment losses are recognised in the income statement.

Accommodation bonds are repayable upon demand.

Assets Held in TrustThe company, Society of St Vincent De Paul (Victoria), holds various properties and bed licences in trust for St Vincent de Paul Society Victoria Inc.

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 Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables in the Balance Sheet are shown inclusive of GST. Cashflows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from inveting and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted inan active market and are stated at amortised cost using the effective interest rate method.

8



Note 1

(l) Fixed Assets

Depreciation

Class of Fixed AssetBuildings Leasehold improvementsFurniture, Plant &EquipmentComputer HardwareMotor Vehicles - CarsMotor Vehicles - Trucks

(m) Impairment

Variable straight line according to estimatedresidual and useful life of the vehicle

The carrying values of tangible and intangible assets are reviewed for impairment when events or changes incircumstances indicate the carrying value may not be recoverable.

If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets orcash-generating units are written down to their recoverable amount.

Depreciated replacement cost is defined as the current replacement cost of an asset less, where applicable,accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired futureeconomic benefits of the asset. The current replacement cost of an asset is its cost measured by reference to thelowest cost at which the future economic benefits of that asset could currently be obtained in the normal course ofbusiness.

Impairment losses are recognised in the Income Statement.


As the future economic benefits of the Association�s assets are not primarily dependant on their ability to generatenet cash inflows, and if deprived of the asset, the Association would replace the asset�s remaining future economicbenefits, �value in use� is determined as the depreciated replacement cost of the asset, rather than by usingdiscounted future cash flows.

At each reporting date, the directors review a number of factors affecting tangible and intangible assets (whichincludes property, plant and equipment) including their carrying values, to determine if these assets may be impaired.If an impairment indicator exists, the recoverable amount of the asset, being the higher of the asset�s �fair value lesscosts to sell� and �value in use� is compared to the carrying value. Any excess of the asset�s carrying value over itsrecoverable amounts is expensed in the Income Statement as an impairment expense.

Land is measured on the cost basis. All other property plant and equipment is measured at cost, less accumulateddepreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of an item. Inthe event that settelement of all or part of the purchase consideration is deferred, cost is determined by discountingthe amounts payable in the future to their present value as at the date of acquisition.

33% straight line15% to 20% straight line

Depreciation is calculated on a straight line basis so as to write off the net cost or other revalued amount of eachasset over its expected useful life to the company to its residual value, except leasehold improvements, which areover the shorter of the estimated useful life of the asset or the term of the lease, as follows:

Depreciation rate and method1% to 2.5% straight lineOver the term of the lease

7% to 20% straight line

9



Note 1

(n)

Computer Software

Aged Care Bed Licences

(o)

(p)

(q)

(r) Leases

Trade and other creditos represent unpaid liabilities for goods received by and services provided to the Association prior to the end of the financial year. The amounts are unsecured and are normally settled within 30 days.

Intangibles


Inventories held for sale are valued at the lower of cost and net realisable value. Where inventories are held fordistribution or are to be consumed by the Association in providing services or aid at no or nominal charge, they arevalued at the lower of cost and replacement cost.

Trade debtors are recognised when the risks and rewards of ownership of the underlying sales transactions have passed to customers. This event usually occurs on delivery of goods or services to customers. Trade debtors are recorded at nominal amounts. Credit terms are 30 days. Collectability of overdue accounts is assessed on an ongoing basis.

Trade and other creditors

Trade and other receivables

Intangible assets are only recognised if they meet the identifiability criterion, that is it is separable from theAssociation and arises from contractual or other legal rights. All intangibles are initially recognised at their cost, orwhen acquired for no consideration, at their fair value at the date of acquisition.

Computer software that is not integral to the operation of a related piece of hardware or plant is classified as anintangible (for example, accounting systems software), and is initially recognised at cost. Subsequent to initialrecognition, computer software is carried at its cost less accumulated amortisation and impairment losses. Computer software has a finite life, and is amortised on a systematic basis over its estimated useful life, being on a straight linebasis over 3 years.

Bed licences that are purchased are initially recorded at cost. Bed licences that are received for no consideration arerecognised at their fair value at the date of acquisition, having regard to recent sale activity within the industry, whichthe Association then uses to record the licences at deemed cost. Bed licences have an indefinite life, as long as theAssociation continues to comply with the terms and conditions imposed by Government. Bed licences are thereforetested annually for impairment.

Inventories

Subsequent to initial recognition, bed licences continue to be carried at their original deemed cost (being their fairvalue on acquisition), less any impairment losses.

Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified asoperating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount ofthe leased asset and recognised over the lease terms on the same basis as the lease income.

Operating lease payments are recognised as an expense in the Income Statement on a straight-line basis over thelease term.

Finance leases which transfer to the Company substantially all the risks and benefits included in ownership of theleased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at thepresent value of the minimum lease payments.

Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve aconstant rate of interest on the remaining balance of the liability. Finance charges are charged directly againstincome.

Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.

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Note 1

(s)Wages, salaries, annual leave and sick leave

Long service leave

Superannuation

(t) Comparative Figures

Employee benefits

The Association contributes to complying funds at the required rate of the employees' wages and salaries.Superannuation contributions are recognised as an expense when incurred.

When required by Accounting Standards, comparative figures have been adjusted to conform to changes inpresentation for the current financial year.

Liabilities for wages, salaries and annual leave expected to be settled within 12 months of the reporting daterepresent present obligations resulting from employees' services provided up to the reporting date, calculated atundiscounted amounts based on remuneration wage and salary rates that the Society expects to pay as at reportingdate including on-costs.

The provision for long service leave represents the present value of the estimated future cash outflows to be maderesulting from employees' services provided up to the reporting date.

The provision is calculated using expected future increases in wage and salary rates including related on-costs andexpected settlement dates based on turnover history and is discounted using the rates attaching to nationalgovernment bonds at reporting date which most closely match the terms of maturity of the related liabilities.


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Note 2

Previous GAAP at

1 July 2004

Effect of transition to

AIFRS AIFRS at

1 July 2004 $ $ $

Economic EntityReconciliation of Equity at 1 July 2004ASSETSCURRENT ASSETSCash and cash equivalents 18,559,498 - 18,559,498Trade and other receivables 324,040 - 324,040Inventories 185,591 - 185,591Financial assets 2 (c) 8,125,647 20,060 8,145,707Other assets 415,299 - 415,299TOTAL CURRENT ASSETS 27,610,075 20,060 27,630,135NON-CURRENT ASSETSProperty, plant and equipment 2 (a) 51,650,635 (355,735) 51,294,900Intangibles 2 (b) - 13,475,735 13,475,735TOTAL NON-CURRENT ASSETS 51,650,635 13,120,000 64,770,635TOTAL ASSETS 79,260,710 13,140,060 92,400,770CURRENT LIABILITIESTrade and other creditors 880,194 - 880,194Interest bearing liabilities 77,148 - 77,148Provisions 3,101,557 - 3,101,557Other liabilities 9,390,780 - 9,390,780TOTAL CURRENT LIABILITIES 13,449,679 - 13,449,679NON-CURRENT LIABILITIESProvisions 525,720 - 525,720TOTAL NON-CURRENT LIABILITIES 525,720 - 525,720TOTAL LIABILITIES 13,975,399 - 13,975,399NET ASSETS 65,285,311 13,140,060 78,425,371EQUITYReserves 34,560,596 - 34,560,596Retained earnings 2 (f) 30,724,715 13,140,060 43,864,775TOTAL EQUITY 65,285,311 13,140,060 78,425,371

FIRST-TIME ADOPTION OF AUSTRALIAN EQUIVALENTS TO INTERNATIONALFINANCIAL REPORTING STANDARDS

Note

12



Note 2

Previous GAAP at

1 July 2004


AIFRS AIFRS at

1 July 2004 $ $ $

Parent EntityReconciliation of Equity at 1 July 2004ASSETSCURRENT ASSETSCash and cash equivalents 6,211,413 - 6,211,413Trade and other receivables 98,670 - 98,670Inventories 151,679 - 151,679Financial assets 2 (c) 1,000,000 20,060 1,020,060Other assets 349,089 - 349,089TOTAL CURRENT ASSETS 7,810,851 20,060 7,830,911NON-CURRENT ASSETSProperty, plant and equipment 2 (a) 22,310,796 (6,913) 22,303,883Intangibles 2 (b) - 6,913 6,913Other financial assets 37,739,829 13,120,000 50,859,829TOTAL NON-CURRENT ASSETS 60,050,625 13,120,000 73,170,625TOTAL ASSETS 67,861,476 13,140,060 81,001,536CURRENT LIABILITIESTrade and other creditors 376,955 - 376,955Interest bearing liabilities 77,148 - 77,148Provisions 691,100 - 691,100Other liabilities 793,624 - 793,624TOTAL CURRENT LIABILITIES 1,938,827 - 1,938,827NON-CURRENT LIABILITIESProvisions 191,629 - 191,629TOTAL NON-CURRENT LIABILITIES 191,629 - 191,629TOTAL LIABILITIES 2,130,456 - 2,130,456NET ASSETS 65,731,020 13,140,060 78,871,080EQUITYReserves 16,267,064 - 16,267,064Retained earnings 2 (f) 49,463,956 13,140,060 62,604,016TOTAL EQUITY 65,731,020 13,140,060 78,871,080

FIRST-TIME ADOPTION OF AUSTRALIAN EQUIVALENTS TO INTERNATIONALFINANCIAL REPORTING STANDARDS Continued

Note

13



Note 2

Previous GAAP at

30 June 2005


AIFRS AIFRS at

30 June 2005 $ $ $

Economic EntityReconciliation of Equity at 30 June 2005ASSETSCURRENT ASSETSCash and cash equivalents 22,235,338 - 22,235,338Trade and other receivables 438,246 - 438,246Inventories 153,737 - 153,737Financial assets 2 (c) 8,138,704 21,213 8,159,917Other assets 489,561 - 489,561TOTAL CURRENT ASSETS 31,455,586 21,213 31,476,799NON-CURRENT ASSETSProperty, plant and equipment 2 (a) 51,245,804 (225,744) 51,020,060Intangibles 2 (b) - 13,585,744 13,585,744TOTAL NON-CURRENT ASSETS 51,245,804 13,360,000 64,605,804TOTAL ASSETS 82,701,390 13,381,213 96,082,603CURRENT LIABILITIESTrade and other creditors 1,333,277 - 1,333,277Provisions 3,007,525 - 3,007,525Other liabilities 9,810,617 - 9,810,617TOTAL CURRENT LIABILITIES 14,151,419 - 14,151,419NON-CURRENT LIABILITIESProvisions 663,363 - 663,363TOTAL NON-CURRENT LIABILITIES 663,363 - 663,363TOTAL LIABILITIES 14,814,782 - 14,814,782NET ASSETS 67,886,608 13,381,213 81,267,821EQUITYReserves 32,403,596 - 32,403,596Retained earnings 2 (f) 35,483,012 13,381,213 48,864,225TOTAL EQUITY 67,886,608 13,381,213 81,267,821


Note

14



Note 2

Previous GAAP at

30 June 2005


AIFRS AIFRS at

30 June 2005 $ $ $

Parent EntityReconciliation of Equity at 30 June 2005ASSETSCURRENT ASSETSCash and cash equivalents 9,322,797 - 9,322,797Trade and other receivables 132,418 - 132,418Inventories 125,792 - 125,792Financial assets 2 (c) 1,000,000 21,213 1,021,213Other assets 298,424 - 298,424TOTAL CURRENT ASSETS 10,879,431 21,213 10,900,644NON-CURRENT ASSETSProperty, plant and equipment 2 (a) 21,645,950 (5,192) 21,640,758Intangibles 2 (b) - 5,192 5,192Financial assets 37,739,829 13,120,000 50,859,829TOTAL NON-CURRENT ASSETS 59,385,779 13,120,000 72,505,779TOTAL ASSETS 70,265,210 13,141,213 83,406,423CURRENT LIABILITIESTrade and other creditors 247,107 - 247,107Provisions 591,717 - 591,717Other liabilities 1,130,749 - 1,130,749TOTAL CURRENT LIABILITIES 1,969,573 - 1,969,573NON-CURRENT LIABILITIESProvisions 271,699 - 271,699TOTAL NON-CURRENT LIABILITIES 271,699 - 271,699TOTAL LIABILITIES 2,241,272 - 2,241,272NET ASSETS 68,023,938 13,141,213 81,165,151EQUITYReserves 14,110,064 - 14,110,064Retained earnings 2 (f) 53,913,874 13,141,213 67,055,087TOTAL EQUITY 68,023,938 13,141,213 81,165,151


Note

15



Note 2

Previous GAAP at

30 June 2005


AIFRS AIFRS at

30 June 2005 $ $ $

Economic EntityReconciliation of Profit or Loss 2005REVENUE AND OTHER INCOMEFundraising 5,078,852 - 5,078,852Government grants 2 (g) 19,149,130 240,000 19,389,130Sale of goods 14,832,134 - 14,832,134Other income 5,987,824 - 5,987,824Proceeds on disposal of fixed assets 2 (h) 2,596,495 (2,596,495) -Net gain on sale of property, plant & equipment

2 (h) - 698,582 698,582

Changes in value of investment 2 (e) - 1,153 1,153Total revenue from operating activities 47,644,435 (1,656,760) 45,987,675

EXPENSES FROM OPERATING ACTIVITIESCost of sales 9,958,007 - 9,958,007Fundraising/Public relations 629,066 - 629,066Administration 2,473,407 - 2,473,407Total expenses from operating activities 13,060,480 - 13,060,480

Total funds available for other activities 34,583,955 (1,656,760) 32,927,195

EXPENSES FROM OTHER ACTIVITIESPeople in need services 8,047,229 - 8,047,229Aged care services 2 (h) 11,706,423 954,596 12,661,019Homeless & housing services 7,707,519 - 7,707,519Support services 1,668,978 - 1,668,978Written down value of disposed/written-off fixed assets

2 (h) 2,852,509 (2,852,509) -

31,982,658 (1,897,913) 30,084,745

Profit from ordinary activities 2,601,297 241,153 2,842,450


Note

16



Note 2

Previous GAAP at

30 June 2005


AIFRS AIFRS at

30 June 2005 $ $ $

Parent EntityReconciliation of Profit or Loss 2005REVENUE AND OTHER INCOMEFundraising 4,742,016 - 4,742,016Government grants 4,120,873 - 4,120,873Sale of goods 13,751,012 - 13,751,012Other income 503,802 - 503,802Proceeds on disposal of fixed assets 2 (h) 1,638,596 (1,638,596) -Net gain on sale of property, plant & equipment

2 (h) - 407,337 407,337

Changes in value of investment 2 (e) - 1,153 1,153Total revenue from operating activities 24,756,299 (1,230,106) 23,526,193

EXPENSES FROM OPERATING ACTIVITIESCost of sales 8,391,472 - 8,391,472Fundraising/Public relations 629,066 - 629,066Administration 2,473,407 - 2,473,407Total expenses from operating activities 11,493,945 - 11,493,945

Total funds available for other activities 13,262,354 (1,230,106) 12,032,248

EXPENSES FROM OTHER ACTIVITIESPeople in need services 8,069,199 - 8,069,199Support services 1,668,978 - 1,668,978Written down value of disposed/written-off assets

2 (h) 1,231,259 (1,231,259) -

10,969,436 (1,231,259) 9,738,177

Profit from ordinary activities 2,292,918 1,153 2,294,071

There were no material differences between the cash flow statement presented under AIFRSand the cash flow statement presented under superseded policies.

Note


17



Note 2

30 June 2005$

1 July 2004$

(a) Reclassifications have been made to thebalance sheet for the year ended 30 June 2005as follows:

Under Australian equivalents to IFRS, computer software must be classified under intangible assetsThis reclassification has no effect on net profit for the 2005 financial year.

(b) Intangible assets comprise:Economic EntityAged Care Bed Licences recognised ontransition at deemed cost (being their fair valueat transition date, 1 July 2004, and onacquisition)

13,360,000 13,120,000

Computer Software reclassified 225,744 355,735Total 13,585,744 13,475,735

Parent EntityComputer Software reclassified 5,192 6,913Total 5,192 6,913

(c) Current financial assets comprise:Economic and Parent EntityShares in listed corporations recognised at fairvalue

21,213 20,060

Total 21,213 20,060

(d) Non-current financial assets comprise:Parent EntityContribution of Aged Care Bed Licences byGovernment recognised at their fair value atdate of acquisition (deemed cost)

13,120,000 13,120,000

Total 13,120,000 13,120,000

(e) An unrealised gain from changes in the fairvalue of a listed investment has beenrecognised under the Australian equivalents toIFRS which has increased its recoverableamount. This has been recognised in theincome statement for the year ended 30 June2005.

1,153 -


Note

18



Note 2

30 June 2005$

1 July 2004$

(f) Retained earnings comprise:Economic EntityAged Care Bed Licences recognised ontransition at deemed cost (being their fair valueat transition date, 1 July 2004, and onacquisition)

13,360,000 13,120,000

Investment recognised at fair value 21,213 20,060Total 13,381,213 13,140,060

Parent EntityAged Care Bed Licences recognised ontransition at deemed cost (being their fair valueat 1 July 2004)

13,120,000 13,120,000

Investment recognised at fair value 21,213 20,060Total 13,141,213 13,140,060

(g) Adjustment to Government grant incomecomprise:Economic EntityContribution of Aged Care Bed Licences byGovernment recognised at their fair value atdate of acquisition (deemed cost)

240,000 -

(h) Reclassifications have been made to theincome statement for the year ended 2005 asfollows:

Under Australian equivalents to IFRS, the sale of non-current assets must be reflected as a gain or loss on sale and not separately split between proceeds and costs of disposal.This reclassification has no effect on net profit for the 2005 financial year.


Note

19




2006 2005 2006 2005$ $ $ $

Note 3 REVENUE AND OTHER INCOME

(a) Fundraising ActivitiesBequests 2,427,252 1,474,659 2,128,436 1,374,988Donations 3,990,065 3,604,193 3,672,385 3,367,028

6,417,317 5,078,852 5,800,821 4,742,016

(b) Government GrantsCouncils/Conferences/Centres 1,644,873 4,120,873 1,644,873 4,120,873Community & Support Services Group 7,640,684 7,483,490 - -Aged Care Group 9,132,282 7,544,767 - -Aged Care bed licences granted 640,000 240,000 - -

19,057,839 19,389,130 1,644,873 4,120,873

(c) Sale of GoodsSales - Centres of Charity 14,688,699 13,485,692 14,688,699 13,485,692Sales - Groceries 249,155 - 249,155 -Sales - Piety 274,701 265,320 274,701 265,320Sales - Ozanam Enterprises 1,023,944 1,081,122 - -

16,236,499 14,832,134 15,212,555 13,751,012

(d) Other IncomeClient rent/fees 4,056,714 3,700,023 - -Accomodation bonds retention 295,128 312,930 - -Interest received - other persons 1,966,322 1,685,420 597,151 349,851Sundry income 340,337 289,451 272,247 153,951

6,658,501 5,987,824 869,398 503,802

(e) Changes in value of investment 5,765 1,153 5,765 1,153

TOTAL REVENUE 48,375,921 45,289,093 23,533,412 23,118,856

20




2006 2005 2006 2005$ $ $ $

Note 4 OPERATING SURPLUSOperating expenses

(a) Cost of SalesEmployee salaries & benefits 4,954,656 4,689,352 3,705,941 3,463,416Cost of goods sold - purchases/materials 862,699 478,648 795,494 411,103Selling & Administration 4,805,151 4,790,007 4,544,144 4,516,953

10,622,506 9,958,007 9,045,579 8,391,472

(b) Fundraising/Public relationsEmployee salaries & benefits 251,036 242,211 251,036 242,211Promotion 313,255 337,365 313,255 337,365Other 92,171 49,490 92,171 49,490

656,462 629,066 656,462 629,066

(c) AdministrationComputer maintenance 175,145 161,914 175,145 161,914Audit 31,473 21,464 31,473 21,464Employee salaries & benefits 1,155,080 1,060,346 1,155,080 1,060,346Depreciation & amortisation 256,986 213,953 256,986 213,953Insurance 69,255 38,267 69,255 38,267Legal 70,459 46,775 70,459 46,775Motor vehicle running costs 35,955 31,467 35,955 31,467Occupancy 2,700 10,800 2,700 10,800Printing/Postage/Office supplies 176,460 142,644 176,460 142,644Repairs & maintenance 100,372 113,760 100,372 113,760Telephone 48,896 42,321 48,896 42,321Training 28,138 23,284 28,138 23,284Travel & accommodation 22,646 37,388 22,646 37,388Other 240,627 197,029 240,627 197,029State Council 635,749 331,995 635,749 331,995

3,049,941 2,473,407 3,049,941 2,473,407

(d) People in Need ServicesAccommodation 209,955 208,437 209,955 208,437Cash 38,576 28,715 38,576 28,715Food vouchers 2,716,769 2,379,837 2,716,769 2,379,837Food purchases 1,014,178 999,103 1,014,178 999,103Transport 197,054 154,894 197,054 154,894Whitegoods 367,161 299,224 367,161 299,224Utilities 223,973 187,660 223,973 187,660Medical 68,298 63,891 68,298 63,891Education 320,342 307,702 320,342 307,702Compassionate 17,672 28,623 17,672 28,623Youth 25,592 34,487 25,592 34,487Grants to Community Services Group - - 21,908 21,970Migrant & Refugees 1,200,199 2,555,938 1,200,199 2,555,938Overseas 537,169 375,300 537,169 375,300Indigenous Program 20,000 20,000 20,000 20,000Bursary 19,472 2,693 19,472 2,693Sundry 227,046 400,725 241,621 400,725

7,203,456 8,047,229 7,239,939 8,069,19921




2006 2005 2006 2005$ $ $ $

Note 4 OPERATING SURPLUS continued

(e) Aged Care ServicesCatering & Food 675,541 671,015 - -Cleaning 307,892 264,463 - -Depreciation 609,818 542,376 - -Employee salaries & benefits 9,186,744 8,321,698 - -Occupancy 222,503 205,904 - -Medical & other supplies 189,046 146,494 - -Legal & Audit 171,377 158,446 - -Motor vehicle running 48,880 39,812 - -Repairs & maintenance 305,629 246,517 - -Resident amenities 30,671 28,836 - -Telephone 44,978 47,311 - -Utilities 344,675 325,760 - -Workcover 202,740 219,692 - -Other 613,005 1,442,695 - -

12,953,499 12,661,019 - -

(f) Homelessness & Housing ServicesCleaning/Waste removal 203,606 213,194 - -Client support/Emergency accomodation 1,047,896 1,054,554 - -Depreciation 386,712 388,360 - -Employee salaries & benefits 5,031,569 4,779,387 - -Occupancy 159,474 182,240 - -Legal & Audit 134,270 87,423 - -Motor vehicle running 146,892 146,974 - -Repairs & Maintenance 141,809 194,199 - -Telephone 87,441 115,564 - -Utilities 93,654 112,333 - -Other 365,061 433,291 - -

7,798,384 7,707,519 - -

(g) Support ServicesAccounting & payroll support 168,000 160,000 168,000 160,000Conference Support -Employee salaries & benefits 717,717 595,570 717,717 595,570Conference Support - Other 185,905 142,252 185,905 142,252State, National, International Councils 524,835 164,069 524,835 164,069Conference operating 579,515 607,087 579,515 607,087Vinnies Budget Groceries set up 67,490 - 67,490 -

2,243,462 1,668,978 2,243,462 1,668,978

44,527,710 43,145,225 22,235,383 21,232,122

22




2006 2005 2006 2005$ $ $ $

Note 4 OPERATING SURPLUS continued

(i) Surplus from operating activities has been determined after:

(i) Expenses

Depreciation and amortisation of property, plant & equipment - Buildings 590,469 545,017 266,668 247,721- Building Improvements 33,804 14,460 - -- Leasehold Improvements 12,502 10,210 - -- Furniture, Plant and Equipment 417,965 410,911 127,034 117,346- Motor Vehicles 539,151 544,859 352,456 365,069- Leased Motor Vehicles - 50,572 - 50,572- Computer Equipment 74,379 73,105 42,996 39,545

1,668,270 1,649,134 789,154 820,253

Amortisation of Computer Software 193,924 162,095 19,059 4,324

Write off of plant and equipment 19,725 954,596 - -

Bad and doubtful debts 11,449 13,504 - -

Rental expense on operating leases- Minimum lease payments 1,422,546 1,334,632 1,337,904 1,242,229

Remuneration of Auditor - Audit 79,121 51,641 40,011 21,464- Other Services - - - -

79,121 51,641 40,011 21,464

(ii) Net gains

Gain on sale of property, plant and equipment 869,275 698,582 921,994 407,337

Note 5 KEY MANAGEMENT PERSONNEL COMPENSATIONShort-term employee benefits- Salary & Fees 1,092,877 1,077,586 514,380 557,016- Non-Cash Benefits 96,000 96,000 48,000 48,000- Other 23,013 38,013 11,013 21,013Post-employment benefits- Superannuation 98,358 96,982 46,294 50,131Total 1,310,248 1,308,581 619,687 676,160

The basis of key management personnel are those officers that report to a Chief Executive Officer.

23




2006 2005 2006 2005$ $ $ $

Note 6 CASH AND CASH EQUIVALENTSCash on hand 20,394 15,590 3,004 1,350Cash deposits with banks

- Councils & Central Office 109,604 (89,995) 109,604 (89,995)- Centres (292,425) (42,253) (292,425) (42,253)- Aged Care & Community Services 913,726 1,008,374 - -

Term DepositsCouncils & Central Office- Employee Entitlements 383,983 400,000 383,983 400,000- Migrant & Refugees 429,854 493,155 429,854 493,155- Overseas Relief 263,149 215,878 263,149 215,878- Disaster Relief 76,389 71,840 76,389 71,840- Refugee Resettlement - 2,233,455 - 2,233,455- Conferences/Councils 5,096,987 3,646,862 5,096,987 3,646,862Centres- Employee Entitlements 588,399 500,000 588,399 500,000- Capital & Property Maintenance 2,781,945 1,892,505 2,781,945 1,892,505Aged Care & Community Services- Funds Awaiting Utilisation - 1,370,249 - -- Employee Entitlements 2,978,544 2,807,472 - -- Residents' Trust 6,810,787 7,712,206 - -

20,161,336 22,235,338 9,440,889 9,322,797

Note 7 TRADE AND OTHER RECEIVABLESTrade debtors 411,078 304,061 115,282 117,833Allowance for doubtful debts (22,587) (16,184) - -

388,491 287,877 115,282 117,833

Other debtors 1,668,189 150,369 1,492,634 14,585Total Current Receivables 2,056,680 438,246 1,607,916 132,418

Note 8 INVENTORIESFinished goods - average cost 183,060 153,737 154,926 125,792

Note 9 OTHER FINANCIAL ASSETSCURRENTMedium term notes

- Funds Awaiting Distribution 9,482,500 8,000,000 2,000,000 1,000,000- Residents' Trust 3,517,500 - - -

Fair-value through profit and loss:- Units in managed investment funds - 138,704 - -- shares in listed corporationsat fair value 26,978 21,213 26,978 21,213

13,026,978 8,159,917 2,026,978 1,021,213

24




2006 2005 2006 2005$ $ $ $

Note 9 OTHER FINANCIAL ASSETS ContinuedNON CURRENTInvestment in Controlled entity - - 50,859,829 50,859,829

Country of Incorporation Percentage OwnedParent Entity:St Vincent de Paul Society Victoria Inc. Aust - -

Controlled entities of St Vincent de Paul Society Victoria Inc.St Vincent de Paul Aged Care and Community Services Aust 100% 100%

Note 10 OTHER ASSETS - CURRENTGST recoveries 225,970 189,852 225,970 189,852Prepayments 150,933 199,395 7,000 8,258Accrued income 37,289 100,314 37,289 100,314

414,192 489,561 270,259 298,424

25




2006 2005 2006 2005$ $ $ $

Note 11 PROPERTY, PLANT & EQUIPMENT

LANDAt cost 25,369,801 24,680,899 9,598,790 9,694,953

BUILDINGSAt cost 24,025,488 22,050,765 10,368,063 10,018,556Buildings under construction 1,026,310 1,544,043 - 236,819Less accumulated depreciation (2,649,152) (2,093,533) (996,136) (764,318)

22,402,646 21,501,275 9,371,927 9,491,057

BUILDING IMPROVEMENTSAt cost 402,785 201,957 - -Less accumulated depreciation (48,530) (14,763) - -

354,255 187,194 - -

LEASEHOLD IMPROVEMENTSAt cost 43,103 42,012 - -Less accumulated depreciation (28,160) (15,658) - -

14,943 26,354 - -

FURNITURE, PLANT & EQUIPMENTAt cost 4,365,414 3,741,766 1,341,252 1,065,721Less accumulated depreciation (2,037,790) (1,829,455) (452,782) (325,746)

2,327,624 1,912,311 888,470 739,975

MOTOR VEHICLESAt cost 4,093,770 3,836,020 2,883,586 2,572,380Less accumulated depreciation (1,622,258) (1,218,968) (1,211,318) (898,302)

2,471,512 2,617,052 1,672,268 1,674,078

MOTOR VEHICLES UNDER FINANCE LEASESAt cost - - - -Less accumulated depreciation - - - -

- - - -

COMPUTER HARDWAREAt cost 378,409 386,663 203,091 165,114Less accumulated depreciation (276,781) (291,688) (167,414) (124,419)

101,628 94,975 35,677 40,695

53,042,409 51,020,060 21,567,132 21,640,758

26




2006 2005 2006 2005$ $ $ $

Note 11 PROPERTY, PLANT & EQUIPMENT - continued

Total LandCarrying amount at beginning of financial year 24,680,899 25,363,699 9,694,953 10,173,753Additions 1,063,722 - 278,657 -Disposals (374,820) (682,800) (374,820) (478,800)Carrying amount at end of financial year 25,369,801 24,680,899 9,598,790 9,694,953

Total BuildingsCarrying amount at beginning of financial year 21,501,275 20,231,006 9,491,057 9,421,337Additions 1,806,218 2,268,608 397,418 607,912Disposals (249,880) (409,573) (249,880) (290,471)Reclassifications (64,498) (43,749) - -Less depreciation (590,469) (545,017) (266,668) (247,721)Carrying amount at end of financial year 22,402,646 21,501,275 9,371,927 9,491,057

Total Building ImprovementsCarrying amount at beginning of financial year 187,194 - - -Additions 203,878 164,873 - -Disposals (3,013) - - -Reclassifications - 36,781 - -Less depreciation (33,804) (14,460) - -Carrying amount at end of financial year 354,255 187,194 - -

Total Leasehold ImprovementsCarrying amount at beginning of financial year 26,354 36,564 - -Additions 1,091 - - -Less depreciation (12,502) (10,210) - -Carrying amount at end of financial year 14,943 26,354 - -

Total Furniture, Plant & EquipmentCarrying amount at beginning of financial year 1,912,311 2,898,252 739,973 843,380Additions 804,616 372,598 275,531 13,941Impairment losses (16,051) (954,596) - -Reclassifications 44,714 6,968 - -Less depreciation (417,966) (410,911) (127,034) (117,346)Carrying amount at end of financial year 2,327,624 1,912,311 888,470 739,975

Total Motor VehiclesCarrying amount at beginning of financial year 2,617,052 2,597,525 1,674,078 1,763,112Additions 1,090,877 1,367,737 782,445 735,985Disposals (717,740) (803,351) (431,799) (459,950)Reclassifications 20,474 - - -Less depreciation (539,151) (544,859) (352,456) (365,069)Carrying amount at end of financial year 2,471,512 2,617,052 1,672,268 1,674,078

Carrying amount at beginning of financial year - 50,572 - 50,572Less depreciation - (50,572) - (50,572)Carrying amount at end of financial year - - - -

Total Motor Vehicles under Finance

ReconciliationsReconciliations of the carrying amounts of each class of property, plant & equipment at the beginning and end of the current and previous financial year are set out below:

27




2006 2005 2006 2005$ $ $ $

Note 11 PROPERTY, PLANT & EQUIPMENT - continued

Total Computer HardwareCarrying amount at beginning of financial year 94,975 117,283 40,696 51,730Additions 85,396 52,985 37,977 30,548Disposals - (2,188) - (2,038)Impairment losses (3,674) - - -Reclassifications (690) - - -Less depreciation (74,379) (73,105) (42,996) (39,545)Carrying amount at end of financial year 101,628 94,975 35,677 40,695

Total Property, Plant & EquipmentCarrying amount at beginning of financial year 51,020,060 51,294,901 21,640,757 22,303,884Additions 5,055,797 4,226,801 1,772,028 1,388,386Disposals (1,345,453) (1,897,912) (1,056,499) (1,231,259)Impairment losses (19,725) (954,596) - -Less depreciation (1,668,270) (1,649,134) (789,154) (820,253)Carrying amount at end of financial year 53,042,409 51,020,060 21,567,132 21,640,758

28




2006 2005 2006 2005$ $ $ $

Note 12 INTANGIBLES

AGED CARE BED LICENCESAged Care Bed Licences at cost 14,000,000 13,360,000 - -

COMPUTER SOFTWARE & IT DEVELOPMENTAt cost 611,600 521,390 66,222 12,973Less accumulated amortisation (489,570) (295,646) (26,840) (7,781)

122,030 225,744 39,382 5,192

Total Intangibles 14,122,030 13,585,744 39,382 5,192

Reconciliations

Aged Care Bed LicencesCarrying amount at beginning of financial year 13,360,000 13,120,000 - -Additions - contributed by Government 640,000 240,000 - -Carrying amount at end of financial year 14,000,000 13,360,000 - -

Total Computer Software & IT DevelopmentCarrying amount at beginning of financial year 225,744 355,735 5,192 6,913Additions 90,210 32,104 53,249 2,603Less amortisation (193,924) (162,095) (19,059) (4,324)Carrying amount at end of financial year 122,030 225,744 39,382 5,192

Total IntangiblesCarrying amount at beginning of financial year 13,585,744 13,475,735 5,192 6,913Additions 730,210 272,104 53,249 2,603Less amortisation (193,924) (162,095) (19,059) (4,324)Carrying amount at end of financial year 14,122,030 13,585,744 39,382 5,192

Note 13 TRADE AND OTHER PAYABLESTrade creditors 478,569 572,126 125,386 (27,076)Unsecured:Accrued creditors 978,514 356,358 839,414 195,817Other creditors 253,828 327,404 58,304 78,366Amount payable to subsidiary - - 8,995 -Grants in advance 254,793 77,389 - -

1,965,704 1,333,277 1,032,099 247,107

Note 14 PROVISIONS - CURRENTEmployee benefits (a) 3,488,671 3,007,525 784,749 591,717

PROVISIONS - NON-CURRENTEmployee benefits (a) 490,972 663,363 216,350 271,699

(a) Aggregate Employee Entitlement Liability 3,979,643 3,670,888 1,001,099 863,416

Note 15 OTHER LIABILITIESUnsecuredRefundable accommodation bonds 10,328,287 7,712,206 - -Prepaid income - 582,400 400,000 1,032,400Other liabilities 484,749 1,331,360 - -GST payable 262,995 184,651 148,940 98,349

11,076,031 9,810,617 548,940 1,130,749

Reconciliations of the carrying amounts of each class of intangible assets at the beginning and end of the current andprevious financial year are set out below:

29



ENTITY ENTITY ENTITY ENTITY2006 2005 2006 2005

$ $ $ $Note 16

Nature and Purpose of Reserves:

Asset revaluation reserveRepresents previous increases in valuation of land and buildings. Land and buildings are now heldat deemed cost, however the entity is using this reserve to keep record of those previous revaluations.

Capital profits reserveRepresents the capital value of land and building sold

Fund-a-Future reserve

Note 17Commitments in relation to a lease contracted for at the reporting date but not recognised as assets, receivable:

Within one year 38,233 60,767 50,000 50,000Later than one year but not later than 5 years - 32,000 200,000 200,000Later than five years - - 150,000 200,000

38,233 92,767 400,000 450,000

RepresentingNon-cancellable operating lease 38,233 92,767 400,000 450,000

Note 18 CAPITAL AND LEASE COMMITMENTS(a) Lease Commitments Payable

Commitments in relation to leases contracted for at the reporting date but not recognised as liabilities, payable:

Property - Operating LeasesNot later than one year 1,304,489 892,550 1,216,644 769,792Later than one year but not later than 5 years 1,248,861 1,127,395 1,208,460 1,005,714Later than five years 12,533 33,104 11,783 32,349

2,565,883 2,053,049 2,436,887 1,807,855

(b) Capital CommitmentsCapital expenditure commitments contracted for:

Purchase of property - 702,000 - -Capital expenditure projects - 798,996 - -

- 1,500,996 - -

PayableNot later than one year - 1,500,996 - -

Represents funds set aside for an accommodation and support program to homeless young people between the ages of 15 and 24.

LEASE COMMITMENTS RECEIVABLE

The property leases are non cancellable leases spanning various terms with rental paid monthly in advance. This covers property leases for Centres and Community Services.

RESERVES

30




2006 2005 2006 2005$ $ $ $

Note 19 NOTES TO THE STATEMENT OF CASHFLOWS

(a) Reconciliation of cash and cash equivalents

Cash on hand 20,394 15,590 3,004 1,350Cash deposits with banks 730,905 876,126 (182,821) (132,248)Bank term deposits 19,410,037 21,343,622 9,620,706 9,453,695Balance per Cash Flow Statement 20,161,336 22,235,338 9,440,889 9,322,797

(b) Reconciliation of cash flow from operations with operating surplus after income tax

Operating surplus 4,717,486 2,842,450 2,220,023 2,294,071

Cash flows in operating activities but not in operating result

Non-cash flows in operating surplusDepreciation and amortisation 1,862,194 1,811,229 808,213 824,577(Profit)/loss on sale of fixed assets (869,275) (698,582) (921,994) (407,337)Residents' accommodation bond retentions (284,607) (300,263) - -Interest deducted from residents' accommodation bond (129,182) (204,281) - -Fixed assets written off 19,725 954,596 - -Aged Care bed licences granted (640,000) (240,000) - -Changes in value of investment (5,765) (1,153) (5,765) (1,153)

Changes in assets and liabilities(Increase)/decrease in receivables (1,591,527) (209,398) (1,448,591) (153,586)(Increase)/decrease in inventories (29,323) 31,854 (29,134) 25,887(Increase)/decrease in prepayments 48,462 (578,049) 1,258 (599)Increase/(decrease) in payables (718,240) 1,162,737 203,183 378,378Increase/(decrease) in provisions 308,755 74,914 137,683 (19,314)

Cash Flows from operations 2,688,703 4,646,054 964,876 2,940,924

Cash and cash equivalents at the end of the financial period as shown in the Cash Flow Statement is reconciled to the related items in the Balance Sheet as follows:

31



Note 20

(a) Financial Risk Management

(i) Treasury Risk Management

(ii) Financial Risks

Interest rate risk

Foreign currency risk

Liquidity risk

Credit risk

Price risk

(b) Interest Rate Risk

The main risks the Group is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk.

The Group is subject to normal commercial interest rate fluctuations on its bank accounts and money market instruments. For further details on interest rate risk, refer to Note 20(b).

The Group's exposure to interest rate risk, which is the risk that a financial instrument's value willfluctuate as a result of changes in market interest rates, and the effective weighted average interestrates on those financial assets and financial liabilities, are as follows:

FINANCIAL INSTRUMENTS

The Group's financial instruments consist mainly of deposits with banks, short-term investments,accounts receivable and payable, amounts due to and from the parent entity, and refundableaccommodation bonds.

The main purpose of non-derivative financial instruments is to raise finance for group operations.

The Group does not have any derivative instruments at 30 June 2006.

The Chief Financial Officer is delegated the responsibility of determining the spread of investments across available financial investment options within the confines of the Society's Treasury Policy and analysing interest rate exposure in the context of the most recent economic conditions and forecasts. A finance committee consisting of representatives of State Council and external appointees meet on a regular basis to monitor movement in the financial investments and make recommendations to State Council.

Exposures arise predominantly from assets bearing variable interest rates as the Group intends tohold fixed interest rate assets to maturity.

The Group is not exposed to fluctuations in foreign currencies.

The Group manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained.

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance sheet and notes to the financial statements.

The Group is not exposed to any material commodity price risk.

32

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33



Note 20

(d) Net Fair Values

Carrying Amount

Net Fair Value

Carrying Amount

Net Fair Value

$ $ $ $Financial assets Cash 20,161,335 20,161,335 22,235,338 22,235,338 Trade and other receivables 2,056,680 2,056,680 438,247 438,247 Other financial assets 13,026,978 13,026,978 8,159,917 8,162,625

35,244,993 35,244,993 30,833,502 30,836,210

Financial liabilitiesTrade and other payables 1,973,906 1,973,906 1,440,539 1,440,539 Refundable accommodation bonds 10,328,287 10,328,287 7,712,206 7,712,206

12,302,193 12,302,193 9,152,745 9,152,745

2006 2005

Fair values are materially in line with carrying values.

FINANCIAL INSTRUMENTS - continued

The net fair values of listed investments have been valued at the quoted market bid price atbalance date adjusted for transaction costs expected to be incurred. For other assets andliabilities, the net fair value approximates their carrying value. No financial assets and financialliabilities are readily traded on organised markets in standardised form other than listedinvestments.

The aggregate net fair values and carrying amounts of financial assets and financial liabilities aredisclosed in the Balance Sheet and in the notes to the financial statements.

Aggregate net fair values and carrying amounts of financial assets and financial liabilities atbalance date

34



Note 21 RELATED PARTY DISCLOSURES

Note 22 SEGMENT REPORTING

ST VINCENT DE PAUL SOCIETY INC.

The conferences and councils segment provides assistance to those in need.

ST VINCENT DE PAUL AGED CARE AND COMMUNITY SERVICES

Financial information about the Company's business segments is presented in the schedule on the following page.

There are no inter-segment transactions.

For management purposes, the Association is organised into two major operating divisions, being centres ofcharity and conferences and councils. The divisions are the basis on which the Parent entity reports its primarysegment information.

For management purposes, the Company is organised into two major operating divisions, being aged careservices and community services. The divisions are the basis on which the Company reports its primary segmentinformation.

The aged care services segment provides care and accommodation for elderly and disadvantaged citizensthrough a mix of hostels, nursing homes, a day therapy centre and independent living units.

The community services segment operates a range of accommodation and support initiatives for people who experience homelessness; providing help with issues such as general health concerns, drug and alcohol abuse, employment education and training options, and social exclusion and isolation. This segment also includes a domestic violence service and a disability employment service.

Financial information about the Parent entity's business segments is presented in the schedule on the followingpage.

The centres of charity segment provides material aid free of charge to those in need and sells surplus donatedgoods.

During the financial year, St Vincent de Paul Aged Care and Community Services paid the Society $50,000 forthe rental of the office premises at Prospect Street, Box Hill.

donations totalling $21,908; and sales totalling $14,575.

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

The parent entity is St Vincent de Paul Society Victoria Inc.

The amount payable to St Vincent de Paul Aged Care and Community Services is disclosed in Note 13 to thefinancial statements.

St Vincent de Paul Aged Care and Community Services received the following revenue from the Society duringthe financial year:

35



Note 21 RELATED PARTY DISCLOSURES

Note 22 SEGMENT REPORTING

ST VINCENT DE PAUL SOCIETY INC.

The conferences and councils segment provides assistance to those in need.

ST VINCENT DE PAUL AGED CARE AND COMMUNITY SERVICES

Financial information about the Company's business segments is presented in the schedule on the following page.

There are no inter-segment transactions.

For management purposes, the Association is organised into two major operating divisions, being centres ofcharity and conferences and councils. The divisions are the basis on which the Parent entity reports its primarysegment information.

For management purposes, the Company is organised into two major operating divisions, being aged careservices and community services. The divisions are the basis on which the Company reports its primary segmentinformation.

The aged care services segment provides care and accommodation for elderly and disadvantaged citizensthrough a mix of hostels, nursing homes, a day therapy centre and independent living units.

The community services segment operates a range of accommodation and support initiatives for people who experience homelessness; providing help with issues such as general health concerns, drug and alcohol abuse, employment education and training options, and social exclusion and isolation. This segment also includes a domestic violence service and a disability employment service.

Financial information about the Parent entity's business segments is presented in the schedule on the followingpage.

The centres of charity segment provides material aid free of charge to those in need and sells surplus donatedgoods.

During the financial year, St Vincent de Paul Aged Care and Community Services paid the Society $50,000 forthe rental of the office premises at Prospect Street, Box Hill.

donations totalling $21,908; and sales totalling $14,575.

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

The parent entity is St Vincent de Paul Society Victoria Inc.

The amount payable to St Vincent de Paul Aged Care and Community Services is disclosed in Note 13 to thefinancial statements.

St Vincent de Paul Aged Care and Community Services received the following revenue from the Society duringthe financial year:

35



Note 22 SEGMENT INFORMATION Continued

Primary reporting - business segmentsCentres of

Charity Conferences & Councils Aged Care

CommunityServices Elimination Consolidated

$ $ $ $ $ $2006REVENUEFundraising activities - 5,800,821 77,441 560,963 (21,908) 6,417,317Government grants - 1,644,873 9,772,282 7,640,684 19,057,839Sale of goods 14,688,699 523,856 - 1,038,519 (14,575) 16,236,499Client / resident fees - - 3,683,851 372,863 4,056,714Accommodation bond retentions - - 295,128 - 295,128

Accommodation charge - - 48,183 - 48,183Interest received 203,684 393,467 1,058,592 310,579 1,966,322Grants received from Centres - 4,685,715 - - (4,685,715) -Grants received from Conferences & Councils

- 1,298,500 - - (1,298,500) -

Sundry income - 272,247 39,169 30,738 (50,000) 292,154Changes in value of investment - 5,765 - - 5,765

Total segment revenue 14,892,383 14,625,244 14,974,646 9,954,346 (6,070,698) 48,375,921

OTHER INCOMENet gain/(loss) on sale of property, plant & equipment

964,177 (42,183) (12,039) (40,680) 869,275

RESULTSegment profit/(loss) 1,434,702 785,321 2,110,939 386,524 4,717,486

ASSETSSegment assets 20,395,824 14,702,664 36,881,729 8,808,752 (400,000) 80,388,969 Unallocated company assets 22,617,716 Consolidated total assets 103,006,685

LIABILITIESSegment liabilities 954,781 1,618,362 12,750,879 1,448,364 (400,000) 16,372,386 Unallocated company liabilities 648,992

Consolidated total liabilities 17,021,378

Depreciation and amortisation of segment assets

455,709 352,504 609,818 444,163 1,862,194

Write off of property, plant & equipment

- - 7,012 12,713 19,725

Acquisition of non-current segment assets

476,075 1,349,202 2,796,767 523,964 5,146,008

Aged Care bed licences acquired - - 640,000 - 640,000

36



Note 21 SEGMENT INFORMATION Continued

Primary reporting - business segments ContinuedCentres of

Charity Conferences & Councils Aged Care

CommunityServices Elimination Consolidated

$ $ $ $ $ $ 2005REVENUEFundraising activities - 4,742,016 113,497 223,339 5,078,852Government grants - 4,120,873 7,784,767 7,483,490 19,389,130Sale of goods 13,485,692 265,320 - 1,081,122 14,832,134Client / resident fees - - 3,397,199 302,824 3,700,023Accommodation bond retentions - - 312,930 - 312,930

Accommodation charge - - 61,124 - 61,124Interest received 106,730 243,121 957,458 378,111 1,685,420Grants received from Centres - 2,001,976 (2,001,976) -

Refugee Program Recovery Fees101,703 - - - (101,703) -

Sundry income - 153,951 9,321 87,025 (21,970) 228,327Changes in value of investment - 1,153 - - 1,153

Total segment revenue 13,694,125 11,528,410 12,636,296 9,555,911 (2,125,649) 45,289,093

OTHER INCOMENet gain/loss on sale of property, plant & equipment

432,346 (25,009) 10,108 281,137 698,582

RESULTSegment profit/(loss) 838,785 1,455,286 17,626 530,753 2,842,450

ASSETSSegment assets 18,673,428 13,873,166 34,506,295 9,434,317 (450,000) 76,037,206 Unallocated company assets 20,045,397 Consolidated total assets 96,082,603

LIABILITIESSegment liabilities 667,086 1,574,186 10,315,316 735,904 (450,000) 12,842,492 Unallocated company liabilities 1,972,290

Consolidated total liabilities 14,814,782

Depreciation and amortisation of segment assets

518,795 305,782 542,376 444,276 - 1,811,229

Write off of property, plant & equipment

- - 954,596 - 954,596

Acquisition of non-current segment assets

974,450 416,538 1,097,399 1,770,518 - 4,258,905

Aged Care bed licences acquired - - 240,000 - - 240,000

Secondary reporting - geographic segmentSt Vincent de Paul Society Victoria Inc. operates within Australia.

St Vincent de Paul Aged Care and Community Services operates within Australia.

37



Note 23 CHANGE IN ACCOUNTING POLICY

AASB Amendment AASB Standard Affected

Nature of Change in Accounting

Application Date of the Standard

Application Date for the Group

2005�5 AASB 1: First-time Adoption of AIFRS

No change, no impact

1 January 2006 1 July 2006

AASB 139: Financial Instruments: Recognition and Measurement



2005�06 AASB 3: Business Combinations



2005�9 AASB 132: Financial Instruments: Recognition and Measurement



AASB 139: Financial Instruments: Disclosure and Presentation

St Vincent de Paul Society Victoria Inc. is in the process of evaluating the effect of these changes of which the impact is not reasonably estimable at the date of this financial report


The following Australian Accounting Standards issued or amended which are applicable to theGroup but are not yet effective have not been adopted in preparation of the financial statementsat reporting date.

38



Note 22 CHANGE IN ACCOUNTING POLICY Continued

AASB Amendment AASB Standard Affected

Nature of Change in Accounting

Application Date of the Standard

Application Date for the Group

2005�10 AASB 139: Financial Instruments: Recognition and Measurement



AASB 101: Presentation of Financial Statements



AASB 114: Segment Reporting



AASB 117: Leases No change, no impact


AASB 133: Earnings per Share



AASB 1: First-time Adoption of AIFRS



AASB 4: Insurance Contracts



AASB 1023: General Insurance Contracts



AASB 1038: Life Insurance Contracts



New Standard AASB 7: Financial Instruments: Disclosure



AASB Amendment2004�3

2005�12005�22005�4

2005�9

2006�1

All other pending Standards issued between the previous financial report and the current reporting date have no application to the Group.

AASB Standard AffectedAASB 1: First-time Adoption of AIFRSAASB 101: Presentation of Financial StatementsAASB 124: Related Party DisclosuresAASB 139: Financial Instruments: Recognition and MeasurementAASB 1023: General Insurance ContractsAASB 139: Financial Instruments: Recognition and Measurement

AASB 119: Employee Benefits: December 2004

AASB 132: Financial Instruments: Disclosure and PresentationAASB 4: Insurance ContractsAASB 1023: General Insurance ContractsAASB 121: The Effects of Changes in Foreign Exchange Rates New Standard

39



Note 24 ECONOMIC DEPENDENCY

Note 25

(a) The registered office of the Association is:St Vincent de Paul Society Victoria Inc.43 - 45 Prospect StreetBox Hill Victoria 3128

(b)St Vincent de Paul Society Victoria Inc.43 - 45 Prospect StreetBox Hill Victoria 3128

The principal place of business is:

ASSOCIATION & COMPANY DETAILS

A significant portion of the subsidiary's revenue is provided by the Commonwealth and State Governments in the form of grants and subsidies.

40

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2005-2006 Financial Report

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