Summary of Financial Statements


For the Year Ended 30 June 2015

COMPASS HOUSING SERVICES CO LTD
ABN 84 002 862 213

The financial statements and other specific disclosures have been derived from Compass Housing Services Co Limited (the company’s) full financial statements for the financial year. Other information included in the Summary of Financial Statements is consistent with the company’s full financial statement.

The Summary of Financial Statements do not, and cannot be expected to, provide as full an understanding of the financial performance, financial position and financing and investing activities of the company as the full financial statements.

A copy of the company’s 2015 full financial statements, including the independent audit report, is available to all members and will be sent to members without charge upon request.

Directors’ Report


Your directors present their report, together with the financial statements of the Company, being Compass Housing Services Co Ltd and its controlled entities, for the financial year ended 30 June 2015.

Information on Directors

The names, qualifications, experience and special responsibilities of each person who has been a director during the year and to the date of this report are:

  • Paul Johnson

    Qualifications
    Retired CEO of a Financial Institution. He is also a qualified accountant and CPA. Graduate Member of the Australian Institute of Company Directors.

    Experience
    Board Member since 2010.

    Special Responsibilities
    Chair of Board, Member of Property Acquisitions & Business Development Committee, Member of Finance Audit & Risk Committee, Member of Operations & Community

  • Kwesi Addo

    Qualifications
    Legal Counsel (NSW/ACT) at Aurecon Australia Pty Ltd, Master of Construction Law, Bachelor of Laws, MBA (Hons), Master of International Relations. Graduate Member of the Australian Institute of Company Directors.

    Experience
    Board Member since 2005.

    Special Responsibilities
    Board Member & Deputy Chair.

  • Greg Budworth

    Qualifications
    Chief Executive Officer at Compass Housing. Masters Degree in Business, and other tertiary qualifications in Business Management, Project Management, Workplace Safety and Workplace Training. Graduate Member of the Australian Institute of Company Directors.

    Experience
    Board Member since 2012.

    Special Responsibilities
    Executive Board Member, Chief Executive Officer, Company Secretary.

  • Geoffrey Kiel

    Appointed 27 October 2014

    Qualifications
    Doctorate in Philosophy, and a Bachelor of Commerce majoring in Marketing; Fellow, Australia and New Zealand Marketing Academy; Fellow, Australian Institute of Company Directors; Fellow, Australian Marketing Institute; Fellow, Australian Institute of Management; Member, Strategic Management Society; and Member, American Academy of Management.

    Experience
    Board Member since 2014

    Special Responsibilities
    Board Member, Chair of the Remuneration Committee, Member of the Nominations Committee

  • Susan Williams

    Appointed 27 October 2014

    Qualifications
    Director of The Junction Works; Fellow of CPA; Fellow of The Governance Institute of Australia; MBA (International Business); Grad Dip Applied Corporate Governance; BA Accounting

    Experience
    Board Member since 2014

    Special Responsibilities
    Board member, Chair of Audit, Risk and Compliance Committee, Member of Remuneration Committee

  • Kerry Skellern

    Appointed 27 October 2014

    Qualifications
    Non Executive Director of the Whiddon Group and Non Executive Director (Acting Chair / Treasurer) of Hornsby Ku ring gai Community Transport; Graduate Diploma in Business Administration, Bachelor of Engineering, and Bachelor of Science

    Experience
    Board Member since 2014

    Special Responsibilities
    Board Member, Member of Audit, Risk & Compliance Committee, Chair of the Nominations Committee

  • Brian Wrice

    Appointed 17 February 2015

    Qualifications
    Post Graduate Diploma in Financial Service Management

    Experience
    Board Member since 2015

    Special Responsibilities
    Board Member, Member of Nominations and Governance Committee

  • Tim Williams

    Resigned 13 September 2015

    Qualifications
    Currently CEO of Committee for Sydney. International experience in community housing having advised governments in the UK and Australia. Barrister at Law. Was Special Advisor in UK and Welsh Government and associate of Blair's Prime Minister’s Delivery unit.

    Experience
    Board member since 2013

    Special Responsibilities
    Board Member.

  • Stephen Barr

    Removed 27 October 2014

    Qualifications
    Director of Barr Property and Planning. Qualified Surveyor and Town Planner. Masters in Planning, Bachelor of Surveying (Hons). Graduate Member of the Australian Institute of Company Directors.

    Experience
    Board Member since 2009.

    Special Responsibilities
    Board member & Deputy Chair, Member of Community Engagement & Development Committee, Member of Finance Audit & Risk Committee, Member of Remuneration Committee

  • Sandra Calland

    Removed 27 October 2014

    Qualifications
    Tenant advocate of Hunter and Central Coast Tenants Advisory Council, advisory service. Skills in Housing Policy, Development and Tenant Advocacy.

    Experience
    Board Member since 2001

    Special Responsibilities
    Board Member, Chair of Community Engagement & Development Committee, Member of Appeals Committee, Member of New South Wales State Advisory Committee.

  • Mark O’Dwyer

    Removed 27 October 2014

    Qualifications
    Tenant Member. Retired Regional Manager of Yellow Pages Australia. Member of Central Coast Local Health District Community Engagement Committee 2007 to 2013. Member of N.S.W Housing Federation Tenant Network. Affiliate Member of the Australian Institute of Company Directors.

    Experience
    Board Member since 2011.

    Special Responsibilities
    Board Member, Member of Community Engagement & Development Committee, Chair of Appeals Committee, Chair of New South Wales State Advisory Committee

  • Barry Martin

    Removed 27 October 2014

    Qualifications
    Currently retired. Has experience in human resource management over a cross section of industry in a career spanning 30 plus years. Also has comprehensive experience in working with the aboriginal community. Member of the Australian Institute of Company Directors.

    Experience
    Board member since 2011.

    Special Responsibilities
    Board Member, Member of Community Engagement & Development Committee, Member of Appeals Committee, Member of Remuneration Committee, Member of New South Wales State Advisory Committee

  • Roseanne Chalmers

    Removed 27 October 2014

    Qualifications
    Retired Registered Nurse & Tenant Member.

    Experience
    Board Member since 2012

    Special Responsibilities
    Board Member.

  • Peter Francis

    Removed 27 October 2014

    Qualifications
    Master of Business General Management (Dis), Graduate Diploma of Management, Bachelor of Arts (B.A.), REL, Member of the Australian Institute of Company Directors.

    Experience
    Board Member since 2013

    Special Responsibilities
    Board member, Member of Remuneration Committee

  • Company secretary

    The following persons held the position of Company Secretary at the end of the financial year:

    Mr Greg Budworth

    Mr Budworth has worked for Compass Housing Services Co Ltd for the past 10 years previous working in other human services agencies and was appointed company secretary on 4 April 2004.

    Ms Julie Barnett

    Ms Barnett was appointed joint company secretary on 16 December 2013.

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

During the financial year the Non Executive Directors were paid an aggregate of $145,275 including superannuation plus all reasonable travelling expenses properly incurred by the Directors in connection with Board activities (including training) and provided access to an Ipad to reduce paper usage. Members had approved an aggregate expenditure of up to $230,000.

Principal Activities


The principal activities of Compass during the financial year was providing social housing in the areas of Broken Hill, Dubbo, Upper Hunter, Maitland, Central Coast, Newcastle and Lake Macquarie for New South Wales and in Queensland in the Local Government Areas of Logan and Greater Brisbane.

No significant change in the nature of these activities occurred during the year.

Short & long term objectives

The objectives of Compass as defined in the organisation's constitution are as follows:

  1. to take over the funds and other assets and liabilities of the previously unincorporated association known as the Newcastle Lake Macquarie Community Housing Trust;
  2. to relieve poverty, sickness, destitution, helplessness and distress of persons regardless of race, creed, colour or gender;
  3. to obtain secure, affordable and sensitively managed housing for poor, needy and underprivileged people;
  4. to encourage the self - management of properties by involving the tenants in the management functions of the Company;
  5. to purchase real estate;
  6. to liaise with and complement existing housing provision and housing support services;
  7. to compile, print and publish newspapers, periodicals, books, leaflets or other materials; and
  8. to arrange, provide or assist in holding conferences, exhibitions, or other meetings as necessary.

The current strategic objectives of the organisation have been drawn from those defined in the constitution and are as follows:

Growth

Greatly increase social and affordable housing stock by active participation in appropriate transfer and tender opportunities and through self - initiated programs and developments. Support growth through sound systems of management.

Quality

Continuously improve the quality of services to client and benefits to the general community. Pursue and promote sound social and environmental principles and practices.

Diversity

Develop new business, social, environmental and housing opportunities and to encompass a wide range of people, provide wider choice in services and employment opportunities.

Reach

Expand provision of services to other regional areas by participating in regional opportunities and partnerships. Contribute to the national agenda and national programs for community housing development.


To achieve these objectives, the Company has adopted the following strategies:

  • Refining sound finance, audit and risk management;
  • Further improving effective governance, performance, company profile and people management practices;
  • Improving service delivery and quality for clients & community;
  • Enlarging tenant participation outcomes; and
  • Increasing business development opportunities and efficiencies

Members Guarantee

Compass is a Company limited by guarantee. In the event of, and for the purpose of winding up of the Company, the amount capable of being called up from each member and any person or association who ceased to be a member in the year prior to the winding up, is limited to $ 2.20 for members subject to the provisions of the Company's constitution.

At 30 June 2015 the collective liability of members was $81 (2014: $ 73).


Indemnifying Officers or Auditors

During the year, the company effected a directors and officer's liability policy. The insurance policy provides cover for the directors named in this report, the company secretary, officers and former directors and officers of the company.

This policy prohibits the disclosure of the nature of the indemnification and the insurance cover, and the amount of the premium.

No indemnities have been given or insurance premiums paid, during or since the end of the financial year, for any person who is or has been an officer or auditor of Compass Housing Services Co Ltd.

Significant changes in state of affairs

On 1 July 2014 Compass became the sole member of 4Walls Limited, a CHP located in Brisbane managing approximately 900 properties.

The New South Wales government gazetted on 11 July 2014 to transfer title to 457 properties to Compass which resulted in a property contribution at fair value of $140,586,316 to Compass.

There have been no other significant changes in the state of affairs of entities in the Company during the year.

 

After Balance Date Events

Logan Renewal Initiative

Compass was successful in the Logan Renewal Initiative, which is a Queensland government tender. The initiative involves Compass and BlueCHP establishing an entity, Logan City Community Housing Limited to manage approx. 5,000 tenancies and be responsible for the redevelopment of Logan city, delivering an additional 1,500 properties over 20 years. Compass will be responsible for the delivery of tenancy management services. During FY15 and FY16 Compass has been working with key stakeholders through an agreed transition plan and it is expected that the transfer of management of these properties will be completed by the second quarter of the 2016 calendar year.

Compass has incorporated a subsidiary company Compass Housing Services Co (New Zealand) Limited 5753427 NZBN: 9429041870273 under the New Zealand Companies Act 1993 on the 31 July 2015.  This subsidiary will apply for registration as a community housing provider under New Zealand regulations.

Except for the above, no matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.

Meetings of Directors

During the financial year, the following meetings of directors (including committees of directors) were held.

Attendances by each director during the year were as follows:

 

BOARD MEETING SPECIAL BOARD MEETING APPEALS COMMITTEE REMUNERATIONS COMMITTEE FAR/CGR COMMITTEE NOMINATION & GOVERNANCE COMMITTEE ARC COMMITTEE NSW STATE ADVISORY COMMITTEE STRATEGIC MEETING ATTENDED/ ELIGIBLE TO ATTEND
Kwesi Addo 8 4 1 13/13
Greg Budworth 8 3 2 2 2 2 3 1 1 24/30
Paul Johnson 8 4 5 3 2 4 3 1 1 31/32
Geoffrey Kiel 4 1 3 2 10/13
Kerry Skellern 5 2 2 4 1 14/14
Susan Williams 5 2 3 4 1 15/15
Tim Williams 2 2/13
Brian Wrice 2 2 1 5/5
Stephen Barr 3 2 2 1 8/10
Sandra Calland 3 3 5 2 13/13
Rosanne Chalmers 2 2/5
Peter Francis 3 3/5
Barry Martin 3 2 5 2 2 14/14
Mark O'Dwyer 3 2 4 2 11/12

Auditor’s Independence Declaration

The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for the year ended 30 June 2015 has been received and can be found on page 86 of the financial report.

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

DIRECTOR - PAUL JOHNSON

Kerry-SkellernDIRECTOR - KERRY SKELLERN

Summary Statement of Surplus or Deficit & Other Comprehensive Income

For the Year Ended 30 June 2015

KEY PERFORMANCE INDICATORS 2015 $ 2014 $
Potential tenant revenue 66,378,918 45,387,223
Less: rent lost through vacancies -721,504 -711,192
Less: rental subsidies and rebates -29,415,918 -14,674,958
Tenant income 36,241,496 30,001,073
Fair value adjustment to investment property 26,751,770 30,001,073
Grant funded revenue 9,082,604 5,038,711
Other revenue and income 151,272,332 14,995,866
223,348,202 53,095,660
Profit on amalgamation 2,529,610 -
Administration expenses -17,328,809 -11,754,376
Tenancy and property management expenses -26,249,942 -18,382,364
Finance costs -1,557,691 -1,067,436
SURPLUS BEFORE INCOME TAX 180,741,370 21,891,484
Income tax expense - -
SURPLUS AFTER INCOME TAX 180,741,370 21,891,484
OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 180,741,370 21,891,484

Summary Statement of Financial Position

As At 30 June 2015

ASSETS 2015 $ 2014 $
CURRENT ASSETS
Cash and cash equivalents 8,651,889 17,759,553
Trade and other receivables 8,853,131 6,543,065
Other assets 1,139,316 594,838
Other financial assets 10,941,100 9,821,268
Non current assets held for sale -
TOTAL CURRENT ASSETS 29,585,436 34,958,724
NON CURRENT ASSETS
Other assets 1,650 1,250
Other financial assets 125,504 124,141
Property, plant and equipment 2,844,786 647,382
Investment property 385,193,547 194,045,234
Intangible assets 310,324 109,505
TOTAL NON CURRENT ASSETS 388,475,811 194,927,512
TOTAL ASSETS 418,061,247 229,886,236

LIABILITIES
CURRENT LIABILITIES
Trade and other payables 3,080,238 2,357,247
Borrowings 4,222,006 1,269,372
Short term provisions 972,176 698,755
Other liabilities 3,444,434 11,038,895
TOTAL CURRENT LIABILITIES 11,718,854 15,364,269
NON CURRENT LIABILITIES
Borrowings 33,044,782 21,984,153
Long term provisions 133,927 115,500
TOTAL NON CURRENT LIABILITIES 33,178,709 22,099,653
TOTAL LIABILITIES 44,897,563 37,463,922
NET ASSETS 373,163,684 192,422,314

EQUITY
Reserves 115,089,886 115,089,886
Accumulated surpluses 258,073,798 77,332,428
TOTAL EQUITY 373,163,684 192,422,314

Summary Statement of Changes in Equity

For the Year Ended 30 June 2015

Accumulated Surpluses
$
Asset Revaluation Reserve
$
Vested Capital Assets Reserve
$
Vested Surplus Reserve
$
Total
$
Balance at 1 July 2014 77,332,428 75,000 110,101,451 4,913,435 192,422,314
Total comprehensive income 180,741,370 - - - 180,741,370
Balance at 30 June 2015 258,073,798 75,000 110,101,451 4,913,435 373,163,684

Accumulated Surpluses
$
Asset Revaluation Reserve
$
Vested Capital Assets Reserve
$
Vested Surplus Reserve
$
Total
$
Balance at 1 July 2013 55,440,944 75,000 110,101,451 4,913,435 170,530,830
Total comprehensive income 21,891,484 - - - 21,891,484
Balance at 30 June 2014 77,332,428 75,000 110,101,451 4,913,435 192,422,314

Summary Statement of Cash Flows

CASH FROM OPERATING ACTIVITIES 2015 $ 2014 $
Receipts from customers 45,223,341 44,418,508
Payments to suppliers and employees -46,370,552 -30,955,247
Interest received 670,998 685,189
Interest and borrowing costs paid -1,557,691 -1,067,436
Receipt from grants 2,168,366 11,999,139
Net cash provided by (used in) operating activities 134,462 25,080,153

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of plant and equipment 3,603 26,232
Proceeds from sale of investment 169,711 1,461,000
Purchase of financial assets - -4,295,227
Proceeds of financial assets -1,121,195 -
Purchase of property, plant and equipment -394,412 -212,159
Payment for investment properties and WIP -23,765,927 -17,826,686
Payment for intangible assets -319,523 -113,626
Net cash used by investing activities -25,427,743 -20,960,466

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 13,569,689 3,230,256
Repayment of borrowings - -1,366,487
Payment for subsidiary, net of cash acquired 2,615,928 -
Net cash provided by (used in) operating activities 16,185,617 1,863,769
Net increase (decrease) in cash and cash equivalents held -9,107,664 5,983,456
Cash and cash equivalents at beginning of year 17,759,553 11,776,097
Cash and cash equivalents at end of financial year 8,651,889 17,759,553

Directors’ Declaration

The directors of the Compass Housing Services Co Limited declare that:

1. The financial statements and notes, as set out on pages 78-90, are in accordance with the Corporations Act 2001 and:
a. comply with Accounting Standards Reduced Disclosure Requirements; 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 Compass Housing Services Co Ltd and consolidated group.

2. In the directors' opinion, there are reasonable grounds to believe that the Compass Housing Services Co Ltd 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 - PAUL JOHNSON

Kerry-SkellernDIRECTOR - KERRY SKELLERN

Declared Opinion Pursuant to the Charitable Fundraising Act 1991

I, Paul Johnson, Chair of Compass Housing Services Co Limited, in my opinion:

a. the financial statements give a true and fair view of all income and expenditure of Compass Housing Services Co Limited with respect to fundraising appeals;
b. the statement of financial position gives a true and fair view of the state of affairs with respect to fundraising appeals;
c. the provision of the Charitable Fundraising Act 1991 and the regulations under the Act and the conditions attached to the authority have been complied with for the year ended 30 June 2015; and
d. the internal controls exercised by Compass Housing Services Co Limited are appropriate and effective in

DIRECTOR - PAUL JOHNSON

Kerry-SkellernDIRECTOR - KERRY SKELLERN

Independent Auditor's Report

download Independent Auditor’s Report pdf