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Annual Report 2011 2011 STEWART HOUSE GOVERNANCE

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Annual Report 2011 2011 STEWART HOUSE GOVERNANCE 1931 Annual Report 2011 2011 STEWART HOUSE GOVERNANCE We are governed by a board of directors, with delegated authority to a Chief Executive Officer and several other sub-committees. Stewart House is a company limited by guarantee being an affiliated health organization in respect of child health screening under schedule 3 of the NSW Health Services Act 1997. Representation on the company’s board of directors is sought from the following stakeholders – NSW Departments of Education and Communities and Health; NSW Teachers Federation; Federation of Parents and Citizens’ Associations of NSW as well as interested philanthropic individuals for periods of up to three years. No income or property of Stewart House may be paid or transferred, directly or indirectly to any company member and no remuneration or other benefit is paid or given by Stewart House to any company director. The number of directors on the Stewart House board can range from a minimum of 3 to a maximum of 12. STEWART HOUSE GOVERNANCE BOARD OF DIRECTORS STEWART HOUSE COMMITEES --------------------------------------------------------- -------------------------------------------------------- Graeme Philpotts The directors of the board select the chair of each Chief Executive Officer committee, who is normally a board director and approve their memberships. The chairman of the board is an ex- Norman Newbon (until December 2011) officio member of all committees. The board appoints the Barry Johnson Chief Executive Officer to all board committees. Members Chairman are usually appointed for a term of 1 year, with a maximum of two consecutive terms. There are normally no less than Tom Croker 4 committee members. Committee members may be board Donna Fisher-Barlow members, staff of the organisation or people with relevant Richard Hoskins expertise from outside the organisation. Pam Pritchard (until March 2011) In 2011 the following committees operated: Michelle Reincastle Mark Rice Advisory Board Helen Walton Norman Newbon (chair) Lisa Ainsworth Jaycen Fletcher Peter Opie John Pegg Mark Rice Damian Smith Glenn Willis Chris Woodforde Audit Risk and Compliance Committee Pam Pritchard (chair until April 2011) Mark Rice (chair) Marilyn Bourne Donna Fisher-Barlow Richard Hoskins Barry Johnson Governance and Nominations Board Committee Barry Johnson (chair) Helen Walton Stewart House Out Of School Hours Program Assessment Committee Richard Hoskins (chair) Tom Croker George Green (ARISSEA) Geoff Walton (ARISSEA) STEWART HOUSE ANNUAL REPORT 2011 CHAIRMAN’S REPORT I write this report in a climate of renewed media interest in the workings of charities and I am pleased to inform our stakeholders and supporters that, by all measures identified within the not-for-profit sector, Stewart House shapes up as extremely effective. We provide a unique opportunity for an effective health and education program, accessible to those children whose circumstances and or backgrounds are such that they are deemed to be in need of a break. In our 80th year, we were able to discipline ourselves to sustain outcomes refined over the past 80 years in the delivery of quality services to 1,774 children in need from public schools across NSW and the ACT. Last year, we very proudly catered for the needs of 1,712 mainstream students from across NSW and ACT (in 19 groups staying 12 days each) and 62 special students (in 1 group staying for 4 days). 20%, of this cohort, were identified as from Aboriginal Torres Strait Islander backgrounds and 9% were non-English speaking. I start this report acknowledging two retirements from the board of directors in 2011. Firstly, Pam Pritchard retired after 26 years of stalwart service to Stewart House primarily in the role of treasurer and chair of our audit, risk and compliance committee. Secondly, Norman Newbon retired after 8 years of board service, more recently in the concurrent roles of chairman of the board of company directors and chair of our advisory board, where he presided over Stewart House’s transition from government entity to a company. Both officers have given generously of themselves on the board, defined the shape of the company and achieved remarkable outcomes throughout their respective tenures. All would agree, they have left Stewart House richer for their care and most definitely in a fortunate financial position. We finished 2011, for the third consecutive year in surplus - emerging from eight years in deficit that is quite an achievement! The surplus was derived from good financial management and sound marketing practice and was boosted by our most significant bequest to date. In 2011, Stewart House became the sole beneficiary to the late Keith Dowling’s estate. Keith lived his entire life on the Northern Beaches, owned property in Narraweena but his magnificent philanthropy only became known to us after his death. We have thanked Keith through his family who have joined with us to commemorate his legacy to Stewart House and to honour his benevolence. By the end of 2012, we will have received almost $900,000 from Keith’s estate. This will fund the complete renovation and waterproofing of the multiple roofs and balconies associated with the Batho Street building. Constructed in 1977, this building has been plagued with water penetration problems and roof leaks for at least 25 years. We have plugged gaps where possible with limited finances but Keith’s legacy will enable it to be fully operational for at least another 30 years. The company’s revised and enhanced financial statements are included in this annual report. I am pleased to highlight a net surplus increased by $692,125 to $765,564 for the year ended 31 December 2011. Factors that impacted these operating results included: • A decrease in salary contributions by $25K • An increase in general donations due to the large single bequest of $625K • A decrease in fundraising activities by $12K • An increase in interest income by $27K STEWART HOUSE ANNUAL REPORT 2011 CHAIRMAN’S REPORT The company has reported assets of $1,184,939 and liabilities of $192,813 at year end which represents a positive working capital of $992,126. This working capital position has increased from last year by $455,073. The only downside (on paper at least) was that our land and buildings were revalued downwards by $1.3M in accordance with fair value accounting policy – a reflection of the current economic climate but which in no way impacts on our operation. Over the past two years private philanthropy has played a major role in upgrading our facilities to better meet the needs of our children. From corporate support provided by companies, organisations, service clubs and private individuals, I am pleased to report that we have been able to complete refurbishments on all children’s bathrooms across the site and enhance our dormitories and recreational facilities to a modern comfortable standard. Through very generous public donation in 2011, driven by marketing strategies focussed on renewed media interest, we were able to commit over half a million dollars to much needed capital works across the site. So by all measures, Stewart House enjoyed a very successful 80th year and my report must thank all our donors for their hands-on support and altruism. While there are too many to mention here individually, your names are acknowledged at the end of this annual report. School staff and public educators have always been Stewart House’s lifeblood. At the end of 1931, Stewart House Preventorium collected donations from teachers towards general expenses totalling 83 pounds. 80 years later, this sum has grown to $853,827. We are indeed grateful for the continued support of these dedicated NSW DEC employees whose fortnightly contributions are critical to our financial solvency as they are our only consistent and regular source of income. Regrettably current donations from the scheme account for only 32% of our costs. There is no doubt that quality marketing creates fully engaged supporters and to that end we have employed a school liaison officer to connect with teachers in metropolitan schools face-to-face in order to seek their financial support. Should this strategy prove successful in 2012, it will be expanded across the state in 2013. With 80 years of heritage and commitment for public education behind us, I join with my fellow directors in looking forward to a bright and prosperous future. Pubic educators, schools, corporations, organisations and individuals all working towards the common goal of financial support for Stewart House will ensure our success. I would like to take this opportunity to congratulate staff and the myriad of Stewart House volunteers on their willingness to commit to change and drive improvement as exemplified by the overall healthy financial position, physical condition and public perception that Stewart House finds itself in as we enter our 81st year of operation. I thank my fellow directors, company members and the Stewart House management team for their devotion to ensuring that our resident children have the best possible outcomes of their stay. Barry Johnson Chairman STEWART HOUSE ANNUAL REPORT 2011 HOW FAR WE’VE COME Historical CONTExT ‘Stewart House gave me not only the best holiday and respite but an example life didn’t have to be the way it was. There could be sunnier ways of living’. This quote is from a past student who was chosen by her public school principal to attend a 12 day break at Stewart House. Since opening its doors in 1931 close to 240,000 public school students have benefited from a 12 day stay. It is only though the support of the public education community that the doors at Stewart House remain open as it enters it’s 81st year. The story of Stewart House goes back to 1929 and begins with two men of vision, Dr. Harvey Sutton, then Principal Medical Officer of the Department of Education of NSW, and Mr.
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