Wa No Interest Loans Network Inc
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WA, NILS -WA NO INTEREST LOANS NETWORK INC. ANNUAL REPORT 2007/2008 PO Box 282 Willefton WA 6955 Telephone: 1300 365 301 Fax: 9354 7633 CONTENTS ABOUT WA NILS INC® Mission Statement & Objective Principles Board of Management Advisors to the Board Auditors Staff MANAGEMENT REPORTS Chairperson's Report Treasurer's Report Manager's Report MEMBERSHIP NETWORKS Agencies Traders FINANCIAL REPORTS Statement by Members of the Board Independent Audit Report Income & Expenditure Statement Statement of Financial Position Notes to the Financial Statement WA NILS WA NO EN'TEREck- LO.A.:.NS NETWORK LKC. Mission Statement The WA No Interest Loans Network Inc. (with the commitment of Member Agencies) aims to address consumer inequality in the financial market and empower borrowers to take control of their financial situation by increasing their skills, confidence and self-esteem in dealing with their financial planning. Objective The overall aim of the no interest loans service is to provide families and individuals on low incomes across the state with the opportunity to apply for a loan to purchase essential items, without the burden of interest charges or fees. This service is not for the provision of emergency relief and is operated as a loan scheme with an expectation that repayments are made as negotiated between the service and the customer. Principles The WA NILS® Network will: ❖ Provide credit to those most in need, ❖ Allocate loan funds equitably within and between country and metropolitan areas of Western Australia, ❖ Work simply, efficiently and cost effectively, e Be flexible, responsive and accountable to the members of the Network, 4. Provide access to credit locally, ❖ Provide access to credit equitably across those in need, so as not to favour or disadvantage one individual or community, • Provide loans responsibly, so as to not build a reliance on credit or promote mass consumption, • Provide credit so as to maximise the benefit of the money available, by: ■ recycling credit amongst the maximum number of people ■ utilising existing community sector networks and infrastructure to the best advantage ■ assisting users of existing agencies and Family and Children's Services, while also providing access to other applicants ■ creating linkages between agencies to best meet the needs of clients through referral and other support services. Board of Management 2007/2008 CHAIRPERSON Lynda Wennstrom, Fremantle Community Legal Centre SECRETARY Tricia Lee Wanslea Family Services TREASURER Renuka Dissanaike Wanslea Family Services ORDINARY MEMBERS Sally Newman Communicare Misty Hayden Salvation Army Balga/WACOSS Janne Halma Jacaranda Community Centre Iris Watt Sussex Street Community Law Service Kate Davey Anglicare SNAP Sharon Cowper Salvation Army Jenny Lydon Salvation Army BOARD APPOINTED MEMBER Carol Wallbank Ego Creative ADVISOR TO THE BOARD Ian McDonald, Solicitor AUDITOR 2007-2008 William Cosson, Chartered Accountant ATTENDANCE AT BOARD MEETINGS A total of 10 Board Meetings were held from July 2007—June 2008 Lynda Wennstrom Attended 10 meetings Tricia Lee Attended 9 meetings Renuka Dissanaike Attended 10 meetings Sally Newman Attended 2 meetings (From January 2008) Misty Hayden Attended 2 meetings (From January 2008) Janne Halma Attended 5 meetings (From January 2008) Iris Watt Attended 8 meetings Kate Davey Attended 2 meetings (From April 2008) Sharon Cowper Attended 5 meetings (From February 2008) Jenny Lydon Attended 3 meetings (From February 2008) Carol Walibank Attended 2 meetings Susan Pope Attended 1 meeting (Resigned in August 2007) David Deane-Spread Attended 1 meeting (Resigned in October 2007) Nick Murphy Attended 5 meetings (Manager - attendance until October 2007 prior to resignation) John Ambrose Attended 6 meetings (Joined as Manager in February 2008. Attended January meeting by invitation) Staff 2007/2008 Manager Nick Murphy (July-December 2007) John Ambrose (February 2008 >) Bookkeeper/ Office Supervisor Lorry McCartney (July 07-April 08) Accountant Christian Budimuljono (April 08-August 08) Ruby Xu (July 2008 >) Loans Administration Officer Pauline Mc Gillivray (July 07 - April 08) Michelle Salt (April 2008 >) Reception Sharon Dunstone (July 07 - May 08) Administration Assistant Shirley Davis (April 08 >) [Note: Designations and Names highlighted denote currently serving employees.] Chairperson's Report 2007 - 2008 It gives me pleasure as Chairperson to present my Report for 2007/08. WANILS is a not- for-profit organisation whose Board consists of representatives from member agencies, and others from outside the sector who are willing to commit to a worthwhile cause. I'd like to thank all Board members who have willingly given their time this year: Tricia Lee -- Secretary, Renuka Dissanaike — Treasurer, and general members Iris Watt, Sally Newman, Jenny Lydon & Sharon Cooper, Misty Hayden, Janne Halma, Kate Davey, and Carol Wallbank. The traders who have signed on to the Traders Charter provide a fee each year to be part of this. These funds are put aside from the loan funds to be used for a range of worthwhile purposes. Some of the proceeds from the Trader's Charter funds were distributed via the CWA just before Christmas to assist farmers in the Wheatbelt over this period. This year has proved challenging for all as the previous Manager, Nick Murphy left us in December for a job he couldn't refuse. It helped that it was located nearer his home. In addition there has been a changeover of all office staff. Thanks to all past staff for their commitment to WANILS. In February a new Manager joined the team, John Ambrose. He was no sooner with us when he attended the Annual WANILS Conference in Adelaide along with several Board members. This was an enlightening experience for all concerned. John has had a rapid introduction to the project and I would like to thank him for his time and commitment. I would also like to express my appreciation to the current office staff. I would like to give special mention and thanks to the Loans Committee members (and their employers) who volunteer their time to assist with the assessment and approval of loans. Without them we would have a deal of difficulty approving the number of loan applications that we receive. WANILS was once again a finalist in the WA Consumer Protection Awards 2008. It was a great achievement to be nominated for a third year. My thanks also to those staff members of DCP who have been assisting with WA NILS over the years - Tracey Glass (CDFO) and, in particular, Julie Waylen (Director, Funding & Policy) who has been with us from the very start of WA NILS. As I have said in past Chairperson's reports, this project is a very rewarding one to be involved with. I have been involved with WANILS from before its inception and the many outcomes that I have witnessed have brought me a great deal of satisfaction and pride. This will be my final report as Chairperson as I am standing down from the Committee this year. I wish the new Board continued success. LYNDA WENNSTROM Chairperson Treasurer's Report 2007 - 2008 It gives me pleasure to present the Treasurer's report for WA No Interest Loans Network Inc for the 2007-08 financial year. The financial year ended with a net surplus of $ 42,254. This includes a Lotterywest equipment grant of $ 24,711 used for the purchase of a photocopier. The operating grant received from the Department for Child Protection (DCP) included indexation arrears for the past 3 years. $ 15,429 of these arrears have been carried over to meet expenditure in 2008-09. This was the first year in which the DCP did not provide funds for the loans pool. Investment of unutilised loans pool funds in Term Deposits provided interest income which was sufficient to cover the cost of bad debts written off during the year. This strategy resulted in a slight growth in the balance in the loans pool. The demand for loans dropped during the year under review. A survey conducted by the agency revealed that the drop in demand was due partly to external factors such as the rise in cost of living. The association continues to address issues around community awareness, marketing and publicity. The loan limit per applicant was raised from $ 1,000 to $ 1,500 in recognition of the general increase in cost of living. The list of approved loan items has been further expanded to accommodate areas of greater need within the community. Loan arrears are well within limits set by the DCP. WA NILS continues to monitor arrears and the various measures adopted in the last few years around the approval of loans have resulted in lower rates of default. Traders who support WA NILS provided funds amounting to $ 8,935 during the year. Of this, $ 5,000 was donated to the Country Women's Association in December 2007 to provide relief to families affected by the drought. WA NILS continues to provide support to the WA Low Interest Loans Network by providing it with management and administrative functions. WA NILS receives a management fee for this service. In conclusion, WA NILS is financially sound and is in a position to continue providing a no interest loans service to the community, within the guidelines set by the Department for Child Protection. R. Dissanaike Treasurer Manager's Report 2007/08 has been another exciting and rewarding year. One of the changes that occurred was a complete turnover of staff during the first-half of 2008. WA NILS now has a totally new team made up of people dealing with increased workloads and shorter timelines for processing and approving' loan applications. Some significant changes occurred this year: • the loan amount was increased from $1000 to $1500 • clients became eligible to apply for two items per loan • 15 more new items were added to the list (this only happened in July 2008) • the six-month cooling off period between loans was rescinded — which means clients can now apply for a second loan as soon as the first one's repaid • and, the six month requirement for continuous stay in accommodation is now reduced to three months — in view of the volatile rental market.