Annual Report 2013 Celebrating 60 Years

www.selwyncare.org.nz A Annual Report 2013 Contents

1 The Year in Review 2 Chair’s Report 4 Chief Executive Officer’s Report 6 Charity 8 Learning 10 Community 12 Villages 14 Heritage - Celebrating 60 years 16 Chief Financial Officer’s Report 18 Consolidated Financial Statements 24 Corporate Governance 27 The Selwyn Way 28 Donations and Bequests 2013 29 Foundation Contacts

The Selwyn Foundation, PO Box 8203, Symonds Street, Auckland 1150. Level 4, 1 Nugent Street, Grafton, Auckland 1023, New Zealand Tel: (64-9) 845-0838, Fax: (64-9) 845-0700 www.selwyncare.org.nz Celebrating 60 Years

• We had another successful • The new role of Volunteer year financially, with increased Programme Manager was operating profits flowing established to develop a through to an increase in structured and comprehensive The Year in Review grants and charitable activity. volunteer programme at each of The Foundation maintains a our villages and care facilities. positive outlook for its future Volunteers give of their time, financial position. talents and skills in many varied Highlights ways, and their support adds • Selwyn House, our innovative great value to Selwyn’s work to new community living home for 2013 promote a culture of ageing well. for single older people, opened at Hansen Close in Birkenhead. • Three new independent living The new facility provides apartments opened at our high quality, supported rental larger villages in Auckland – accommodation and marks the 26-unit Newman-Reid an exciting addition to Selwyn’s Apartments at Selwyn Village, range of community-based and the Gowing and Kay Hawk services. Apartments offering a combined total of 45 new homes at Selwyn • New Selwyn Centres opened Heights village. for the first time in the Waikato and in Christchurch, bringing • The next phase in the the total number of Centres development of Selwyn Heights to thirty-nine. village got underway, with the • Our residential care facilities construction of a prestigious achieved excellent results in five storey building which will Ministry of Health certification comprise 56 apartments and audits, and our independent additional community amenities. living facilities attained The new complex, due to open the maximum three years’ in November 2014, is to be accreditation following audits named the Reeves Apartments, by the Retirement Villages in honour of the late Right Association of New Zealand. Reverend and Honourable Sir , • Our fourth annual gerontology and of New Zealand nurses’ professional and Governor General of development conference was New Zealand. the largest yet. This major in-house training event is also open to gerontology nurses from the wider healthcare sector and is the only conference of its kind in the country. • The Selwyn Centre for Ageing and Spirituality continued its nationwide education programme, with a series of seminars on spiritual care in healthcare and a conference on the latest New Zealand research on ageing and spirituality, contributing to raising awareness of the subject amongst pastoral caregivers, chaplains and health and aged care workers.

The Selwyn Foundation 1 This year’s Diamond Jubilee is This philosophy - founded in great cause for celebration, and Faith - makes us unique in the also cause for reflection – for aged care and retirement Chair’s Report taking stock of what has been village sector and illustrates our achieved over the last sixty years, authenticity and breadth of activity. as well as looking to the future This will be our framework as we and the ever more pressing go forward, encapsulating the challenges that an ageing society essence of the Selwyn Mission and Tradition and will present. Many have been driving our charitable Mission, helped and supported over the research interests, community innovation years through Selwyn’s Mission, support and culture within our but – in 2014 – we find there is village environments. combine to much still to do. As we look to the future, we create new In reflecting on how far we’ve do not forget those whose come, we’ve also spent time endeavours have contributed to opportunities considering how we can use the Foundation’s enduring success. our experience, knowledge and In marking sixty years of service surpluses to benefit as many older and operation at Selwyn Village people as possible, especially, on 22 May 2014, we will observe those who are vulnerable or in our inaugural ‘Founders’ Day’ to greatest need. To this end, in honour the courage and foresight addition to implementing the first of Selwyn’s founding fathers in objectives of our five-year Strategic establishing a dedicated service Plan (designed to deliver on for the welfare of ageing people. our strategic goals for the As part of a broader programme, medium-term), our CEO and to establish long-lasting traditions Senior Leadership Team have that will preserve the Foundation’s developed a comprehensive, ten history and significant milestones, Chair, Kay Hawk year Growth Plan that will see we are keen to commemorate us build new facilities, revitalise in a meaningful way those our villages and expand our individuals who have influenced offering to a wider section of the and enriched the development older population. of the organisation since 1954. Therefore, on Founders’ Day, we Whilst reviewing our business will acknowledge and thank all in this way, we have reflected our Life Members, Companions on our branding and how we and Friends of Selwyn who have communicate to our various provided visionary leadership and audiences the range of services given so generously of their skills, we are able to offer. In reaffirming time and resources and in many who we are and why we exist, we other ways to make Selwyn the have aligned our areas of operation respected name that it is today. into a simple brand structure – that of Charity, Learning, Community With regard to the overarching and Villages – and developed a roles and responsibilities of key statement that describes and The Selwyn Foundation Board informs all our activity: of Trustees – and its input into Selwyn’s ongoing development – to care for older additional terms of reference have people, you have to recently been formulated relating to the governance and oversight of care about them. the work of the Foundation as In other words, everything we a whole. do is focussed on caring about older people.

2 Annual Report 2013 Celebrating 60 Years

Specifically, the frequency of the Selwyn Board for their valued In this, our 60th Board meetings has increased to service and our sincere thanks for monthly, with progress against their skilled business management anniversary, the each of the seven strategic goals advice and support over the years. Foundation is proud to be reviewed twice a year, and members of the Senior Leadership In this, our 60th anniversary, of its past, and Team invited to attend the the Foundation is proud of its ambitious for all relevant sub-committee meetings past, and ambitious for all it can it can achieve for as required. We have developed achieve for ageing people in the and implemented a process for years to come. With the combined ageing people in the Board succession. In 2014, the talents and commitment of our years to come. Board will continue to refine excellent Trustees, Executive team, its process of self-review and management and staff – and evaluation of the performance of with the best of tradition and the CEO. Our understanding of innovation coming together to Tikanga and how to incorporate provide a unique positioning this into the way we govern will for the Foundation – the Selwyn continue to be developed, and brand will continue to be relevant, we will be assisted in this process progressive and well grounded by the Venerable Lloyd Popata, in a future that most certainly Archdeacon of Tamaki Makaurau, will be dynamic and flexible in who was appointed to the role of how services will be provided to Pou Tikanga for the Foundation the ageing and most vulnerable last year. of society. I would like to thank my fellow Board Members for their expert advice and guidance in the last twelve months, and formally welcome our outstanding new Kay Hawk appointees, Helen Melrose and Chair Jan Nichols, who joined in 2013. The Selwyn Foundation As our colleagues, Deputy Chair March 2014 John Cameron and Jim Frater, will both be retiring at our 2014 AGM, I would like to express my deep appreciation on behalf of

The Selwyn Foundation 3 In 2014, we celebrate the Similarly, by our funding of 60th anniversary of Selwyn research studies in gerontology Chief Executive Village. This iconic retirement and aged care, and grants to Officer’s Report community was the first of its charitable groups concerned with kind in New Zealand, out of the welfare of older adults, we have which The Selwyn Foundation endeavoured to use our resources was formed in 1967. Sixty years to maximum effect. on, both Selwyn Village and Building The Selwyn Foundation are In what was an extremely busy going from strength-to-strength year, I would mention the following for an – each with renewed impetus, highlights: great potential and an exciting • The excellent results achieved exciting future ahead that will benefit by our care facilities and ever greater numbers of older retirement villages following future people in New Zealand. their respective certification Over the past twelve months, the audits, and the highly-prized Foundation has continued to focus Cornerstone accreditation on innovation, excellence and awarded to our Selwyn Village our customers in terms of how we Medical Centre by the Royal provide services not only within New Zealand College of our retirement villages and care General Practitioners. facilities, but also in our outreach • Our focus on clinical governance to the wider community. to ensure an integrated Selwyn House, our community approach to providing excellent living home for single retirees, clinical care to our residents. We opened in Birkenhead, and the established a dedicated Clinical CEO, GARrY SMITH network of Selwyn Centres which Advisory Group comprising we co-fund with Anglican parishes senior clinical staff and also expanded to the Waikato and employed a second GP. With Christchurch for the first time. the endorsement in 2013 of our We also introduced a new day care Director of Advanced Nursing programme at the Selwyn Centre Practice as a Nurse Practitioner in Papakura, to provide respite (Older Adult) with prescribing support to carers whose loved rights, we are also the only aged ones have mild dementia. care provider currently with this in-house expertise. Through these initiatives, we have sought to bring practical help and • The decision to implement a support beyond the boundaries new Nurse Call system offering of our traditional village sites to advanced customer service the most vulnerable and those in options across all independent greatest need, and to respond living units and care facilities, to today’s most challenging the introduction of a new food social issues for aged people – service delivery process, and the shortage of affordable, good our adoption of the Ministry of quality housing and the scourge Health’s new interRAI clinical of loneliness, both of which have assessment software and care their own implications for an planning tools. Such innovations elderly person’s general health demonstrate Selwyn’s enhanced and wellbeing. responsiveness to residents’ needs and our leadership in the use of clinical quality, hospitality and healthcare technologies.

4 Annual Report 2013 Celebrating 60 Years

• Our key performance measures were very pleasing: the number of new ORA licences agreed was the highest ever (such was the demand for our new independent living apartments that they sold out within six months), and our high rates of residential care occupancy and staff retention compare favourably with the industry average. These significant indicators are a reflection of the Foundation’s reputation as a leading service provider and quality employer. With such a progressive approach, we are in an excellent position to grow and to create quality environments and services that This fundamental principle Each new project, complement the high standards of defines the Selwyn approach care for which Selwyn is renowned. and differentiates us from others and investment To do that, however, we must in the sector. decision clearly continuously improve what we can In closing, I would like to thank demonstrates our offer to the communities we serve. all our staff for the love and care philosophy that, Last year, therefore, we prepared a they show our residents every ten-year Growth Plan comprising day, and my colleagues in the to care for older a major development programme Senior Leadership Team for their people, you have to and plans for organisational innovation and professionalism care about them, realignment. This will enable us to in helping to shape the future of meet the demands of a changing Selwyn, so that our stewardship a fundamental market and – importantly – ensure of this much beloved charity may principle that sustainable growth, so that we continue for many years to come. may continue the mission first defines the Selwyn envisioned by our Selwyn forebears approach. sixty years ago, with The Selwyn Way driving us to deliver the best possible outcomes for the ageing person, whose wellbeing is central to everything we do. Garry Smith Chief Executive Officer Whilst not all of the elements of the The Selwyn Foundation Growth Plan will start immediately, March 2014 but in a phased and considered manner, each new project and investment decision will clearly demonstrate our philosophy that, to care for older people, you have to care about them. This means that we consider all aspects of how we can help people to remain independent, stay healthy and live a meaningful life, whether they reside in our retirement villages, care facilities or in their family home.

The Selwyn Foundation 5 6 Annual Report 2013 CelebraCelebratingting 60 YearYearss Charity

Enhancing the lives An additional grant made in 2013 The NZAG is committed to of others through funded the Trust’s inaugural, eight- understanding ageing and week ‘Senior Chef’ cooking course promoting the interests of older charitable outreach for those over 65 who live on their people through study and research Promoting the welfare of older own or with one other person. This on ageing, continuing education people in general is an important practical class offers the chance and national debate, with Selwyn aspect of the Foundation’s to learn, or improve on, food supporting its webinar series charitable mission. As access preparation skills and also provides of seminars held in conjunction to local services is of vital a time of fellowship for participants. with the Australian Association of Gerontology. importance in maintaining health Another beneficiary of Selwyn’s and well-being, Selwyn distributes charitable support is The New The contribution of funding to our over $500,000 per annum to Zealand Faith Community Nurses partners in the provision of aged charitable and not-for-profit groups Association, a national ecumenical care services assists organisations working with or for the elderly at organisation for Christian nurses to innovate and meet the social, both community and national level. providing primary healthcare health and broader long-term This investment, which is in within their own faith communities. needs of the older population, addition to our funding of the This is an innovative ministry, thereby enabling the Foundation to Selwyn Centre programme, with nurses assessing not only the enhance the lives of so many others contributes to a variety of activities physical, mental and social needs, who may be vulnerable or in need. delivering practical help ‘on but also the spiritual health needs the ground’, as well as making of people in the community. The provision for the health of older Foundation’s support has helped people in the long-term. establish the management of the Grants to the ’s Action Association, as well as its website Foundation (part of the Waikato and training modules. ) and the Diocese of Christchurch have facilitated Multi-disciplinary the opening of six Selwyn partnerships promoting Centres in the last year. New Centres in Cambridge, the wellbeing of Te Awamutu and Morrinsville older people and in the Christchurch districts Selwyn is also one of the principal of Burwood, Fendalton-Merivale benefactors of both the National and Opawa help older people Dementia Cooperative (NDC) and remain socially connected in the New Zealand Association of areas where resourcing may Gerontology (NZAG). The NDC otherwise be limited. is a multi-disciplinary group The Foundation also supports of people who wish to advance social services provider, the knowledge about dementia care Whangarei Anglican Care Trust, and increase overall awareness and by part-funding its Seniors understanding of the condition. Community Worker. This position Together with BUPA, the assists aged people access the Foundation contributes to funding social and health services they its National Coordinator position. need to enable them to live independently for as long as possible.

The Selwyn Foundation 7 8 Annual Report 2013 CelebraCelebratingting 60 YearYearss Learning

Investment in training Future wellbeing aided The Selwyn Centre for Ageing and and education delivers by research investment Spirituality also supports research by funding two annual scholarships first class care Selwyn supports a wide range of for postgraduate students studying Excellence in all aspects of our research projects in gerontology spirituality in ageing. In addition, service delivery is paramount for into factors that influence the it organises an annual conference the Foundation. By investing in wellbeing of older people. on the latest New Zealand research, quality learning opportunities, In addition to partnering with thereby raising awareness of the we aim to enhance the wellbeing Auckland-based universities, we subject amongst those involved in of our residents and other invest in the work of The Selwyn aged care. Centre for Ageing and Spirituality service users and contribute to Our investment in training and an improvement in the overall and also donate to The HOPE Foundation, a charitable Trust research highlights our approach welfare of the ageing population to delivering better quality care as a whole. dedicated to sponsoring research on ageing and the effect of ageing and services, and demonstrates our Our annual professional on the New Zealand community. commitment to improve the development conference for lives of our residents and of the nursing staff focuses on the latest In 2013, the Foundation awarded nation’s older people now and into leadership, clinical and dementia a grant of $82,000 to The HOPE the future. issues in aged care. Devised Foundation to enable it to specifically for gerontology nurses, continue its funding for masters it is the only training event of its and doctoral student research kind in the country that offers the on gerontology in a variety of most specialised teaching in this disciplines, thus encouraging field of nursing. The conference young scientists to develop careers is organised by our Director of in ageing research. The results Advanced Nursing Practice who, of the studies undertaken will be in 2013, gained endorsement as a published in major international Nurse Practitioner (Older Adult) scientific journals, significantly with prescribing rights. Selwyn is adding to the body of knowledge currently the only independent in this specific area and building provider with a dedicated Nurse greater understanding of the Practitioner, and the importance of healthcare needs of ageing people. the role in providing expert clinical Our other research interests guidance to our nursing teams is include a study into depression manifested in increased skill levels that commenced last year in and first class care to residents. Selwyn’s hospitals, undertaken in Another of our key training events association with the University is our annual conference for Selwyn of Auckland and funded by the Centre coordinators. This full-day C R Stead Trust. Depression is a programme, providing updates major health issue for older people on health and safety legislation, (and for those in residential care, operational protocols and best particularly), and the findings will practice, also encourages general assist in identifying its causes and reflection on the quality of services how it can be ameliorated. and care provided to Centre guests.

The Selwyn Foundation 9 10 Annual Report 2013 CelebraCelebratingting 60 YearYearss Community

Selwyn Centres: bringing Reducing social isolation help and support to the through community care wider community The Foundation commits Selwyn’s community outreach significant annual funding to is most evident in the Selwyn the initiative, which is designed Centres, the thriving Parish to address the problems of social Partnership programme that isolation of older people and we support in association with the health risks that arise as a Anglican parishes. With 39 Centres result. Loneliness can be a serious serving over 800 people each health issue, and continued week, the programme provides an interaction with others is beneficial environment that enables those psychologically and also influences who may be living alone and in general health. The Selwyn Centres need of companionship to remain are an effective means of delivering active, healthy and independent in care to people in the community their own neighbourhoods. and fill a real need in providing invaluable social interaction Offering a morning programme for those who may be lonely or of social games, gentle exercises isolated. In acknowledging the and occasional outings at a value of this model and the health nominal fee, the Centres provide benefits that it promotes, the a positive setting where those Counties Manukau District Health over 65 with limited opportunity Board contributes each year to the for social interaction can meet running costs of the scheme in up each week with others from South Auckland. their local community. Respite for The Parish Partnership carers is offered at some venues programme is an important and, in one location, the service is aspect of Selwyn’s range of taken out to state-owned pensioner care services and enables the flat complexes, enabling the less Foundation to expand its Mission mobile to socialise with their to be responsive to the needs of neighbours. In South Auckland, older people, wherever they may The Selwyn Foundation has be at home. Amongst aged care employed a community liaison and retirement village operators, nurse to assist with the health Selwyn is unique in resourcing concerns of the Selwyn Centre such a wide-ranging outreach day guests. This vital resource initiative and is committed to will also help carers and Centre further expanding the network of coordinators identify any Centres, thereby bringing much special needs of day guests needed comfort, help and hope and engage where necessary to ever greater numbers of frail with healthcare agencies. elderly in our communities. Whilst based mainly in church premises, the Centres welcome people of all religious or cultural backgrounds - over two thirds of guests are not church members, and two Centres cater specifically for the Pacific Island and Indian communities.

The Selwyn Foundation 11 12 Annual Report 2013 CelebraCelebratingting 60 YearYearss Villages

Thriving communities Our philosophy focuses on for 2017. Therefore, through contribute to ageing well empowering individuals to do as contemporary new environments much as they can for themselves, and modernised styles of care, At Selwyn, residents have the so they feel truly at home. In the we will continue to resonate with opportunity to stay active, keep residential care situation, for residents of today and tomorrow, learning and enjoy life within an example, residents are encouraged and will take forward into the future integrated village setting, whether to make their own decisions about our founders’ vision that began they are fully independent or need their domestic routines - when sixty years ago. some extra care and attention. to rise or go to bed, when to eat With many of the everyday tasks and which activities to take part taken care of, villagers can make in. They have the opportunity to the most of the wealth of activities care for pets, grow vegetables and that are on their doorstep. They undertake a range of general tasks, may choose to play a full part in all of which engenders a feeling village life, socialising with their of being valued members of the neighbours in a friendly and shared ‘household’. supportive environment, or to relax and take things easy, secure in the This enabling approach also knowledge that companionship, extends to our independent help and support are close at hand residents, who lead their own whenever they may need. events programme, spearhead the launch of special interest groups, Whilst amenities vary at each and organise a full entertainment village, residents can avail schedule for their fellow villagers themselves of fitness, games and to enjoy. Many residents also sports facilities, craft, library and volunteer their time, skills and IT resources, workshops and energy for a few hours a week, vegetable garden plots and an undertaking various roles around array of hospitality services. the village community. Or they could do some shopping, catch a film in the movie theatre With this focus on ageing well, or indulge in some health and our residents are inspired to beauty treatments. Weekly planned maintain their independence and activities abound and include be enriched by new friendships exercise classes, bowls, petanque, and leisure pursuits, all of which mah jong, scrabble, quiz afternoons, enhances the life of the village art classes, music and dance, trips community and those whom we out and about, worship services… support and care for. the list is endless. In 2014, the Foundation is beginning a revitalised programme At home at Selwyn to redevelop many of our villages – the only place to be and renew our ageing facilities. As part of our wider 10 year plan to The Foundation seeks to create further develop Selwyn’s offering to positive environments that the communities we serve, we plan promote residents’ independence, to build more independent living eliminate loneliness and add accommodation and industry - variety to the daily experience, leading care facilities. The first of and to build communities where these will be a new 116-bed hospital people have purpose, are involved at Selwyn Village, scheduled in village life and enjoy as active a lifestyle as possible.

The Selwyn Foundation 13 On 22 May 1954, when the first building at Selwyn Village was formally opened, the vision of Auckland City Missioners to provide dedicated care and accommodation for older people in need finally Heritage became a reality. A village setting providing for the welfare of the aged was a revolutionary notion in the 1950s. The concept has developed over time, with The Selwyn Foundation now providing a wide range of services to older people not only within its village Celebrating communities, but to society as a whole.

Block A (Kerridge) at Selwyn Village opens offering 60 Years 1954 22 single bedroom units.

Government approval granted to build 11 blocks of cottages 1959 to house 38 residents.

The Selwyn Foundation is established. 1967 First residents move into Selwyn Park, Whangarei.

1970 Selwyn Oaks opens in Papakura.

1983 First ‘own-your-own’ units completed at Bambury Close.

1992 First residents move into Hanson Close.

Lavender Cottage Dementia Day Care at Selwyn Village 1993 established.

2000 First of the Selwyn Centres opens in Papakura.

Management contract signed for Gracedale Home and Hospital. Selwyn St Andrew’s, Cambridge, comes under the care of 2005 The Selwyn Foundation. Roskill Masonic Village, Hillsborough, purchased and renamed Selwyn Heights.

Wilson Carlile, Hamilton, becomes part of The Selwyn 2008 Foundation. The Selwyn Centre for Ageing and Spirituality established.

Sunningdale Rest Home, Hamilton, becomes part of 2010 The Selwyn Foundation.

2012 Group Office moves to new premises in Grafton.

2013 Selwyn House Community Living, Birkenhead, opens.

2014 Selwyn Village celebrates 60 years.

1 the first residents arriving at the Village, 1954. 6 lichfield Towers under construction, 1963. 2 Cottages built to house 38 residents, 1959. 7 Canon Caswell assists one of the first Lichfield 3 nursing care in the sick-bay, 1961. residents to her room, 1965. 4 Consecration of Christ the King Chapel, 1961. 8 governor-General, Sir Arthur Porritt, in the 5 a first visit of the mobile post office, 1962. craft room after the opening of the Community Centre, 1972.

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The Selwyn Foundation 15 It is my great pleasure to present During the year, we reviewed my first Chief Financial Officer’s our long-term financial strategic Chief Financial Report. I would like to begin by direction, and we believe that an acknowledging the great work of integrated villages model provides Officer’s Report my predecessor, Fred Pau, who the most sustainable approach to left the Foundation in June 2013 retirement village living, as shown after fourteen years of service by the performance of Selwyn to the organisation. I believe Village and Selwyn Heights. In A strong the strong position that Selwyn the future, we will be looking finds itself in today is a great to achieve an optimal balance financial testament to his time here. between independent living and residential care at all our sites, position Included within the Annual through refreshing our existing Report are the summary financial assets along with the development statements for The Selwyn of new facilities. enabling Foundation group, including The Selwyn Foundation and Financial Performance future Selwyn Care Limited, for the year ended 31 December 2013. Operating Profit growth Highlights for the year that Operating profit for the year contributed to the financial to December 2013 was $2.8m. performance in 2013 and This includes revenue of $43.8m which will affect the future (up by $0.9m compared to 2012), outlook include: offset by expenditure of $41.0m (increase of $0.5m). • Completion of the Newman- Reid , Kay Hawk and Gowing Other Income and Expenses Apartments and building work Finance income for the year was commencing on the Reeves at $1.7m, well above last year’s Apartments at Selwyn Heights. $1.0m, due to interest earned on • A high level of independent higher cash reserves as a result of CFO, Jason more living settlements, leaving only the sell-down of new independent five apartments unoccupied in living apartments. the newly completed Newman- Reid, Kay Hawk and Gowing We are required to revalue our Apartments at year end. independent living assets each year and record any movement • Commencement of planning for through our Statement of Financial a new 116-bed residential care Performance. This year, a gain of facility at Selwyn Village. $10.7m was realised, largely on • New community facilities the back of the completion of new completed at Selwyn Village. apartment buildings. • The first residents moving An impairment loss of $0.7m was into the new Selwyn House recognised due to the proposed community living residence at demolition of an existing building Hansen Close. to make way for new independent • The initiation of a ‘fixed fee for living apartments. life’ offering for independent The funding of charitable activities living monthly fees. continued in 2013, with an increase in the amount of grants and donations given.

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Total Comprehensive Income The Selwyn Foundation recorded total comprehensive income for the year to 31 December 2013 of $13.1m. This was well up on the 2012 result of $4.0m, with the gain on revaluation being the major cause of this difference. Statement of Financial Position The Selwyn Foundation remains in a strong financial position. Our balance in cash and other investments was $64.8m at year end, due to strong sales of the new apartment buildings, and puts the Foundation in a healthy position to proceed with its long-term strategic plans. Investment property values increased as a result of the completion of new apartment The Gowing apartments opened in 2013 at Selwyn Heights. buildings, and the settlement of these new apartments led to a higher liability for licensees’ interests in ORA units. Expenditure on new independent The results for living developments continued During the year, it was discovered in 2013, with the completion of the year leave the that certain assets were being Newman-Reid , Kay Hawk and organisation in a held both within property, plant Gowing Apartments and work and equipment and the valuation good position to commencing on the Reeves of investment properties. This Apartments, for a total spend move forward with amount has been adjusted in prior of $11.3m. its development periods and has lead to the 2012 comparative figures being restated. During the year, $20.0m of funds plans in the future, Regardless of this adjustment, the were placed on longer term deposit while still achieving Foundation remains in a strong and are now included within its charitable financial position. other investments. mission. The equity of The Selwyn The results for the year leave the Foundation increased by $12.9m organisation in a good position to during the year, to close at $178.1m. move forward with its development plans in the future, while still Statement of achieving its charitable mission. Cash Flows I look forward to another exciting The statement of cash flows year in 2014. highlights improved cash performance for the year, with the bank balance increasing by $16.3m to $38.6m. This was largely driven by independent living unit sales receipts of $57.4m from the Jason More settlement of 82 new units and Chief Financial Officer 45 resales. This was a significant The Selwyn Foundation increase from the 92 total March 2014 settlements in 2012.

The Selwyn Foundation 17 Summary Consolidated Statement of Comprehensive Income For the year ended 31 December 2013

Note 2013 2012 $’000s $’000s Revenue Residents’ rental and fees 35,490 37,322 ORA service charges 2,285 1,878 Deferred facility fees 5,596 3,035 Other income 474 715 Total revenue 43,845 42,950

Expenditure Managers, nurses and caregivers 16,965 17,484 Maintenance and cleaning 5,928 5,327 Administration expenses 7,698 7,127 Depreciation 2,046 2,117 Other expenses 8,411 8,466 Total expenditure 41,048 40,521

Operating profit 2,797 2,429

Other non-charitable income / (expenses) Finance income 1,737 957 Increase in fair value of investment property 3 10,653 1,075 Loss sale of fixed assets (424) (12) Impairment of property, plant and equipment (701) -

Net profit before charitable activities 14,062 4,449

Charitable activities (994) (428)

Net profit for the financial year 13,068 4,021 Other comprehensive income - -

Total comprehensive income for the year 13,068 4,021

These summary financial statements are to be read in conjunction with the accompanying notes.

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Summary Consolidated Statement of Changes in Equity For the year ended 31 December 2013

Note Retained Earnings Reserves Total Equity 2013 2012 2013 2012 2013 2012 $’000s $’000s $’000s $’000s $’000s $’000s

Total equity at the beginning of the financial year as reported 163,061 169,652 2,092 2,042 165,153 171,694

Impact of prior period error 4 - (10,562) - - - (10,562)

Total equity at the beginning of the 163,061 159,090 2,092 2,042 165,153 161,132 financial year (restated)

Profit for the year 13,068 4,021 - - 13,068 4,021

Other comprehensive income for ------the year

Legacy funds released as income - - (158) - (158) -

Transfer to reserves (121) (50) 121 50 - -

Total equity at the end 176,008 163,061 2,055 2,092 178,063 165,153 of the financial year

These summary financial statements are to be read in conjunction with the accompanying notes.

The Selwyn Foundation 19 Summary Consolidated Statement of Financial Position As at 31 December 2013

Note 2013 2012 (restated) $’000s $’000s Assets Cash and cash equivalents 38,606 22,262 Accounts receivable 3,242 3,710 Stock on hand 4 4 Other investments 26,145 5,993 Property, plant and equipment 4 34,515 36,445 Investment properties 3 250,791 230,812 Total assets 353,303 299,226

Liabilities Accounts payable and other provisions 5,578 4,939 Loans 315 300 Licensees’ interests in ORA units 169,347 128,834 Total liabilities 175,240 134,073

Equity Retained earnings 4 176,008 163,061 Reserves 2,055 2,092 Total 178,063 165,153

Total LIABILITIES AND EQUITY 353,303 299,226

Kay Hawk Russell Florence Trustee Trustee Date: 28 March 2014 Date: 28 March 2014

These summary financial statements are to be read in conjunction with the accompanying notes.

20 Annual Report 2013 Celebrating 60 Years

Summary Consolidated Statement of Cash Flows For the year ended 31 December 2013

Note 2013 2012 $’000s $’000s Cash Flows from Operating Activities Receipts from residents and patients 41,173 41,727 Receipts from residents for ORA units 57,410 41,818 Payments to residents for ORA units (11,404) (12,272) Legacies and donations received 118 453 Interest received 1,567 957 Cash paid to suppliers, employees and donations (41,632) (40,983) Net cash flows from operating activities 47,232 31,700

Cash Flows from Investing Activities Sale of property, plant and equipment 1,250 78 Purchase of property, plant and equipment (841) (2,969) Purchase investment properties (11,279) (23,092) Purchase of other investments (20,033) (296) Net cash flows applied to investing activities (30,903) (26,279)

Cash Flows from Financing Activities Receipt of loan 50 300 Repayment of loan (35) - Net cash flows from financing activities 15 300

Net increase in cash and cash equivalents 16,344 5,721 Cash and cash equivalents as at 1 January 22,262 16,541 Cash and cash equivalents at end of year 38,606 22,262

Cash and cash equivalents Cash at bank and on hand 7,227 12,700 Short term deposits 31,379 9,562

Cash and cash equivalents at end of year 38,606 22,262

These summary financial statements are to be read in conjunction with the accompanying notes.

The Selwyn Foundation 21 Notes to the Summary Financial Statements For the year ended 31 December 2013

1 Statement of Accounting Policies Reporting Entity The Selwyn Foundation (the “Foundation”) is a reporting entity, domiciled and registered in New Zealand for the purposes of the Financial Reporting Act 1993. The Foundation is an issuer in terms of the Securities Act 1978. The Foundation is a charitable trust registered under the Charities Act 2005 (Registration number CC23254) domiciled in New Zealand. The Foundation offers Christian care and support of the elderly. The consolidated financial statements for the “Group” are for the economic entity comprising the Foundation and its subsidiary, Selwyn Care Limited. The Foundation and Group are designated as public benefit entities for financial reporting purposes. Basis of Preparation The summary financial statements have been extracted from the audited full financial statements for the year ended 31 December 2013 approved for issue on 28 March 2014. The full financial statements, from which these summary financial statements have been extracted, have been prepared in accordance with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable Financial Reporting Standards. The summary financial statements comply with generally accepted accounting practice in New Zealand (‘NZ GAAP’) as it relates to summary financial statements for public benefit entities. The full financial statements and these summary financial statements include a restatement to the 2012 statement of financial position. The full financial statements have been audited and issued with an unmodified opinion in respect to the years ended 31 December 2013 and 31 December 2012. The summary financial statements were approved for issue on 28 March 2014 by the Board of Trustees. The information is presented in New Zealand dollars, which is the presentational currency of the Foundation and the Group. All values are rounded to the nearest thousand dollars ($000). These summary financial statements have been prepared in accordance with FRS-43 Summary Financial Statements. The summary financial statements cannot be expected to provide as complete an understanding as provided by the full financial statements. A copy of the full financial statements can be obtained by contacting the Foundation at PO Box 8203, Symonds Street, Auckland 1150.

2 Events After the Reporting Date There have been no subsequent events between the balance date and date of authorisation of the full financial statements or between the date of authorisation of the full financial statements and the date of authorisation of the summary financial statement which would materially impact on the results reported.

22 Annual Report 2013 Celebrating 60 Years

3 Investment Properties 2013 2012 $’000s $’000s Investment Properties Under Development at Fair Value Opening balance 15,744 13,658 Transferred to property, plant and equipment (2,139) - Capitalised subsequent expenditure 10,951 22,893 Completed developments transferred to completed investment properties (15,040) (20,807) Work in progress expensed during the year (68) - Closing balance 9,448 15,744

Completed Investment Properties at Fair Value Opening balance 215,068 192,987 Capitalised subsequent expenditure 252 199 Completed developments transferred from investment properties under development 15,040 20,807 Investment properties transferred from property, plant and equipment 330 - 230,690 213,993 Change in fair value during the year 10,653 1,075 Closing balance 241,343 215,068

Total investment properties 250,791 230,812

Due to lack of comparable market data the valuation of the investment property is not supportable by market evidence. Valuations of the investment property have been performed based on a discounted cash flow methodology whereby the future cash flows expected to be generated from such property have been discounted to the valuation date at a discount rate reflecting the risk of the investment. Significant assumptions used in the valuation include: • Weighted average cost of capital post tax at 10.7% p.a. (2012: 10.3%) • Capital growth rate from 2.5% p.a. to 2.8% p.a. (2012: 2.5% to 2.8%) • Turnover in villas of 10 years (2012: 10 years) • Turnover in apartments of 7.5 years (2012: 7.5 years) • Unrecoverable costs and expenses at 1.1% p.a. (2012: 1.6%) • Refurbishment costs at 1.3% p.a. (2012: 0.8%)

4 Prior Period Error In periods prior to 1 January 2012 the Foundation had recognised land and some common amenities associated with ORA investment properties at cost in property, plant and equipment while at the same time including that land and common amenities in the fair value of investment properties. The total cost of the land and common amenities in question was $10.6 million and the error resulted in an overstatement of property, plant and equipment and opening equity in the earliest prior period presented. The correction of this error has meant that the line items in the 2012 property, plant and equipment, total assets, equity and total liabilities and equity in the Statement of Financial Position as at 31 December have all been overstated by $10.6 million. Impact of the prior period error: 31 December 2012 1 January 2012 $’000s $’000s

As Reported Restated As Reported Restated

Property, plant and equipment 47,007 36,445 46,244 35,682 Retained earnings 173,623 163,061 169,652 159,090

The Selwyn Foundation 23 The Selwyn Foundation group • The Selwyn Foundation ensures that good governance Board of Trustees is practices reflect the nature of expected to respond to all Corporate Governance the Foundation, its charitable relevant legislative and structure and the range of statutory requirements. interests of its stakeholders. Code of Ethics • A key role of the Trustees The Selwyn Foundation Board of Board is to develop, maintain, Trustees observes and fosters the and review policies and following ethical standards as a Governance, strategic direction, ensuring guide to expected behaviours. that these are consistent with Principles and The Selwyn Foundation group • The requirements of the Mission Statement. Constitution are met. Guidelines • Trustees observe and foster • Conflicts of interest are high ethical standards, as disclosed when they arise and outlined in the Code of Ethics. prior to voting on any matters in which a Trustee has a personal • Trustees are independent financial or other interest. and reflect a balance of skills, knowledge, experience • Trustees observe the and perspective so that confidentiality of non-public The Selwyn Foundation information disclosed to them group works effectively. as Trustees, and to not disclose it to any other person without • The Foundation uses the authority of the Board. committees where this enhances its effectiveness • Fair dealing is maintained with in key areas, while retaining customers, clients, employees, Foundation’s responsibility. suppliers, competitors and other stakeholders. • The Foundation demands integrity both in financial • Giving and receiving of gifts reporting and in the timeliness or payments is disclosed. and balance of disclosures • Trustees are familiar with on affairs. the New Zealand Acts and • The Foundation regularly regulations that govern their verifies that the entity has responsibilities, and comply appropriate processes that with all laws and regulations. identify and manage potential • Unethical decision-making and relevant risks. and/or behaviour is brought • The Foundation ensures the to the Board’s attention quality of all financial reporting, and appropriate sanctions risk management, and the are applied. independence of the external • The Code is monitored audit process. and practices are evaluated • The Foundation respects the against the Code as part interests of stakeholders within of the Foundation’s the context of The Selwyn performance assessment. Foundation group ownership • Trustees accept collective and its fundamental purpose. responsibility for • The Foundation has a Board decisions and are strategic focus. committed to constructively resolving differences.

24 Annual Report 2013 Celebrating 60 Years

• Trustees do not act Organisational Structure • quality and continuous independently of the improvement are fostered The Board has delegated the Board and its decisions. in The Selwyn Foundation’s management responsibilities of financial control processes. • All communication with the Foundation to the Chief the media is through the Executive Officer. The financial • maintenance of an effective Chair, CEO or their progress of the Foundation’s and efficient internal and designated spokesperson. business and charity are reported external audit. to the Board each month. Customer and Stakeholder Board Size and Structure Internal Financial Control and Relations The Board is the legal authority Risk Management The Selwyn Foundation respects for the Foundation. Board members The Finance Committee oversees the interest of its customer and represent the interests of The financial matters relating to stakeholders within the context of Selwyn Foundation and residents, The Selwyn Foundation and its the Foundation and its fundamental both constitutionally, and morally. subsidiaries and is responsible purpose and charitable status. As such, both the Board and to, and reports to, The Selwyn its members are entrusted to Foundation Board. The Selwyn Foundation: ensure that the Foundation is • has clear policies for soundly managed for the benefit The Finance Committee ensures: of all through the executive relationships with all management team. • effective management of customers and stakeholders. financial risks that threaten The Board currently comprises • regularly assesses compliance the achievement of objectives with these policies to ensure nine independent directors are appropriately identified, who are selected to ensure that that conduct towards customers analysed, evaluated, treated, and stakeholders complies a broad range of skills, knowledge mitigated and reported. and experience is available. with the Constitution, and The Chair is appointed by the • the production of pertinent legislation, and is Bishop of the Diocese of Auckland, reliable management within broadly accepted social, up to six members by the Auckland and financial reporting. environmental and ethical norms, generally subject to the Diocesan Council and two are • compliance with laws interests of stakeholders. elected at the Annual General and regulations on Meeting. The Board has established financial reporting. • ensures strong relationships four Board Committees: personnel, and advocacy with current and • effective management of property, finance, and services future church and contract reputational risk arising from to further assist in the running of stakeholders are established financial matters. the Foundation. and maintained.

Board

Board Committees

Finance Services Personnel Property Finance Villages People Property Information Community & Technology People Ceo Ceo partnerships

Clinical Spiritual Advisory Advisory Group Group

Functional management & Charitable activity

The Selwyn Foundation 25 26 Annual Report 2013 Celebrating 60 Years

The Selwyn Way To care for older people, you have to care about them

Faith Care Diversity The way we show God’s love Selwyn is a place for everybody The understanding and in action Independence affirmation of the meaning of Wellness How we support individuals to the life, teaching, death and The ability of each person to enable them to make choices resurrection of Jesus Christ live fully within their capabilities about their life

“The Selwyn Way, with its focus on ageing well through the concepts of care, independence, wellness and diversity – underpinned by faith – informs every aspect of the work of The Selwyn Foundation. Whatever the task – whether it be in caregiving, developing new buildings, finance or caring for guests in a Selwyn Centre – our work is animated by the elements of The Selwyn Way. It means we are not just doing a job but, rather, endeavouring to enrich the lives of each person who comes in contact with us.” Marianne Hornburg, Spiritual Care Coordinator.

The Selwyn Foundation 27 Higginbotham Fund Donations were also $158,246.25 received from: Donations and C R Stead Trust Allfrey, P Bequests - 2013 $30,000.00 Bourdot, R I & E J Sir John Logan Campbell Residuary Estate Collins, E M Received $25,000.00 Davis, B & A Estate of Joan Annie Hicks Dunn Charitable Trust with thanks $20,374.81 Good in the Hood Mrs R Kayll $10,000.00 Gupta, R The Lou & Iris Fisher Trust van der Hulst, C J $5,940.00 Jackson, P Estate of Eric G Cowell Lawrence, B $3,724.39 Lees, T Selwyn Oaks - McEwan, D Friends of The Oaks $3,304.20 McMahon, J Estate of B J Barfoot Mellsop, P N & J K $2,864.34 Paterson Family Trust Estate of John D Owen St George’s Mothers’ Union $2,821.50 St Laurence Limited Selwyn Village (in receivership) $1,911.00 St Mary’s Fiji - Mrs J Smith Mission Project 2013 $1,852.54 Sanders, J Mr Tony Glassie $1,600.00 Selwyn Park Village - Whangarei Mr & Mrs J Tannahill $1,470.00 Selwyn Village Independent Residents’ Society Christ Church Anglican $1,000.00 Smith, E Tan, R Tan, Z Tretchikoff, D M & J J Waters, R Webster, J Wee, J Wong Toi, A B & R & families Wood, M

28 Annual Report 2013 Celebrating 60 Years Foundation Contacts

Members of the Board Senior Leadership Team

Dr Kay Hawk, Chair Garry Smith Aidan Craig, General Manager Chief Executive Officer Marketing & Villages John Cameron, Deputy Chair Jason More Leanne Pickering, General James Frater Chief Financial Officer Manager People & Performance Russell Florence Dr Bart Nuysink Isabella Wright, Director of Dr Elizabeth Niven Chief Medical Officer Advanced Nursing Practice Dr Peter Huggard Hilda Johnson-Bogaerts Andy Stewart, Information & Peter Macaulay General Manager Operations Technology Manager Helen Melrose Colin Bowring Marianne Hornburg General Manager Property Spiritual Care Coordinator Jan Nichols Dr Rod Perkins, General Manager Foundation Development & Charitable Activity

Villages Selwyn Village Hansen Close Selwyn Wilson Carlile 43 Target Street, Point Chevalier, (including Selwyn House) 562 Grey Street, Hamilton East 3216 Auckland 1022. PO Box 44106, 25 Roseberry Avenue, Birkenhead, Tel: (64-7) 838-1562 Point Chevalier, Auckland 1246 Auckland 0626 Tel: (64-9) 846-0119 Tel: (64-9) 846-0119 Selwyn Sunningdale 174 Peachgrove Road, Claudelands Residential care Selwyn Heights Hamilton 3214 at Selwyn Village 42 Herd Road, Hillsborough, Tel: (64-7) 855-5465, Caswell Rest Home Auckland 1042 Tel: (64-9) 845-0731 Residential care Gracedale Home and Hospital 68 Mt Roskill Road, Mt Roskill, Kerridge Rest Home (rest home and hospital) Tel: (64-9) 624-2600 Auckland 1041 Tel: (64-9) 845-0733 Tel: (64-9) 621-0011 Sarah Selwyn Hospital The Anchorage Day Centre Tel: (64-9) 845-0736 (dementia day care) Tel: (64-9) 815-3991 Services Christ’s Hospital Tel: (64-9) 845-0713 Independent living Selwyn Management Services at Selwyn Heights Contract management services Lavender Cottage Tel: (64-9) 815-3992 Level 4, 1 Nugent St, Grafton, (dementia day care) Auckland 1023 Tel: (64-9) 815-4785 Selwyn Oaks Tel: (64-8) 845-0838 Brian Wells Lodge 21 Youngs Road, Papakura, Tel: (64-9) 845-0717 Auckland 2110 Selwyn Nursing Bureau Tel: (64-9) 297-2079 Health and aged care staff Independent living recruitment bureau Selwyn Park at Selwyn Village Tel: (64-9) 929-3040 15 Puriri Park Road, Maunu, Tel: (64-9) 846-0119 Whangarei 0110 Selwyn Centres Tel: (64-9) 438-1099 39 community day centres Selwyn St Andrew’s for the over 65s, see 41J Bryce Street, www.selwyncare.org.nz Cambridge 3434 Tel: (64-7) 827-6225

The Selwyn Foundation 29 The Selwyn Foundation, PO Box 8203, Symonds Street, Auckland 1150. Level 4, 1 Nugent Street, Grafton, Auckland 1023, New Zealand Tel: (64-9) 845-0838, Fax: (64-9) 845-0700 www.selwyncare.org.nz