Annual Report 2015-16
Victorian Veterans Council Contents
Page Contents
3 Chairman’s Foreword
4 About the Victorian Veterans Council
5 Objectives and Functions of the Victorian Veterans Council
6 Members of the Victorian Veterans Council
9 Highlights of the Year
15 Corporate Governance
16 Victorian Veterans Fund
18 ANZAC Day Proceeds Fund
19 Patriotic Funds
21 Financial Statements
22 Independent Auditor’s Report
28 Notes to the Financial Report
43 Accountable Officer’s and Chief Financial Officer’s declaration
2 VICTORIAN VETERANS COUNCIL Chairman’s Foreword
The 2015-16 financial year was again dominated by Centenary of ANZAC commemorations as Victoria and the nation continued to reflect on the ANZAC legacy. I am pleased that the Victorian Veterans Council (VVC) has continued to play a role in assisting the community to commemorate this important anniversary through the funding of a number of local projects, more specific details of which are highlighted later in this report. The initial advocacy undertaken by the VVC in relation to the Veterans Accommodation Project back in 2008 came to fruition with the official launch of five units in Richmond on the 15 September 2015, by the Minister for Veterans, the Hon John Eren MP. Housing Choices Australia and the Returned and Services League of Australia Victorian Branch, have formed an innovative partnership to deliver services to veterans needing temporary assistance through this project. As previously reported, the Council appointed Grosvenor Management Consulting to undertake an extensive consultation process with the veteran community in Victoria to refresh both the Council’s and Government’s understanding of the needs and priorities of Victorian veterans. A Report was finalised and released in February 2016. Since then the VVC has provided the veteran community with the opportunity to provide feedback to the Report and has been considering their responses before formulating its final position and recommendations to Government. The Council has also been working with Consumer Affairs Victoria on a resource for veteran organisations who administer Patriotic Funds, to provide guidance “Initiatives like the for winding up their operations. The Guide is designed to ensure that the organisations assets are dealt with in accordance with relevant legislation whilst relationship with the AFL also meeting the desired outcomes of the past membership. help support the other key In ensuring it is aware of present and emerging veterans’ issues the Council has tasks for the VVC.” continued to reach out to organisations associated with the veterans sector and has benefitted from recent briefings such as Vasey RSL Care, the Office of Australian War Graves, the Defence Forces Welfare Association and members of the VPS Graduate Recruitment and Development program, who undertook a project on patriotic fundraising regulated under Part 4 of the Veterans Act 2005. During the year I was pleased to meet with the incoming Director of Consumer Affairs Victoria (CAV) to continue the strong links between the Council and CAV who have responsibility for the regulation of Patriotic Funds in Victoria. I also met with the Australian Football League’s CEO, Mr Gillon McLachlan and we are pleased to have the AFL’s continued support for veterans’ welfare through the fundraising associated with the AFL ANZAC Round. Initiatives like the relationship with the AFL help support the other key tasks for the VVC; ensuring Victorians, and particularly our young people, are educated about Australia’s war-related history, the impact on individuals and their families and how it has shaped Australia today. Major conflict has driven migration, strategic international relationships, and changed our society in many ways. With one in four of our younger generation having been born overseas, and approximately forty percent having a parent born overseas, it is important that we all understand the events that have shaped our country, particularly since the First World War. It has once again been an honour to work with all those involved in the ex-service community whose mission is the recognition and support of veterans across the state of Victoria. Many are volunteers, and through their dedication ensure Victoria remains a leader in recognising, and supporting our veterans’ community. Finally, I would like to thank my colleagues on the VVC for their efforts over the past year and I look forward to working with them again over the coming year as we commence the implementation of our new work plan.
John Lord AM Rear Admiral, RAN (Retd) Chair
2015 -16 ANNUAL REPORT 3 About the Victorian Veterans Council
The VVC is an independent statutory body established in August 2006 under the Veterans Act 2005 (the Act). The VVC plays an important role in supporting Victorian veterans and their families and is responsible for reporting to the Minister for Veterans on issues affecting the Victorian veteran community. Under the Act, the Council has specific responsibility for the distribution of the ANZAC Day Proceeds Fund and Victorian Veterans Fund. The Council also assists the government by providing: »» general advice to the Minister for Veterans on issues affecting Victoria’s veterans such as the current and future needs of veterans and their families. »» advice to the Director of Consumer Affairs on matters relating to the regulation of patriotic funds. »» advice on a range of government programs and initiatives such as the Victorian Anzac Centenary Committee, the Premier’s Spirit of Anzac Prize, Veterans Accommodation Project and the Restoring Community War Memorials and Avenues of Honour Grants Program. The VVC is supported by the Veterans Branch within the Department of Premier and Cabinet (DPC).
Victorian Veterans Council July 2016
From left: Brigadier Mike Annett CSC (RSL Nominee), Lieutenant Colonel Nathan Crowley, Wing Commander Sharyn Bolitho RAAFAR, Mr Peter Tanner, Rear Admiral John Lord AM (Ret’d), Colonel Stuart Dodds, Lieutenant Colonel Laureen Grimes, Dr Ross Bastiaan AM RFD, Miss Elizabeth Brown, Lieutenant Colonel Adrian Lombardo (Ret’d), Absent: Mr Mark Sherlock (dec), Major General Jim Hughes AO DSO MC (dec), Mrs Mikaela Stafrace
4 VICTORIAN VETERANS COUNCIL Objectives and Functions of the Victorian Veterans Council
The objectives and functions of the VVC are detailed in Sections 5 and 6 of the Veterans Act 2005 (the Act). The objectives of the VVC are to: »» promote the wellbeing of all members of the Victorian ex-service community »» promote the commemoration of those who have died in the performance of service or duty »» develop a better understanding amongst Victorians of the service and sacrifice of Victoria’s veterans in war and peacekeeping operations and the contributions of Victoria’s ex-service community »» actively promote the significance of, and key values associated with, the spirit of Anzac »» promote cooperation and collaboration across organisations dealing with veterans welfare and other ex-service community issues, including the Trustees of the Shrine of Remembrance.
The functions of the VVC are to: »» ensure that the objectives of the VVC are met to the maximum extent that is practicable »» monitor and advise the Minister for Veterans on issues affecting Victoria’s ex-service community »» investigate and report on any aspect of veterans affairs referred to it by the Minister »» consult with the ex-service community when developing advice for the Minister »» support the welfare activities of ex-service organisations through the ANZAC Day Proceeds Fund (in accordance with the ANZAC Day Act 1958) »» fund activities furthering its objectives through the Victorian Veterans Fund (in accordance with Section 20 of the Veterans Act 2005) »» advise the Director of Consumer Affairs on matters in relation to the regulation of patriotic funds under Part 4 of the Act.
2015 -16 ANNUAL REPORT 5 Members of the Victorian Veterans Council
Rear Admiral John Lord, AM (Retd), Chair (Appointed 1 January 2014) As well as Chairman of the VVC, Rear Admiral Lord is the Chairman of Huawei Technologies (Australia), a member of the Victorian Government’s Anzac Centenary Committee and a member of the Ministerial Community Advisory Committee on Corrections. In a voluntary capacity he is a Director of the Defence Bank Foundation and Patron of the Darwin Defenders 1942-45 Melbourne Branch. Previously he has been a Director of the Victorian Metropolitan Fire & Emergency Services Board, member of the Victorian Government’s Defence Council, Director and Chairman of DMS Maritime Systems, a former Chief Executive and Director of the Marine Board of Victoria and a senior executive in several private and government businesses. John was an Executive Director of P&O Maritime Services responsible for operations and government business worldwide. He served with the Royal Australian Navy for over 36 years with two major warship commands, saw active service in Vietnam, and retired with the rank of Rear Admiral.
Colonel Stuart Dodds, Deputy Chair (Appointed 19 June 2012) Stuart graduated from the Officer Cadet School, Portsea, in 1984. As a career Infantry Officer, he attained the rank of Colonel and retired in early 2012 after twenty eight years of service. Stuart saw service in Somalia, Afghanistan and Bougainville as well as serving as the Australian Defence Attaché in Vietnam. He continues to serve as a Reserve Officer and is currently engaged as an Independent Management Consultant and completing a law degree.
Lieutenant Colonel Laureen Grimes (Appointed 19 June 2012) Laureen has been an Army Reservist since 1981 and has attained the rank of Lieutenant Colonel. She has commanded Victoria’s Combat Support Services Battalion that was closely involved with the 2009 Victorian Bushfire support and has also been an Honorary Aide de Camp to the Governor of Victoria. She is currently serving in a support role to the largest logistics services transformation undertaken by Defence while based at Joint Logistics Command.
Mr Peter Tanner (Appointed 18 September 2012) Peter joined the Royal Australian Navy in 1967 and served aboard HMAS Melbourne, HMAS Sydney (where he saw service in Vietnam) and HMAS Stuart. Following his discharge from the RAN, Peter returned to study and then worked in several Senior Management positions before founding his own business Tanner Menzies in 1988. After selling the business, Peter joined the Taplow Group and is a member of the International Board. Peter is a Fellow of the Australian Institute of Company Directors and is also a Trustee of the Melbourne Naval Centre.
6 VICTORIAN VETERANS COUNCIL Dr Ross Bastiaan AM RFD (Appointed 1 January 2013) Ross enlisted in the Army Reserve in 1975 and was attached to 3 Army Field Ambulance. In the RAADC (Res) he was promoted to Colonel Consultant and is currently attached to Defence Health Services Branch, Canberra. Ross served on the Council of the Australian War Memorial from 1995 to 2009. Since 1990 he has personally placed over 240 multi-lingual, large bronze commemorative plaques at various locations around the world from Europe to the Great Ocean Road in Victoria. He has also written three books on WWI and WWII. Since 1978 Ross has worked in private practice as a periodontist.
Mrs Mikaela Stafrace (Appointed 12 June 2013 until 12 June 2016) A former nominee for the Telstra Business Woman of the Year Award, Mikaela was the Chief Executive Officer of Melbourne Legacy and a Senior Fellow at Law School and Monash University where she teaches insurance law. Mikaela is an insurance industry lawyer with specialist expertise in the area of regulatory compliance and risk management. Mikaela has been a partner in a national insurance law practice, and has worked at an executive level with insurance companies and broking houses including as General Counsel. She heads up her own practice, Claverhouse Risk & Legal.
Ms Elizabeth Brown (Appointed 30 September 2014) Elizabeth is a widow of a Vietnam veteran, was a carer to her father-in-law (a World War II veteran) and has been a Pensions/Welfare officer for the past six years. She is a qualified Associate Accountant and has worked in finance roles across State Government. She is currently studying law at Victoria University. Elizabeth was nominated for appointment to the Council by ex-service organisation, the Vietnam Veterans Association of Australia Victorian Branch (Noble Park Branch).
Lieutenant Colonel Nathan Crowley (Appointed 21 October 2014) Nathan served for 20 years in the Australian Defence Force, including active service in East Timor and Afghanistan. He is currently an Army Reservist. Nathan has extensive experience in strategic planning, through to the implementation of major projects and now manages his own consultancy in the defence and immigration sectors. He was nominated for appointment to the Council by ex- service organisation, Mates4Mates.
2015 -16 ANNUAL REPORT 7 Members of the Victorian Veterans Council
Major General James Hughes, (dec) AO DSO MC (Appointed 5 May 2015 until 5 May 2016) Major General Jim Hughes was the Legacy representative on the VVC. He was the National Patron of the Korean War Veterans, Nation Patron of the Malaya / Borneo Veterans and State Patron of the Royal Australian Regiment Association and the 3RAR Corporation. Previously Major General Hughes had operational service in the Korean War, the Malayan Emergency, Confrontation in Borneo and the Vietnam War. He has been the Honorary Colonel of the Royal Victorian Regiment and the Monash University Regiment. From 1990 to 2001, he was a Services Member of the Veterans Review Board and in a voluntary capacity he has served on various school, church, RSL and East Melbourne committees. He has also served on several Department of Veterans’ Affairs committees.
Mr Mark Sherlock (dec) (Appointed 11 August 2015 until 11 August 2016) Mark was the RSL representative on the VVC. He has extensive professional experience as an accountant in the commercial sector and also served as Secretary to the Patriotic Funds Council from 1982 to 1988. He was appointed to the position of Chief Financial Officer of the Returned and Services League, Victorian Branch in 1988 and was later appointed to the position of Chief Executive Officer in May 2015. Mark was awarded Honorary Life Membership of the RSL on 31 May 1999 and is also an inductee to the RSL Licensed Sub-Branches Association of Victoria Hall of Fame.
Wing Commander Sharyn Bolitho RAAFAR (Appointed 4 November 2015) Sharyn joined the Air Force in 1987 as an Administrative Officer. She held postings on the staff of the Minister for Defence, Science and Personnel and the Chief of Defence Force, and both joint and Air Force postings responsible for personnel issues relating to deployments. Sharyn was deployed to Bougainville in 1998 and East Timor with INTERFET in 1999. Sharyn was appointed Commanding Officer of Combat Support Unit East Sale in December 2008. She then transitioned to Commanding Officer No 30 (City of Sale) Squadron when it was reformed on 1 July 2010. She left the Permanent Air Force in May 2012 to remain in Sale and accepted an appointment as Manager Economic Development at Wellington Shire Council. Sharyn remains a member of the RAAF Active Reserve. She has a Masters in Business Administration (Human Resource Management), a Postgraduate Diploma in Arts (Defence and Strategic Studies) from her time at the RNZAF Staff College and a Bachelor of Economics.
Lieutenant Colonel Adrian Lombardo (Retired) (Appointed 7 June 2016) Adrian Lombardo was conscripted into the Army in June 1965. He graduated from the Officer Training Unit, Scheyville NSW in December that year as an Infantry Second Lieutenant. Adrian served in South Vietnam with 8th Battalion, the Royal Australian Regiment as a platoon commander and subsequently filled regimental, training and staff appointments during his Army career. He retired in 1987 as a Lieutenant Colonel. Adrian has had a 25 year career in financial services, investment management and stockbroking roles with Elders, National Bank, Potter Partners, UBS, Deutsche Bank, Citigroup and Morgan Stanley. He is a past Trustee of the Shrine of Remembrance, has been a Life Governor since 2000 and currently serves on the Shrine’s Finance and Audit Committee. He is a member of Legacy and serves on its Investment Committee.
8 VICTORIAN VETERANS COUNCIL Highlights of the Year
Victorian Veterans Sector Study Report The VVC commissioned Grosvenor Management Consulting to produce a report to refresh the Council’s and Government’s understanding of the veterans sector and the needs and priorities of our veterans community. In 2015, consultation sessions were held around the State with veterans and ex-service organisations in Mildura, Geelong West, Ballarat, Wodonga, Frankston, Sale and Melbourne, alongside an on-line survey promoted through social media channels. The report made 14 recommendations to help better support the veteran community. The VVC received the final report in December 2015 which was released for public comment in February 2016. The VVC also invited key stakeholders and the broader veteran community to provide feedback to the VVC on the report. RSL Victoria State President MAJ GEN David McLachlan AO (Ret’d) speaks at the launch The VVC is currently considering of the Veterans Accommodation Project the Report’s recommendations and feedback received from the veteran community before presenting its final position to the Minister for Veterans.
Veterans Accommodation Project Council members were pleased to attend the official unveiling of the Veterans Accommodation Project in September 2015. The opening of the five units brings to fruition the efforts of the VVC over several years to establish housing for veterans who require short to medium term accommodation. Housing Choices Australia (HCA) and the RSL Victoria are working in collaboration to manage the units and provide the necessary support for the veterans to assist them with their recovery. The Council would like to thank the Victorian branches of the Royal Australian Air Force Association, Melbourne Legacy, the Vietnam Veterans Association of Australia and the Returned and Services League of Australia for their contribution of $40,000 towards the ‘fit out’ of the accommodation.
L to R Minister for Veterans, the Hon John Eren, Mr John Lennon, Managing Director, Housing Choices Australia, Chair of the Victorian Veterans Council, Rear Admiral John Lord AM (Ret’d) cut the ribbon to officially launch the Veterans Accommodation Project.
2015 -16 ANNUAL REPORT 9 Highlights of the Year
Victorian Veterans Commemoration and New War Memorial at Silvan Council Grants Programs Education Grants and The VVC contributed $5,000 towards Education of Veterans’ The VVC’s grants programs continued the construction of a new memorial Dependants Grants Program to play an important part in and plaque at Silvan. The new supporting the wellbeing of Victoria’s In 2015-16, the VVC approved memorial will ensure that the local ex-service community. The programs 21 individual projects totaling community will have a dedicated also fostered commemorations in $178,915 through the Veterans place to hold their commemorative local communities and the education Fund – Commemoration and services and to remember the of Victorians about the service Education Grants and Education contribution of local men and women and sacrifices made by veterans in of Veterans’ Dependents Grants who have served in past conflicts. defence of our nation as well as Program. For a full list of individual Rear Admiral John Lord AM (Retd), their ongoing contribution to the grants, refer to page 16. Chair of the VVC addressed attendees broader community. Some projects are highlighted below. at the unveiling and laid a wreath on The 2015-16 financial year saw a total Sunday 24 April 2016. of $681,162 in grants approved from War Memorial at Pimpinio the Council’s three grant programs, There were 85 servicemen and funded through the Victorian Veterans women from Pimpinio and district Fund and the ANZAC Day Proceeds who served in WWI, WWII and Fund. The three grants programs are Vietnam. No memorial existed in outlined in detail below. the town where the local residents Anzac Centenary could pay their respects or hold Community Grants Program a commemorative service. A VVC The Anzac Centenary Community grant of $8,700 contributed to the Grants Program offers funding to construction of a new memorial to eligible organisations for projects provide a lasting legacy for future that commemorate the service and generations to honour and remember sacrifice of World War I veterans the service and sacrifice of Pimpinio and their communities; or inform residents. The memorial was and educate Victorians about the dedicated on Sunday 24 April 2016. experiences of World War I veterans and their communities. In 2015-16, the VVC approved 31 individual projects totaling $214,461 through the Veterans Fund – Anzac Centenary Community Foxholes of the Mind Grants Program. For the complete list of approved Foxholes of the Mind Victorian Veterans Fund grants, refer The Geelong and District Sub Branch to page 17. of the Vietnam Veterans Association of Australia received a $10,000 grant to support the production of Foxholes of the Mind, a dramatic stage play to educate and increase community awareness of Post-Traumatic Stress Disorder (PTSD). The powerful and emotive play by Bernard Clancy is based on the lives and experiences of veterans who served in conflicts such as Vietnam and Afghanistan. Foxholes of the Mind commenced its tour of regional Victoria in August 2016.
10 VICTORIAN VETERANS COUNCIL War Memorial at Pimpinio
John Lord attends the launch of the Silvan Memorial, 24 April 2016
2015 -16 ANNUAL REPORT 11 Highlights of the Year
Melbourne Legacy - Somers Camp
ANZAC Day Proceeds Fund Grants to Support Veterans In 2015-16, the VVC approved $287,786 in funds through the ANZAC Day Proceeds Fund to 22 initiatives to improve the health and wellbeing of the veteran community. The ANZAC Day Proceeds Fund assists in making a positive difference to the lives of Victorian veterans and their families. Funds were distributed to ex-service organisations for the following: »» $138,587 to provide general welfare assistance to veterans and their dependants with emergencies such as medical and household expenses and to provide assistance to war widows with heating costs »» $53,438 to assist with providing up to date information regarding the health and wellbeing of veterans, widows and dependants through newsletters and other communications initiatives »» $5,000 was allocated for projects that provide transport support to the ex-service community »» $70,000 was provided to assist Regional Veterans Welfare Centres with the day to day operating costs to ensure that these important facilities remain accessible to the members of the veteran community in regional areas. Melbourne Legacy - Somers Camp A grant of $20,761 from the ANZAC Day Proceeds Fund assisted Melbourne Legacy with costs of the annual camp for veterans’ dependents with a disability. This camp is held in January at Somers and provides a social experience for dependents while providing a break for their carers and families. The camp is attended by around 40 people with disabilities who enjoy a broad range of activities including swimming, music, dance, painting, cricket, volley ball and visiting the Churchill Island Heritage Farm.
VVC Representation On Other Committees Rear Admiral John Lord and Dr Ross Bastiaan continue to represent the VVC on the important work undertaken by the Victorian Anzac Centenary Committee and the Restoring Community War Memorial Grants Committee respectively.
12 VICTORIAN VETERANS COUNCIL Melbourne Legacy - Somers Camp
Colonel Stuart Dodds, VVC Deputy Chair at the Legacy Tertiary Scholarships presentation.
2015 -16 ANNUAL REPORT 13 Highlights of the Year
Spirit of Anzac Prize Recipients and Regional finalists
2015-16 Premier’s Thursday 21 April 2016, which provided students of Mudros High School an opportunity for the students to shared a moving presentation Spirit of Anzac Prize engage with members of the ex- recognising the sacrifices of the 234 The VVC continues to support the service community. ANZACs who lost their lives and Victorian Government’s annual remain buried there today. Premier’s Spirit of Anzac Prize, 2016 Premier’s Spirit of a state wide competition for Anzac Prize Overseas Study We won’t forget our time in Athens, secondary school students, Tour Reflection visiting the Acropolis – just like so many Australian soldiers did during primarily through participation Mr Stuart Dodds, VVC Deputy Chair in the student selection process. their rest and recreation leave in When we think about ANZAC, our 1941. Nor will we forget our visit to Mr Peter Tanner represented the minds often turn to the service of Phaleron War Cemetery and the VVC on the State Selection Panel. Australians and New Zealanders in Athens memorial and the ceremony The Panel met with competition Turkey, France, Belgium and Egypt. In commemorating the servicemen and finalists at a Group Interview Day, 2016, the Premier’s Spirit of ANZAC women who fought on the Greek held at the Shrine of Remembrance Prize provided an opportunity for mainland in WWII. in December 2015. 22 remarkable young Victorians to We won’t forget visiting the Brallos The Hon Natalie Suleyman MP, walk in the footsteps of the ANZACs Pass where Australian forces held Member for St Albans, Mr Stuart in Greece, and to recall and honour off the German advance into Greece Dodds, VVC Deputy Chair and Mr those who served bravely in Greece for three days in April 1941. We were Bob Elworthy, Vietnam veteran, during both World Wars. fortunate to all stand together while participated in the overseas study I was honoured to accompany the reflecting on Australia’s service at a tour with the 22 student recipients tour as a representative of the site which few others have had the during the Term 1 school holidays, veteran community. As a veteran, I opportunity to visit. visiting significant WWI and WWII sites was privileged to witness the interest in Greece, including Lemnos and Crete We won’t forget learning about and respect shown by each of the to mark the 75th Anniversary of the Australia’s outstanding service in students. They demonstrated a Battle of Crete. Crete where they defended the island strong desire to understand the more Regional finalists participated in a against an overwhelming offensive personal side of Australia’s military by German paratroopers. At Suda three day tour of Canberra in late history and sensitively sought to June, visiting the Australian War Bay War Cemetery, we were proud to learn more about the lesser known stand together on sacred ground to Memorial, Parliament House and stories of the ANZACs service in the Museum of Australian Democracy remember the lives and service of so Greece during WWI and WW2. There many ANZACs who defended Greece. at Old Parliament House. On the were many highlights of the tour, last day of the Canberra tour, the and I would like to share a few of the I consider it a privilege to have been students participated in a tour of the memories that we will never forget: able to share this inspirational tour of Australian Defence Force Academy Greece with each of the students who (ADFA) and had the opportunity to We won’t forget our meeting with the showed themselves to be fine young take on the challenge of the ADFA high school students in Lemnos. It Australians, and there is no doubt in obstacle course. is over one hundred years since the my mind that they will continue to ANZACs were in Lemnos as part of excel as ANZAC ambassadors. The finalists attended the Premier’s the Gallipoli campaign, but the ANZAC Day Luncheon held on
14 VICTORIAN VETERANS COUNCIL Corporate Governance
Council Meetings Governance The Veterans Act 2005 provides that Sub-Committee the Council must meet at least eight The Governance Sub-Committee times per year. The Council held eight is responsible for ensuring the VVC meetings during the period 1 July 2015 complies with all financial and legal to 30 June 2016. requirements under the Veterans Act 2005 and any other relevant Committee Structure legislation. The Governance Sub- The Council has two committees Committee is also responsible for to facilitate the performance of its governance of the seven patriotic functions under the Act. funds for which the Council is Trustee and the development of the VVC Funding Sub-Committee annual report. The Funding Sub-Committee is Mrs Mikaela Stafrace was appointed responsible for the development Chair commencing July 2015 until 31 and annual review of the guidelines May 2016 when her term on Council for the Victorian Veterans Fund concluded. LTCOL Laureen Grimes Grant Programs and the ANZAC Day was appointed as Chair in June 2016. Proceeds Fund, coordinating the Other members of the Governance application process for both funds and Sub-Committee are Mr Nathan making funding recommendations to Crowley and Ms Elizabeth Brown. the VVC for grants from both funds. The Governance Sub-Committee met COL Stuart Dodds is the Chair of the three times during the year, to review Funding Sub-Committee. The other the administration of the Patriotic members of the Sub-Committee are Funds (with a focus on modernising Mr Peter Tanner (Deputy Chair), Dr the related trust deed documents), Ross Bastiaan and Major General and to oversee the preparation of James Hughes until his term ended in the Council’s financial statements for May 2016. the annual report for 2015-16, prior to formal approval by the Council.
Secretariat Support Secretariat support to the VVC and both Sub-Committees was provided by the Veterans Branch within the Department of Premier and Cabinet.
2015 -16 ANNUAL REPORT 15 Victorian Veterans Fund
The Victorian Veterans Fund was established under the Veterans Act 2005. Revenue for the Veterans Fund comes from the Community Support Fund (CSF) and is equal to one day’s revenue of that CSF. Grants totalling $178,915 were approved for 21 projects from the Victorian Veterans Fund Commemoration and Education Grants Program and $214,461 for 31 projects from the Anzac Centenary Community Grants Program during the financial year ending 30 June 2016. Grant recipients are detailed in the table below:
Veterans Fund 2015-16 Grant Recipients Commemoration and Education Grants Program Amount Organisation Project Name Received Ararat Legacy Inc Project Remembrance 2016 $2,695.00 Bomber Command Commemorative 2016 Commemorative Service for Victorian Veterans who served $960.00 Association Vic Inc with RAF Bomber Command Borough of Queenscliffe Borough of Queenscliffe ANZAC Day Commemorations $4,500.00 Dandenong Ranges RSL Sub Wartime Memorabilia Display $2,940.00 Branch Inc Darwin Defenders 1942-45 2017 Commemoration Service for the Anniversary of the $4,500.00 Melbourne Branch auspiced by Bombing of Darwin Darwin Defenders 1942-1945 Inc Geelong Legacy Club Transport Students from regional primary schools for Legacy $2,000.00 Ceremony at the Shrine. Melbourne Legacy 2016 Legacy ANZAC Commemoration Ceremony for Students $18,000.00 Mt Macedon Memorial Cross Council Mt Macedon ANZAC Dawn Service $8,000.00 for Commemorative Services Inc National Boer War Boer War Day Commemoration Service $3,000.00 Memorial Association Reserve Forces Day Council (Vic) Inc Reserve Forces Day Council Parade $3,000.00 Rotary Club of Monash Rotary Club of Monash ANZAC Service for Schools $2,500.00 Rotary Club of Wandin Silvan War Memorial $5,000.00 Shrine of Remembrance Australia's Field Marshal: the leadership of Sir Thomas Blamey $10,000.00 Torquay RSL Sub Branch Torquay RSL ANZAC Day Dawn Service $10,000.00 The Battle for Australia Foundation Battle for Australia Annual Ceremony $10,000.00 in Victoria VVAA - Geelong & District Sub Foxholes of the Mind by Bernard Clancy $10,000.00 Branch Warburton RSL Sub Branch Education Tour $1,820.00 CARRY ON (VICTORIA) VVC Education Grants 2016 $35,000.00 Melbourne Legacy Melbourne Legacy 2016 Junior Legatee Education Grants $20,000.00 Melbourne Legacy Melbourne Legacy 2016 Tertiary Education Scholarships $20,000.00 Mornington Peninsula Legacy Education Grant 2016 $5,000.00 Club Inc 21 Projects $178,915.00
An audited statement for the Veterans Fund can be found at page 21.
16 VICTORIAN VETERANS COUNCIL Anzac Centenary Community Grants Amount Organisation Project Name Received Albert Park-South Melbourne World War One Exhibition Display Frames $5,000.00 Rowing Club Australian Aircraft WW1 Melbourne Aviators $6,500.00 Restoration Group Benalla RSL Sub Branch Australian Flying Corps AFC Memorial $5,000.00 Berwick Lodge Primary School World War 1 Memorial Space $3,000.00 Bluebird Foundation Somme 1916 - Boys in a trench $15,000.00 Boulevard Anzac Centenary Install WWI Story Boards along the Maribyrnong River $10,000.00 Commemorative Committee Buninyong Sub-Branch RSL Buninyong's Heroes of World War I - Community Memorial Walk $8,536.00 Camberwell City RSL Erection of a General Pompey Elliot Bust $15,000.00 Caulfield RSL Sub Branch Inc A Soldier Lived in My House $10,000.00 Frankston High School ANZAC Memorial Garden $4,307.00 Friends of Hawthorn Tram Depot Tramway ANZACs Exhibition $6,500.00 Gannawarra Shire Council Restoration and display of documents $600.00 Hastings RSL Sub-Branch ANZAC Commemoration Plaque WWI $715.00 Heidelberg Choral Society Inc One Hundred Years On - Remembering the Somme $5,000.00 Hobsons Bay City Council Laverton Old School Honour Board $6,240.00 Melbourne's Living Museum of Home Base $8,820.00 the West Moorabool Shire Council Lal Lal ANZAC Memorial Park Project $12,000.00 Mornington Secondary College Avenue of Honour $15,000.00 Mount Evelyn RSL Sub-Branch Publication - Biography of Major William C Scurry $2,000.00 Mount Waverley Secondary College Year 9 History Investigation of a Local Soldier $3,224.00 Narre Warren & District Family Sacrifice and Patriotism: a World War 1 Walk in Pakenham $1,500.00 History Group Inc. Cemetery Naval Association of Australia ANZAC Day Ceremony with Wreath Laying $1,400.00 (Victoria) Prahran RSL Sub Branch Clifford Sadlier VC Memorial $9,250.00 Returned & Services League of Remembrance Day 2017 $13,600.00 Australia (Victorian Branch) Inc Ripon RSL Sub Branch History of Trawalla WWI Soldier Settlement Scheme $2,000.00 Robinvale-Euston Memorial Park Inc Robinvale-Euston Memorial Park $5,000.00 Seville Township Group George Ingram VC, MM Memorial $20,000.00 St Nicholas Anglican Church Mordialloc Community Gallipoli Centenary Precinct Project $1,820.00 Mordialloc, Anglican Diocese of Melbourne Stanley Cemetery Trust World War 1 Memorial Rotunda at the Stanley Cemetery $10,379.00 Terang & District Historical "They Served with Courage" - the history of Terang WW1 soldiers $2,000.00 Society Inc & nurses. Yongala Pre-School Incorporated Inter-generational art project - path of remembrance $5,070.00 31 Projects $214,461.00
An audited statement for the Anzac Centenary Community Grants Program can be found at page 21.
2015 -16 ANNUAL REPORT 17 ANZAC Day Proceeds Fund
The ANZAC Day Proceeds Fund receives contributions from sporting events held on ANZAC Day across Victoria, which are collected by Sport and Recreation Victoria within the Department of Health and Human Services, in accordance with section 4A of the ANZAC Day Act 1958. Grants totalling $287,786 were approved from the ANZAC Day Proceeds Fund to 21 individual projects during the financial year ending 30 June 2016. Grant recipients are detailed in the table below:
Anzac Day Proceeds Fund 2015-16 Grant Recipients Amount Organisation Project Name Received 2/14 Battalion Association Comradeship Newsletter $2,400.00 39th Australian Infantry The Good Guts Project $1,344.00 Battalion(1941-43) Association Inc Carry On (Victoria) General Welfare $49,407.00 Defence Force Welfare Association Production of Branch Supplement and Postage with National $2,722.00 Victoria Branch Inc Magazine "Camaraderie" Geelong Legacy Club Inc Geelong Legacy Widows Utility Allowance $14,000.00 Macedon Ranges Group of Heating support for Legacy Widows $3,600.00 Melbourne Legacy Legacy Melbourne 2016 Summer Camp For Legacy Dependants With A Disability $20,761.00 Legacy Melbourne Melbourne Legacy Widows ‘The Answer’ Newsletter for Widows $32,000.00 Legacy Melbourne Melbourne Legacy Widows Transport Initiative $5,000.00 Mornington Peninsula Legacy Club Publications Project $3,000.00 Inc Mornington Peninsula Legacy Club Customer Relation Management System (CRM) $1,850.00 Inc Returned & Services League of Regional Veterans Centre Project $70,000.00 Australia Victorian Branch Inc Royal Australian Air Force (Victorian Newsletter for Division & Branches $1,972.00 Division) Royal Australian Air Force (Victorian RAAF Association Victoria: Veterans Welfare Program $5,000.00 Division) South Gippsland Group of Winter fuel allowance for widows $8,400.00 Melbourne Legacy The Legacy Club of Ballarat Inc 2016 Winter Heating Allowance $20,280.00 The Legacy Club of Bendigo Inc Utility allowance for Centrelink widows of Bendigo Legacy $6,200.00 TPI Victoria Inc Chin Up Member Magazine $10,000.00 Vietnam Veterans Association of Vietnam Veterans Welfare Support $18,000.000 Australia (Victorian Branch) Vietnam Veterans Federation Expansion of services to homeless and vulnerable veterans and/ $5,000.00 Victorian Branch Inc or widows Yarra Valley Group of Melbourne Winter Allowance for Legacy Widows 2016 $6,850.00 Legacy Inc 21 Projects $287,786.00
An audited statement for the ANZAC Day Proceeds Fund can be found at page 21.
18 VICTORIAN VETERANS COUNCIL Patriotic Funds
The VVC, in partnership with Consumer Affairs Victoria, the regulator of patriotic funds, provides advice to ex-service organisations on how patriotic funds can be raised and appropriately used, including transfer and winding up arrangements. The VVC is now the trustee for six patriotic funds which are administered in accordance with Part 4 of the The late LTCOL Ted Lynes, OAM RFD ED (Ret’d), Sectrerary of the Australian Legion of Ex- Servicemen and Women Association the 2015-16 scholarship recipients, (left to right) Mr Paul Veterans Act 2005. In May 2016, the Gardner and Ms Holly Clarke) Australian Army Training Team Victoria – Brigadier Ted Serong Scholarship Patriotic Fund was closed. Australian Legion of Ex- Speech given by Katrina Detering Servicemen and Women – recipient of a 2016 War Scholarship Fund No 1 – Widows and Widower Mothers Australian Legion of Ex- Association Scholarship Servicemen and Women Nurses Memorial Centre From the moment I was born, I have The Fund, first established in Scholarship Fund – Albert had a connection to the Armed August 2006, provides support for Coates Memorial Trust services through my father. Joining scholarship grants awarded on an The Australian Legion of Ex- up at the age of 21 and serving 20 annual basis to students that are Servicemen and Women Scholarship years for his country has always undertaking postgraduate studies Fund, in association with the Albert been something I have admired. So in the care of the older person or Coates Memorial Trust provides much so that I also applied to join palliative care at a recognised funding for scholarships awarded to the Royal Australian Air Force once university. The Funds, administered by students who are studying courses I have completed my degree of the VVC, are provided to the Nurses for the training of paramedics, nurses nursing. This scholarship will make Memorial Centre as the facilitator and doctors in emergency care at a huge difference and take a great of the scholarships. In 2015-16, the Victorian universities. deal of pressure off both myself VVC approved the disbursement and my family. The money for this In 2015-16, the VVC approved the of $33,500 to the Nurses Memorial scholarship will assist me with travel disbursement of $33,500 to the Albert Centre for these scholarships. Coates Memorial Trust to allocate and accommodation costs that are scholarships for rural emergency On 3 March 2016, LTCOL Grimes associated with nursing placements nursing studies, including Nurse represented the VVC at the as well as the cost of textbooks as Practitioner, RIPERN and Critical Care Scholarship award evening. The I continue on through the degree. courses to recipients: Grant Holmes; Australian Legion of I would like to sincerely thank the Danielle Tartaglia; Brian Chee; Ellie Ex-Servicemen and Women War Widows and Widowed Mothers’ Bowditch; Brendan McCarthy; Stacey Scholarships were awarded to Paul Association as well as Federation Moll; and Mark Hocking. Gardner, who is undertaking a Master University for this scholarship. of Nursing, Aged Care at Monash University and Holly Clarke, who is completing a Bachelor of Nursing (Honours) at Deakin University.
War Widows and Widowed Mothers Association (WWWMA) Scholarship Fund The Fund supports scholarships awarded by the Federation University VVC member Elizabeth Brown pictured with Australia to students undertaking 2016 scholarship recipient Alicia Linn and University of Melbourne / Royal Australasian graduate or postgraduate study in the Mardhi Coleman, lecturer College of Surgeons Graduation Ceremony, fields of nursing, palliative care, aged 7 September 2015. From left to right: Mr care or midwifery. Don Moss, Chair, Albert Coates Memorial Trust, Prof. Stephen Tobin, President, RACS; In 2016, LTCOL Grimes represented Dr Brian Chee, scholarship recipient and the VVC on the assessment panel and Mr Roger Trudgeon, Hon. Secretary, Albert Coates Memorial Trust Council member, Ms Brown presented the scholarships for $600 each to Katrina Detering, Alicia Linnane and Michelle Quick at the scholarship award ceremony at Federation University Australia on 30 May 2016.
2015 -16 ANNUAL REPORT 19 Patriotic Funds
Victorian Blinded Soldiers’ Michael Williams Novice painter Welfare Patriotic Fund Established in April 2013 from funds provided by the Blinded Soldiers’ Association, this fund provides welfare assistance to visually impaired veterans and their dependents and offers assistance for former Australian Defence Force members who have visual impairment due to their service in defence of our nation.
Extremely Disabled Association (EDA) Patriotic Fund This Fund provides an annual prize of $500 for the Victorian Veteran Community Story Writing and Art Competition (SWAC) facilitated by Austin Health’s Heidelberg Repatriation Hospital. In March 2016, Brian Atkinson, Novice painter a funding agreement was established between the VVC and Austin Health to formalise the arrangement for the contribution to the SWAC under the EDA Patriotic Fund. The award ceremony for the SWAC was held on 27 November 2015. Presentations were made by the Patron – Major General David McLachlan AO.
Australian United Ex- Services Association (AUESA) Patriotic Fund This fund was initiated in 2014 for the purpose of providing funding for post-graduate studies in the field of veterans’ health. A Trust Deed between the Australian United Ex-Services Association and the VVC was formalised in December 2015 and funding agreement with Austin Health in February 2016, to deliver the scholarships for training post-graduate students in Cognitive Processing Therapy with an associated year of supervision. The first scholarship recipients will be selected in August 2016. Audited reports for each of these Funds can be found at pages 39-42 respectively.
20 VICTORIAN VETERANS COUNCIL Financial Statements
VICTORIAN VETERANS COUNCIL
Financial Statements For the Year Ended 30 June 2016
Page Contents
24 Comprehensive operating statement
25 Balance sheet
26 Statement of changes in equity
27 Cash flow statement
28 Notes to the financial statements
28 Note 1. Summary of significant accounting policies
32 Note 2. Prior period correction
32 Note 3. Income from transactions
33 Note 4. Expenses from transactions
33 Note 5. Cash and deposits
33 Note 6. Receivables
33 Note 7. Payables
34 Note 8. Financial instruments
38 Note 9. Responsible persons
38 Note 10. Remuneration of auditors
38 Note 11. Reconciliation of net result to net cash flows from operating activities
39 Note 12. Third party funds under management
43 Accountable Officer’s and Chief Financial Officer’s Declaration
2015 -16 ANNUAL REPORT 21 Financial Statements
22 VICTORIAN VETERANS COUNCIL 2015 -16 ANNUAL REPORT 23 Financial Statements
Comprehensive operating statement For the year ended 30 June 2016
2015 2016 (Restated) Notes $ $
INCOME FROM TRANSACTIONS
Grants income 3(a) 552,187 756,881 Interest income 3(b) 19,991 24,763
Total income from transactions 572,178 781,644
EXPENSES FROM TRANSACTIONS
Grants and other transfers 4 729,838 1,224,162 Professional services 50,559 21,667
Total expenses from transactions 780,397 1,245,829
Net result from transactions (208,219) (464,185)
Net result (208,219) (464,185)
Comprehensive result (208,219) (464,185)
The above comprehensive operating statement should be read in conjunction with the accompanying notes.
24 VICTORIAN VETERANS COUNCIL Balance sheet As at 30 June 2016
2015 2016 (Restated) Notes $ $
ASSETS
Financial assets
Cash and deposits 5 1,004,562 984,268 Receivables 6 337 941
Total financial assets 1,004,899 985,209
Total assets 1,004,899 985,209
LIABILITIES
Payables 7 693,114 465,205
Total liabilities 693,114 465,205
Net assets 311,785 520,004
EQUITY
Accumulated surplus 311,785 520,004
Total equity 311,785 520,004
The above balance sheet should be read in conjunction with the accompanying notes.
2015 -16 ANNUAL REPORT 25 Report on Operations
Statement of changes in equity For the year ended 30 June 2016
Accumulated surplus Total (Restated) (Restated) $ $
BALANCE AT 1 JULY 2014 984,189 984,189 Net result for the year (464,185) (464,185)
Balance at 30 June 2015 520,004 520,004
Net result for the year (208,219) (208,219)
Balance at 30 June 2016 311,785 311,785
The above statement of changes in equity should be read in conjunction with the accompanying notes.
26 VICTORIAN VETERANS COUNCIL Cash flow statement For the year ended 30 June 2016
2016 2015 Notes $ $
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Government 552,487 756,581 Grants and other transfers paid (501,929) (777,742) Payments to suppliers (50,559) (21,667) Interest received 20,295 24,726
Net cash flows from operating activities 11 20,294 (18,102)
Net increase (decrease) in cash held 20,294 (18,102)
Cash and cash equivalents at the start of the year 984,268 1,002,370
Cash and cash equivalents at the end of the year 1,004,562 984,268
The above cash flow statement should be read in conjunction with the accompanying notes.
2015 -16 ANNUAL REPORT 27 Notes to the Financial Report
Note 1. Summary of significant accounting policies
(a) Statement of compliance These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 and applicable Australian Accounting Standards (AASs) including Interpretations, issued by the Australian Accounting Standards Board (AASB). In particular, they are presented in a manner consistent with the requirements of AASB 1049 Whole of Government and General Government Sector Financial Reporting. Where relevant, those paragraphs of the AASs applicable to not-for-profit entities have been applied. Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.
(b) Basis of preparation The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid. Judgements, estimates and assumptions are required to be made about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgments derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods that are affected by the revision. The financial statements are presented in Australian dollars, and prepared in accordance with the historical cost convention, except where noted. Historical cost is based on the fair values of the consideration given in exchange for assets. The accounting policies set out in this note have been applied in preparing these financial statements.
(c) Reporting entity The financial statements include all the controlled activities of the Victorian Veterans Council. The Council was established as an independent statutory body under the Veterans Act 2005 (“the Act”). Its principal address is: 1 Treasury Place, Melbourne Victoria 3002
The financial statements include the transactions and balances of the following controlled trust accounts:
Controlled Trust Act Purpose Victorian Veterans Fund Veterans Act 2005 To provide funds to educate Victorians about Victoria’s involvement in Australia’s war and service history; to honour or commemorate the service or sacrifice of veterans; to assist the education of veterans’ dependants; and for any other purpose agreed in writing by the Minister. ANZAC Day Proceeds ANZAC Day Act 1958 To receive funds relating to ANZAC Day racing and sporting Trust Fund revenues and to provide welfare to the ex-service community.
28 VICTORIAN VETERANS COUNCIL Third party funds under management The Council has responsibility for transactions and balances relating to trust funds on behalf of third parties external to the Victorian Government. Income, expenses, assets and liabilities managed on behalf of third parties are not recognised in these financial statements as they are managed on a fiduciary and custodial basis, and therefore are not controlled by the Council or the Victorian Government. Except as otherwise disclosed, funds under management transactions are accounted for on an accrual basis using the same accounting policies adopted for recognition of Council items in the financial statements. Funds under management are reported in Note 12 Third party funds under management. Objectives and funding The objectives of the Council are to: »» promote the wellbeing of all members of the Victorian ex-service community; »» promote the commemoration of those who have died in the performance of service or duty; »» develop a better understanding amongst Victorians of the service and sacrifice of Victoria’s veterans in war and peacekeeping operations and the contributions of Victoria’s ex-service community; »» actively promote the significance of, and key values associated with, the spirit of ANZAC; and »» promote cooperation and collaboration across organisations dealing with veterans’ welfare and other ex-service community issues, including the trustees of the Shrine of Remembrance. The Council is predominantly funded by grants for the provision of outputs.
(d) Scope and presentation of financial statements Comprehensive operating statement The comprehensive operating statement comprises three components, being ‘net result from transactions, ‘other economic flows included in net result’, as well as ‘other economic flows – other comprehensive income’. The sum of the first two represents the net result which is equivalent to profit or loss derived in accordance with AASs. This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation of Financial Statements. The Council does not have any items in the second two categories. Balance sheet Assets and liabilities are presented in liquidity order with the Council’s assets aggregated into financial assets. Current assets and liabilities, which are expected to be recovered or settled within 12 months period, are disclosed in the notes, where relevant. Statement of changes in equity The statement of changes in equity presents reconciliations of non-owner and owner changes in equity from opening balance at the beginning of the year to the closing balance at the end of the year. Cash flow statement Cash flows are classified according to whether they arise from operating, investing, or financing activities. This classification is consistent with requirements of AASB 107 Statement of Cash Flows.
(e) Income from transactions Income is recognised to the extent that it is probable that the economic benefits will flow to the Council and the income can be reliably measured at fair value. Grants Income from grants (other than contributions by owners) is recognised when the Council obtains control over the contribution. Interest Interest income includes interest received on bank term deposits. Interest income is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.
2015 -16 ANNUAL REPORT 29 Notes to the Financial Report
Note 1. Summary of significant accounting policies (continued)
(f) Expenses from transactions Expenses from transactions are recognised as they are incurred and reported in the financial year to which they relate. Grants and other transfers Grants and other transfers to third parties are recognised as an expense in the reporting period in which they are paid or payable. (g) Financial instruments Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the nature of the Council’s activities, certain financial assets and financial liabilities arise under statute rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial Instruments: Presentation. For example, statutory receivables do not meet the definition of financial instruments as they do not arise under contract. Where relevant, for note disclosure purposes, a distinction is made between those financial assets and financial liabilities that meet the definition of financial instruments in accordance with AASB 132 and those that do not. The following refers to financial instruments unless otherwise stated. Categories of non-derivative financial instruments Loans and receivables Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an active market. These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial measurement, loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Loans and receivables category includes cash and deposits (refer to note 1(h)), trade receivables and loans, but not statutory receivables. Financial liabilities at amortised cost Financial instrument liabilities are initially recognised on the date they are originated. They are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest-bearing liability, using the effective interest rate method. Financial instrument liabilities measured at amortised cost include all of the Council’s contractual payables, deposits held and advances received, and interest-bearing arrangements other than those designated at fair value through profit or loss. Offsetting financial instruments Financial instrument assets and liabilities are offset and the net amount presented in the balance sheet when, and only when, the Council concerned has a legal right to offset the amounts and intend either to settle on a net basis or to realise the asset and settle the liability simultaneously. (h) Financial assets The financial assets held by the Council include short term deposits and receivables. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. The Council assesses at each balance sheet date whether a financial asset or group of financial assets is impaired. Cash and deposits Cash and deposits comprise deposits at call, funds held in trust and other short term deposits, that are held for the purpose of meeting short term cash commitments rather than for investment purposes and which are convertible into known amounts of cash and are subject to insignificant risk of changes in value. Receivables Receivables consist of: »» contractual receivables, such as accrued interest income; and »» statutory receivables, which include GST input tax credits recoverable. Receivables that are contractual are classified as financial instruments. Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less any allowance for impairment. Statutory receivables are recognised and measured on the same basis as contractual receivables (except for impairment) but are not classified as financial instruments as they do not arise from a contract. Collectability of debtors is reviewed on an ongoing basis. A provision for doubtful debts is raised when there is objective evidence that the debts may not be collected. Bad debts are written off when identified.
30 VICTORIAN VETERANS COUNCIL (i) Liabilities Payables Payables consist of creditors and accruals which represent liabilities for goods and services provided to the Council that are unpaid at the end of the financial year. Creditors and accruals are initially measured at fair value, being the cost of the goods and services, and then subsequently measured at amortised cost.
(j) Goods and services tax (GST) Income, expenses and assets are recognised net of GST, unless the GST incurred is not recoverable from the Australian Taxation Office (ATO). In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables. Cash flows are presented on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the ATO is classified as operating cash flows.
(k) Accounting standards issued but not yet effective As at 30 June 2016, the following standards and interpretations (applicable to the Council) had been issued but were not mandatory for the 30 June 2016 reporting period. The Department of Premier and Cabinet assesses the impact of these new standards and advises the Council of their applicability and early adoption where applicable. AASB 9 Financial Instruments, applicable for reporting periods commencing 1 January 2018. The key changes include the simplified requirements for the classification and measurement of financial assets, a new hedging accounting model and a revised impairment loss model to recognise impairment losses earlier, as opposed to the current approach that recognises impairment only when incurred. While the Council’s assessment has not identified any material impact arising from AASB 9, it will continue to be monitored and assessed. AASB 2010 7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010), applicable for reporting periods commencing 1 January 2018. The requirements for classifying and measuring financial liabilities were added to AASB 9. The existing requirements for the classification of financial liabilities and the ability to use the fair value option have been retained. However, where the fair value option is used for financial liabilities the change in fair value is accounted for as follows: »» the change in fair value attributable to changes in credit risk is presented in other comprehensive income; and »» other fair value changes are presented in profit or loss. If this approach creates or enlarges an accounting mismatch in the profit or loss, the effect of the changes in credit risk are also presented in profit or loss. The Council’s assessment has identified that the amendments are likely to result in earlier recognition of impairment losses and at more regular intervals. AASB 2014 1 Amendments to Australian Accounting Standards [Part E Financial Instruments] , applicable for reporting periods commencing 1 January 2018. Amends various AASs to reflect the AASB’s decision to defer the mandatory application date of AASB 9 to annual reporting periods beginning on or after 1 January 2018; as a consequence of Chapter 6; and to amend reduced disclosure requirements. This amending standard will defer the application period of AASB 9 to the 2018-19 reporting period in accordance with the transition requirements. AASB 2014 7 Amendments to Australian Accounting Standards arising from AASB 9, applicable for reporting periods commencing 1 January 2018. Amends various AASs to incorporate the consequential amendments arising from the issuance of AASB 9. The Council’ assessment has indicated that there will be no significant impact for the Council. AASB 2015-1 Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012-2014 Cycle [AASB 1, AASB 2, AASB 3, AASB 5, AASB 7, AASB 11, AASB 110, AASB 119, AASB 121, AASB 133, AASB 134, AASB 137 & AASB 140], applicable for reporting periods commencing 1 January 2016. Amends the methods of disposal in AASB 5 Non current assets held for sale and discontinued operations. Amends AASB 7 Financial Instruments by including further guidance on servicing contracts. The assessment has indicated that when an asset (or disposal group) is reclassified from ‘held to sale’ to ‘held for distribution’, or vice versa, the asset does not have to be reinstated in the financial statements. Entities will be required to disclose all types of continuing involvement the entity still has when transferring a financial asset to a third party under conditions which allow it to derecognise the asset.
2015 -16 ANNUAL REPORT 31 Notes to the Financial Report
Note 2. Prior period correction
In 2014-15, the Council did not recognise expenses relating to the ANZAC Centenary Community grants program, which is funded through the Victorian Veterans Fund. This omission had the effect of understating expenses for the year ended 30 June 2015, by $572,571 and payables by $448,155 and overstating funds held in trust, by $124,416 and accumulated surplus, by $572,571 respectively. The omission has been corrected by restating each of the affected financial statement line items for the year ended 30 June 2015 as below.
As published Effect of change Restated 2015 2015 2015 $ $ $ COMPREHENSIVE OPERATING STATEMENT Grants and other transfers 651,591 572,571 1,224,162 Net result from transactions 108,386 (572,571) (464,185) Net result 108,386 (572,571) (464,185) Comprehensive result 108,386 (572,571) (464,185)
BALANCE SHEET Assets Funds held in trust 124,416 (124,416) - Total assets 1,109,625 (124,416) 985,209 Payables 17,050 448,155 465,205 Total liabilities 17,050 448,155 465,205 Net assets 1,092,575 (572,571) 520,004 Accumulated surplus 1,092,575 (572,571) 520,004 Total equity 1,092,575 (572,571) 520,004
Note 3. Income from transactions
2016 2015 $ $
Income from transactions includes:
(a) Grants income Sport and Recreation Victoria 287,787 501,509 Community Support Fund 264,400 255,372
Total grants 552,187 756,881
(b) Interest income Interest on deposits 19,991 24,763
Total interest 19,991 24,763
32 VICTORIAN VETERANS COUNCIL Note 4. Expenses from transactions
2015 2016 (Restated) Expenses from transactions include: $ $
GRANTS AND OTHER TRANSFERS Grants were made from the following funds: Victorian Veterans Fund* 367,052 858,151 ANZAC Day Proceeds Trust Fund* 362,786 366,011
Total grants expense 729,838 1,224,162 **A listing of the approved grants is available under the Victorian Veterans Fund and ANZAC Day Proceeds Fund sections of the annual report, respectively.
Note 5. Cash and deposits
Short term deposits 1,004,562 984,268 1,004,562 984,268
Note 6. Receivables
CURRENT Contractual Accrued interest 337 641 Statutory GST input tax credit recoverable - 300
Total receivables 337 941 Note 8 discloses the maturity analysis of contractual receivables and the nature and extent of risks arising from contractual receivables.
Note 7. Payables
CURRENT Contractual Creditors and accruals - 17,050
Statutory Amounts payable to other government agencies 693,114 448,155
Total payables 693,114 465,205 Note 8 discloses the maturity analysis of contractual payables and the nature and extent of risks arising from contractual payables.
2015 -16 ANNUAL REPORT 33 Notes to the Financial Report
Note 8. Financial instruments
(a) Significant accounting policies Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are recognised, with respect to each class of financial asset, financial liability and equity instrument are disclosed in note 1 to the financial statements.
(b) Categorisation of financial instruments Carrying amount 2015 Financial assets Note Category 2016 (Restated) Cash and deposits 5 Cash 1,004,562 984,268 Receivables * 6 Loans and receivables 337 641 1,004,899 984,909
Financial liabilities Creditors and accruals 7 Financial liabilities at amortised cost - 17,050 - 17,050
Net holding gain/(loss) on financial instruments by category:
Financial assets Cash and deposits Cash 19,991 24,763 19,991 24,763 Financial liabilities Creditors and accruals Financial liabilities at amortised cost - - - - * Receivables disclosed here exclude statutory receivables (i.e. GST recoverable).
The net holding gains or losses disclosed above are determined as follows: »» For receivables, the net gain or loss is calculated by taking the interest revenue, minus any impairment recognised in the net result; and »» For financial liabilities measured at amortised cost, the net gain or loss is the related interest expense.
34 VICTORIAN VETERANS COUNCIL (c) Credit risk Credit risk arises from the financial assets of the Council, which comprise cash and cash equivalents, and receivables. The Council’s exposure to credit risk arises from the potential default of counterparties on their contractual obligations resulting in financial loss to the Council. Credit risk is measured at fair value and is monitored on a regular basis. Credit risk associated with the Council’s financial assets is insignificant because the main debtor is the Victorian Government. For debtors other than government, it is the Council’s policy to only deal with entities with high credit ratings and to obtain sufficient collateral or credit enhancements where appropriate. The Council does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the Council’s maximum exposure to credit risk without taking account of the value of any collateral obtained. Financial assets that are either past due or impaired There are no material financial assets which are individually determined to be impaired. Currently the Council does not hold any collateral as security nor credit enhancements relating to any of its financial assets. As at the reporting date, there was no event to indicate that any of the financial assets were impaired. There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. There are no financial assets that are past due but not impaired. Credit quality of contractual financial assets that are neither past due nor impaired:
Financial institutions Government agencies (AAA Credit rating) (AAA Credit rating) Total 2016 Cash and deposits 1,004,562 - 1,004,562 Receivables 337 - 337 1,004,899 - 1,004,899 2015 Cash and deposits 984,268 - 984,268 Receivables 641 - 641 984,909 - 984,909
Ageing analysis of contractual financial assets:
MATURITY Neither Carrying impaired nor Less than 1 3 months - amount past due month 1-3 months 1 year 1-5 years $ $ $ $ $ $ 2016 Receivables 337 - 337 - - - 337 - 337 - - - 2015 Receivables 641 - 641 - - - 641 - 641 - - -
2015 -16 ANNUAL REPORT 35 Notes to the Financial Report
Note 8. Financial instruments (continued)
(d) Liquidity risk Liquidity risk arises when the Council is unable to meet its financial obligations as they fall due. The Council operates under the Victorian Government’s fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution. The Council’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. Maximum exposure to liquidity risk is the carrying amounts of financial liabilities. The Council manages its liquidity risk by maintaining an adequate level of uncommitted funds that can be drawn at short notice to meet its short term obligations The contractual maturity analysis of the Council’s financial liabilities is as follows:
MATURITY Carrying Nominal Less than 1 3 months - amount amount month 1-3 months 1 year 1-5 years $ $ $ $ $ $ 2016 Creditors ------2015 Creditors 17,050 17,050 17,050 - - - 17,050 17,050 17,050 - - - * The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities.
(e) Market risk The Council’s exposure to market risk is primarily through interest rate. The Council has no exposure to foreign currency and other price risks. Interest rate risk Exposure to interest rate risk is insignificant and may arise primarily through the Council’s short term deposits. The Council manages this risk by mainly undertaking fixed rate or non-interest bearing instruments with only minimal amounts at floating rate. The Council’s exposure to interest rate risk is set out below:
Interest rate exposure of financial instruments
INTEREST RATE EXPOSURE Weighted average effective Fixed Variable Non-interest interest rate Carrying amount interest rate interest rate bearing % $’000 $’000 $’000 $’000 2016 Financial assets Cash and deposits 2.0 1,004,562 792,019 212,543 - 1,004,562 792,019 212,543 - 2015 Financial assets Cash and deposits 2.0 984,268 775,888 208,380 - 984,268 775,888 208,380 -
36 VICTORIAN VETERANS COUNCIL Sensitivity disclosure analysis The Council’s sensitivity to market risk is determined based on the observed range of actual historical data for the preceding five year period, with all variables other than the primary risk variable held constant. The Council’s fund managers cannot be expected to predict movements in market rates and prices. Sensitivity analyses shown are for illustrative purposes only. The following movements in market interest rates are ‘reasonably possible’ over the next 12 months - a movement of 100 basis points up and down (2015: 100 basis points up and down).
INTEREST RATE -100 basis points +100 basis points Carrying amount Net result Net result 2016 Contractual financial assets Cash and deposits 1,004,562 (10,046) 10,046 Total impact (10,046) 10,046 2015 Contractual financial assets Cash and deposits 984,268 (9,843) 9,843 Total impact (9,843) 9,843
(f) Fair value The carrying amount of financial assets and financial liabilities recorded in the financial statements approximates their fair values because of the short term nature of the financial instruments and the expectation that they will be paid in full. The fair values of financial assets and financial liabilities are determined as follows: »» Level 1 – the fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices; »» Level 2 – the fair value is determined using inputs other than quoted prices that are observable for the financial asset or liability, either directly or indirectly; and »» Level 3- the fair value of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow analysis using unobservable market inputs. None of the classes of financial assets and liabilities are readily traded on organised markets in standardised form.
2015 -16 ANNUAL REPORT 37 Notes to the Financial Report
Note 9. Responsible persons
Names The persons who held the positions of Minister and Accountable Officer in the Council (from 1 July 2015 to 30 June 2016 unless otherwise stated) during the financial year were:
Responsible Minister The Hon John Eren, MP, Minister for Veterans Accountable Officer Rear Admiral, John Lord, AM, Chairperson
Remuneration Remuneration received or receivable by the Accountable Officer in connection with the management of the Council during the reporting period was in the range:
$0 -$10,000 (2015: $0 - $10,000)
Amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet. For information regarding related party transactions of Ministers, the register of members’ interests is publicly available from www.parliament.vic.gov.au/publications/register of interests.
Other Transactions Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report.
Note 10. Remuneration of auditors
2016 2015 $ $ Audit fees paid or payable to the Victorian Auditor-General’s Office Audit of the annual financial statements 9,000 7,600 No other services were provided by the Victorian Auditor-General’s Office.
Note 11. Reconciliation of net result to net cash flows from operating activities
2015 2016 (Restated) $ $ Net result for the period (208,219) (464,185)
Change in operating assets and liabilities (Increase)/decrease in receivables 604 (337) Increase/(decrease) in creditors 227,909 446,420
Net cash flows from operating activities 20,294 (18,102)
38 VICTORIAN VETERANS COUNCIL Note 12. Third party funds under management
Third party funds under management are funds held in trust for certain clients. They are not used for government purposes and therefore are not included in the Council’s financial statements. Any earnings on the funds held pending distribution are also applied to the trust funds under management as appropriate. The Council is the trustee for the following patriotic funds which are administered in accordance with Part 4 of the Veterans Act 2005.
Australian Legion of Ex Servicemen and Women Scholarship Fund No 1 – Nurses Memorial Centre The Fund was established in August 2006 to provide scholarships to students undertaking postgraduate studies in care of either older persons or palliative care at a recognised Victorian university. The Funds are provided to the Nurses Memorial Centre as the facilitator of the scholarships.
2016 2016 $ $ Statement of funds under management As at 30 June 2016
Cash at bank 1,042,544 1,042,313 Receivables 22,151 25,155 Total funds under management 1,064,695 1,067,468
Statement of income and expenses For the year ended 30 June 2016
Interest earned 30,727 35,469 Total income 30,727 35,469
Scholarships (33,500) (18,000) Total expenses (33,500) (18,000) Net increase/(decrease) in funds (2,773) 17,469
2015 -16 ANNUAL REPORT 39 Notes to the Financial Report
Note 12. Third party funds under management (continued)
Australian Legion of Ex Servicemen and Women Scholarship Fund – Albert Coates Memorial Trust The Australian Legion of Ex-Servicemen and Women Scholarship Fund, in association with the Albert Coates Memorial Trust provides scholarships to students who are studying to train as paramedics and nurses and doctors in emergency care at Victorian universities. The scholarships are for either post graduate students or second year undergraduate students.
2016 2015 $ $ Statement of funds under management As at 30 June 2016
Cash at bank 1,012,943 1,012,868 Receivables 22,151 25,155 Total funds under management 1,035,094 1,038,023
Statement of income and expenses For the year ended 30 June 2016
Interest earned 30,572 35,343 Total income 30,572 35,343
Scholarships (33,500) (40,000) Total expenses (33,500) (40,000) Net increase/(decrease) in funds (2,928) (4,657)
War Widows and Widowed Mothers Association Scholarship Fund This Fund supports scholarships awarded by the Federation University Australia to students undertaking a Bachelor of Nursing or a Graduate Diploma of Midwifery.
Statement of funds under management As at 30 June 2016
Cash at bank 78,618 77,627 Receivables 1,701 2,569 Total funds under management 80,319 80,196
Statement of income and expenses For the year ended 30 June 2016
Interest earned 1,923 2,810 Total income 1,923 2,810
Scholarships (1,800) (2,000) Total expenses (1,800) (2,000) Net increase/(decrease) in funds 123 810
40 VICTORIAN VETERANS COUNCIL Brigadier Ted Serong Scholarship Fund This Fund supports facilitation of the Brigadier “Ted” Serong Memorial Prize, an annual prize awarded to a senior cadet from the Melbourne University Regiment who achieves the highest cumulative score for all assessments conducted at the Royal Military College, Duntroon. In 2015-16, this fund was wound up effective 26 May 2016 and the balance of funds held in trust, was transferred to its principal, Australian Army Training Team Vietnam Association.
2016 2015 $ $ Statement of funds under management As at 30 June 2016
Cash at bank - 3,893 Receivables 65 65 Total funds under management 65 3,958
Statement of income and expenses For the year ended 30 June 2016
Interest earned 231 230 Bank credit transfer 3,893 - Total income 4,124 230 Scholarships - (100) Fund closure payment to AATTV (4,189) - Total expenses (4,189) (100) Net increase/(decrease) in funds (65) 130
The Victorian Blinded Soldiers’ Welfare Patriotic Fund Established in April 2013, this fund provides welfare assistance to visually impaired veterans and their dependants, who have visual impairment due to their service in defence of our nation.
Statement of funds under management As at 30 June 2016
Cash at bank 147,749 143,206 Receivables 2,630 2,942 Total funds under management 150,379 146,148
Statement of income and expenses For the year ended 30 June 2016
Interest earned 4,231 4,538 Total income 4,231 4,538
Bank fees - (3) Total expenses - (3) Net increase/(decrease) in funds 4,231 4,535
2015 -16 ANNUAL REPORT 41 Notes to the Financial Report
Note 12. Third party funds under management (continued)
The EDA Patriotic Fund Established in 2013-14, this fund provides an annual prize of $500 for the Victorian Veteran Community Story Writing and Art Competition, facilitated by Austin Health’s Heidelberg Repatriation Hospital.
2016 2015 $ $ Statement of funds under management As at 30 June 2016
Cash at bank 32,511 31,893 Receivables 771 1,077 Total funds under management 33,282 32,970
Statement of income and expenses For the year ended 30 June 2016
Interest earned 811 1,120 Total income 811 1,120
Annual Prize: Story writing and art competition (500) (500) Total expenses (500) (500) Net increase/(decrease) in funds 311 620
Australian United Ex-Services Association Patriotic Fund This fund provides for yearly scholarships to train clinicians working at the Psychological Trauma Recovery Service at the Heidelberg Repatriation Hospital in Cognitive Processing Therapy, with an associated year of supervision.
Statement of funds under management As at 30 June 2016
Cash at bank 311,747 311,714 Receivables 7,058 9,006 Total funds under management 318,805 320,720
Statement of income and expenses For the year ended 30 June 2016
Trust settlement sum - 311,714 Interest earned 9,585 9,006 Total income 9,585 320,720 Payment Re: Sponsorship (11,500) - Total expenses (11,500) - Net increase/(decrease) in funds (1,915) 320,720
42 VICTORIAN VETERANS COUNCIL Accountable Officer’s and Chief Financial Officer’s declaration
The attached financial statements for the Victorian Veterans Council have been prepared in accordance with Direction 4.2 of the Standing Directions of the Minister for Finance under the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards, including Interpretations, and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and notes to the financial statements, presents fairly the financial transactions during the year ended 30 June 2016 and financial position of the Council as at 30 June 2016. At the time of signing, we are not aware of any circumstance, which would render any particulars included in the financial statements to be misleading or inaccurate. We authorise the attached financial statements for issue on 21 September 2016.
Ingrid Klein John Lord CHIEF FINANCIAL OFFICER CHAIRPERSON Department of Premier and Cabinet Victorian Veterans Council
Melbourne Melbourne 21 September 2016 21 September 2016
2015 -16 ANNUAL REPORT 43 Annual Report 2015-16
Authorised and published by the Victorian Government Victorian Veterans Council C/- Department of Premier and Cabinet, Veterans Branch, Level 3, 1 Treasury Place, Melbourne, Victoria, 3000
Accessibility If you would like to receive this publication in an alternative format, please telephone the Veterans Branch, Department of Premier and Cabinet on (03) 9651 2268. This document is also available on the internet at www.dpc.vic.gov.au/veterans