MAKING LAW ACCESSIBLE

VICTORIA LAW FOUNDATION ANNUAL REPORT 2005 The Lady of Justice is based on the sculpture by William Eicholtz

MANDATE Established in 1967 as an independent, public benefit organisation, we operate under our own Act of Parliament, the Law Foundation Act 1978.

PROGRAM We make law accessible by meeting changing community needs and filling GAPS in existing services. Our program is organised into four key areas: Grants We broker, fund and provide in-kind support for innovative law and justice projects. Access to Justice We develop and undertake projects, alone and in partnership with others, which promote equitable access to justice for all Victorians. Publications We produce and support the provision of legal information resources in plain language for Victorian communities. All our publications are available from Information Victoria 1300 366 356. Support for Best Practice We promote and undertake activities that foster excellence and innovation in the legal profession, legal institutions and the not-for-profit sector.

Front cover: The Legal Precinct Map illustrated by Bettina Guthridge, was produced by the Foundation this year as a resource for schools and the general community. Special collector’s edition colour print also available, see our website for details. CONTENTS

OUR PEOPLE 2 From Foundation President, Chief Justice Marilyn Warren AC 3 From Executive Director, Professor Kathy Laster 3 Our Staff at Work

GRANTS Grants Allocation now over $500,000 4 Grants by the Numbers 5 Small Grants 2004–05 6 Project Grants 2004–05

ACCESS TO JUSTICE Bringing the Law to the Community 8 Law Week by the Numbers 8 Law Week 2005 9 Pro Bono Secretariat 9 Law@YourLibrary 9 Historic Legal Precinct 10 Rural Law Online by the Numbers 10 Rural Law Online

PUBLICATIONS Legal Information Made Plain 11 Publications by the Numbers 11 New Publications 11 Legal Sector Publishers Forum

SUPPORT FOR BEST PRACTICE Supporting Professionalism at its Best 12 Legal Reporting Awards 12 Distinguished Pro Bono Service Awards 12 Portia's Breakfast 12 Enhancing Legal and Community Services 13 Legal Policy Internship Program 1 13 Chief Justice's Victoria Law Foundation Medal for Excellence and Community Service

FINANCIAL STATEMENTS Overheads Now Only 12 Per Cent of Budget 15 Financial Statements VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA OUR PEOPLE

Careful planning should ensure that Our Board (opposite page left) Mr Mick Hall (co-opted From Foundation member), Ms Liberty Sanger (Attorney-General’s nominee), grantmaking can continue to be our Mr Victor Borg AM, (Chief Justice's nominee), Mr Kevin President, Chief Justice flagship activity, notwithstanding changes Lyons (Chief Justice's nominee), Ms Victoria Strong to funding for the Foundation introduced (President Law Institute of Victoria ex officio), Mr Peter Seidel (Attorney-General's nominee), Ms Alexandra Marilyn Warren AC by the new Legal Profession Act. Richards QC (Chief Justice's nominee), Mr Paul Lacava SC (Bar Council's nominee). This small but influential public benefit organisation takes a strategic, long-term Front row: Ms Elizabeth Eldridge (representing the Attorney-General ex officio), Mr Chris Dale (Law Institute view of access to justice. The success of of Victoria's nominee), The Hon Justice Marilyn Warren, Law Week and the constant demand for Chief Justice of Victoria (President ex officio), Prof Morag Fraser AM (Attorney-General's nominee), Mr Frank Paton the Foundation's 27 diverse publications (co-opted member). Absent: Mr Mark Woods (Law Institute are evidence of our broad-ranging and of Victoria's nominee). effective community outreach. Rural Law Our Staff (opposite page right): Joady Donovan, Elisa Online, launched earlier this year, has Whittaker, Prof Kathy Laster, John King and Jane Farago. already become an essential resource for primary producers and residents of rural and regional Victoria. This year, the Executive Services Subgroup Foundation completed a feasibility study Mr Victor Borg AM Prof Morag Fraser AM on introducing a scheme to bring plain Mr Mick Hall language legal information to communities Mr Kevin Lyons Mr Frank Paton (Chair) 'Making law accessible' is the core through public libraries. Drawing on the Ms Alexandra Richards QC business of the Foundation. As this highly regarded NSW program, Law@yourlibrary has the potential to Grants Subgroup Annual Report illustrates, the Mr Victor Borg AM substantially improve people's access (Chair from 7 Feb 2005) Foundation has again tackled its to law. The Foundation is now working Mr Kevin Lyons ambitious mission with creativity Ms Eugenia Mitrakas OAM with stakeholders to secure the (Chair and Member to 7 Feb 2005) and energy. The innovative projects establishment of this much needed Ms Liberty Sanger (from 7 Feb 2005) undertaken in all four Program universal service in this state. Ms Victoria Strong (from 7 Feb 2005) areas – Grants, Access to Justice, Publications Subgroup At the end of the second year of our Three Ms Morag Fraser Publishing and Support for Best Year Strategic Plan, it is heartening to find Mr Kevin Lyons Practice – have made an that many of the objectives we set for Mr Mark Woods (Chair) appreciable contribution to ourselves have already been realised. This success is in no small measure due to the improving community understanding tireless efforts of all members of the 2 of our complex legal system. Foundation's Board. These senior The financial and organisational reforms professionals give unstintingly of their commenced last year continue apace. time and experience. On behalf of the The Foundation has implemented a new Board, I would also like to acknowledge financial strategy. The surplus is largely the debt we owe to our Executive Director, a consequence of this strategy, which has Professor Kathy Laster, who, over the last seen the sale of some assets, and the three years, has shaped the program and purchase of new classes of shares to lead the staff of the Foundation during capitalise on our Income Tax Exempt this impressive period of achievement. Charitable status. The Foundation has been able to increase grants awarded to

VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA $518,000, an increase of nearly $200,000 from last year. The Honourable Chief Justice Marilyn Warren AC President, Victoria Law Foundation It was particularly pleasing to see so many project, Lawyers Go Bush, to attract From Executive new initiatives launched, and distributions young lawyers to country legal practice. Director, Professor from our grants program increase by almost • Publication of the Legal Precinct Map, 60 per cent. Our ‘star' achievements: as a resource for schools and the wider Kathy Laster community, is an important step forward. • Over half a million dollars in grants It is the first summary overview of the were made, along with in-kind support whole legal sector, and an induction of similar value given to legal and resource for legal agencies themselves. community sector organisations. All of these developments are directly • Rural Law Online was established. attributable to the talent, skill and This web-based legal information commitment of the Foundation's staff. resource for primary producers and They are just a few highlights of an regional Victorians, has been impressive year's work by this small attracting 300 site visits daily since team, dedicated to making the law its launch in May. accessible to all sections of our • Law Week 2005 was a resounding community. success, engaging 10,000 people in over 100 activities and events across the state, including the first ever Arts Law Week. • Awarding the inaugural Community The financial year 2004–05 has been an Legal Centre Fellowship was another exciting one for the Foundation. The highlight. It went to Helen McGowan at Professor Kathy Laster streamlining of our operations over recent Executive Director Albury-Wodonga Legal Service for her years came to fruition in many areas.

acknowledged mark of excellence in the marketing and promotion, research design, Our Staff at Work field. May is a busy month, as we project management and evaluation, and coordinate 100 activities offered by more matchmaking, to name just a few. JANE FARAGO, PUBLICATIONS MANAGER than 80 organisations for Law Week! We try to live up to our internal motto Publishing gives lasting effect to our of ‘never saying no' by helping applicants programs. Our Publications Program was JOHN KING, PROJECT MANAGER clarify their goals and finding them the comprehensively reviewed this year as part Supporting the pro bono work of lawyers most suitable type of assistance, financial of our commitment to continuous goes to the heart of the Foundation's or otherwise, whether it be from us or improvement. The review's values. Our Pro Bono Secretariat provides from elsewhere. 3 recommendations tie publishing directly to professional development and skill-sharing our Grants Program. Additionally, through opportunities to this dedicated group of DIANE SHANNON, ADMINISTRATION the Legal Sector Publishers Forum, we now practitioners. Likewise, the Legal Policy AND FINANCE MANAGER coordinate and facilitate quality publishing Internship Program harnesses the energy Maximising our field work endeavours across the legal sector. and talent of the next generation of lawyers depends on best practice in financial for the benefit of legal and community management. This year we've reduced JOADY DONOVAN, MARKETING AND sector agencies. It is a privilege to work with overheads significantly, to only 12 COMMUNICATIONS MANAGER these dynamic, committed people. per cent of our overall budget, and Good communication is powerful. Many instituted a very clear financial strategy. of our events, like Portia's Breakfast to ELISA WHITTAKER, GRANTS MANAGER It's been pleasing to see how much more mark the beginning of the new legal year, Grants are critical to maintain cutting-edge activity we have been able to support, ANNUAL REPORT FOUNDATION LAW VICTORIA are now a tradition. The Legal Reporting service delivery. Behind the scenes at the same time establishing a solid Awards, now in their eighth year, are an grantmaking requires a multitude of skills: platform for our longer-term goals. GRANTS

intern, at the right time, may help write Grants by the 'The Foundation's Grants that essential submission. The training Numbers Program is a wonderful opportunities we offer, such as the evaluation workshops held earlier this resource for our sector, year, ensure that the knowledge and Total grants budget: $518,172* not just in terms of learning gained from a grant may be Total number of grants: 50 built upon in the future. The Foundation's Project Grants: $436,582* financial support, but networks, experience, and our in-house Small Grants: $81,590* expertise allow our grant applicants to also as a source of get the kind of assistance that best meets * GST inclusive their needs. This approach ensures that we practical advice and direct our financial resources where they Organisations assisted: assistance in carrying will be of greatest benefit. Community Legal Centres: 12 Other community organisations: 15 projects through to Sometimes, what hard-pressed legal Statutory bodies: 4 workers really need is time out. Helen Courts: 3 completion.' McGowan, an experienced senior lawyer Peak bodies: 5 – Pauline Spencer, Chief Executive at the Albury-Wodonga Legal Service, Officer, Federation of Community was this year awarded the inaugural Legal Centres Community Legal Centre Fellowship for her Lawyers Go Bush project. The The Grants Program is the flagship of the fellowship funds a backfill position so Foundation's access to justice initiatives. that Helen can concentrate on this Over the past year, we have provided over important project, which aims to attract $500,000 in grants – an increase of 58 more young law graduates to rural areas. per cent from the previous financial year. Greater efficiencies and economies Our funded projects vary enormously: of scale have freed up more of our budget from a review of the Supreme Court's for the support we offer to legal and scale of costs, to production of a series community sector organisations. of radio programs by an Islamic women's organisation to improve the Muslim Our assistance goes beyond simply community's understanding of Australian handing over a cheque. Money is not law. The Foundation's flexibility allows always the real answer. Brokering in-kind us to serve the diverse needs of a broad pro bono legal advice, IT and marketing range of organisations and individuals. 4 support, or even the provision of a Our grantmaking supports and encourages suitable venue sometimes proves more innovation, efficiency and more equitable useful than cash. A law student access to justice for the whole community. VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA Left Front row (L to R): Andrea Florance, Peninsula Community Legal Centre; Maria Peters, Chisholm Institute; Prof Kathy Laster, Victoria Law Foundation; John Cain, Law Institute of Victoria

Back row (L to R): Chris Galagher, Peninsula Community Legal Centre; Helen Constas, Peninsula Community Legal Centre; Jenny Mikakos MP, Parliamentary Secretary for Justice; Gillian Wilks, Peninsula Community Legal Centre; Ros Horridge, Peninsula Community Legal Centre; Wendy Pedersen, Chisholm Institute

Right: Law Students for a Just Community Conference 2005 poster

Victorian Council of Social Mental Health Legal Centre: Federation of Community Small Grants Services: $3,000 $2,990 Legal Centres: $3,000 2004–05 To produce a kit setting out a To educate practitioners and To develop a Best Practice charter of housing rights as part consumers on the effect of Kit for Community Legal RMIT Union: $3,000 of VCOSS's 'Housing is a Human changes to the Mental Education workers. To provide seminars and a resource Right’ Project. Health Act. booklet covering issues such as Victorian Deaf Society: copyright law and public liability Australian Law Students’ Liberty Victoria: $3,000 $1,059 insurance for artists. Association: $2,000 To assess the feasibility of To run a pilot seminar on Wills To help develop a job search establishing a Human Rights and Powers of Attorney for the Western Suburbs Legal website, connecting law students Legal Clinic which would conduct Geelong Deaf Community. Service: $3,000 with employment and volunteer casework, advocacy and litigation To prepare a pilot program for opportunities. (see also Project Grants). Equal Opportunity schools on the legal framework of Commission: $3,000 anti-discrimination law. Public Interest Law Clearing Society of Notaries of To assess the scope for a House (PILCH): $3,000 Victoria: $3,000 research project on factors Federation of Community To expand pro bono work in rural, To develop brochures providing influencing outcomes at VCAT Legal Centres: $2,200 regional and remote areas by information on the role of notaries for anti-discrimination matters To assess and scope a research tracking referrals, building and where to find them. not resolved at the EOC, and project on the history of relationships and improving identifying potential community legal centres. awareness of pro bono resources. Islamic Women's Welfare improvements in the EOC Council of Victoria: $3,000 conciliation process. Peninsula Community LegaI Juries Commissioner: $3,000 To produce radio segments in Centre: $2,200 To create a schools teaching Arabic and Turkish on issues Court Network: $3,000 To investigate the feasibility of module covering the of family violence, relationship To develop training materials and establishing specialist programs in fundamentals of jury service. breakdown, family law processes guides to provide better induction CLCs to improve experiences and and Intervention Orders. of new volunteers. outcomes in family law cases. Inner South Community Health Service and Consumer Law Centre Law Institute of Victoria: Geelong Community Legal Southport Community Victoria: $2,750 $3,000 Service: $990 Legal Centre: $2,850 To prepare an online support To assess the scope for a review To develop a training module on To undertake a feasibility study package for people facing of the scale of costs at the issues relevant to making child of an alternative system of legal action by National Supreme Court (see also Project support applications. appointing local administrators Exchange Pty Ltd. Grants). rather than the State Trustee 5 Collective of Self-Help for people under Guardianship Council to Homeless Persons: Albury-Wodonga Community Groups (COSHG): $3,000 and Administration orders $1,000 Legal Service: $675 To conduct a feasibility study on (see also Project Grants). To update an online resource To update a website and guide developing an information booklet providing legal information to to legal information and on acquiring Deductible Gift Melbourne Magistrates’ workers assisting the homeless. assistance available in the Recipient status (see also Court: $3,000 Albury-Wodonga region. Project Grants). To prepare a community report Fitzroy Legal Service: $3,000 on the Australian Research To investigate the feasibility of Alternative Law Journal: Court Network: $2,750 Council evaluation of the developing an online version of $3,000 To develop an accessible website Street Sex Worker Court Fitzroy Legal Service’s popular To upgrade the Journal website for the organisation. Attendance Program. Law Handbook. to improve accessibility. ANNUAL REPORT FOUNDATION LAW VICTORIA Left: A panel from the Wigs and Gowns display, shown in the Supreme Court Library during Law Week.

Right: Students participated in the ‘Race around the Legal Precinct’ during Law Week.

Collective of Self-Help Melbourne Magistrates' Small Grants Project Grants Groups: $13,200 Court: $30,000 continued 2004–05 To research and develop a To fund a one-year pilot position practical guide for small groups of Community Education Victorian Deaf Society: $420 Children's Court of Victoria: wishing to obtain Deductible Gift Coordinator within the $12,000 Recipient status from the Tax Magistrates' Court, to facilitate To produce cards for deaf people This project builds on previous Office, as part of the Community education and outreach activities to carry providing information Foundation-funded research on Sector Handbook (see below). by the 'People's Court'. about their case worker and improving the case-flow interpreter options. management of infants brought Federation of Community Victorian Bar: $25,000 Legal Centres: $10,000 To provide establishment funds Communications Law to court under Care and For auditing and archiving files for a trust fund assisting Centre: $3,000 Protection Applications. Dr Jeanette Lawrence, a senior for a major history project. Indigenous law graduates to To develop an information kit academic at the University of pursue a career at the Bar. outlining the current law on Melbourne, is the principal Supreme Court Library: child pornography. researcher for this pioneering $16,500 To increase the corpus of funds Mental Health Legal Centre: Australian study. supporting the award of an annual PILOT ADMINISTRATION $3,000 Greg Taylor, Monash prize to the top law student in PROJECT To conduct focus groups and University: $9,000 each Victorian university. interviews with people with Inner South Community To research and publish a book on psychiatric disorders who have Health Service and the Victorian Constitution for the Law Institute of Victoria: had contact with the criminal Southport CLC: $25,000 150th anniversary of responsible $100,000 justice system to inform law government in this state. To conduct a major review of the People with mental disabilities reform, especially the review Supreme Court's scale of costs in often face the prospect of of the Mental Health Act. Victorian Law Reform response to concerns that the having state-level financial and Commission: $15,000 current scale is out of date. legal administrators appointed Law Students for a Just for them. This one-year project To produce a booklet for VCE Community Network: will provide the first local students providing information Victorian Council of Social $3,000 administration program in on the role of the VLRC in law Services: $20,900 To develop a handbook for the Victoria. The community-based reform, using the Commission's To develop the Community Sector group's conference, providing program will enable more work on defences to homicide Handbook, a suite of manuals for information on speakers, personalised support for each as a case study. small community organisations, relevant resources, and contact providing basic information on client, providing regular close 6 details of community and PILCH & Liberty Victoria: issues such as governance, contact with a known and legal organisations. $10,000 incorporation, and financial trusted local administrator. Strong consideration will Funding for further development management. PILCH Homeless Persons' be given to the represented of the concept of a human rights Legal Clinic: $3,000 person's wishes, with ongoing legal clinic. Arts Law Centre of To conduct and write-up Inc: $5,000 review of their capacity to self- workshops with people To provide written resources administer their own affairs. experiencing, or at risk of, supporting various Arts Law Week homelessness, to be used as Should this worthwhile project activities held in Melbourne during prove successful, it may provide the basis for a submission Law Week 2005. to the Human Rights a viable alternative to administration through the

VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA Consultation Committee. State Trustees. DETENTION REMEMBERED VALUING VOLUNTEERS TAKE CONTROL - THE ROLE OF JUDGES IN TRAINING KIT WILLS AND POWER SENTENCING Spare Lawyers for Refugees: OF ATTORNEY $19,395 Peninsula Community Judicial Conference of Office of the Public The Foundation is supporting Legal Centre: $26,860 Australia: $16,500 Advocate: $46,464 advocacy group Spare Lawyers Launched in June at the The lack of public confidence ‘There is a lack of uptake of for Refugees in a project Foundation's offices by The in sentencing is a widely power of attorney amongst creating a comprehensive Honourable Jenny Mikakos MP, acknowledged problem within Victorians,' says OPA Project record of the legal and human Parliamentary Secretary for the legal sector. The courts Manager Jeremy Miller. Only legacy of Australia's mandatory Justice, the kit includes four face a popular media which ten per cent of Victorians have detention policy. Detention modules for effective and commonly misinterprets appointed attorneys, despite Remembered will involve the consistent training of sentencing, subjecting judges evidence of public concern and collation of interviews with community legal centre to criticism that often reflects interest in the area. lawyers, former and present volunteers across the state. a poor understanding of the detainees, visitors, detention sentencing process. The kit not only consolidates The core of this kit is a video, centre staff and counsellors to the Service Standards Manual with supporting documentation, Acting as a counterpoint to form an extensive oral history for the Community Legal which will allow specially melodramatic media coverage, of the impact of the nation's Centre Program, but also trained volunteers drawn from the Judicial Conference immigration laws. provides the basis for TAFE the membership of service of Australia plans to produce Transcribed in full, the filmed accreditation for volunteers clubs, such as Rotary, to bring a booklet dispelling some interviews will include legal who complete the program. the information directly to the common myths about professionals' experiences with community. 'We see the kit as sentencing. Written by a the Refugee Review Tribunal a tool that empowers people committee with extensive and the appeals process, their BRINGING LAW TO THE to have a say as to who can sentencing experience, the dealings with the detention COMMUNITY make decisions for them,' booklet is aimed at achieving centres and their views on the Miller says. The kit is due greater awareness and Migrant Resource Centre: need for future law reform. for release in early 2006. understanding of the nuances $34,700 The films and transcripts will of sentencing in Australia. then be available to lawyers, Since 1999, over 7,000 people students, academics, artists from the Horn of Africa region and the public. have arrived in Australia. Accustomed to very different legal institutions, many struggle to understand the Victorian justice system. 7 With Foundation funding, the Migrant Resource Centre (MRC) plans to produce a DVD in four African languages to orient people from these communities to the system. The aim is to reach people who may otherwise face significant language barriers when accessing information about Australian society. ANNUAL REPORT FOUNDATION LAW VICTORIA ACCESS TO JUSTICE

Law Week by The Foundation itself Highlights of the week included: coordinates projects that • the launch of the Legal Precinct Map the Numbers do not lend themselves to funding by the Attorney-General, The Events held: 100+ through the Grants Program Honourable Rob Hulls MP; because of their complexity. Participating organisations: 80+ • the Great Law Week Debate by We devote resources to project- Monash University at the National Estimated number of participants: managing activities which have Gallery of Victoria; 10,000 the potential to significantly • the humorous VCAT reworking of the enhance people's understanding famous snail-in-a-bottle case, of and access to legal information. Donoghue v Stevenson, as a mediation; • the Women and the Law Breakfast with Judge Jennifer Coate, Elaine Law Week 2005 Canty, Robin Bowles and Debbie Law Week is an annual event designed Kilroy, convened by the Law Students' to promote greater community Societies of Deakin, Melbourne, understanding of the law, the legal system Monash and Victoria Universities; and the legal profession. In collaboration • the inaugural Law Week Oration with the Law Institute of Victoria, we delivered by Professor Tim McCormack, again coordinated over 100 activities Foundation Australian Red Cross across the state, run by a range of Professor of International Humanitarian organisations including courts, Law and Founding Director of the community legal centres, government Asia Pacific Centre for Military Law, agencies, advocacy groups, schools, in conjunction with the University law firms and libraries. of Melbourne and the Criminal Bar Association; 'Excellent, entertaining • the very first Arts Law Week, featuring and most informative - 20 events linking the legal and the arts communities, coordinated by the Arts thank you.' Law Centre of Australia; - participant, Supreme Court Tour • the ‘For Schools' program, which included Schools Television satellite 8 broadcasts across the state, careers information sessions, the Process of Law Reform film and lecture presented by the Victorian Law Reform Commission, and a film competition and scavenger hunt ‘Race around the Legal Precinct'; • You be the Judge, an interactive hypothetical on culpable driving, conducted by Professor Arie

VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA Freiberg, Chair of the Sentencing Advisory Council; Left: Spruikers in legal attire told politically correct lawyer jokes and distributed Law Week programs at train stations around the city.

Right: The City of Melbourne provided sponsorship and was festooned with Law Week banners.

• creative offerings such as the performance by the Legal Women's Pro Bono Secretariat 'The Secretariat provides Choir under the dome in 333 Collins The Pro Bono Secretariat is a networking a valuable network and St, the Court Art Walk conducted by and professional development forum for award-winning court artist Glenda Pro Bono Coordinators in law firms, a place where those Brigham, and the history tours of members of PILCH, and others involved involved in pro bono ‘Beaks, Wigs and Crims' in the Old in the area. Together, the members of the Melbourne Cemetery; and Secretariat develop strategies for the work can share ideas expansion, promotion and improvement • the ever popular Court Tours, with of pro bono services. The Secretariat: and experiences. It this year's participants treated to a moot court at the Children's Court, a • inducts new Pro Bono Coordinators plays an important role tour of the docks at the Magistrates' at law firms; Court and an exhibition on the history in equipping pro bono of wigs and gowns in the Supreme • arranges regular meetings; lawyers with skills and Court Library. • coordinates the monthly pro bono column in the Law Institute Journal; information and helps 'The Foundation provides • makes submissions to relevant in the development of invaluable support in bodies; and a considered approach • runs an annual two-day residential opening up the “People’s Pro Bono Workshop, this year held to the delivery of pro Court” to the public. in Daylesford. bono legal services People travel from far Law@YourLibrary in Victoria.' and wide to see their – Fiona McLeay, Pro Bono Coordinator, The Foundation completed a feasibility Clayton Utz courts. Community study on the introduction to Victoria of the Legal Information Access Centre engagement with law (LIAC) model which has been operating Historic Legal successfully in NSW for over 14 years. and the legal system is In Victoria it will be known as Precinct the cornerstone of a Law@YourLibrary. The scheme offers The National Trust of Victoria has community access to authoritative, now secured the leasehold over part of healthy justice system.' up-to-date, high quality legal information, the former Melbourne Magistrates’ Court 9 – Chief Magistrate Ian L. Gray mediated by trained librarians through and City Watchouse in Russell Street, the network of public libraries located adjacent to the Old Melbourne Gaol. With high attendance levels and coverage throughout the state. There is in-principle Planning for the opening of this major in diverse media including Channel 10 support for a Victorian scheme from Melbourne attraction and community News, ABC Radio National, The Age, significant stakeholders, including public education resource next year is well local newspapers and MX, Law Week libraries, Victoria Legal Aid, the City underway, with the Foundation assisting 2005 reached thousands within the Library, law librarians, and legal in coordinating the design, development Victorian community, reminding people peak bodies. The Foundation is currently and promotion of this creative way of from William Street to Wangaratta that working with the Department of Victorian bringing justice to life for the people the law belongs to everyone. Communities to secure ongoing funding of Victoria. for this major access to justice initiative. VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA Above: Eric Sharkey, a participant in the Farm Succession Planning forum held by Rural Law Online

RLO by the Numbers Rural Law Online • Deakin University • The University of Ballarat Topics covered: 200+ www.rurallaw.org.au • Victorian Farmers Federation Hits: 1 million* Rural Law Online meets the widely acknowledged shortage of legal • Rural Financial Counsellors Independent visits per day: 300 information available to rural and • Department of Primary Industry Overall independent visits: 40,000* regional Victorians. * From January to June, 2005 • Department of Sustainability Launched on radio in May this year and Environment by the Attorney-General, The Honourable Rob Hulls MP, the website provides: • Department of Transport and Regional Services. • free, comprehensive, plain language legal information on 200 subjects Significant contributions were also ranging from firearms control to made by many legal sector organisations, planning permits and relationship including small and large law firms, breakdown; specialist community legal services, the Law Institute of Victoria and Victoria • referrals to legal and other services Legal Aid. The in-kind support provided by locality and area of expertise; and is estimated to be worth at least $90,000.

• interactive forums on hot topics such The Foundation is now working with as farm succession, promoted by media our counterpart Law Foundations in outlets including ABC Radio's Country other states with a view to developing Hour and the country press. this Victorian initiative into a Rural Law Online, project-managed by collaborative national enterprise. an independent contractor, Richard Coverdale, is a successful collaboration between the Foundation and key stakeholder groups, including:

10 VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA PUBLICATIONS

• Publishes legal information resources Publications by 'The publishing forums to meet community needs not catered the Numbers organised by the VLF for by any other organisation. • Promotes rationalisation and Publications currently in print: 27 have provided an coordination of publishing across Free publications: 15 excellent opportunity the legal sector through the professional development Subsidised publications for sale: 12 to learn from experts opportunities and resources Number of items distributed: 195,000 provided by the Foundation's in their field. The recently established Legal Sector sessions are providing Publishers Forum. some great ideas and New Publications an opportunity to discuss Primarily designed for schools, the Legal Precinct Map has secured a much our common concerns. wider audience. There are plans to include it in the induction packs for Well done VLF' new staff at courts and in legal sector – Sam Biondo, Community Development agencies. Officer, Fitzroy Legal Service We have released new editions of two of our most popular titles: the Australian This year we completed a Pro Bono Manual and the Body Corporate comprehensive review of the Manual. This year also saw a new edition Publications Program. Articulating of the Juror's Handbook, a vital resource the rationale for why we publish which is distributed to 400 prospective jurors each week, as well as a new provides an excellent guide to pamphlet and exhibition on legal Wigs deciding what, when and how and Gowns and a Court Art Walk to publish. The Foundation's pamphlet, both for Law Week 2005. publishing program: • Supports our Grants Program. Over Legal Sector one-third of grant applications are for Publishers Forum the provision of legal information. Our 11 in-house publishing capacity improves After the initial meeting in June 2004, the assessment of these applications, the Legal Sector Publishers Forum has and offers expert assistance on all now become a regular event, attracting aspects of publishing to successful an attendance of over 20 staff grant recipients. This helps ensure representing some 15 legal sector the quality of the publications funded agencies. The aim of the forum is to through the public purse. share ideas and experience, and to ensure coherence across the sector, while minimising overlap and inefficiency. VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA SUPPORT FOR BEST PRACTICE

‘Best practice' means a Distinguished Pro Bono This year, we: proven standard of practice • conducted two Evaluation Workshops: that encourages efficient, Service Awards one for project managers, and one for ethical operations. It reflects a Many lawyers volunteer their time and grant managers. Sound evaluative commitment to professionalism, skill to meet the legal needs of the practices ensure accountability, and and while it assists in compliance, community. This year's awards, though, allow both service agencies and acknowledged the commitment of philanthropic bodies to build upon the it goes well beyond that; it is a paralegal staff who also make such a experience and knowledge gained from determination to make the most valuable contribution to the success of the grant; pro bono schemes. At the Conference of your resources, to welcome • assisted the Peninsula Community Legal dinner of the Association of Legal innovation, and to think laterally Centre to deliver their first ‘Valuing Executives, Justice Bernie Teague about your actions. Volunteers' training workshop; presented nine people with certificates We support best practice by modelling of appreciation, acknowledging in some • invited a visiting UK scholar, Lisa it in our own day-to-day operations, cases over 25 years of dedicated Webley, to discuss her research on rewarding excellence where we see it, volunteer service. legal needs at a public seminar held in raising awareness, providing training conjunction with Victoria Legal Aid; and education, and creating opportunities Portia's Breakfast • invited Professor Tim McCormack to to share experience and innovation. give the inaugural Law Week Oration. Tuesday, 1 February, 2005 Professor McCormack spoke to a large Legal Reporting Hosted by the Foundation in conjunction and distinguished audience about with twelve other agencies, Portia's international criminal law institution- Awards Breakfast 2005 was a great success. Over building in the face of political This was the eighth year of this prestigious 300 guests took part in this cross-sectoral, resistance to multilateral prosecution journalism prize, which rewards excellence secular celebration marking the beginning of international crime. in the coverage of legal news by the of the new legal year. Guest speaker was media. The awards are intended to LIV President and Foundation Board Legal Policy encourage high quality legal journalism, member Victoria Strong, who discussed the with the ultimate goal of improving need for more flexible workplace practices Internship Program community understanding of the courts in the legal sector – a particularly relevant The Legal Policy Internship Program and the legal system. Judges this year topic for the largely female audience places talented law students in public included The Honourable Justice Warren, attending this parent-friendly legal sector legal agencies. The interns gain Chief Justice of Victoria and President of networking opportunity. valuable workplace experience, and the 12 Victoria Law Foundation; Ian Henderson, agencies enjoy the benefit of 20 days ABC TV Newsreader; Leigh Henningham, Enhancing Legal and of volunteer labour from highly skilled, Pictorial Editor at The Age; David Jones, enthusiastic workers. The program also retired County Court Judge; and Michael Community Services instills in the students an appreciation Smith, Director of Inside Public Relations. Training and idea-sharing opportunities of public benefit values to inform them are essential for innovation and as they progress through their careers development. With this in mind, the to take on future leadership roles in Foundation undertakes a number of the profession. activities to bring new ideas and practices to the attention of the sector. VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA Internships by THE AGENCY EXPERIENCE Chief Justice's Victoria ‘The Victorian Law Reform Commission the Numbers was one of the first agencies to participate Law Foundation Medal Agencies involved: 12 in the Internship Scheme. Now, we for Excellence and couldn't do without the regular injection Students placed: 30 of talented students to assist us with our Community Service work. Their assistance is so important Days worked: 600 For the second year, the Chief Justice's that we invariably keep them on as Victoria Law Foundation Medal for Estimated value of labour: $100,000 casual staff to complete projects. Through Excellence and Community Service has the Foundation, we now have an efficient been awarded to a graduating law student and fair way of providing law students with a strong academic record and a with a taste of law reform work.' demonstrated commitment to community – Padma Raman, Chief Executive Officer, service. The aim is to recognise, reward Victorian Law Reform Commission and encourage a strong pro bono ethos amongst law students, to carry with them throughout their careers.

THE INTERNSHIP EXPERIENCE The recipient of the 2005 Medal was Melbourne University student Kristen ‘From the outset I felt privileged to be Smith. As well as achieving excellent involved in the Victoria Law Foundation's results, Kristen has made an outstanding Legal Policy Internship Program. The contribution to the community through Foundation takes special care to match her role as the volunteer National every intern to a suitable organisation, Coordinator of Spare Lawyers for and I was placed with the Victorian Refugees. Spare Lawyers were also chosen Council for Social Services, a community by Kristen and the selection committee to advocacy group that is the peak body of receive the $500 honorarium which the social services sector. accompanies the award. Top left: Portia's Breakfast in Hardware Lane. My work involved drafting submissions

Top right: Professor Marcia Neave AO with the on domestic violence, homelessness and five Legal Policy Internship students placed at housing for inclusion in VCOSS's 2005-06 the Victorian Law Reform Commission. Budget Submission; preparing grant Above: Louis Schetzer, Department of Justice, applications; and writing submissions with visiting fellow Lisa Webley from the for reform in the area of penalty 13 University of Westminster and Mary Anne infringements. I consulted a number Noone, Victoria Legal Aid Board Member. of people in the community sector and gained an understanding of how important these support structures are within Victoria. For law students, the internship program is a chance to broaden your horizons beyond the world of the courts and corporate clerkships, to get some real experience with public policy organisations and to see the way the law impacts on people's everyday lives.' ANNUAL REPORT FOUNDATION LAW VICTORIA – Dan McCluskey, student 14 VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA FINANCIAL STATEMENTS CONTENTS

16 Independent Audit Report 17 Auditor’s Independence Declaration 18 Statement of Financial Performance 19 Statement of Financial Position 20 Statement of Cash Flows 21 Notes to the Financial Statements

15 VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA INDEPENDENT AUDIT REPORT TO THE MEMBERS OF VICTORIA LAW FOUNDATION

SCOPE We have audited the financial report of Victoria Law Foundation for the financial year ended 30 June 2005 comprising the Foundation Members' Declaration, Statement of Financial Performance, Statement of Financial Position, Statement of Cash Flows and notes to the financial statements. The Foundation's members are responsible for the financial report. We have conducted an independent audit of this financial report in order to express an opinion on it to the members of the Foundation. Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance whether the financial report is free of material misstatement. Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial report, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial report is presented fairly in accordance with Accounting Standards and other mandatory professional reporting requirements in Australia so as to present a view which is consistent with our understanding of the Foundation's financial position and performance as represented by the results of their operations and their cash flows. The audit opinion expressed in this report has been formed on the above basis.

AUDIT OPINION In our opinion, the financial report of Victoria Law Foundation presents fairly in accordance with applicable Australian Accounting standards and other mandatory professional reporting requirements, the financial position of the Foundation as at 30 June 2005 and the results of its operations and its cash flows for the year ending on that date.

PITCHER PARTNERS

P A JOSE Partner 5 October 2005 Melbourne

16 VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA AUDITOR’S INDEPENDENCE DECLARATION

TO THE DIRECTORS OF VICTORIA LAW FOUNDATION

In relation to the independent audit for the year ended 30 June 2005, to the best of my knowledge and belief there have been: (i) No contraventions of the auditor independence requirements of the Corporations Act 2001 (ii) No contraventions of any applicable code of professional conduct

PITCHER PARTNERS

P A JOSE Partner 5 October 2005 Melbourne

17 VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2005

Notes 2005 2004 $$

Revenue from ordinary activities 2 1,619,300 1,409,953 Sales revenue 2 69,851 76,289 Gross proceeds from sale of investments 2 1,294,761 - 2,983,912 1,486,242 Employment costs expenses (606,643) (540,153) Program expenditure (559,502) (438,295) Occupancy expenses (58,270) (74,800) Administrative expenses (147,967) (182,858) Carrying value of investments sold (746,242) - Other expenses from ordinary activities (14,975) (12,486) (2,133,599) (1,248,592) Surplus/(deficit) from ordinary activities 850,313 189,019

18 VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA

The accompanying notes form part of these financial statements STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2005

Notes 2005 2004 $$

CURRENT ASSETS Cash assets 4 1,124,840 2,242,805 Receivables 5 112,241 31,605 Other 6 3,700 2,037 TOTAL CURRENT ASSETS 1,240,781 2,276,447

NON CURRENT ASSETS Other financial assets 7 2,694,341 708,209 Property, plant and equipment 8 56,241 52,790 TOTAL NON CURRENT ASSETS 2,750,582 760,999 TOTAL ASSETS 3,991,363 3,037,446

CURRENT LIABILITIES Payables 9 38,684 37,685 Provisions 10 620,564 425,982 Other 11 77,231 168,314 TOTAL CURRENT LIABILITIES 736,479 631,981

NON CURRENT LIABILITIES Provisions 10 - 894 TOTAL NON CURRENT LIABILITIES - 894 TOTAL LIABILITIES 736,479 632,875 NET ASSETS 3,254,884 2,404,571 19 EQUITY Accumulated funds 3,254,884 2,404,571 TOTAL EQUITY 12 3,254,884 2,404,571 Tied funding commitments 19 VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA

The accompanying notes form part of these financial statements STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2005

Notes 2005 2004 $$

CASH FLOW FROM OPERATING ACTIVITIES Approved Grants and Projects (389,641) (267,447) Funding from the Public Purpose Fund 1,358,640 1,255,400 Payments to suppliers and employees (888,536) (923,972) Dividends and distributions received 60,114 34,454 Interest received 100,731 121,165 Sale of goods 68,782 92,240 Sponsorship and project income 7,302 37,249 Sundry income 365 18,436 Recoupment of imputation credits received 18,270 48,631 Net cash provided by operating activities 14 (b) 336,027 416,156

CASH FLOW FROM INVESTING ACTIVITIES Proceeds from sale of investments 1,294,761 - Payment for property, plant and equipment (16,378) (41,432) Payment for shares and managed funds acquisitions (2,732,376) - Net cash used in investing activities (1,453,993) (41,432)

Net increase/(decrease) in cash held (1,117,966) 374,724 Cash at beginning of financial year 2,242,806 1,868,082 Cash at end of financial year 14 (a) 1,124,840 2,242,806

20 VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA

The accompanying notes form part of these financial statements NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

NOTE 1: STATEMENT OF SIGNIFICANT The depreciation rates used for each class of assets are: ACCOUNTING POLICIES The financial report is a general purpose Class of fixed asset Depreciation rates Depreciation basis financial report that has been prepared in Leasehold improvements 2.5 % Straight Line accordance with Accounting Standards, Urgent Issues Group Consensus Views and Library 5 % Straight Line other authoritative pronouncements of the Office furniture and equipment 1.2 % to 40 % Straight Line Australian Accounting Standards Board. The financial report is for the entity Victoria Law Foundation as an individual entity. (b) Investments Part of this funding relates to specific Victoria Law Foundation is a body tied projects. This type of funding is corporate pursuant to the Victoria Non current investments are measured recorded as income received in advance, Law Foundation Act. on the cost basis. The carrying amount of investments is reviewed annually by which represents the amount of funds The financial report has been prepared on directors' to ensure it is not in excess of that have not been expended as at 30 an accruals basis and is based on historical the recoverable amount of these June 2005 for specific tied projects. The costs. It does not take into account investments. The recoverable amount is deferred income shown in the accounts changing money values or, except where assessed from the quoted market value for specific tied projects will be brought stated, current valuations of non current for shares in listed companies or the to account as the funding is expended. assets. Cost is based on the fair value of the underlying net assets for other non Dividend revenue is recognised when consideration given in exchange for assets. listed corporations. The expected net the dividend has been received. The following is a summary of the material cash flows from investments have not Managed fund distributions are accounting policies adopted by the company been discounted to their present value recognised on an entitlements basis. in the preparation of the financial report. in determining the recoverable Interest revenue is recognised when it The accounting policies have been amounts. becomes receivable on a proportional consistently applied, unless otherwise stated. (c) Employee Benefits basis taking in to account the interest (a) Plant and Equipment Provision is made for the company's rates applicable to the financial assets. Each class of property, plant and liability for employee benefits arising Other revenue is recognised when the equipment is carried at cost or fair from services rendered by employees to right to receive the revenue has been value less, where applicable, any balance date. Employee benefits established. accumulated depreciation. expected to be settled within one year together with benefits arising from All revenue is stated net of the amount Plant and equipment wages and salaries, annual leave and of goods and services tax (GST). Plant and equipment is measured on sick leave which will be settled after the cost basis. one year, have been measured at their (f) Grants nominal amount. Other employee The Foundation brings to account as a The carrying amount of plant and benefits payable later than one year provision all amounts approved under equipment is reviewed annually by have been measured at the present the Foundation's Grants Program. directors to ensure it is not in excess of value of the estimated future cash Recognition of the provision occurs the recoverable amount from those outflows to be made for those benefits. when formal approval of a grant is assets. The recoverable amount is given by the Foundation and an assessed on the basis of the expected Contributions are made by the company 'Acceptance of Conditions of Grant' is net cash flows which will be received to an employee superannuation fund signed by the Grant recipient. from the assets employment and and are charged as expenses when subsequent disposal. The expected net incurred. (g) Tax exempt status cash flows have not been discounted to The Victoria Law Foundation is exempt present values in determining (d) Comparative Figures for income tax purposes. recoverable amounts. Where required by Accounting Standards comparative figures have 21 Depreciation been adjusted to conform with changes The depreciable amount of all fixed in presentation for the current financial assets including buildings and year. capitalised leased assets, but excluding freehold land, are depreciated over their (e) Revenue estimated useful lives to the company Revenue from sale of goods is commencing from the time the asset is recognised upon the delivery of goods held ready for use. to customers. Leasehold improvements are Funding revenue received from the depreciated over the shorter of either Public Purpose Fund is brought to the unexpired period of the lease or the ANNUAL REPORT FOUNDATION LAW VICTORIA account in the year to which it relates. estimated useful lives of the improvements. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

Notes 2005 2004 $$

NOTE 2: REVENUE Operating activities - Public Purpose Fund 1,358,640 1,087,086 - sale of goods 69,851 76,289 - interest 107,181 121,165 - managed funds distributions 94,856 - - dividends 32,686 48,755 - imputation credits refund 18,270 48,631 - sponsorship and project income 7,302 37,249 - other revenue 365 18,436 1,689,151 1,437,611 - gross proceeds from sale of investments 1,294,761 - Total Revenue 2,983,912 1,437,611

NOTE 3: PROFIT FROM ORDINARY ACTIVITIES Profit / (losses) from ordinary activities before income tax expenses (income tax revenue) has been determined after: Expenses: Depreciation of non-current assets - Plant and equipment 12,928 8,329 Bad debts - other entities 95 96 Remuneration of the auditors for: - audit services 12,675 8,000 - other services 2,400 4,950 15,075 12,950 Revenue and Net Gains: Net gain on disposal of non-current assets - investments 548,519 -

NOTE 4: CASH ASSETS Cash on hand 148 145 Cash at bank 11,153 105,198 22 Cash on deposit 1,113,539 2,137,462 1,124,840 2,242,805

NOTE 5: RECEIVABLES CURRENT Trade debtors 13,726 12,753 Interest income entitlement 7,079 630 Trust income entitlement 67,428 - VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA GST receivable 24,008 18,222 112,241 31,605 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

Notes 2005 2004 $$

NOTE 6: OTHER ASSETS CURRENT Prepayments 3,700 2,037

NOTE 7: OTHER FINANCIAL ASSETS NON-CURRENT Shares in listed corporations - at cost 7 (a) 179,794 708,209 Managed funds - at cost 7 (a) 2,514,547 - 2,694,341 708,209 (a) Market value of financial assets in listed corporations - shares in listed corporations 181,381 1,036,546 - managed funds investments 2,477,866 - 2,659,247 1,036,546

NOTE 8: PLANT AND EQUIPMENT Leasehold Improvements At cost 7,024 4,524 Less accumulated depreciation (182) (28) 6,842 4,496 Plant and Equipment Library At cost 3,150 3,150 Less accumulated depreciation (1,804) (1,646) 1,346 1,504 Office furniture and equipment At cost 111,835 99,138 Less accumulated depreciation (63,782) (52,348) 48,053 46,790 Total plant and equipment 49,399 48,294 Total property, plant and equipment 56,241 52,790 23

(a) Additional Information Library The cost of purchases which represent long term holdings of the library are capitalised and subsequently depreciated. Expenditure on library materials of a short term reference nature are expensed in the year of purchase.

(b) Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year ANNUAL REPORT FOUNDATION LAW VICTORIA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

Notes 2005 2004 $$

NOTE 8: PLANT AND EQUIPMENT (continued) Leasehold Library Office Total improvements equipment $$$$ 2005 Balance at the beginning of the year 4,496 1,504 46,790 52,790 Additions 2,500 - 13,878 16,378 Depreciation expense (155) (158) (12,615) (12,928) Carrying amount at end of year 6,841 1,346 48,053 56,240

NOTE 9: PAYABLES CURRENT Unsecured liabilities Trade creditors 2,557 10,231 Sundry creditors and accruals 36,127 27,454 38,684 37,685 NOTE 10: PROVISIONS CURRENT Provision for annual leave 35,481 22,148 Provision for approved Grants 585,083 403,834 620,564 425,982 NON-CURRENT Provision for long service leave (a) - 894 - 894

(a) Aggregate employee benefits liability 35,481 23,042 (b) Number of employees at year end (2005: 6.8 full time employees) 9 8

NOTE 11: OTHER LIABILITIES CURRENT Deferred grant income 77,231 168,314

24 NOTE 12: RESERVE AND ACCUMULATED FUNDS Accumulated funds brought forward from the previous year 2,404,571 2,215,552 Surplus/(deficit) for the year 850,313 189,019 Accumulated funds at the end of the year 3,254,884 2,404,571

NOTE 13: SEGMENT REPORTING The foundation operates in the legal industry, predominantly in Australia. VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

Notes 2005 2004 $$

NOTE 14: CASH FLOW INFORMATION (a) Reconciliation of cash For the purposes of the statement of cash flows, cash includes cash on hand and at call deposits with banks or financial institutions, investments in money market instruments maturing within less than two months and net of bank overdrafts. Cash at the end of the financial year as shown in the statements of cash flows is reconciled to the related items in the statement of financial position as follows: Cash on hand 148 145 Cash at bank 11,153 105,198 At call deposits with financial institutions 1,113,539 2,137,462 1,124,840 2,242,805

(b) Reconciliation of cash flow from operations with profit from ordinary activities after income tax Profit from ordinary activities after income tax 850,313 189,019 Non-cash flows in profit from ordinary activities Depreciation 12,926 8,329 Net (gain) / loss on disposal of property, plant and equipment - 4,994 Net (gain) / loss on disposal of investments (548,519) - Dividends not received in cash - (14,301) Changes in assets and liabilities (Increase)/decrease in receivables (80,636) 14,010 Increase in other assets (1,663) - Increase/(decrease) in payables 999 (57,189) Increase/(decrease) in provisions 102,606 271,295 Cash flows from operations 336,026 416,157

25 VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

NOTE 15: FINANCIAL INSTRUMENTS (a) Financial Instruments (i) Derivative Financial Instruments Derivative financial instruments are not used by the Foundation.

(b) Interest rate risk The company's exposure to interest rate risk, which is the risk that a financial instrument's value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on classes of financial assets and financial liabilities, is as follows:

Floating Fixed Non-interest Total carrying Weighted Financial Instruments interest rate interest rate bearing amount average maturing in: as per the effective 1 year or less balance sheet interest rate 2005 $$$$% (i) Financial assets Cash 611,524 - - 611,524 4.4 Trade and other receivables - - 112,241 112,241 - Short term deposits - 513,316 - 513,316 4.2 Listed shares - - 179,794 179,794 - Listed units - - 2,514,547 2,514,547 - Total financial assets 611,524 513,316 2,806,582 3,931,422

2005 (ii) Financial liabilities Trade creditors - - 2,557 2,557 - Deferred income - - 77,231 77,231 - Total financial liabilities - - 79,788 79,788

2004 (iii) Financial assets Cash 105,343 - - 105,343 1.3 Trade and other receivables - - 31,604 31,604 - Short term deposits - 2,137,462 - 2,137,462 5.4 Listed shares - - 708,209 708,209 - Total financial assets 105,343 2,137,462 739,813 2,982,618 26 2004 (iv) Financial liabilities Trade creditors - - 10,231 10,231 - Other creditors - - 171 171 - Deferred income - - 168,314 168,314 - Total financial liabilities - - 178,716 178,716 VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

NOTE 15: FINANCIAL INSTRUMENTS (continued) (c) Credit Risk The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets is the carrying amount of those assets, net of any provisions for doubtful debts, as disclosed in the statement of financial position and notes to the financial statements. The company does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the company.

(d) Net Fair Values The net fair value of financial assets and financial liabilities approximates their carrying values as disclosed in the statement of financial position and notes to the financial statements.

Notes 2005 2004 $$

NOTE 16: EXPENDITURE COMMITMENTS Operating lease commitments Due not later than one year 69,582 64,839 Due later than one year and not later than five years 144,871 223,003 214,453 287,842

NOTE 17: THE IMPACTS OF ADOPTING AUSTRALIAN EQUIVALENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) The entity has evaluated the key differences in accounting policies that are expected to arise from adopting AIFRSs and the key differences in accounting policies that are expected to arise from adopting AIFRS are detailed below. The transition date for first-time adoption of AIFRS is 1 July 2004.

(i) Impairment of Assets The recoverable amount test under Australian GAAP will be replaced by impairment testing, whereby the recoverable amount is determined as the higher of fair value less costs to sell and value in use. Value in use incorporates the use of discounted cash flows. The entity does not anticipate any write-downs for impairment of non-current assets on first-time adoption of AIFRS, nor in the year to 30 June 2005.

(ii) Revenue Under AIRFS, gains or losses on the disposal of investments are to be recognised on a net basis as income or expenses, rather than the current requirement to separately recognise the consideration received as revenue.

NOTE 18: FOUNDATION DETAILS: The registered office of the Foundation is: Victoria Law Foundation Level 5 27 43 Hardware Lane Melbourne Vic 3000

NOTE 19: TIED FUNDING COMMITMENTS At 30 June 2005 the estimated costs of projects approved by the Foundation, to be incurred in future periods, was $77,231. This expenditure relates to the deferred tied project income received in the current year and prior years which has not yet been expended at 30 June 2005. Refer to note 1 (e). VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

NOTE 20: FOUNDATION BOARD - MEMBERS’ REMUNERATION No remuneration was paid to any member of the Board during the year. The members of the Foundation declare that: 1. The financial statements and notes, as set out on pages 16 to 28: (a) comply with Accounting Standards in Australia and other statutory requirements; and (b) give a true and fair view of the financial position as at 30 June 2005 and performance for the financial year ended on that date of the foundation. 2. In the members' opinion there are reasonable grounds to believe that the Foundation will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the members:

Director

Michael John Hall

Director Kevin Joseph Aloysius Lyons

5 October 2005

28 VICTORIA LAW FOUNDATION ANNUAL REPORT FOUNDATION LAW VICTORIA Victoria Law Foundation Level 5, Hardware House 43 Hardware Lane Melbourne Vic 3000 DX 491 Melbourne Tel (03) 9604 8100 ABN 64 131 425 884 www.victorialaw.org.au