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2014 15 Junction Annual Report

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2014 15 Junction Annual Report ANNUAL REPORT14/15 Strengthening Lives and Communities The value of all groups and individuals is actively demonstrated by the way that they are included and enabled to participate in their communities. CONTENTS 2 From Our Chair 4 From Our CEO 6 Our Resource Base 12 Contribute to the Well-being of Children and the Safety and Effectiveness of Families and Relationships 14 Empower and Equip Young People to Live Well in the Community 16 Provide Safe Places for People to Meet, Work, Learn and Play 18 Provide Affordable and Appropriate Places to Call Home 20 Together We 24 Auditor’s Report 25 Summary Financial Statements CONTACT US PO Box 66, Christies Beach SA 5165 T: 08 8392 3000 E: [email protected] junctionaustralia.org.au This Annual Report incorporates the activities of both Junction Australia Ltd ABN 50 167 313 153 and Junction and Women’s Housing Ltd ABN 50 160 344 712 The Board and Management of Junction Aus- tralia have developed a dynamic Strategic Plan which is driving our progress and focusing our efforts toward five strategic goals: • Growth - We have expanded our housing and community services • Impact - We deliver high quality integrated services FROM • People - We attract and retain high performing staff OUR CHAIR • Capability - We are widely recognised as a high quality service provider “2014/15 has been a year • Financial - We have increased the predictability and stability of revenue of considerable achievement streams. for Junction Australia” 2014/15 has been a year of considerable achievement for Junction Australia and this has established a sound platform for the future growth of the organisation. In August 2014 formal notification was received from the Corporate Affairs Commission confirm- 2 Junction Australia Board, from left to right: Rebecca Foster, Mark Hayward, Graham Brown (CEO), Helen Thorne, Mike Canny (Chair), Paul Carberry, Pauline Rooney, Penny Gale, Kathryn Govan, Ann Nelson, Linda Gentilcore. community services. Our successful registration at the highest ‘Tier One’ level under the new National Regulatory System for Community Housing, through our registered community housing provider Junction and Women’s Hous- ing Ltd, will be a catalyst for achieving this. In August 2014 we celebrated 35 years of Strengthening Lives and Communities in South Australia. Together with our extended stakehold- ers, we gathered at Parliament House for a High Tea hosted by Katrine Hildyard MP, on behalf of the Premier. We acknowledged the contribution made by so many to the organisation we know today. The support of our stakeholders and the continued strengthening of these relationships is critical to the organisation’s ongoing success. ing Southern Junction Community Services Inc‘s transition into Junction Australia Ltd. I would like to take this opportunity to thank my Junction Australia’s expansion over the 2014/15 fellow Board Members for their diligence and year means that we now: hard work. Board membership has been stable for the past 12 months and we are seeing the • Work in 33 local government areas across the state benefits of this. • Have 200 staff delivering 32 services Without doubt, the pace of growth and thirst for • Serve more than 6500 South Australians new opportunities is led by our energetic CEO every year Graham Brown. I would like to pay tribute to • Have developed $32 million of new him and his management team for their profes- affordable homes since 2009. sionalism and dedication. Junction Australia is recognised as a leading The staff and volunteers of Junction Australia are provider of integrated affordable housing and the lynchpin of our success. It is their dedication community services in South Australia. and determination, despite the odds, that yield life-changing opportunities for those we serve. The Junction Australia Board believes that On behalf of the Board, I thank them most sin- expanding our housing asset base is a key cerely. mechanism for growing our income stream so that the surplus may be reinvested into the pro- Mike Canny vision of quality housing and, where appropriate, Chair into integration with and expansion of our Junction Australia 3 FROM OUR CEO “We have a proven track record of effective partnerships that have achieved commercial outcomes and created Collaboration is at our core. sustainable value for the With a business head and a social heart we have communities in which a proven track record of effective partnerships that have achieved commercial outcomes and created we work” sustainable value for the communities in which we work. Our strong professional networks allow us to actively draw upon leading practice from across Australia and around the world. Highlights of Junction Australia’s achievements over the past year include: • Moving toward management of 1,700 homes and more than $370 million in assets • Additional community development programs Sue Phillips, GM Community Services with Karen Craggs, Family Support Worker in Southern Adelaide and on Kangaroo Island with our NAPCAN Award. • Consolidation of several mergers and housing management transfers in our housing services which give us state wide reach and impact • Launch of Hoarding and Squalor: A South Australian Service and Support Guide. This online toolkit assists the general public and service professionals to navigate their way through local services and provides guidance and strategies to use when dealing with instances of hoarding and/or squalor. This initiative has attracted international attention • Winning the State ‘Play your Part’ Award from the National Association of Prevention of Child Abuse and Neglect (NAPCAN) for our early intervention program Point of Engagement (PoE). A recent analysis of this 4 JA Leadership team members Scott Langford, John Smith, Graham Brown, Michael Hynes and Sue Phillips with Dr Robyn Layton AO QC, Junction Australia Patron. program demonstrated a net positive social As we enter our 36th year of operation, our return on investment, with each $1 invested unique services and innovative approaches aim to: creating approximately $2.50 of social and • Contribute to the well-being of children and economic value the safety and effectiveness of families and • Winning the 2015 Australasian Housing relationships Institute SA Award for Leading Asset • Empower and equip young people to live well Management in the community • Holding another successful Annual • Provide safe places for people to meet, work, Conference with the theme ‘A Place for learn and play Everyone’. Our Patron, The Hon Dr Robyn Layton AO QC, provided a stimulating and • Provide affordable and appropriate places to informative keynote address on social call home. inclusion. This address can be found on our website. I thank our Board for their time and expertise, and acknowledge our talented management team, staff and volunteers who continue to make great things happen in Australian lives and communities… every day! Graham Brown Chief Executive Officer Ellen Watson- Maintenance Officer: Kathy Goler-Asset Coordinator; Dean Galanos – Regional Coordinator; Deb Robinson- Manager, Strategic & Asset Services; Sue Tonkin – Maintenance Officer; James Clough – Asset Manager 5 OUR RESOURCE BASE Junction Australia has generated a strong surplus in a year of consolidation. Operating Activities Junction Australia generated 16.4m revenue in 2014/15, an increase of 43% from the previous year. Over the last 5 years, the increase in Operating Revenue is 138%. Social Housing rents have contributed the largest component of the increase this year. The consolidated surplus from Continuous Operations for JA for 2014-15 is $875k. This represents an increase of $357k from 2013-14 (Please note that the 2013-14 Surplus from Continuing Operations has been re-stated from last year’s published results due to a change in Accounting Policy). Junction Australia total expenditure in 2014-15 Providing Safe Places for People to Meet, Work, Learn and Play, 1% Admin, 10% Contributing to the well-being Asset management, 4% of children and the safety and eectiveness of families and relationships, 15% Empowering and Equipping Young People to live well in the Community, 22% Providing Aordable and Appropriate places to call Home, 48% 6 Growth in Housing Assets 2008-2015 Growth in Housing Assets 2008-2015 $200 $200 $180 $180 $160 $160 $140 $140 $120 $120 $100 $100 $80 $MILLIONS $80 $MILLIONS $60 $MILLIONS $60 $40 $40 $20 $20 $ $ 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Growth in Operating Revenue 2008-2016 Growth in Operating Revenue 2008-2016 $25 $25 $20 $20 $15 $15 $10 $MILLIONS $10 $MILLIONS $MILLIONS $5 $5 $ $ 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Growth in Net Assets 2008-2015 Growth in Net Assets 2008-2015 $60 $60 $50 $50 $40 $40 $30 $30 $MILLIONS $20 $MILLIONS $20 $MILLIONS $20 $10 $10 $ $ 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Capital Growth and Activities. with the intent of increasing JA’s control over Whilst Capital Revenue was lower this year relative Debenture properties. It is possible that the to the prior year, the number of properties under resulting changes will trigger a revised accounting management increased by 34% across 2014-15. treatment and the capital value of these properties (approx $116m) will further strengthen JA’s equity The nature of the contractual conditions for position. these properties (Debentures held by SA State Government) preclude them being included on This strong financial outcome increases JA’s JA’s Balance sheet. capacity to raise debt finance into the future and advance the pursuit of JA’s objectives.
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