LEGACY AUSTRALIA INCORPORATED 2nd ANNUAL REPORT 2015 - 2016 CONTENTS PAGE CHAIRMAN’S REPORT 2 DIRECTORY 4 ABOUT US 5 BOARD AND COMMITTEES 6 CORPORATE GOVERNANCE STATEMENT 7 NATIONAL PROGRAMS 9 National Governance 9 National Support / Legal Compliance 11 National Advocacy 12 National Programs – Social Support 14 National Programs – Educational Support 15 National Media 16 National Fundraising and Donation Management 18 FINANCIAL STATEMENTS AND STATUTORY REPORTS 20 TREASURER’S REPORT 21 STATEMENT OF COMPREHENSIVE INCOME 24 STATEMENT OF FINANCIAL POSITION 25 STATEMENT OF CHANGES IN EQUITY 26 STATEMENT OF CASH FLOWS 27 NOTES TO THE FINANCIAL STATEMENTS 28 DIRECTORS’ DECLARATION 38 INDEPENDENT AUDITOR’S REPORT 46 WELFARE PATRIOTIC FUND 40 INCOME STATEMENT 41 STATEMENT OF FINANCIAL POSITION 42 NOTES TO THE FINANCIAL STATEMENTS 43 DECLARATION OF THE TRUSTEE 44 INDEPENDENT AUDITOR’S REPORT 45 CHAIRS OF LEGACY AUSTRALIA INCORPORATED 47 1 | P a g e CHAIRMAN’S REPORT In writing this report, I am very conscious that we are only in our second year as Legacy Australia Incorporated. Our first year was very much about governance while our second year has been around bedding in the structure, processes and planning. The year began with the movement from Melbourne and the consolidation of the staff in one office in Sydney. This was achieved with minimum fuss, no real disruption to services and has resulted in us having our first real home rather than being a lodger with one of the clubs. All of this takes time and our staff have shown an enormous capacity for hard work, patience and resilience. The Board has settled into its new home and has developed routines and processes which allows the committees and the Board to work effectively. Several initiatives were trialled this year with mixed results. The first was the use of video conferencing. Facilities were provided for us by our pro bono lawyers DLA Piper. The trial identified that while videoing of Board meetings was viable and very cost efficient, it tended to stifle debate and lacked the intimacy of face to face meetings. The Board also decided to travel out of Sydney for occasional meetings. This is an expensive exercise and the default position will be that Board meetings will be held in Sydney in future. In 2016, 10 meetings were conducted. We will trial having only 7 meetings in 2017 to contain costs. No doubt, the highlight of the year was the Pozieres...Our Legacy 2016 tour. Seventy five young Australians, for all of whom Legacy has or still is providing care and support, enjoyed an educational and at times emotional trip of lifetime to Australian battlefields in Belgium and France. The tour culminated in the group’s attendance at the centenary commemoration of the battle of Pozières. This was the largest undertaking by Legacy for many years and was without doubt a magnificent success. Seventy five young Australians have experience of Australian sacrifice in World War I and have, for themselves identified with the Anzac spirit, the nature of sacrifice and the reason for Legacy’s very existence. Special note should be made of Legatee Charles Wright, former Chair of LAC, for his wonderful vision and his dogged determination to see the project succeed. Planning has already commenced for a much smaller group to walk the Kokoda track in 2017. One of the highlights of this will be the involvement of young Australian Defence Force veterans teaming with our young Australians and walking the Track together. The National Launch of Legacy Week was conducted in Canberra at the Australian War Memorial for the first time this year. Again, this took a great deal of planning and hard work but proved to be a wonderful day. Many guests commented that the Australian War Memorial is the natural place for such a major Legacy activity and planning will commence shortly for the launch in 2017. Special note should be made of the magnificent support provided by Canberra Legacy. 2 | P a g e Sadly, the number of Legacy clubs has dropped to 49 this year. This is a timely wake up call for all of us to begin the process of considering our long term viability. Nationally, Legacy has a long term future. The need for our services, and support will extend well into the future. However, like all these things, the need will not be even across the nation. Some clubs may find themselves in situations where widow, family and Legatee numbers are dwindling rapidly. This is demography at work in our community. The Board of LA Inc has worked hard to provide the clubs with the support they need to carryout Legacy’s mission. The Board has been wonderfully supported by a very small but dedicated team of professional staff. I wish to give thanks to our National Patron, Governor-General, His Excellency General the Honourable Sir Peter Cosgrove AK MC (Retd) who has hosted events for Legacy and has given us wise advice from time to time throughout the year. I must also note the support of our Legacy Ambassadors who have given of their time to promote and support the work that we do. Dr Brendan Nelson from the Australian War Memorial has been most gracious in hosting events and also generous in providing such a wonderful backdrop for our significant and solemn ceremonies. Mr Ben Roberts-Smith VC MG for lending his name and face to many promotional activities and as a Legatee himself, providing support to the families of his mates who did not come home; Major General Stuart Smith, himself a ‘Legacy Boy’ who has taken an active interest in everything we do and is providing leadership in our youth projects; and Ms Leesa Kwok, who keeps us grounded in the reality of families of veterans who have given their health. Thank you to each of you. Legacy could not operate without the generous pro bono support given by professional organisations such as our auditors BDO East Coast Partnership, Lawyers DLA Piper, and Lawyers Norton Rose Fulbright. Thank you for your generous support in 2015-2016. I would also like to thank Thales for not only their financial sponsorship but for their in-kind support across many of the Legacy activities. Finally I would like to thank the members of the Board of LA Inc. As Legatees they give freely of their time to sit on the Board and are still active Legatees within their own Clubs. This is a significant commitment and not something to be taken lightly. I commend this Annual Report to all Legacy clubs. Legatee Tony Ralph Chairman Legacy Australia Inc. 3 | P a g e DIRECTORY FOUNDATION 1 March 2015 PATRON Governor-General, His Excellency General the Honourable Sir Peter Cosgrove AK MC (Retd) CHAIRMAN Tony Ralph VICE-CHAIRMEN Rick Cranna Paul Clancy IMMEDIATE PAST CHAIRMAN David Gray TREASURER Rick Cranna SECRETARY John Bertram CHIEF EXECUTIVE OFFICER Jennifer Walker AUDITORS BDO East Coast Partnership, Melbourne COMMERCIAL BANKERS Commonwealth Banking Corporation Westpac Banking Corporation SOLICITORS DLA Piper Davies Collison Cave Williams Winter Norton Rose Fulbright REGISTERED ADDRESS 293 Swanston Street, Melbourne, Vic 3000 BUSINESS ADDRESS G1/1 Francis Street, Darlinghurst, NSW 2010 POSTAL ADDRESS PO Box 231, Darlinghurst, NSW 1300 TELEPHONE +61 2 8333 0600 FACSIMILE +61 2 8333 0699 EMAIL [email protected] WEBSITE www.legacy.com.au 4 | P a g e ABOUT US OUR VISION Our vision is that no dependant of an Australian Defence Force member suffers financial or social disadvantage as a result of the operational service death or incapacity of the family member. OUR MISSION Legacy Australia strives to ensure social justice for the dependants of incapacitated or fallen military personnel. Social justice is the ability people have to realize their potential in the society where they live. OBJECTS The care of the dependants of those who served their country, namely veterans who gave their lives or health on operational service or subsequently, and Australian Defence Force members who died in service. To provide a caring service, not limited to financial support to the dependants, including by way of personal endeavour by Legatees. To protect the good name and reputation of Legacy. To act as the national co-ordinating body for Legacy Clubs including national representations and/or promotion of Legacy Purposes, Ideals and Interests at a national level. OUR VALUES The first Legacy Club was started in Melbourne in 1923 by Lieutenant-General (later Sir) Stan Savige who espoused: Legacy is greater than any of its members or any of its Clubs. Personal service is the main essential. If a job is worthwhile doing the money will come. All dependants of deceased servicemen regardless of time, place or manner of death are deserving of Legacy aid. Co-ordination is necessary between clubs, but it must be co-ordination, not control; co-operation, not domination. There must be no rewards in Legacy. No member should gain financially or socially from membership. There is no room in Legacy for sectarianism, politics, social distinction or rank. The only court of appeal is an unwritten law of cobbers in the field of battle. 5 | P a g e BOARD AND COMMITTEES as at 30 June 2016 BOARD MEMBERS ROLE AND POWERS Tony Ralph - Chairman The activities of Legacy Australia Inc. (LA o Paul Clancy Inc) shall be managed by or under the o Rick Cranna direction of the Board. o John Bertram o Peter Heeney The Board may exercise all the powers of o Ian Mackenzie LA Inc except those powers that the o Sarnia Birch Constitution or the Act requires to be o Peter Bysouth exercised by General Meetings of the o Peter Jenke Member Clubs of LA Inc.