2018 Annual Report About Stewart House Our Vision Since 1931 the charter of Stewart House has been to change the lives of children We are classified as: in difficult circumstances. • an Affiliated Health Organisation, in We envision that students will leave providing child health screening under Stewart House with a bigger and Schedule 3 of the Health Services Act. broader “toolbox of strategies” to enhance their own health and wellbeing • a public benevolent institution (PBI) with and lay strong foundations for their deductible gift recipient (DGR) status future. We want children who come to for the purposes of advancing health, Stewart House to: social or public welfare and other purpose • have a wide range of rich and beneficial to the community. rewarding experiences • be inspired to see beyond their A school funded and operated by the NSW present circumstances Department of Education is part of Stewart House. • have real hope and positive aspirations Health Services are provided by: • Northern Sydney Local Health District Our Mission • University of NSW School of Optometry We provide for children from NSW • Macquarie University School of Audiology and ACT public schools, a residential • Teachers Health Fund program of up to 12 days duration • Life Education NSW where educational and experiential learning is embedded within a In accordance with our registration with health and wellbeing framework that the ACNC our main activities are: specifically addresses their physical, social and emotional needs. • mental health intervention • primary and secondary intervention Our Strategy • other health service delivery Every year up to 1,700 public school Our main beneficiaries are: children attend Stewart House at no cost to their parents or caregivers. • children - aged 6 to under 15 from public During a twelve day stay they are schools provided with dental, optical, hearing and medical screening and treatment. • Aboriginal and Torres Strait Islander people They participate in educational programs and excursions designed to develop their social and emotional skills, build self-esteem and improve their overall wellbeing. 2 How is Stewart House governed? Stewart House is governed by a Board The number of Directors on the Stewart of Directors. Directors are appointed by House Board can range from a minimum members of the Stewart House Company. of three to a maximum of twelve. Representation on the Stewart House The Board appoints the Chief Executive Board is sought from stakeholders Officer, who is an executive director including NSW Government Departments, accountable to the Board for the delivery NSW Teachers Federation and interested of the Stewart House program. philanthropic individuals. Please refer to our Corporate Governance No income or property of Stewart House statement in this annual report. may be paid or transferred, directly or indirectly to any Company member and no remuneration or other benefits are paid or given by Stewart House to any non- executive Company Directors. Board Committees in 2018 Audit Risk & Compliance Governance & Nominations Program Ken Dixon – Chair Jan McClelland – Chair Tom Croker – Chair Barry Johnson Marilyn Walker Jason Baldwin Marilyn Walker Barry Johnson Barry Johnson Michelle Reincastle Graeme Philpotts Graeme Philpotts Tom Croker Murray O’Donnell Mark Stamopoulos Graeme Philpotts Delphine Annett Murray O’Donnell Tom Osborn Richard Hoskins Simon Hook (co-opted) Pauline Kotselas (co-opted) Neale Waddy (co-opted) BOARD OF Delegation DIRECTORS Accountability CEO Independent Assurance Executive Director Assurance Oversight Delegation Reporting External auditor Accountability Delegation External inspectors COMMITTEES Audit Risk and Compliance Program Executive Leadership Team Governance Chief Operating Officer / Company Secretary Residential Programs Manager Stewart House Student Wellbeing Manager Corporate Governance Framework School Principal 3 BARRY JOHNSON TOM CROKER JAN MCCLELLAND Deputy Chairman Director Chairman Chair, Program Committee Chair, Governance and Nominations KEN DIXON MURRAY O’DONNELL GRAEME PHILPOTTS Director Company Secretary Director Chair, Audit Risk and Compliance Chief Operating Officer Chief Executive Officer MICHELLE REINCASTLE MARK RICE ANTHONY DOMBKINS Director Director Director MARILYN WALKER JASON BALDWIN CHERYL BEST Director Director Director 4 Statement of Good Governance Stewart House is first and foremost a children’s charity servicing public schools across NSW and the ACT since 1931. Stewart House is a Company Limited by Guarantee and this annual report outlines our financial situation for the calendar year ending 31 December 2018. The information in this statement is current as at 31st December 2018 and has been approved by the Board. 2018 AREAS OF FOCUS During the year, the Board and its Committees undertook key governance initiatives. These included: • Reviewing and implementing enhanced processes to comply with newly enacted legislation in Child Safety and Protection. • Implementing updated best practice crisis management frameworks and policies. • Refining site-wide organisational design to support the Board’s belief that the Chief Executive Officer should be accountable to the Board and responsible 24/7 for all aspects of program design, delivery and implementation; for the leadership and management of staff; for the safety, wellbeing and management of the students; for fund-raising and public relations and for organisational management and administration. THE ROLE OF THE BOARD COMPOSITION AND SKILLS SET The Board’s primary role is to oversee As at 31 December 2018, the Board comprised management of the operations of the Company eight independent Non-Executive Directors, the on behalf of the Members and stakeholders CEO/Executive Director and the COO/Company Secretary. The primary responsibilities reserved for the Board in 2018 included the: The names of the Directors and their respective • Review, monitoring and approval of all qualifications, experience and responsibilities are Stewart House strategies set out in the Directors’ Report within this Annual Report. • Management of performance, with specific responsibility for the monitoring of Executive performance and overall conduct Director Independence All Directors are expected to bring an impartial • Evaluation of the principal risks of Stewart judgement to bear on Board decisions and House and continued monitoring of are subject to the Board’s policy regarding appropriate risk management and reporting management of conflicts of interest, as well as systems common law and Corporations Act requirements. • Establishment and monitoring of policies to ensure compliance with the legal and Each year, the Board assesses whether each of regulatory regimes to which Stewart the Non-Executive Directors are independent. House is subject and to ensure the highest In making such an assessment, consideration standards of corporate conduct is given to whether the Non-Executive Director satisfies Stewart House’s criteria for • Promotion of open and proper independence. Those criteria are set out by the communication between Stewart House Board. and stakeholders 5 Statement of Good Governance The Board’s approach to its composition and renewal is determined using the following principles: Executive Independence Director The Board considers that all of its Non-Executive 10% Directors, including the Chairman, were independent during the year and continue to be independent. NED non remunerated 90% Tenure profile The Board balances the length of service of each of its Non-Executive Directors and Board succession 25% 0 - 3 years and renewal planning is managed over the medium 37% to longer term. 4 - 7 years 38% 8 - 11 years Diversity The Board has a diversity objective that includes gender and skill diversity to effectively discharge its responsibilities. 30% Diversity is recognised by the Board as a legal and ethical obligation. The Board is committed to 70% promoting and achieving broader diversity across Stewart House. The following diversity-related measurable objective Male Female supporting gender diversity have been endorsed by the Board: Increase the number of women in the ‘Leadership Group’, comprising the Board, Executive leadership roles and Senior Management Roles The following information is provided about the proportion of women employed by the company and service providers across Stewart House as at 30 December 2018: Executive Leadership Senior Management Staff and Volunteers 6 1 3 6 12 36 6 Statement of Good Governance Skills and experience A relevant blend of skills, expertise and experience to enable it to deal with current and emerging opportunities and issues, and to effectively review and challenge the performance of management. Number of Board Members with Skills Executive leadership Significant experience at a senior executive level Corporate Finance Senior experience in corporate finance Risk management Senior experience in risk management Financial reporting and management Senior experience in financial management, reporting and audit Corporate governance, legal and regulatory Commitment to the highest standards of corporate governance and legal compliance, including experience with an organisation that is subject to rigorous governance and regulatory standards People and Culture Management experience in workforce planning, industrial relations, people management, remuneration policy and large scale organisational change Industry Knowledge Senior experience, oversight of programing in the