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Aboriginal Hostels Limited—Report for 2013-14


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For more information about the 2013-14 Annual Report, contact:

Aboriginal Hostels Limited National Office

Level 1 Capital Centre 2-6 Shea Street, Phillip ACT 2606

PO Box 30 Woden ACT 2606

www.ahl.gov.au

Phone: 02 6212 2000 Fax: 02 6212 2022 Email: marketing@ahl.gov.au

© Aboriginal Hostels Limited 2014

With the exception of the Commonwealth Coat of Arms and where otherwise noted, all material presented in this document is provided under a Creative Commons licence.

The details of the relevant licence conditions are available on the Creative Commons website at creativecommons.org/licenses/by/3.0/au/legalcode and creativecommons.org/licenses/by/3.0/au

The document must be attributed as the Aboriginal Hostels Limited Annual Report 2013-14.

ISSN: 0313-2129

Design and layout by Voodoo Creative Editing and indexing by WordsWorth Writing

Printing by Paragon Printers Australasia

This publication may contain images of and references to Aboriginal or Torres Strait Islander people who have passed away.

B���� L��e�, B���� Fu���e�… S�n�� 1973

ABORIGINAL HOSTELS LIMITED

ANNUAL REPORT

2013-2014

ii

AHL Annual Report 2013-2014

HIGHLIGHTS, ACHIEVEMENTS AND CHALLENGES OF 2013-14

Aboriginal Hostels Limited (AHL) reached some impressive milestones in 2013-14: completing our fortieth year of continuous service, and opening and operating innovative and unique accommodation services. At the same time, we faced pressing issues that tested and challenged us.

Services AHL focused on its core business to provide short-term accommodation in an increasingly tighter financial and operating environment in 2013-14. Greater attention was placed on the effectiveness and efficiency of our services, and we reduced our workforce, while we continued to focus on providing accommodation services that assist in creating educational and economic opportunity, including access to medical services.

Front-line staff, ably supported by the staff of our regional and national offices, continued to serve more than 29 Indigenous communities, delivering accommodation services at 52 sites with a combined capacity of almost 2,000 beds per night, during a period of significant change. The result of this effort was a record high satisfaction level of 98 per cent among residents. Overall bed occupancy increased from 64 to 67 per cent.

Education facilities Indigenous education has been a priority for the Australian Government and for state and territory governments. Much has been reviewed and many recommendations have been made. It is clear that no one model fits all individual or community circumstances. Students may benefit from attending boarding schools far from home; receiving schooling within the home community; or boarding in hub communities, close to home communities.

For many students, the ability to stay at an AHL secondary education accommodation facility increases their school attendance and improves their chances to increase their level of education. AHL operated 12 secondary and tertiary education accommodation facilities, providing up to 300 places for students to attend school outside their home environments in 2013-14. Students were supported in both pastoral and educational aspects of life.

While not all accommodation facilities operate with the same degree of successful retention, AHL is particularly proud of the early success of the Kardu Darrikardu Numida Hostel at Wadeye in the Northern Territory. In its first full year of operation, this state-of-the-art facility supported 31 students, representing an occupancy rate of 78 per cent.

In all its facilities, AHL has a long history of reinforcing its policy that children who stay with AHL for any extended period must attend school.

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Highlights, achievements and challenges of 2013-14

Health facilities AHL provides facilities to support access to appropriate health and medical care, including specialist services such as antenatal care and renal dialysis. As specialised medical services become regionalised, the demand on AHL’s medical facilities grows.

In October 2013, Mrs Natasha Griggs MP, Member for Solomon, opened the Mothers and Bubs facility (Gudang Dalba Hostel) in Darwin, on behalf of Senator the Hon Nigel Scullion, Minister for Indigenous Affairs. This event was more than the naming of a supported accommodation facility: it represented hope and inspiration for the futures of Indigenous children whose first days will be spent in a tranquil and supportive setting.

Operations Safety is one of the pillars of AHL’s promise to residents, and it is equally important to our staff. Recognising that our past performance in some areas of work health and safety has been less than optimal, AHL has been working hard to create and establish more up-to-date and effective work health and safety policies and practices. A new policy and strategy, Which Way, Safe Way, was launched in 2013-14, providing a blueprint of how AHL’s work health and safety should be over the next three to five years. The implementation of the strategy will be driven by our commitment to translating our plans into real, meaningful and demonstrable action.

We also completed much of the groundwork to replace our older information technology (IT) systems with new solutions that will provide the agility and responsiveness required in today’s operating environment. A cost-effective plan was developed for upgrading strategic and operational communications and stabilising the

IT environment. A new intranet and internet platform was established and an IT refresh will begin next year.

Priorities for 2014-15 It is clear that demand for short-term accommodation will continue over the next decade, but not all of AHL’s accommodation facilities are of the right property type, in the right location, or delivering the right type of service focus. While it is a business as usual approach for AHL to assess the performance of its facilities, in 2014-15 we will also focus on strategic divestments and redevelopment projects in key regions. In particular, AHL aims to complete the upgrades of nine accommodation facilities in northern Australia: five in Darwin, two in Katherine, one in Tennant Creek and one on Thursday Island.

The service standards for our suite of accommodation options will be reviewed and re-established, with a strong assurance and compliance programme, to ensure that AHL delivers on its promise to residents and others who pay for the services.

The ability of AHL to generate revenues and restrain its expenditure will continue. At the same time, we will look to harness the efficiencies of our operations where there is scope for economies of scale; for example, in central Australia. The opportunity to look anew at the service reforms that can be gained from AHL’s owned and operated facilities, combined with third-party service arrangements, is a compelling business initiative.

Securing the organisational capability to match AHL’s ambitions will necessarily be at the forefront of our effort in the year ahead. Fully implementing and embedding our Which Way, Safe Way Work Health and Safety Strategy and organisation-wide risk management will be high priorities.

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AHL Annual Report 2013-2014

OUR HIGHLIGHTS AND ACHIEVEMENTS IN 2013-14

ABORIGINAL HOSTELS LIMITED CELEBRATES ITS FORTIETH ANNIVERSARY

AHL celebrated its fortieth anniversary at the annual NAIDOC luncheon held in Canberra on 12 July 2013. Aunty Agnes Shea, local Ngunnawal elder, welcomed more than 700 guests to the lunch and wished AHL a very happy birthday.

AHL CEO Joy Savage told guests that the company had grown from seeds planted during conversations back in 1967 between the then Prime Minister Harold Holt and Dr Charles Perkins. Each guest received a special gift to mark the fortieth birthday milestone: a packet of wildflower seeds to grow to signify ‘AHL Growing Since 1973’.

The guests enjoyed performances from local and interstate acts, including the Belle Flowers, the Wiradjuri Echoes and members of the band Hung Parliament.

The Belle Flowers, a student choir from Queensland’s Aboriginal Centre for the Performing Arts, led by Aunty Ruth Ghee, have been singing and training together for 12 months. The Belle Flowers include Aboriginal language and Torres Strait Islander language songs in their repertoire, and sing in celebration of ‘community, identity and harmony’.

The Wiradjuri Echoes, a Canberra-based dance group, over the past 14 years have established themselves in Indigenous and non-Indigenous communities in and around Canberra, including in rural New South Wales. They strive for equality, a better future for the next generation, and reconciliation.

Singer Ben Slabb and guitarist Drew Mitchell, members of Hung Parliament, entertained the crowd with cover versions of songs from the 1980s and 1990s.

The luncheon concluded with a panel session consisting of former AHL CEO Keith Clarke and former hostel residents Darren Godwell and Robyn Forester. The panel members answered questions about their experience with AHL.

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Our highlights and achievements in 2013-14

The Wiradjuri Echoes.

The Belle Flowers.

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AHL Annual Report 2013-2014

Keith Clarke, former AHL CEO.

Darren Godwell, former hostel resident.

Robyn Forester, former hostel resident.

vii

GIRLS FROM BIALA HOSTEL DANCE TO REMEMBER THE YIRRKALA BARK PETITIONS

A dance group made up of girls from Biala Hostel who attend Mackellar Girls Campus in Sydney performed a dance that told the story of the Yirrkala bark petitions, in recognition of the fiftieth anniversary of the signing of the Yirrkala bark petitions and the national NAIDOC theme ‘We value the vision’. The Yirrkala bark petitions are the first documents bridging Commonwealth law, as it then stood, and the Indigenous laws of the land. These petitions, from the Yolngu people of Yirrkala, were the first traditional documents recognised by the Commonwealth Parliament and documentary recognition of Indigenous people in Australian law.

The Yirrkala bark petitions are kept in the Museum of Australian Democracy at Old Parliament House in Canberra.

Students from Biala Hostel who participated in the NAIDOC assembly at Mackellar Girls Campus.

Our highlights and achievements in 2013-14

viii

AHL Annual Report 2013-2014 CHIEF EXECUTIVE OFFICER SLEEPS OUT TO HELP THE HOMELESS

AHL CEO, Joy Savage, joined top business and community leaders who, together with CEOs from across Australia, raised more than $5 million for the St Vincent de P aul Society’s homelessness services at this year’s CEO Sleepout.

Joy getting ready to brave the cold.

Joy with Dr Ian Watt, Secretary, Department of the Prime Minister and Cabinet.

ix

MINISTER VISITS THE NATIONAL OFFICE

Newly appointed Minister for Indigenous Affairs, Senator Nigel Scullion, visited AHL’s National Office in Canberra in late September 2013. Senator Scullion spent the afternoon speaking with staff, reiterating the government’s commitment to practical solutions to improve the lives of Aboriginal and Torres Strait Islander Australians.

The Minister for Indigenous Affairs, Senator Nigel Scullion, visited AHL’s National Office in late September. Pictured here with AHL CEO Joy Savage.

Senator Nigel Scullion with staff from AHL’s National Office in Canberra.

Our highlights and achievements in 2013-14

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AHL Annual Report 2013-2014

[Type text]

Better Lives, Better Futures…

National Office ï¿» PO Box 30 ï¿» Woden ACT 2606

p 6212 2001 ï¿» f 6212 2022 ï¿» www.ahl.gov.au

[Letter - Arial 12 pt - left & right margins 2cm, once completed, remove italics]

Name Surname Position Organisation Post Box number or address CITY STATE Postcode

Dear Ms (or Mr) Surname

Subject: Xxxxxxxx

Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxx

Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxx

Yours sincerely

Name Surname Position Division dd month yyyy

Letter of transmittal

Senator the Hon Nigel Scullion Minister for Indigenous Affairs PO Box 6100 Senate Parliament House CANBERRA ACT 2600

Dear Minister

I am pleased to present the Aboriginal Hostels Limited (AHL) annual report for 2013-14.

This report was prepared in accordance with section 36 of the Commonwealth Authorities and Companies Act 1997 and Chapter 2M of the Corporations Act 2001, and was approved by a resolution of the AHL Board of Directors on 26 September 2014.

AHL continues to deliver diverse services to Indigenous families, students and people pursuing life opportunities that are not accessible in their home communities. This report covers those activities for the 2013-14 financial year.

On behalf of the Board, I commend this report to you.

Yours sincerely

Kevin Smith Chairperson Aboriginal Hostels Limited 26 September 2014

1

Contents

CONTENTS

1 OVERVIEW 5

1.1 M essage from the Chairperson and the Chief Executive Officer 7

1.2 W ho we are and what we do 9

2 PERFORMANCE 17

2.1 F inancial summary 1 8

2.2 P ortfolio budget statements performance measures 22

2.3 G overnment priorities 26

2.4 O ccupancy rates 31

2.5 R esidents’ satisfaction 36

3 SERVICES 41

3.1 Priorities 43

3.2 E valuation and reviews 50

3.3 C ollaboration 51

3.4 C ommunity consultation 54

4 PEOPLE 57

4.1 Staffing pr ofile 59

4.2 R ecruitment and retention 62

4.3 A wards and recognition 62

4.4 P erformance management 67

4.5 L earning and development 67

4.6 W orkplace relations 67

4.7 Emplo yee survey 67

4.8 W ork health and safety 71

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AHL Annual Report 2013-2014

5 CORPORATE GOVERNANCE 73

5.1 L egal framework 75

5.2 Str ategic planning framework 75

5.3 G overnance committees 76

5.4 B oard of Directors 76

5.5 A ccountability and audit 80

5.6 Ethical standar ds 83

5.7 F reedom of information 83

5.8 E cologically sustainable development 83

5.9 Disabilit y reporting 85

6 FINANCIAL REPORT 87

6.1 Dir ectors’ report 89

6.2 F inancial statements 98

APPENDICES 1 41

Appendix 1: Hostel addresses 142

Appendix 2: Hostel occupancy rates 148

END NOTES 1 51

Abbreviations and acronyms 152

Compliance index 153

Subject index 157

3

FIGURES Figure 1: Organisational structure 11

Figure 2: AHL hostels and offices, by region 13

Figure 3: Operating income by source, 2013-14 (%) 19

Figure 4: Total expenditure by hostel type, 2013-14 (%) 21

Figure 5: Operating expenditure by region, 2013-14 (%) 22

Figure 6: Capital expenditure by region, 2013-14 (%) 22

Figure 7: Outcome and programmes 23

Figure 8: Beds available by region, 2013-14 32

Figure 9: Beds available by locality, 2013-14 32

Figure 10: Beds available by category, 2013-14 32

Figure 11: Resident Survey—Client satisfaction (% of respondents) 37

Figure 12: Resident Survey—Reasons for staying (% of respondents) 37

Figure 13: Resident Survey—Ways of hearing about the hostel (% of respondents) 38 Figure 14: Resident Survey—Is the tariff good value for money? (% of respondents) 38 Figure 15: Australia Day Achievement medallion recipients 63

TABLES Table 1: Services delivered by AHL 9

Table 2: Sources of operating income, 2013-14 18

Table 3: Sources of income, 2010-11 to 2013-14 ($m ) 19

Table 4: Operating expenditure by hostel type, 2013-14 20

Table 5: Capital expenditure by hostel type, 2013-14 20

Table 6: Operating expenditure by region, 2013-14 21

Table 7: Capital expenditure by region, 2013-14 21

Table 8: Performance against portfolio budget statements measures, 2013-14 23 Table 9: Operating income and expenses, 2013-14 ($m) 24

Table 10: Financial comparison, 2010-11 to 2013-14 ($m) 25

Table 11: Achieving government priorities 26

Table 12: Average occupancy rate per night, by programme, 2010-11 to 2013-14 (%) 34 Table 13: C apacity and occupancy, company-operated hostels and houses, 2010-11 to 2013-14 34

Table 14: Capacity and occupancy, community-operated hostels, 2010-11 to 2013-14 35 Table 15: Staff profile at 30 June 2014 by APS level 59

Table 16: Diversity of employees at 30 June (% of total workforce) 59

Table 17: Work health and safety statistics 2013-14 71

Table 18: Board and committee meetings, 2013-14 76

Table 19: Ecologically sustainable development activities 84

Table 20: Board and Audit and Risk Management Committee attendance, 2013-14 97 Table 21: Remuneration of directors and executives, 2013-14 97

Table A1.1: Hostels—Western Australia 142

Table A1.2: Hostels—Top End 143

Table A1.3: Hostels—Queensland 144

Table A1.4: Hostels—South Eastern Australia 145

Table A1.5: Hostels—Southern Central Australia 147

Table A2.1: Occupancy of company medical hostels 148

Table A2.2: Occupancy of company renal hostels 148

Table A2.3: Occupancy of company multipurpose hostels 149

Table A2.4: Occupancy of company secondary education hostels 150

Table A2.5: Occupancy of company tertiary education and training hostels 150

List of figures and tables

1OVERVIEW1.1 Message from the Chairperson and the Chief Executive Officer 71.2 Who we are and what we do 9

Thanks to staff at AHL for their ongoing help and

great service.

Client—South Hedland Hostel, WA

7

1 Overview

OVERVIEW

1.1 M essage from the Chairperson and the Chief Executive Officer The 2013-14 year was as exciting as it was challenging for Aboriginal Hostels Limited (AHL). It was a year that required a high degree of organisation-wide discipline. It was also a rewarding year of progress, creating enhanced knowledge and understanding of our reach and a strong opportunity for policy and programme alignment.

Management and staff continued to strengthen AHL’s delivery systems to make our corporate efforts more sustainable. Rising costs to deliver accommodation services in regional and remote Australia, combined with a continuing demand for short-term accommodation services across the entire network, called for new and more efficient ways to sustainably deliver services and support AHL’s 483 staff members, most of whom are Indigenous, to confidently provide safe, affordable and culturally relevant accommodation support services.

The year’s achievements include:

• introduction of the Which Way, Safe W ay W ork Health and Safety Strategy 2013-2018 and associated projects, which overhauled previous approaches to put in place a work health and safety system customised for AHL’s highly distributed operating model

• review and refresh standard operating procedures and introduce the new Operations Manual, which is progressively being implemented across the AHL network

• implementation of a whole-of -or ganisation approach to performance management, including a refreshed performance management programme for individuals and cascading national, divisional, regional and hostel plans, to ensure ‘line of sight’ between the daily duties of staff and overall strategic goals

• focused attention on maximising the utilisation of accommodation, resulting in an actual increase of 4.7 per cent in bed occupancy and a 77 per cent room utilisation rate for the year

• introduction of a new communications framework to support the core business objectives of maximising occupancy, attracting and retaining staff, maintaining partnerships, and continuing good governance.

The Board and management have been working to be fully in step with changes in our operating environment, including the change in government and policy directions as well as the machinery of government arrangements which saw Indigenous affairs placed, for the first time, at the centre of public administration, within the Department of the Prime Minister and Cabinet.

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AHL Annual Report 2013-2014

The Board reviewed AHL’s business model and took account of the financial and operating imperatives to take the tough decisions needed to ensure AHL’s sustainability. During the early part of 2014, the Board concentrated on delivering AHL’s new strategic directions and plan, to commence from 1 July 2014.

In 2014-15, AHL will continue to fortify its systems and management plans to deliver greater quality of services at the most reasonable of costs to the individual and to government. We will also work to make sure that AHL is operating in the locations of greatest need, with a priority focus on secondary and tertiary accommodation services and operations that directly support the government’s Indigenous Advancement Strategy.

Kevin Smith Chairperson

Joy Savage Chief Executive Officer

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1 Overview

1.2 W ho we are and what we do AHL was established in 1973 as a national network of hostels to provide safe, comfortable, culturally appropriate and affordable accommodation for Indigenous Australians who need to live away from home to access services and economic opportunity.

Today, AHL continues to assist individuals to improve their lives and change their futures. It does so through the efforts of each and every staff member, many of whom have first-hand experience of the difficulties Indigenous Australians face in attaining

independence, self-reliance, education and employment.

AHL is dedicated to working closely with Indigenous Australians and to helping the Australian Government achieve its priorities of getting children to school, getting adults to work and making communities safer.

Services AHL is committed to meeting its clients’ needs: in particular, supporting Indigenous Australians to achieve better economic and social outcomes for themselves and their families. Table 1 provides a summary of AHL’s services.

Table 1: Services delivered by AHL

Client need AHL response

Short-term accommodation

AHL provides short-term accommodation in towns and cities for individuals and families looking for employment or housing or attending to general business and other commitments away from their homes and communities. Some people stay with us until they are able to access long-term accommodation.

Accommodation while accessing secondary or tertiary education and training

AHL provides secondary and tertiary students with accommodation near their educational facilities. AHL encourages students to complete their high school education and tertiary studies.

Accommodation while accessing health services AHL provides accommodation facilities that cater specifically for Indigenous Australians who require access to renal dialysis

treatment or other health services.

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AHL Annual Report 2013-2014

Vision and values AHL’s key vision is to improve the quality of life of Indigenous Australians through the delivery of accommodation and support services that give clients access to education, employment, health and other services. It does this informed by values of:

• communication (listening to representatives from communities and planning with them to achieve quality outcomes for Indigenous Australians)

• access (giving Indigenous Australians access to services to enhance their life quality)

• responsiveness (seeking to understand and respond to Indigenous individual and community needs)

• equity (giving Indigenous Australians a fair and reasonable opportunity to reach life goals)

• efficiency (delivering quality accommodation outcomes at an affordable cost)

• results (seeking the best results for our clients).

Governance Aboriginal Hostels Limited is a company limited by guarantee and incorporated under the Corporations Act 2001. The Australian Government, through the responsible minister, is the sole member of the company.

AHL’s governance framework is consistent with the principles contained in the Australian National Audit Office’s Public Sector Governance: Better Practice Guide. Details of corporate governance in 2013-14 are provided in Section 5 of this annual report.

SAUSAGE SIZZLE IN SHEPPARTON

Taking advantage of a lovely warm, sunny day in September 2013, the staff of Geraldine Briggs Hostel in Shepparton held a sausage sizzle for residents and their families.

Residents from Geraldine Briggs Hostel in Shepparton enjoying a sausage sizzle.

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1 Overview

SOUTHERN CENTRAL AUSTRALIA Fiona Haddon

SOUTH EASTERN AUSTRALIA Royston Prasad

BOARD OF DIRECTORS

Kevin Smith — Chairperson

Vanessa Elliott David Evans Wayne Jackson PSM Hugo Johnston Kerrynne Liddle Gina Smith Pat Watson

REGIONAL MANAGERS

HOSTEL MANAGERS

CHIEF EXECUTIVE OFFICER Joy Savage

DIRECTOR HUMAN RESOURCES Lyn Sharpe

DIRECTOR BUSINESS INTEGRITY UNIT Lorraine Stevens

GENERAL MANAGER BUSINESS DEVELOPMENT Jeff Svigos

CHIEF FINANCIAL OFFICER/ COMPANY SECRETARY Georgina McKenzie

GENERAL MANAGER OPERATIONS Katrina Fanning

DIRECTOR HOSTEL SUPPORT Dale Sutherland

DIRECTOR BUSINESS STRATEGY Vacant

DIRECTOR CORPORATE SERVICES Vrishal Raj

WESTERN AUSTRALIA Tina Pickett

QUEENSLAND Joyce Wallis

TOP END Stacey Lange

Structure Figure 1 sets out the structure of AHL at 30 June 2014.

Figure 1: Organisational structure

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AHL Annual Report 2013-2014

People AHL employs a workforce dedicated to delivering accommodation services, and has a strong track record in workplace diversity. At 30 June 2014, AHL had 483 employees of whom 341 were Indigenous. This equates to 71 per cent of the workforce, the highest level of Indigenous representation in an Australian Public Service agency.

Facilities At 30 June 2014, AHL directly operated and administered 52 hostels and houses, and provided additional grant funding for 29 community-operated hostels. Details of the hostels operated or supported by AHL on 30 June 2014 are provided in the appendices of this annual report.

Our facilities offer safe, secure accommodation where positive behaviour in a social and learning environment is encouraged. In 2013-14, AHL provided

more than 454,000 bed nights of accommodation to people living away from home. It provided three meals a day for clients and assisted them to obtain the support services they needed.

Clients are charged a tariff that is affordable for recipients of Australian Government income support. AHL’s tariff policy aims to provide a dual incentive for AHL to control its costs and lift occupancy while setting rates that are affordable and provide value for money for clients. AHL subsidises the gap between tariff income and the cost of providing the hostel services.

Locations AHL’s service delivery network consists of five regions: Western Australia, Top End, Queensland, South Eastern Australia and Southern Central Australia. Figure 2 shows the distribution of hostels and offices around Australia at 30 June 2014.

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1 Overview

Figure 2: AHL hostels and offices, by region

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AHL Annual Report 2013-2014

TAMWORTH HOSTEL CELEBRATES 10 YEARS OF OPERATION

In celebration of Tamworth Hostel’s tenth anniversary, on 29 May 2014, management and staff of the hostel hosted a barbecue for members of the community and local organisations. Local elder and AHL staff member Aunty Donna Creighton welcomed guests to her country and shared a heartfelt thank you to those joining the celebration.

AHL showcased its facilities and promoted partnerships with local services and organisations by providing access to resident rooms and amenities. This provided an opportunity for organisations that refer clients, and for family members and friends of residents, to experience AHL’s facilities first hand.

Representatives from a number of organisations attended, including from the Salvation Army, the St Vincent de Paul Society, Aboriginal Employment Strategy, TAFE, Cath Lab, Aboriginal Affairs NSW, Centrecare, Tamworth Aboriginal Medical Service and New England Medicare Local.

The Tamworth Aboriginal Medical Service set up a tent and provided free health checks on the day and helped with the catering.

Residents who were staying at the hostel volunteered to help set up and cook the barbecue, sharing a sense of pride and community in supporting AHL.

Amanda Allan, Carmen Chatfield, Sherrie Creighton, Vicki Johnson, Barbara Carter and Donna Creighton are staff members from Tamworth Hostel.

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1 Overview

Tenth anniversary celebrations at Tamworth Hostel.

2PERFORMANCE2.1 Financial summary 182.2 Portfolio budget statements performance measures 222.3 Government priorities 262.4 Occupancy rates 312.5 Residents’ satisfaction 36

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AHL Annual Report 2013-2014

PERFORMANCE

2.1 Financial summary This section provides an overview of AHL’s income and expenditure in 2013-14. Information from the previous three reporting periods is included for comparison.

Income Table 2 and Figure 3 show where AHL’s income came from in 2013-14.

In 2013-14, AHL received 70 per cent of its operating income from the Australian Government, while 24 per cent was

internally generated through the tariff collected from residents. The remaining income was funding received from state and territory governments to operate hostels on behalf of other agencies (4 per cent) and interest earned from investments in term deposits (1 per cent), and returns on the sale of property, plant and equipment (1 per cent). AHL also received capital funding of $4.9 million from the Australian Government to upgrade nine hostels in the Northern Territory and Queensland.

Table 3 shows where AHL’s income came from over the past four financial years.

Table 2: Sources of operating income, 2013-14

$m %

Operating funding

Australian Government General operations and funding received to operate hostels on behalf of other agencies 38.8 70

State and territory governments Funding received to operate hostels on behalf of other agencies 2.1 4

Hostel accommodation Tariff charges

13.6 24

Gain on sale of property, plant and equipment 0.4 1

Interest 0.4 1

Total operating income 55.3 100

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2 Performance

Figure 3: Operating income by source, 2013-14 (%)

Australian Government 70%

State and territory governments 4%

Tariff 24%

Gain on sale of property, plant and equipment 1%

Interest 1%

Table 3: Sources of income, 2010-11 to 2013-14 ($m )

2010-11 2011-12 2012-13 2013-14

Australian Government — Operating Appropriations 38.5 38.5 38.5 38.4

Australian Government —Other Funding Agreements 17.0 8.3 3.8 0.4

State and territory governments

1.0 2.8 2.3 2.1

Hostel accommodation 11.1 11.7 12.8 13.6

Gain on sale of property, plant and equipment 0.1 0.7 3.5 0.4

Interest 1.9 0.9 0.3 0.4

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AHL Annual Report 2013-2014

AHL’s internally generated tariff income has increased each year over the past four years, while the appropriation funding has generally remained unchanged.

The construction funding received in 2010-11 and 2011-12 related to construction of a boarding facility at Wadeye and extension of a medical facility at Katherine, in the Northern T erritory. Both projects have been completed.

The decline in other income since 2012-13 relates to the cessation of AHL’s role in implementing the Indigenous Youth Mobility Programme, in December 2012; a reduction in operating funding received for the Wadeye boarding facility (as there was unspent funding carried forward from the previous year); and fewer properties being divested.

Expenditure Tables 4 and 5 show AHL’s expenses for company-operated and community-operated hostels in 2013-14, and Figure 4 shows the proportion of total operating expenditure for each hostel type.

Table 4: Operating expenditure by hostel type, 2013-14

$m %

Company-operated hostels 55.2 93

Community-operated hostelsa 4.2 7

Total operating expenses 59.4 100

a T otal expenditure on community-operated hostels includes $3.9 million in funding provided to community organisations to operate the hostels and $0.3 million on administering the programme in 2013-14. The total cost to AHL of operating this programme in 2013-14 was $4.2 million.

Table 5: Capital expenditure by hostel type, 2013-14

$m %

Company-operated hostelsa 3.9 100

Community-operated hostels 0.0 0

Total capital expenses 3.9 100

a O f the $4.9 million received as a capital injection from the Australian Government, $0.5 million was expended in 2013-14 and the remainder will be carried over and spent in 2014-15. The balance of $3.4 million spent on capital works was from internal income sources.

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2 Performance

Figure 4: Total expenditure by hostel type, 2013-14 (%)

Company-operated hostels 93%

Community-operated hostels 7%

Tables 6 and 7 and figures 5 and 6 show where AHL’s income was spent in 2013-14.

Table 6: Operating expenditure by region, 2013-14

$m %

Western Australia 6.5 15

Top End 9.6 21

Queensland 10.9 24

South Eastern Australia 7.6 17

Southern Central Australia 10.1 23

Total 44.7 100

Note: National Office administration costs, including IT upgrades and other regional expenditure, are excluded from this table.

Table 7: Capital expenditure by region, 2013-14

$m %

Western Australia 1.4 40

Top End 0.6 16

Queensland 0.6 17

South Eastern Australia 0.5 13

Southern Central Australia 0.5 14

Total 3.6 100

Note: Capital expenditure was funded during the year from internal sources and capital funding provided from government. National Office administration costs, including IT upgrades and other regional expenditure, are excluded from this table.

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AHL Annual Report 2013-2014

Figure 5: Operating expenditure by region, 2013-14 (%)

Western Australia 15%

Top End 21%

Queensland 24%

South Eastern Australia 17%

Southern Central Australia 23%

Figure 6: Capital expenditure by region, 2013-14 (%)

Western Australia 40%

Top End 16%

Queensland 17%

South Eastern Australia 13%

Southern Central Australia 14%

2.2 Portfolio budget statements performance measures

Portfolio budget statements provide a framework for measuring performance against government budget outcomes, including deliverables and key performance indicators for each programme.

For 2013-14, AHL’s performance is assessed against the portfolio budget statements of the former Families, Housing, Community

Services and Indigenous Affairs portfolio. That portfolio was restructured as a result of an administrative arrangements order on 18 September 2013, and budget responsibility for AHL has been transferred to the portfolio of the Prime Minister and Cabinet.

Outcome and programme structure Figure 7 provides a summary of AHL’s programme contributions to Outcome 1.

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2 Performance

Figure 7: Outcome and programmes

Outcome 1

Improved access to education, employment, health and other services for Aboriginal and Torres Strait Islander people travelling or relocating, through the operation of temporary hostel accommodation services.

Programme 1.1

Company Owned and Operated Hostels

Objective

To provide temporary accommodation at company-owned and operated hostels that assist Indigenous Australians who must live

away from home to access services and economic opportunity.

Programme 1.2 Community Operated Hostels

Objective

To provide temporary accommodation at community-operated hostels that assist Indigenous Australians who must live

away from home to access services and economic opportunity.

Performance targets Table 8 shows AHL’s performance against the deliverables and key performance indicators in the 2013-14 portfolio budget statements.

Table 8: Performance against portfolio budget statements measures, 2013-14

Programme 1.1 Programme 1.2

Deliverable

Number of resident bed nights available for use per annum

Target 756,159 266,415

Actuala 454,323 211,700

Key performance indicator

Occupancy level as a percentage of resident bed nights available

Target 70% 70%

Actual 67% 68%

a T he number of company-operated resident beds available in 2013-14 was significantly impacted by the temporary closure of two hostels, closure of beds due to maintenance, and the reconfiguration of bed numbers at some hostels. Overall occupancy of community-operated hostels reduced because four organisations exited the programme during 2013-14, resulting in a decrease of 20 programme-funded beds and 23 total resident beds.

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AHL Annual Report 2013-2014

Operating resources and expenditure Table 9 shows how AHL was resourced and how those funds were spent.

Table 9: Operating income and expenses, 2013-14 ($m)

Budget 2013-14

Actual 2013-14

Variation

Income Operational funding

Ordinary Annual Services—the Department of Prime Minister and Cabinet 38.4 38.4 0

Project funding

From the Australian Governmenta 1.8 0.4 (1.3)

From state and territory governmentsb 2.2 2.1 (0.1)

AHL generated income

Hostel accommodation revenuec 14.5 13.6 (0.8)

Interest and other revenue 0.7 0.8 0.1

Total annual income 57.5 55.3 (2.1)

Expenses Programme 1.1— Company-operated hostelsd

53.0 55.2 2.3

Programme 1.2— Community-operated hostelse

4.5 4.2 (0.3)

Total annual expensesg 57.5 59.4 2.0

Net deficit f 0 (4.1) 4.1

a T he Australian Government provided AHL with $0.4 million, through the former Department of Education, Employment and Workplace Relations and the Department of the Prime Minister and Cabinet, to continue to operate the Wadeye secondary education boarding facility on its behalf; and with $0.1 million, through the Department of Health, for the Tackling Indigenous smoking Programme.

b T his includes funding of $1.6 million from the Northern Territory Department of Housing to operate the Apmere Mwerre Visitor Park and Akangkentye Hostel on its behalf and $0.5 million from the Northern Territory Department of Health to operate the Alyerre hostel on its behalf.

c T he shortfall in the hostel accommodation revenue was largely due to extended closure of rooms undergoing major maintenance and lower than budgeted occupancy levels.

d Expenditur e over budget on company-operated hostels of $2.3 million was due to higher than budgeted expenditure on:

• w orkers compensation premiums

• IT and managemen t consultants to assist with IT and other key business improvements, and unplanned voluntary redundancies, most of which was offset by a net reduction in combined employee and contract labour costs

• planned and unplanned r epairs and maintenance to AHL facilities

• utilit y charges (including gas, water and electricity) predominantly in the Northern Territory, north Queensland and Western Australia

• depr eciation and amortisation charges relating to capitalisation of leasehold improvements, electrical equipment and computers

• fir e safety monitoring due to an increase in the frequency of required response services.

e T otal expenditure on Programme 1.2—community-operated hostels of $4.2 million includes $3.9 million in funding provided to community organisations to operate these hostels and $0.4 million in administration costs. Expenditure on community-operated hostels was $0.4 million under budget because AHL ceased funding four community hostels that no longer met the programme’s funding criteria. Of the total, $0.3 million accounts for defunding and $0.1 million relates to administration savings during the year.

f T he most significant factor influencing AHL’s $4.1 million net deficit was timing loss as a result of payments from third-party contracts of $1.5 million and higher net operating expenditure of $2.6 million.

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Table 10 compares AHL’s finances over the past four financial years.

Table 10: Financial comparison, 2010-11 to 2013-14 ($m)

2010-11 2011-12 2012-13 2013-14

Income and equity funding Operational funding from government 38.5 38.5 38.5 38.4

Australian government equity injection

6.9 0.0 0.0 4.9

Project and operational funding from Australian, state and territory governments 18.0 11.1 6.0 2.5

Hostel accommodation income 11.1 11.7 12.8 13.6

Other income 2.0 1.6 3.8 0.8

Total funding 76.5 62.9 61.1 60.2

Expenses

Grants to community operated hostels under the Community and Corporate Partnerships Programmea 5.5 4.8 4.5 3.9

Employee benefits 26.3 29.6 30.4 29.1

Other company expenses 34.3 41.3 26.1 26.4

Total expenses 66.1 75.7 61.0 59.4

Contributed equity 88.1 88.1 88.1 93.0

Value of property, plant, equipment and software assets owned by AHL 77.2 78.0 141.8 137.7

a T he Community and Corporate Partnerships Programme replaced the Community Hostels Grants Programme in 2011-12. AHL paid a total of $3.9 million in grant funding to community groups to operate hostels under the Community and Corporate Partnerships Programme and spent an additional $0.4 million on administering the programme in 2013-14. The total cost to AHL of operating this programme in 2013-14 was $4.2 million.

AHL has been winding do wn the Community and Corporate Partnerships Programme and stopped funding four community-operated hostels in 2013-14, which explains the $0.6 million reduction in grants provided under this programme during the year.

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AHL Annual Report 2013-2014

2.3 Government priorities For many Indigenous Australians, AHL’s provision of accommodation and associated support is pivotal to being able to access the services that will support them to engage in training and employment and get children

to attend school. AHL continues to strengthen its role in this area by being an active partner with the Australian Government, state and territory governments and business and non-go vernment organisations.

Table 11 identifies how AHL participates in achieving government priorities.

Table 11: Achieving government priorities

Government priority AHL response

Supporting children to go to school All AHL accommodation facilities apply a rule that school-age children must attend school while residing there.

Managers of the facilities support this rule by facilitating access to local schools.

By operating secondary education accommodation facilities, AHL supports high school aged children to access education outside their home communities. Staff support students’ academic and social needs while they stay at the facilities and all children are supported in learning to build independent living skills; for example, most children pack their own lunches, wash their own clothes and clean their own rooms.

Supporting adults to train and enter employment

By using AHL’s accommodation facilities, clients build upon their educational knowledge and life skills while mapping out their career paths and ultimately engaging in employment. For those engaged in seasonal work, AHL facilities around Australia provide quality short- term accommodation.

AHL operates three tertiary education accommodation facilities which provide affordable, stable accommodation to support adults while they complete their studies at universities and vocational education and training facilities.

AHL also supports the employment and economic participation of Indigenous Australians through its employment of more than 300 Indigenous people.

Continued

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Government priority AHL response

Safe communities Staff at AHL accommodation facilities develop and maintain an appropriate level of safety for resident communities. Being respectful and acknowledging the value of one another’s contributions to the facility’s environment are important elements of our residents’ stay.

AHL operates in a variety of environments and faces many factors that can make it difficult to operate and maintain a safe and secure facility. AHL has a versatile approach to managing safety in its hostels, with most facilities providing a staff member on duty around the clock to ensure the safety and comfort of all clients. Where necessary, the safety of the staff, clients and property is assured by engaging external security contractors.

Health AHL medical accommodation facilities provide support for clients who require renal dialysis treatment and access to specialist medical services. The need for renal services, in particular, continues to grow, and AHL continues to be asked to provide more accommodation in this sector. Staff at AHL renal accommodation facilities assist clients with their individual needs, including dietary requirements, and help clients to lead active lives through various activities. They also schedule regular trips to the local hospital and ensure that important medical appointments and treatments are attended.

Katherine Women’s Medical Hostel and the Gudang Dalba Hostel at Royal Darwin Hospital provide antenatal and postnatal care for mothers and babies. These two facilities provide links to important services, such as health, parenting skills and child development services, during a critical period of development. Many AHL multipurpose facilities also partner with local medical services to deliver ear, nose and throat screening. These facilities provide a safe and comfortable environment in which babies and young children can receive important early childhood support services.

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AHL Annual Report 2013-2014

PAST RESIDENTS VISIT GERALDINE BRIGGS HOSTEL IN SHEPPARTON FOR MORNING TEA

Irene Trezise, Belinda De-Jong and Jody Barrett.

Belinda De-Jong, Shaun Austin, Shamikah Austin, Milee Austin and Beau De-Jong.

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2 Performance

Rachael Slorach, cook at Geraldine Briggs Hostel.

AHL staff are excellent

Client—Galawu Hostel, NT

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2.4 Oc cupancy rates AHL provides for the temporary accommodation needs of Aboriginal and Torres Strait Islander people across the country.

Available accommodation In 2013-14, AHL provided more than 1,950 beds per night in the 52 accommodation facilities it operated directly and another 580 beds in the community-operated accommodation facilities it funded through the Community and Corporate Partnership Programme.

AHL accommodation facilities are located in remote, regional and metropolitan areas. The location of the facilities reflects our clients’ accommodation needs, the availability of services such as dialysis and schools, and clients’ use of the facilities as pathways to more permanent housing and employment.

AHL provides short-term accommodation in the following three categories, allowing infrastructure and services to be tailored to clients’ needs:

• Short-term accommodation facilities are provided for individuals and families looking for employment or housing or conducting general business, away from their homes and communities. Many clients in these facilities stay with us until they are able to access long-term accommodation.

• Education facilities provide accommodation for secondary and tertiary students, relatively close to educational institutions. AHL encourages students to complete their high school education and to go on to tertiary studies. Staff members provide transitional support to students who wish to access additional training and potential employment pathways.

• Health accommodation facilities cater specifically for the needs of Indigenous Australians with medical conditions that require them to be away from home to access treatment, including renal dialysis; prenatal and postnatal care; specialist services such as heart surgery; and the routine management of chronic health conditions.

The number of beds available for use by prospective AHL clients at any particular time is adjusted to account for:

• rooms closed for maintenance (including routine maintenance and work to repair damage from natural disasters, storms, fires, floods and other events)

• shutdown periods for school holidays, for secondary education accommodation facilities

• rooms occupied by ‘in residence’ employees.

Figures 8 and 9 show the number of beds available in each of AHL’s service delivery network regions and in urban, regional and remote locations in 2013-14. Figure 10 shows the number of beds available by category in 2013-14.

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AHL Annual Report 2013-2014

Figure 8: Beds available by region, 2013-14

Figure 9: Beds available by locality, 2013-14

Figure 10: Beds available by category, 2013-14

Western Australia 70,766

Top End 154,630

Queensland 184,288

South Eastern Australia 82,431

Southern Central Australia 195,625

Urban 151,219

Regional 416,344

Remote 120,177

Secondary education 67,611

Multipurpose 485,301

Medical/renal 115,615

Tertiary education training 19,213

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2 Performance

Factors affecting occupancy AHL deals flexibly with the diverse accommodation needs of its clients by providing a range of facilities from shared accommodation to specific needs-based accommodation.

Many factors outside AHL’s control impact on client occupancy and use of our facilities, the most significant of which include:

• Uncertainty of stay by clients means that they have a limited ability to book in advance, and our ability to find new residents is restricted by this uncertainty.

• Access to specialist services in our specific health facility locations varies. For example, service providers are often not available in January so the demand for beds reduces at that time of year.

• The academic year is 12 weeks shorter than our calendar year, which means that it is difficult for us to fill beds during term breaks.

• Transport to and from our remote sites is affected by seasonal factors such as the wet season.

AHL employs 483 people, 71 per cent of whom are Indigenous. Many of our staff members work in their home communities or communities with which they have developed strong personal ties over many years. Our staff members know AHL’s client base and are accepted by communities.

AHL knows the protocols, needs and aspirations of individual Indigenous communities and is uniquely positioned to work in partnership with communities on initiatives that are tailored and responsive to their needs.

AHL continues to build and create partnerships that help us to maximise the use of our facilities year round. In 2014-15, AHL will implement a specific education strategy not only to assist with occupancy in the education categories but also to enhance the service offered to students accessing training and education.

Occupancy in 2013-14 AHL’s target, as set out in the portfolio budget statements key performance indicator, was 70 per cent of available beds utilised in 2013-14.

The national average bed occupancy rate for company-operated hostels was 67 per cent in 2013-14, compared with 64 per cent in 2012-13. In community-operated hostels, the occupancy rate was 68 per cent in 2013-14, compared with 75 per cent in 2012-13.

More detailed information on occupancy rates for company-operated hostels in 2013-14 is in Appendix 2.

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AHL Annual Report 2013-2014

Table 12 shows the average percentage of beds occupied in any one evening for each of the past four financial years.

Table 12: Average occupancy rate per night, by programme, 2010-11 to 2013-14 (%)

2010-11 2011-12 2012-13 2013-14

Programme 1.1— Company-operated hostels

78 75 64 67

Programme 1.1— Company-operated housesa

48 59 26 0

Programme 1.2— Community-operated hostelsb

82 71 75 68

a AHL st opped operating company houses when the Indigenous Youth Mobility Programme ceased in December 2012.

b O verall occupancy reduced because four organisations exited the programme during 2013-14 resulting in a decrease of 20 programme-funded beds and 23 total resident beds.

Table 13 summarises the performance of AHL’s hostels and houses over the past four financial years.

Table 13: Capacity and occupancy, company-operated hostels and houses, 2010-11 to 2013-14

2010-11 2011-12 2012-13 2013-14

Number of hostelsa 55 55 52 52

Number of housesb 14 13 10 0

Total hostels and houses 69 68 62 52

Guest capacity—hostels (beds per night)a 1,870 1,878 2,048 1,952

Guest capacity—houses (beds per night)b,c 123 107 158 0

Total guest capacity 1,993 1,985 2,206 1,952

Average bed occupancy— hostels (per night)

78% 75% 64% 67%

Average bed occupancy— houses (per night)b

48% 59% 26% 0%

a T he 2012-13 and 2013-14 figures both exclude the George Wright Hostel, which was closed in September 2012 but not sold until 2013-14.

b AHL st opped operating company houses when the Indigenous Youth Mobility Programme ceased in December 2012.

c T hese guest capacity figures exclude beds occupied by staff and beds closed due to maintenance.

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Table 14 summarises the performance of community-operated hostels for the past four financial years.

Table 14: Capacity and occupancy, community-operated hostels, 2010-11 to 2013-14

2010-11 2011-12 2012-13 2013-14

Number of hostels 47 46 35 29

Guest capacity (number of beds) 819 973 808 580a

Average bed occupancy (per night) 82% 71% 75% 68%

Number of housesb 14 13 10 0

a F our organisations exited the Community and Corporate Partnerships Programme during 2013-14, reducing available programme-funded beds.

b AHL st opped operating company houses when the Indigenous Youth Mobility Programme ceased in December 2012.

While bed occupancy is one measure of utilisation, room occupancy is another measure of performance. The ways in which rooms are used and beds are allocated are impacted by:

• cultural considerations which make it inappropriate for clients to share a room—for example, skin group incompatibility, gender issues, or communication issues such as language differences

• the utilisation of rooms by families, where placing a single adult in a remaining bed would not be appropriate

• AHL’s duty of care to children residing at accommodation facilities, particularly in secondary education accommodation facilities

• specific health and disability requirements of some clients which limit the use of additional beds in multi-bed rooms.

The national room occupancy rate for 2013-14 was 77 per cent, compared with 73 per cent in 2012-13.

In 2013-14, AHL focused on its collection and use of data to ensure that management and staff members have a strong understanding of its performance and outcomes.

As a result, greater rigour is being applied to AHL’s data on occupancy and on business costs. This improvement has allowed management to analyse what areas of business require support and where effort can be applied for greater outcomes.

In early 2014 a focus was placed on building occupancy in secondary education facilities. With a heightened view on performance, strategies were put in place to engage with feeder communities to ensure that more children are given the opportunity to attend schools away from their home communities.

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AHL Annual Report 2013-2014

AHL understands the depth of responsibility associated with its duty of care to students in the secondary education accommodation facilities. Adult supervision, from house parents, youth workers or support staff, is a key factor in supporting students while they attend school away from home. AHL tailors the support it provides in these facilities to match the needs of students.

In 2013-14, this focused effort returned a marked improvement in occupancy at secondary education accommodation facilities.

We now offer block bookings of beds on a prepaid basis to organisations to secure guaranteed accommodation availability. Prepaid bookings avoid peak availability issues and offer certainty for referring agencies and their clients. With more than one third of AHL’s clients typically coming through referrals from support agencies, AHL is keen to work with service providers and their funding bodies to ensure that referral pathways for the clients we share are as streamlined and constructive as possible.

Two accommodation facilities were temporarily closed for refurbishment during the year: Canon Boggo Pilot Hostel on Thursday Island for five months and Trilby Cooper Hostel in Kalgoorlie for 11 months. Bed numbers for those facilities were not included in recording performance for those periods.

2.5 Residents’ satisfaction The Resident Survey is a key way for AHL to gauge residents’ satisfaction with its service.

The 2013-14 survey was distributed to residents between 27 May and 30 June 2014. Survey topics included:

• overall satisfaction

• reasons for staying

• community of origin

• food

• whether residents would return to the hostel

• value for money and the impact a tariff increase may have on future stay.

Figures 11 to 14 provide more detailed survey results.

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Satisfaction AHL received 567 responses to the survey. Overall 98 per cent of respondents were either ‘very satisfied’ or ‘satisfied’ with their stay.

Figure 11: Resident Survey—Client satisfaction (% of respondents)

‘very satisfied’ or ‘satisfied’ 98%

not satisfied 2%

Reasons for staying The three main reasons given for staying at hostels were medical, education or temporary housing needs.

Figure 12: Resident Survey—Reasons for staying (% of respondents)

Education 20%

Social activities 3%

Government housing 18%

Legal Aid 1%

Medical 48%

Centrelink 3%

Employment 5%

Life skills programme 2%

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AHL Annual Report 2013-2014

Way of hearing about the hostel Most residents surveyed had heard about the hostel by word of mouth or referral by another service.

Figure 13: Resident Survey—Ways of hearing about the hostel (% of respondents)

AHL's website/internet 5%

Referred by another service 39%

Word of mouth 44%

Other 12%

Figure 14: Resident Survey—Is the tariff good value for money? (% of respondents)

Yes 84%

No 16%

Value for money and tariff increases Residents were asked for their opinion on the current value for money provided by the hostel and the expected impact of the tariff increase planned to take effect from 1 July.

Overall 84 per cent of residents stated that their stay was good value for money. Only 4 per cent of residents said that the increase in tariff would have an impact on their coming back to stay at the hostel.

I enjoy every moment.

Year 12 student — Biala Hostel, NSW

3

SERVICES

3.1 Priorities 43

3.2 E valuation and reviews 50

3.3 C ollaboration 51

3.4 C ommunity consultation 54

It’s like one big family. Everyone is so helpful and friendly.

Client—Luprina Hostel, SA

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SERVICES

3.1 Priorities Aboriginal Hostels Limited (AHL) provides or facilitates safe, culturally appropriate and affordable accommodation for Indigenous Australians who must live away from home to access services. The priority areas are education, health and temporary accommodation.

Education One of AHL’s priorities is to provide accommodation support for regional and remote Indigenous students to access further education and training.

During 2013-14, AHL operated 12 facilities that provided accommodation for students undertaking secondary and tertiary education studies. Nine facilities were designated for secondary students and three for tertiary students. In addition, through the Community and Corporate Partnerships

Programme, the company contributed funding to a further six community-operated facilities that primarily focused on secondary student accommodation.

AHL’s staff in the secondary education accommodation facilities provide leadership, mentoring, counselling and a nurturing environment to help guide and assist young Indigenous students with their education and the development of life skills.

AHL’s tertiary education accommodation facility managers also have the practical knowledge and wisdom to help them support and enable Indigenous students studying at the tertiary level to maintain and complete their studies and to go on to achieve fulfilling careers. For many mature Indigenous students, completing tertiary education is a lifelong ambition, and having safe, secure and affordable accommodation is very important to staying focused on their course of study.

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AHL Annual Report 2013-2014

NEW SOUTH WALES STUDENTS CELEBRATE ACADEMIC ACHIEVEMENTS

Indigenous high school students from across NSW gathered in Dubbo in November 2013 to celebrate their achievements over the 2013 academic year. The 40 students, from years 7 to 12, are all residents at Aboriginal Hostels Limited’s four NSW secondary education facilities in Dubbo, Newcastle and Sydney.

The event was hosted by AHL’s Grey Street Hostel, located in Dubbo, and over one hundred guests attended.

AHL’s CEO, Joy Savage, travelled to Dubbo to attend the event and present the Dean ‘R ocky’ Smith Memorial Award to 18-year-old Year 12 graduate Tyrone Johnson from Kirinari Hostel for boys in Sydney. Ms Savage said:

I’m so proud of all our students and these graduations are the highlight of my year. Education is so important for our Aboriginal and Torres Strait Islander children, and it’s a key priority for Aboriginal Hostels—it’s where we want to be.

Joy Savage is proud to see this tradition continue, and encouraged all the students to do their best. ‘Without education our lives are a little bit harder. It’s important to get a strong education. Do your best but don’t lose touch with who you are.’

Congratulations to Wesley Kelly who received not only a certificate of achievement in recognition of his consistent efforts in completing Year 7 studies in 2013, but also a certificate for most improved, in recognition of his consistent demonstration of great potential across all aspects of school and hostel life.

During the school terms Wesley lives at the Grey Street Secondary Education Hostel. By staying with AHL Wesley is able to attend high school and take advantage of other opportunities.

More than 30 students received achievement awards at this ceremony, which next year will be hosted by the Biala Hostel for girls in Sydney, continuing the state-wide end-of -y ear graduations that have been taking place in NSW for more than a decade.

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Wesley Kelly receives a certificate of achievement in recognition of his consistent efforts in completing Year 7 studies in 2013.

Joy Savage and houseparent Glen Knight present the Dean ‘Rocky’ Smith Memorial Award to Tyrone Johnson.

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AHL Annual Report 2013-2014

BIALA HOSTEL STUDENT ENJOYS SUCCESS IN STUDY AND SPORT

Tarminya (Min) Brown is a young Aboriginal Year 12 student from the South Coast of NSW who has been staying at the Biala Hostel in Sydney since Year 9. She plans to complete her Higher School Certificate this year and has aspirations to attend university to study law.

According to Min, finishing high school and going to university was not a prospect she had thought possible back home when she started high school.

Min has studied English, hospitality, community and family studies, legal studies and business services. She is the first Biala Hostel girl to be elected a school prefect. The staff and students at the hostel and Min’s family are extremely proud of her.

When Min arrived at Biala Hostel four years ago she was angry and frustrated with her education journey to that point. However, over the past four years she has settled into hostel life and, with the support of hostel and Mackellar High School staff, has established a successful pattern of learning and played an active role in the school community.

Historically, football is usually reserved for the boys from our Kirinari hostels, but not anymore. Min and another of our talented young women, Pam Abel, both play Women’s Rugby League for the Forestville Ferrets and Rugby Union for the Warringah Ratettes. Min and Pam are the only girls playing in both codes of football and play each week in the women’s competition.

Staff members from Biala Hostel believe that Min will certainly achieve her goals as she has shown commitment, drive and determination in working towards her educational and sporting goals and has had a positive response to boarding at Biala Hostel.

Min is a wonderful role model for the younger students staying at Biala Hostel and staff members are looking forward to watching her develop and fine tune her skills through education and football over the coming months.

As well as becoming a student prefect, Min has been recognised with numerous awards from the student representative council, has attended leadership conferences and is seen as an outstanding Indigenous student leader.

Tarminya Brown.

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EDUCATION FORUM DELIVERS INSIGHTS FOR HOSTEL MANAGERS

In April 2014, AHL conducted an education forum at the University of Sydney for hostel managers of secondary and tertiary education facilities.

The three-day forum was attended by 21 staff members and focused on professional development and training, implementation of standardised practices across the network, student duty of care, youth mental health and wellbeing, and pathways to higher education and training. The forum also provided the participants with an opportunity to share their experiences and best practice.

Presenters from Headspace and AIME (Australian Indigenous Mentoring Experience) provided valuable insights on the principles for working with and supporting young people to achieve their academic and life goals. The presenters also provided insights on how to support students in a holistic environment and ways to build a leadership ethos and a sense of belonging.

Those interactive presentations also extended our managers’ awareness of the many social and personal issues that impact on young people today and the appropriate responses to, and ways of dealing with, those issues.

The education forum was one initiative in a concentrated approach by AHL to build the capability of its staff to support a positive educational outcome for students. The initiative will continue in 2014-15.

AHL staff members who were participants at the education forum.

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AHL Annual Report 2013-2014

Health During 2013-14, AHL operated 11 accommodation facilities for people who require access to medical services. They included four facilities specifically

supporting people undergoing renal dialysis, two hostels for women (including new mothers and babies), and five hostels for people accessing medical services, including renal services.

GUDANG DALBA HOSTEL PROVIDES SUPPORT FOR MUMS FROM THE BUSH

Federal Member for Solomon, Natasha Griggs MP, officially opened the Gudang Dalba Hostel in Darwin on 24 October 2013, on behalf of the Indigenous Affairs Minister, Senator Nigel Scullion. The construction of the facility was funded by the Australian Government on land donated by the Northern Territory Government.

Operated by AHL, this $4.45 million, 16-bed facility gives Indigenous women from remote areas access to prenatal and postnatal services in the final weeks of their pregnancies and following the birth of their children.

Gudang Dalba Hostel provides the support that mums from the bush need—maternal health care, good food and amenities, in a safe and welcoming environment for mothers and their carers.

The hostel’s location on the grounds of the Royal Darwin Hospital makes it easy for mothers to transfer to the hostel from the hospital following the birth of their children.

Between 1 July 2013 and 30 June 2014, this facility provided prenatal and postnatal care for 532 women. That care included access to advice on and assistance with baby care, nutrition and parenting. The facility has helped women from remote communities across the Northern Territory, including the Top End, the Tiwi Islands, Katherine, and the Barkly and East Arnhem regions. It has also supported mothers and their carers from Western Australia.

AHL CEO Joy Savage described the opening of the new facility as an important milestone for AHL.

Aboriginal Hostels Limited takes pride in what it does and how it contributes to its vision of creating an accommodation environment in which better lives and better futures are made real for Aboriginal and Torres Strait Islander people.

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Stephanie Thomas’s escort, Lena Jabiba, Natasha Griggs MP and Stephanie Thomas and her baby (photo courtesy of Andrew Olsen).

Kevin Smith, Chairperson of AHL, and Natasha Griggs MP, the Member for Solomon (photo courtesy of Andrew Olsen).

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AHL Annual Report 2013-2014

Temporary accommodation AHL assists Indigenous Australians who, for various reasons, need temporary accommodation. Clients may be homeless, seeking employment, seeking access to housing, using medical services, or visiting family and friends. Twenty-nine of the 52 accommodation facilities operated by AHL are designated as ‘multipurpose’, assisting clients with a variety of needs. During 2013-14, the company also funded community organisations to run a further 29 facilities. The accommodation facilities are located in rural, remote and metropolitan areas of Australia.

The occupancy level at each facility can vary considerably, depending on the season and the reasons for clients’ visits.

Community-based accommodation The AHL Community and Corporate Partnerships Programme is designed to provide an opportunity for community organisations and businesses to work in partnership with AHL to provide accommodation services for Indigenous Australian communities. This programme enables organisations to meet accommodation needs that are not catered for in AHL’s operations by increasing local participation and control and building community capacity.

The programme contributes funds to approved organisations to assist them to operate accommodation facilities.

In 2013-14, AHL provided funding to 29 community-based organisations in urban, regional and remote locations across Australia, to assist with the operational costs associated with providing accommodation facilities.

3.2 Evaluation and reviews AHL continues to evaluate and review its suite of accommodation facilities. In particular, AHL looks at a ‘fit for purpose’ criterion which enables it to identify whether a specific facility is operating at an optimal level and meeting the needs of the community. If not, alternatives may be considered, such as:

• reconfiguring internal furniture (bed, study and communal facilities)

• changing the facility type (for example, from short-term accommodation to renal dialysis accommodation)

• redeveloping or refurbishing the facility

• closing the facility.

As part of AHL’s quality assurance systems, regional managers or their delegates make regular scheduled visits to accommodation facilities in their regions. Regional managers base their assessments on the condition of the facilities, viewing them from a resident’s perspective and discussing good performance or improvements with hostel managers and their staff. Managers subsequently send a quality assurance report to National Office for action.

The role of the Audit and Risk Management Committee is to oversee the annual audit and review work plan. This plan also evaluates and reviews the business processes underpinning the operation of each AHL facility and enabling service.

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3.3 Collaboration Through effective partnerships with other Australian Government agencies, AHL contributes to the broader objectives of whole-of-government initiatives, including working closely with Indigenous Australians on the priority areas of getting children to school, getting adults to work and making communities safer.

AHL’s extensive experience in providing temporary accommodation for Indigenous Australians has led to its recognition as a much sought after partner in the provision of accommodation facilities.

AHL values the continuing support of key stakeholder organisations that provide funding to operate important facilities which are an integral part of the AHL network.

In 2013-14, AHL renewed funding agreements for the operation of four accommodation facilities in the Northern Territory. The Northern Territory Government funds three accommodation facilities in Alice Springs:

• Apmere Mwerre Visitor Park—a 150-bed facility providing cabins, units, tents and camping spaces. The owner and funder is the Northern Territory Department of Housing

• Akangkentye Hostel—a facility providing 68 beds in 20 units. The owner and funder is the Northern Territory Department of Housing

• Alyerre Hostel—a 40-bed renal medical facility. The lessee and funder is the Northern Territory Department of Health.

The Department of the Prime Minister and Cabinet has renewed its funding for AHL to operate the Kardu Darrikardu Numida Hostel secondary education accommodation facility located in Wadeye. This 40-bed facility provides students from Wadeye and the surrounding Daly Shire with the opportunity to attend Our Lady of the Sacred Heart Thamarrurr Catholic School. Relationships with key stakeholders, including students, parents, the school and community, are continuing to strengthen in line with the maturing of this new model of operation.

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AHL Annual Report 2013-2014

COOPERATION DELIVERS SUPPLEMENTARY HEALTH SERVICES FOR RENAL PATIENTS

AHL operates accommodation services that cater specifically for Indigenous Australians who must live away from home to access renal dialysis treatment at local renal medical centres and hospitals. Tonky Logan Hostel, located in Townsville, Queensland, is one of AHL’s purpose-built facilities where residents stay to access treatment for kidney disease. Residents of Tonky Logan Hostel, many of whom have travelled from remote communities such as Doomadgee and Mornington Island, need to stay for extended periods and often AHL becomes a home away from home for them.

When clients requiring renal dialysis arrive at Tonky Logan Hostel (and other AHL renal facilities), they are experiencing many health issues. Those issues have usually gone undiagnosed or have been overlooked back home in community due to the inaccessibility of health services and the primary focus on treating renal failure. It is not until clients are hospitalised for renal treatment that additional health issues are identified and treated.

Residents of Tonky Logan Hostel discussed their concerns about the accessibility of medical services with staff at a local health and wellbeing medical centre based in North Ward, which is one of two locations in Townsville where renal dialysis is administered. The residents asked the team from the medical centre if they would consider running a clinic, one day a week, at the Tonky Logan Hostel, to give residents access to medical care. The medical centre staff worked with the manager and staff of Tonky Logan Hostel to establish a weekly health check day at the facility—a clinic that has been successfully running at the hostel since 2010.

Marlene Mitchell, Assistant Manager at Tonky Logan Hostel, with the team from the health and wellbeing medical centre: Dr Raymond Blackman, head of the health team; Kierra Burns, Indigenous health worker; and Marlene Griffiths, general practice registered nurse.

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CROSS-BORDER TRAVEL SCHEME ASSISTS PATIENTS IN REMOTE AND REGIONAL AREAS

The Patient Assisted Travel Scheme (PATS) is administered by WA Country Health Service, the Northern Territory Government and local medical service providers in Western Australia and the Northern Territory. The scheme, which provides subsidies and support to remotely located patients to enable them to travel and access accommodation and meals, to attend specialist appointments and treatments in regional towns and major cities, is integral to patients’ health and wellbeing.

AHL provides accommodation and meals for patients at its medical hostels and, in some cases, at its multipurpose hostels. AHL has established many productive relationships with referring agencies and services and works alongside medical practitioners to ensure that patients attend appointments and develop and maintain routines that involve preparing for treatment plans and maintaining healthy living practices. AHL also encourages patients to participate in exercise and outside activities.

AHL has extended its partnership over the years with PATS providers by entering into memorandums of understanding to secure prepaid beds at several facilities in Western Australia and the Northern Territory. Those arrangements ensure that places are allocated for patients referred through the scheme and are a guarantee that accommodation will always be available.

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3.4 Community consultation AHL is actively involved in the communities in which accommodation facilities are located. We conduct and participate in activities to ensure that our services are responsive to local needs, improve clients’ experiences and connect with local service providers.

Those activities include holding open days and participating in working groups on topics like emergency management, building stronger service pathways and being role models in the community. A client survey is conducted each year to seek feedback on clients’ experiences, identify opportunities for improvement, and build our knowledge of what clients need when accessing accommodation services.

AHL regional managers participate in community and local government advisory groups and attend forums on issues such as homelessness, health and community safety. Through this participation AHL maintains relationships with organisations and agencies that deal directly with Indigenous issues within their regions.

Sometimes, specific community reference groups are established; for example, a local advisory committee was established in the early stages of the Kardu Darrikardu Numida Hostel project at Wadeye to provide input and advice on the community, cultural and environmental requirements of the facility. The committee has evolved through the operation of the facility and now provides ongoing support and advice on the care of children and the participation of staff and children as a part of the local community. The committee is supported through the ongoing membership of parents and traditional owners across the Daly River region and other stakeholders within Wadeye.

I get lots of support when I feel homesick.

Year 9 student — Biala Hostel, NSW

4 PEOPLE

4.1 Staffing pr ofile 59

4.2 R ecruitment and retention 62

4.3 A wards and recognition 62

4.4 P erformance management 67

4.5 L earning and development 67

4.6 W orkplace relations 67

4.7 Emplo yee survey 67

4.8 W ork health and safety 71

I have been visiting frequently because of

the great accommodation.

Client—Mackay Hostel, QLD

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PEOPLE

4.1 S taffing profile AHL employs a workforce dedicated to delivering accommodation services and contributing to the advancement of Indigenous Australians. At 30 June 2014, the company employed 483 staff, which equated to a full-time equivalent staff of 360.

In 2013-14, AHL’s staffing reduced by 6 per cent compared to the previous year. This was due to natural attrition, the impact of the interim recruitment arrangements introduced by the Australian Government on 31 October 2013, and voluntary redundancy processes in National Office.

Table 15 provides a breakdown of the staff profile .

Table 15: Staff profile at 30 June 2014 by APS level

Level Total Female Male Full-time Part-

time Ongoing Non-ongoing

Indigenous Non-Indigenous

Agency head

1 1 0 1 0 1 0 1 0

SES 1 3 2 1 3 0 3 0 1 2

EXEC 2 6 5 1 5 1 4 2 3 3

EXEC 1 19 9 10 18 1 16 3 9 10

APS 6 17 10 7 16 1 14 3 10 7

APS 5 16 12 4 16 0 15 1 10 6

APS 4 22 17 5 21 1 13 9 12 10

APS 3 96 61 35 79 17 62 34 73 23

APS 2 42 29 13 22 20 22 20 30 12

APS 1 261 172 89 120 141 129 132 192 69

Total 483 318 165 301 182 279 204 341 142

% of total

100 66 34 62 38 58 42 71 29

APS = Australian Public Service; EL = Executive Level; SES = Senior Executive Service

AHL has a strong track record in workplace diversity. Table 17 provides a summary of the diversity in AHL’s staff profile.

Table 16: Diversity of employees at 30 June (% of total workforce)

Group 2012-13 2013-14

Indigenousa 73 71

Women 66 66

Aged 46 years and over 50 56

Under 25 years of age 6 7

From non-English speaking backgrounda 8 5

Have a disabilitya 3 3

a T his information is disclosed voluntarily by employees.

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GARMA FESTIVAL 2013

The fifteenth annual Garma Festival was held in August 2013 on the beautiful site at Gulkula in North East Arnhem Land. The theme of the festival was Garma’wu Buku_Luŋthurra (Getting people together).

Three AHL staff members accompanied Indigenous Business Australia representatives to attend the festival and celebrate a significant event for the Yolngu people of North East Arnhem Land—the fiftieth anniversary of the Yirrkala bark petitions.

The petitions, presented to the Australian House of Representatives in August 1963 in protest against the Commonwealth’s granting of mining rights on Aboriginal land, were created by Yolngu people of Yirrkala.

Garma is a significant Indigenous event. It promotes self-determination, reconciliation and sharing of Indigenous knowledge, and celebrates Indigenous and non-Indigenous Australians’ experiences and cross-cultural learning.

The festival is presented by the Yothu Yindi Foundation, which was established in 1990 to promote Yolngu cultural development and is representative of the five regional clan groups of Gumatj, Rirratjingu, Djapu, Galpu and Wangurri.

The 2013 celebrations were opened with the ancient sound of the yidaki (didgeridoo), which called all people to come together in unity. The yidaki also opened the key forum discussions, which focused on a bipartisan project, Partnerships, Reconciliation and Future Prosperity.

The bunggul began each evening with the sound of the clapsticks across the Gulkula site. Yolngu men, women and children, their bodies and faces painted in vivid displays of ochre and white, gathered at the ceremonial ground to tell their stories of generations of Yolngu in dance.

Tent accommodation provided by Yothu Yindi Foundation at Garma in August 2013.

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View of the Arafura Sea from the Gulkula site.

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4.2 Recruitment and retention AHL’s key recruitment and retention strategy is to create an environment that will attract, develop and retain a skilled workforce. This remained a focus in 2013-14.

On 31 October 2013, the Australian Government announced interim recruiting arrangements within the Australian Public Service. These arrangements restrict AHL’s ability to recruit ongoing staff. As a result of these arrangements, AHL has continued to meet the standard of service delivery through the use of non-ongoing and casual employment arrangements. The impact of these recruitment restrictions has been to increase the number of non-ongoing emplo yees in accommodation facilities across AHL’s network.

4.3 A wards and recognition In January 2014, AHL awarded some of its employees with Australia Day Achievement medallions in recognition of their outstanding contributions to AHL’s work in supporting Aboriginal and Torres Strait Islander people throughout Australia.

The Australia Day Achievement medallions provide government departments and agencies, such as AHL, with the opportunity to acknowledge the contributions of their staff for outstanding performance in core duties or special projects.

From the Top End to Victoria, outstanding AHL employees were presented with their medallions in special ceremonies conducted by the CEO, the General Manager Operations and regional managers. Many of the recipients were surprised but also delighted to be recognised for their contributions to the lives of AHL’s clients. They are the quiet achievers, whose work is often completed with little or no fanfare.

Figure 15 provides details of the 15 AHL employees from across Australia who were recognised for their hard work, dedication and commitment to human resources policy and strategy and front-line services.

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Bernadette Lioni

Bernadette, or Bernsie as she is popularly known, is the Assistant Hostel Manager at Corroboree Hostel. In 2013-14, Bernsie consistently showed leadership and demonstrated that she is a team player who actively involves each team member in workplace activities. She is a very popular recipient who is, according to everyone who knows her, an absolute delight to work with, and very generous with her time and knowledge.

South Eastern Australia

Damien Carter

Damien is the night attendant at Kirinari Hostel, Sylvania. In 2013-14, Damien was a diligent and responsible employee and an excellent role model to the students in his care. He demonstrated team spirit, and was always willing to help others when needed.

Figure 15: Australia Day Achievement medallion recipients

Western Australia

Stephanie Williams

Stephanie is the AHL’s Deputy Regional Manager in Perth. Stephanie is a dedicated and committed AHL employee who in 2013-14 at all times demonstrated outstanding performance and professionalism in promoting AHL. She consistently demonstrated innovative ways to ensure better work practices so that hostel staff were able to focus on service delivery to AHL’s clients.

Top End

Timothy Wolfgang

Timothy is the Deputy Regional Manager in the Top End Regional Office. In 2013-14, Timothy consistently demonstrated effective leadership and good management. In particular, he introduced new financial processes and procedures, which led to significant savings in Top End’s budget.

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The Biala Hostel Team with Joy Savage: Zita Colless, Norman Wellings, Diane Olson, Joy Savage, Lara Ruttley and Emma French

In 2013-14, the entire team at Biala Hostel in Sydney provided excellent service. They were encouraging and caring role models for the students in their care. As a team they guided and supported the students in their charge, and consistently maintained occupancy at a high level.

National Office

Alan Coxhill

Alan is a Senior Project Officer in the Finance Division in National Office. In 2013-14, Alan provided a consistently high-quality service to all stakeholders, and demonstrated sound leadership in an environment where priorities constantly shifted. Whether dealing with internal or external stakeholders, Alan’s degree of professionalism and public service probity never wavered.

Hazel Tsitsikronis

Hazel is the Education Officer in the South Eastern Australia Regional Office, and a loyal and dedicated AHL employee. In 2013-14, Hazel consistently provided support, guidance and advice where and when needed. She conducted her work in accordance with the APS Values and Code of Conduct and followed AHL’s processes and procedures, and actively promoted them to others.

Katherine Papprill

Katherine is the cook at William T Onus Hostel. In 2013-14, she demonstrated that she was a reliable and diligent AHL employee who was willing and able to provide assistance, at very short notice, at any hostel where assistance was required. She was dedicated to ensuring that all meals she served were healthy and met individual clients’ dietary requirements.

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4 People

The Work Health and Safety Team: Nathan Lester, Monika Cerda-cid

In 2013-14, the Work Health and Safety Team demonstrated noteworthy innovation through the development of the Which Way, Safe Way Work Health and Safety Strategy. Their contribution, hard work, dedication and promotion of work health and safety have embedded a safety culture at AHL and ensured a healthy workplace for all AHL staff.

Matt Broers

Matt is an Assistant Director in the Hostel Support Division. In 2013-14, Matt demonstrated creativity and innovation in developing a product that will stand AHL in good stead for years to come. He showed that he is an excellent team player and a leader who consistently engages others in working towards a common goal for AHL.

AHL proudly recognises the loyalty of its dedicated staff throughout the company. Fourteen staff members reached important milestones in 2013-14:

10 years service

Daphne Allia, Christine Beale, Michael Montelone, Diane Olson, Jodie Riley, Lara Ruttley, Irene W ilson

15 years service

Magida Anabtawi, Ronald Jan, Karyn Joslyn, Lindsay Le Lievre, Elizabeth Sherriff, Alfred Tucker

20 years service

Cheryl Peckett

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GENERAL MANAGER OF OPERATIONS RECEIVES WOMAN OF THE YEAR HONOUR

Katrina Fanning, General Manager of Operations at Aboriginal Hostels Limited, was named the 2014 ACT Woman of the Year at the ACT Women’s Awards in Canberra on 6 March 2014. The awards acknowledge women who have made an outstanding contribution to the lives of women and girls in the community.

Katrina volunteers her time to support the local community through a range of activities, including through her membership of the Canberra NAIDOC Committee and the Australian Rugby League Indigenous Council, and previously represented the Australian Capital Territory on the National Aboriginal Justice Advisory Committee.

Katrina Fanning receiving her ACT Woman of the Year award from the Australian Capital Territory Minister for Women, Joy Burch MLA.

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4.4 Performance management In 2013-14, AHL implemented a new performance management framework. In its first year of implementation, 86 per cent of staff completed agreements. Under the revised scheme, pay increments are linked to satisfactory performance.

In 2014-15, to ensure continuous improvement, AHL will seek feedback from managers, supervisors and employees on the effectiveness of the programme.

4.5 L earning and development AHL is committed to ensuring that its staff have access to relevant learning and development opportunities, as part of a strategic approach to building the capability of our organisation.

In 2013-14, training and development focused on work health and safety (WHS). The training aligned with AHL’s Work Health and Safety Strategy, to ensure that workers have the knowledge and skills to carry out their duties safely and in accordance with regulatory requirements. Other training covered legislative requirements, negotiating skills, time management, cultural awareness, supervisory skills, and information and communications technology skills.

In-house information sessions were delivered to managers as part of the implementation of the new performance management system. An in-house workshop was also delivered to houseparents and youth workers of secondary education facilities to build their management knowledge and skills and understanding of duty of care responsibilities to students.

In 2014-15, AHL will develop an organisational learning and development strategy that will focus on building the capability of its workforce to ensure that it is responsive to future AHL priorities.

4.6 Workplace relations AHL’s current enterprise agreement, which covers all staff from APS Level 1 to Executive Level 2, expired on 30 June 2014. Bargaining for the new agreement, which is governed by the Australian Government Public Sector Workplace Bargaining Policy (released on 28 April 2014), began on 24 June 2014.

4.7 Emplo yee survey AHL employees participated in the 2013-14 APS Employee Census: 84 per cent of AHL’s workforce responded to the survey, by telephone or online. This response rate is a 26 per cent improvement on the 2012-13 survey. The results from the 2014 census will become available later this year and will be used in the development of a new workforce plan for AHL.

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Royston Prasad.

REGIONAL MANAGER, SOUTH EASTERN AUSTRALIA, TREKS KOKODA IN THE SPIRIT OF RECONCILIATION

Royston Prasad, Regional Manager, South Eastern Australia, is also the New South W ales Indigenous Mentor for the national Indigenous Youth Leadership Programme, which is delivered through the Jobs Australia Foundation. One of the functions of the programme is to instil leadership principles: inspiring a shared vision, enabling others to act, modelling the way, encouraging the heart, challenging the process and, the most significant for the programme, walking in the spirit of reconciliation.

In June this year, as part of the programme, Royston had the opportunity to walk the famous Kokoda Trail in Papua New Guinea. The trail is known for its history as the scene of a major Australian military campaign in World War Two, and for its rugged mountainous terrain.

The Indigenous Youth Leadership Programme trek covered 96 kilometres, often in very difficult conditions, and was physically, emotionally and mentally challenging. The trek aimed to help young leaders and mentors to practise and strengthen their leadership capabilities, including by raising funds towards the trek and constructing a classroom for an orphanage.

Royston considers that he has benefited from the experience in many ways, including gaining resilience and greater confidence and belief in himself and a real understanding of how to walk in the spirit of reconciliation.

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4 People

Royston Prasad walking the Kokoda Trail.

It’s my first year at Biala, the girls are like my big sisters.

They look out for me.

Year 7 student—Biala Hostel, NSW

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4.8 W ork health and safety In August 2013, AHL began the development and implementation of a new WHS management system which will support the implementation of the Which Way, Safe Way Work Health and Safety Strategy 2013-2018.

In January 2014, Comcare issued AHL with an improvement notice under section 191 of the Work Health and Safety Act 2011. The notice requires AHL to implement a WHS management system before 30 January 2015.

AHL’s Which Way, Safe Way Work Health and Safety Strategy 2013-2018 includes a number of objectives supported by key initiatives aimed at improving WHS outcomes. The initiatives focus on prevention and are supported by early intervention for workers who are injured or ill at work. During the year, AHL recruited

specialist staff to the WHS team to support the improvements and drive the implementation strategy.

In the course of 2013-14, AHL:

• revised its due diligence framework

• undertook consultations on new health and safety management arrangements, involving managers and staff

• established new work groups and planned elections and training for health and safety representatives.

In addition to improving WHS and prevention measures, AHL improved its approach to rehabilitation case management for injured or ill workers. The changes in rehabilitation case management provide early indicators for rehabilitation intervention and support speedier returns to work.

Table 17 provides a summary of notifiable incidents, investigations and notices during the year.

Table 17: Work health and safety statistics 2013-14

Action Number

Death of a person that required notice to Comcare under section 35 0

Serious injury or illness of a person that required notice to Comcare under section 35 3

Dangerous incident that required notice to Comcare under section 35 1

Investigations conducted under Part 10 0

Notices given to AHL under section 90 (provisional improvement notices) 0

Notices given to AHL under section 191 (improvement notices) 1

Notices given to AHL under section 195 (prohibition notices) 0

Directions given to AHL under section 198 (non-disturbance) 0

5

CORPORATE GOVERNANCE 5.1 L egal framework 75

5.2 Str ategic planning framework 75

5.3 G overnance committees 76

5.4 B oard of Directors 76

5.5 A ccountability and audit 80

5.6 Ethical standar ds 83

5.7 F reedom of information 83

5.8 E cologically sustainable development 83

5.9 Disabilit y reporting 85

Good value for money, friendly people, three great meals

a day and good helpful staff.

Client—Daisy Yarmirr Hostel, NT

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5.1 L egal framework Aboriginal Hostels Limited is a wholly owned Commonwealth company, limited by guarantee. It does not have any subsidiaries and is not a government business enterprise. The Australian Government, through the responsible minister, is the sole member of the company.

The responsible minister at 30 June 2014 was Senator the Hon Nigel Scullion, Minister for Indigenous Affairs. For the period from 1 July 2013 to 18 September 2013, the then Minister for Families, Community Services and Indigenous Affairs, the Hon Jenny Macklin MP, was the responsible minister.

The Board of Directors (appointed by the Minister) is responsible for the governance practices of AHL. The Board determines the strategic directions of the company, consistent with the priorities and expectations determined by the Minister. The Minister is regularly informed about AHL’s performance, including significant financial, operational or strategic matters.

AHL is incorporated under the Corporations Act 2001. AHL complies with all relevant legislation, such as the:

• Aboriginal and Torres Strait Islander Act 2005

• Archives Act 1983

• Auditor-General Act 1997

• Commonwealth Authorities and Companies Act 1997

• Commonwealth Electoral Act 1918

• Environment Protection and Biodiversity Act 1999

• Fair Work Act 2009

• Freedom of Information Act 1982

• Privacy Act 1988

• Public Interest Disclosure Act 2013

• Public Service Act 1999

• Safety, Rehabilitation and Compensation Act 1988

• Work Health and Safety Act 2011.

There were no changes to legislation that affected the operations or structure of the company during 2013-14. AHL received no Ministerial Directions or General Policy Orders during the reporting period.

5.2 S trategic planning framework The strategic priorities outlined in the 2011-13 Corporate Plan came to maturity in 2013-14, and the groundwork was laid for renewal and growth. A strategic planning framework was introduced, successfully connecting strategic priorities to operating output through the introduction of national, regional and hostel business plans, with a focus on consistent standards of operation.

In February 2014, the AHL Board of Directors finalised its 2014-2017 Strategic Plan.

CORPORATE GOVERNANCE

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5.3 Governance committees The Board of Directors has overall responsibility for the governance of AHL, and establishes subcommittees to focus on aspects of governance as required. In 2013-14, the Board had three committees —Audit and Risk Management Committee, Finance Working Group and Tariff Working Group—as described in Section 5.4 of this report. Table 18 lists the meetings of the Board and its committees in 2013-14.

Table 18: Board and committee meetings, 2013-14

Number of meetings

Board 5

Audit and Risk Management Committee 5

Finance Working Group 5

Tariff Working Group 3

The Executive Management Team implements the Board’s strategic direction and oversees governance in AHL’s daily operations. The Executive Management Team comprises the CEO, the Chief Financial Officer/Company Secretary, the General Manager, Operations, and the General Manager, Business Development. In 2013-14, the team met weekly to discuss current and future challenges, issues and the progress of national initiatives.

5.4 B oard of Directors The Board of Directors is responsible for the overall corporate governance and successful operation of AHL and is accountable to the Minister.

In carrying out its governance role, the Board must also ensure that AHL complies with all of its contractual, statutory and other legal obligations. The powers and duties of the Board are specified in the Constitution of AHL and in legislation.

Role and responsibilities Key accountabilities and matters reserved for the Board include:

• setting and reviewing objectives, goals and strategic direction, and assessing performance against those benchmarks

• ensuring that AHL is financially sound and has appropriate financial reporting practices

• ensuring that a process is in place for the maintenance of the integrity of internal controls, risk management, delegations of authority and financial and management information systems

• appointing, supporting and evaluating the CEO

• ensuring high business standards and ethical conduct and fostering a culture of compliance and accountability

• reporting to the Minister on the Board’s stewardship of AHL and monitoring achievement against the Corporate Plan

• providing the Compliance Report to the Finance Minister, through the Secretary of the Department of Finance and to the Minister for Indigenous Affairs (by 15 October each year)

• ensuring that AHL submits a compliant Annual Report as per the Commonwealth Companies (Annual Reporting) Orders 2011.

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The Chairperson is responsible for ensuring that the Board receives accurate, timely and clear information to enable the directors to analyse and constructively critique the performance of management and AHL. The Chairperson is responsible for representing the Board to the Minister.

The Company Secretary is appointed by the CEO. The Company Secretary is responsible for developing and maintaining information systems that are appropriate for the Board to fulfil its role. The Company Secretary is also responsible for ensuring compliance with board procedures and provides advice to the Board, via the Chairperson, on governance matters.

Board composition During the year AHL’s Board comprised eight non-executive directors, including a non-executive Chairperson. Details of the directors and Company Secretary, including their names, qualifications and appointments, are included in the Directors’ Report, together with directors’ remuneration.

Directors are appointed by the Minister in accordance with AHL’s Constitution. Current practice is generally for terms of appointment to be for three years, and reappointment is permissible.

Directors have the right to seek independent professional advice at the company’s expense in regard to their duties. Written approval must be obtained from the Chairperson prior to incurring any expense on behalf of the company.

Company constitution There were no changes to AHL’s Constitution in 2013-14.

Board Charter The Board Charter describes the roles and responsibilities of directors and management. It brings all relevant legislative and other requirements into a single document. The Board Charter must be reviewed annually.

Director induction and education In order to achieve continuing improvement in Board performance, all directors have access to professional development opportunities. Directors of AHL have previously undertaken a comprehensive Company Directors Course Diploma delivered by the Australian Institute of Company Directors.

All directors are provided with opportunities to visit hostels to meet with employees, residents and community representatives. Ongoing education for directors is delivered through individual briefings and presentations made by AHL senior executives.

The CEO briefs the Chairperson weekly on significant matters that may have arisen during the week. The Chairperson then forwards the briefing to the Board.

Conflicts of interest Directors must advise the Board on an ongoing basis of any interest that could potentially conflict with AHL’s interests.

Each director is obliged to notify the other directors of any material personal interest that he or she may have in a matter that relates to the affairs of AHL.

Directors who may have, or may be perceived to have, a material personal interest in a matter before the Board do not receive relevant board papers, do not participate in discussions and abstain from voting on that matter.

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Ethical standards The Board acknowledges and emphasises the importance of all directors and employees maintaining the highest standards of corporate governance practice and ethical conduct.

The company has adopted the Australian Public Service (APS) Values and APS Code of Conduct, which apply to all directors and employees. The Values and Code of Conduct provide a framework for ethical behaviour, actions and decision-making within the company. They enable consistent standards and approaches to be adopted in the company’s dealings with customers, stakeholders and employees.

The APS Values and Code of Conduct are communicated initially to all new directors and staff through the induction process and are also incorporated in in-house training programmes.

Directors are obliged to be independent in judgement and to take all reasonable steps to ensure that due care is taken by the Board in making decisions.

Director remuneration The Remuneration Tribunal sets the remuneration and travel allowances for non-ex ecutive directors. No retirement benefits, other than statutory superannuation, are payable to non-ex ecutive directors upon expiry of office.

Details of directors’ remuneration are included in the Directors’ Report.

Board meetings The Board met five times during the year.

The agendas for board meetings are prepared in conjunction with the Chairperson, the CEO and the Company Secretary. Board papers are circulated in advance of board meetings.

Board performance The Board’s performance is reviewed annually with a self-evaluation questionnaire that covers areas such as:

• board structure and composition

• board roles and responsibilities

• board processes and procedures

• board strategic issues

• the Board as a team

• Board members’ relationships with senior management

• individual director assessments.

Each Director’s completed questionnaire provides the mechanism for confidential feedback to the Chairperson.

The Chairperson discusses the results at a subsequent meeting of the full Board. Appropriate action is taken to further enhance the performance of the Board. The Chairperson also talks to each Director on an as-needs basis about their role as a director.

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Board committees To assist in the performance of its responsibilities, the Board has established the Audit and Risk Management Committee. From time to time, the Board may create time-limited working groups to assist Executive Management with specific issues or projects. The Tariff Working Group and the Finance Working Group are two such committees.

Audit and Risk Management Committee

The Audit and Risk Management Committee operates under a charter approved by the Board and reviewed annually. The charter details the role, objectives, duties and responsibilities of the committee.

There are currently two non-executive directors and two independent members on the Audit and Risk Management Committee. The CEO, Chief Financial Officer and representatives from the Australian National Audit Office and AHL’s internal audit manager attend committee meetings by invitation. The Chairperson of the committee, Mr Pat Watson, is a non-executive director who is not the Chairperson of the Board.

The role of the Audit and Risk Management Committee is to assist the Board to review and report on financial information, risk management and compliance.

The committee’s key responsibilities include:

• reviewing the annual financial report

• monitoring strategic risks and the risk management process

• monitoring the activities and performance of the internal audit and compliance functions

• reviewing the performance of the external auditor

• monitoring the effectiveness of the internal control framework

• monitoring the effectiveness of the company’s fraud control policies and procedures

• monitoring the procedures in place to ensure compliance with legislation.

The names and qualifications of those appointed to the Audit and Risk Management Committee and their attendance at meetings of the committee are included in the Directors’ Report.

During the financial year, the independent members of the committee were:

• Mr Geoff Knuckey—Chartered accountant and retired managing partner of Ernst & Y oung, Canberra

• Ms Maria Storti—Vice President, Governance and Development, University of Canberra (appointed 29 November 2012).

The internal and external auditors submit audit plans, progress reports and final reports to the committee. As part of good governance practice, at each meeting the committee meets without management being present. It also meets separately with internal auditors and external auditors as required.

Tariff Working Group

The Tariff Working Group comprises two non-executive directors and AHL Executive Management.

The primary role of the working group was to review tariff policy and make recommendations to the Board.

A new tariff Policy was completed and approved by the Board during 2013-14 and the Tariff Working Group was dissolved in May 2014.

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Finance Working Group

A new Finance Working Group was established in December 2013. The group comprises two non-executive directors and AHL Executive Management.

The purpose of the AHL Finance Working Group is to assist the AHL Board in matters relating to funding and finance.

The short-term responsibilities of the Finance Working Group are to:

• finalise terms of reference for the Finance Working Group

• provide recommendations to the Board on the establishment of a standing AHL Finance Committee

• oversee the development of the new funding framework/models and make recommendations to the Board

• assist the Board in the alignment of the strategic Business Model.

During 2014-15, the Finance Working Group will become a standing committee called the Finance Committee. The responsibilities of the Finance Committee will be to:

• monitor AHL’s funding, financial and planning strategies

• monitor the flow of funds to ensure AHL’s financial viability

• oversee the investment/divestment strategy (cash and property) and monitor its performance

• provide regular reports on significant financial matters to the Board

• provide input into new projects and proposals

• advise on annual key performance indicators in relation to finance and resources, including human resources, and performance against the indicators.

5.5 Accountability and audit AHL is accountable the Australian community, through the Parliament, for the effective delivery of its accommodation services and administration. In delivering its programmes and outcomes, AHL applies a governance framework built upon principles of accountability, leadership, executive instructions and quality control. These elements include the principles of duty of care for all customers of AHL.

Internal control framework The Board is responsible for the overall internal control framework and for reviewing its effectiveness, while recognising that no cost-effective internal control system will preclude all errors and irregularities. AHL’s systems are intended to provide appropriate assurance on:

• the accuracy and completeness of financial reporting

• the safeguarding of assets

• the maintenance of proper accounting records

• the segregation of roles and responsibilities

• compliance with applicable legislation, regulation and best practice

• the identification and mitigation of business risks.

The key features of the control environment include the charters for the Board and the Audit and Risk Management Committee, and a clear organisational structure with documented delegation of authority from the Board to the CEO.

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5 Corporate Governance

Internal audit Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve AHL’s operations. It assists AHL to accomplish its obligations by bringing a systematic, disciplined approach to evaluating and improving risk management, control and governance processes. The internal audit function is managed by the Business Integrity Unit, which reports directly to the CEO.

A risk-based approach is used to develop the annual Internal Audit Plan, which is reviewed and approved by the Audit and Risk Management Committee and the Board. All audits are conducted in a manner that conforms to international internal auditing standards. All audit reports are reviewed by the Audit and Risk Management Committee.

In 2013-14, internal audit completed scheduled audits, which included comprehensive performance, compliance, information technology and financial control audits. AHL’s internal audit used a number of audit service providers to support in-house capability in the delivery of the internal audit programme.

Risk management AHL’s risk management strategy is based on methods described in the AS/NZS 31000:2009 risk management standard. The standard is the international leader in providing generic guidance on risk management for every enterprise, large or small, public or private.

Regular reviews by the Board and management identify strategic risks in the company’s activities. Every year, executive management reviews the Strategic Risk Management Plan to ensure that it is current and that it continues to be integrated into the Internal Audit Strategic Plan and the Fraud Control Plan.

AHL’s Strategic Risk Management Plan is designed to be embedded in all parts of the company’s decision-making processes.

In 2014-15, the Audit and Risk Management Committee will present its first risk appetite statement to the Board for approval.

Fraud control AHL has procedures and processes for the prevention, detection, investigation and reporting of fraud. All matters referred to or detected by the Business Integrity Unit are investigated.

AHL maintains a Fraud Control Plan and monitors fraud control management on a regular basis. AHL is confident that it has in place appropriate procedures and processes relating to fraud prevention, detection, investigation, reporting and data collection.

External scrutiny

Audits of financial statements

In accordance with the Commonwealth Authorities and Companies Act, the Commonwealth Auditor-General audits the records and financial statements of the company.

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The Audit and Risk Management Committee meets with the Australian National Audit Office each year to:

• discuss the external audit and internal audit plans and identify any significant changes in structure, operations, internal controls or accounting policies likely to affect the financial statements

• review the results and findings of the auditor and the adequacy of accounting and financial controls, and monitor the implementation of any recommendations made

• finalise annual reporting, and review the preliminary financial report prior to sign-off and any significant adjustments required as a result of the auditor’s findings.

Judicial decisions and reviews by third parties

In 2013-14:

• there were no judicial decisions and no decisions of administrative tribunals that significantly affected, or may significantly affect, the operations of AHL

• no reports about AHL were made by the Auditor-General, a parliamentary committee or the Commonwealth Ombudsman.

Customer service AHLs Customer Service Charter provides a service guarantee and a commitment to listen and respond to customer views. The charter is available on the company’s website. An annual resident survey helps AHL to understand clients’ views on the services AHL provides and how those services meet their needs.

AHL’s complaints-handling system encourages client as well as public feedback on its service delivery. The system

includes a free 24-hour complaints hotline, a complaints email address and an online complaints form. These are advertised at all accommodation facilities and on the company’s website. The Hostel Support Division had direct management of the complaints handling and management system for most of 2013-14. In June 2014, responsibility for the system’s management moved to the Business Integrity Unit.

Eighty-seven complaints were received by AHL in 2013-14. Most complaints came from residents and were mainly in relation to AHL staff and service standards. Some of the complaints were attributable to changes to the standard operating procedures that each accommodation facility is required to adhere to.

All the complaints were addressed and all complainants, unless they were anonymous, were informed of any action taken.

Privacy AHL complies with the 11 Information Privacy Principles established under section 14 of the Privacy Act 1988.

AHL maintains a record setting out:

• the nature of the various types of records of personal information kept by the agency

• the purpose for which the records are kept

• the class of individuals to which the records apply

• the period for which the records are kept

• details of how individuals can get access to records about themselves.

The records, called Personal Information Digests, can be found on the website of the Australian Information Commissioner, www.oaic.gov.au.

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5.6 E thical standards Directors are required to follow best practice principles of corporate governance, consistent with the Australian National Audit Office’s Public Sector Governance: Better Practice Guide.

AHL employees are bound by standards of ethical behaviour communicated in the Australian Public Service Values, Employment Principles and Code of Conduct.

AHL uses the following measures to ensure that staff are aware of, understand and apply those standards of conduct:

• All new employees commencing in AHL are provided with a brochure outlining the Values and Code and Principles

• The Values and Code are integrated into training and development activities, including induction and hostel manager training workshops. The relevant model contains material on how the Values and Code should operate in practice

• Human Resources Division has provided specific Code of Conduct training to employees in several regions

• Information on significant changes and updates to the Public Service Act 1999 is provided to staff to ensure that they are aware of any changes to their responsibilities.

5.7 F reedom of information Agencies subject to the Freedom of Information Act are required to publish information to the public as part of the Information Publication Scheme. This requirement is in Part II of the Freedom of Information Act and has replaced the former requirement to publish a Section 8 statement in an annual report. Each agency must display on its website a plan showing what information it publishes in accordance with the Information Publication Scheme requirements.

AHL’s Information Publication Scheme information is available from its website, www.ahl.gov.au.

5.8 Ecologically sustainable development Section 516A of the Environment Protection and Biodiversity Conservation Act 1999 requires Commonwealth agencies to report against core criteria:

• how agencies accord with and contribute to ecologically sustainable development

• the environmental performance of agencies; that is, the impact their activities have on the natural environment, how these are mitigated and how they will be further mitigated.

Table19 details AHL’s activities in terms of the requirements of the Act.

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Table 19: Ecologically sustainable development activities

Reporting requirement AHL response

How AHL accords with and contributes to the principles of ESD

AHL is focusing on the identification of better practice in the sustainable management of energy, water and waste.

Outcomes contributing to ESD

AHL’s single appropriation outcome (Improved access to education, employment, health and other services for Aboriginal and Torres Strait Islander people travelling or relocating through the operation of temporary hostel accommodation services) focuses on economic and social outcomes. Although the outcome is not directly linked to environmental outcomes, AHL recognises that there are many opportunities for the agency to build ESD principles into its business, thereby improving AHL’s environmental management across key operational areas.

Activities that affect the environment

AHL’s core function—accommodation—consumes energy, water and material resources such as packaging, and contributes to landfill, pollution and greenhouse gas emissions. Energy is required to power AHL’s administration and accommodation facilities, to provide hot water to staff and residents, heat for cooking and air conditioning in some of Australia’s hottest regions.

Measures taken to minimise the effect of activities on the environment

AHL seeks to minimise the effect of its activities on the environment through:

• applying environmental principles in procurement, particularly through its routine asset replacement programme

• collecting data on its water and energy use

• assessing the environmental performance of its activities.

AHL sources renewable energy and has solar panels installed in more than half of its accommodation facilities.

AHL encourages staff to adopt environmentally sustainable waste management practices and educates residents in ways to minimise energy use, manage waste and follow recycling practices at AHL accommodation facilities.

In 2013-14, the AHL Board and its sub-committees adopted the use of a digital tool, BoardPad, to distribute Board papers, thus removing the need to print them.

Mechanisms for reviewing and increasing the effectiveness of measures to minimise the environmental impact of activities

AHL is developing metrics to measure, report on and review its carbon footprint and deliver environmental improvements in the corporate workplace and at our hostels.

AHL is evaluating the environmental performance of its facilities fitted with solar panels.

AHL will collect more data on water and energy use as a basis for regular monitoring and consumption audits.

AHL will conduct comparative benchmarking of hostels to identify highest energy consumers and will undertake detailed energy audits to identify capital works initiatives for 2015-16.

AHL will conduct further work to understand its waste profile to increase re-use and recycling rates and minimise hazardous and landfill waste.

ESD = ecologically sustainable development

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5.9 Disability reporting Since 1994, Commonwealth departments and agencies have reported on their performance as policy adviser, purchaser, employer, regulator and provider under the Commonwealth Disability Strategy. In 2007-08, reporting on the employer role was transferred to the Australian Public Service Commission’s State of the Service Report and the APS Statistical Bulletin. These reports are available at www.apsc.gov.au. From 2010-11, departments and agencies have no longer been required to report on these functions.

The Commonwealth Disability Strategy has been overtaken by the National Disability Strategy 2010-2020, which sets out a 10-y ear

national policy framework to improve the lives of people with disability, promote participation and create a more inclusive society. A high level two-yearly report will track progress against each of the six outcome areas of the Strategy and present a picture of how people with disability are faring. The first of these reports will be available in late 2014, and can be found at www.dss.gov.au.

All new office and accommodation facilities and major refurbishment projects address disability requirements under the relevant building codes. AHL’s staff and resident complaints mechanisms and the annual resident survey are other avenues that allow concerns about accessibility to be raised, followed up and addressed by management.

FINANCIAL REPORT 6.1 Dir ectors’ report 89

6.2 F inancial statements 98

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AHL’s Board of Directors (from left to right) David Evans, Hugo Johnston, Pat Watson, Gina Smith, Wayne Jackson, Kevin Smith (Chairperson), Kerrynne Liddle and Vanessa Elliott.

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6.1 Dir ectors’ report The Board of Directors presents its report on Aboriginal Hostels Limited for the financial year ended 30 June 2014.

Corporate information AHL is a company wholly owned by the Australian Government and is limited by guarantee. The registered office of the company is at 2-6 Shea Street, Phillip ACT 2606.

AHL is recognised as a public benevolent institution by the Australian Taxation Office and has deductible gift recipient status.

Principal activities The principal activity of the company during 2013-14 was the operation of accommodation facilities for Aboriginal and Torres Strait Islander people.

The objective of the company is to provide or facilitate safe, comfortable, culturally appropriate and affordable accommodation for Indigenous Australians who must live away from home to access services and economic opportunity.

To help achieve the aims of the company, the Australian Government provides funding to the company, subject to agreed terms and conditions, for operating costs, repairs and maintenance, and hostel construction. AHL also enters into contracts with the Australian Government and state and territory governments to operate their accommodation facilities on a fee- for- service basis.

FINANCIAL REPORT

Operating results The operating result in 2013-14 was a deficit of $4.1 million (the result in 2012-13 was an operating surplus of $168,000), which was transferred to retained earnings .

Review of operations A review of AHL’s operations is contained in the message from the Chairperson and CEO and in other sections of the annual report.

Financial position The net assets of the company have remained constant and are valued at $150.5 million as at 30 June 2014. This is mainly due to the sale and depreciation of assets held of $2.5 million and the decrease in trade and other receivables (payments received for the divestment of two hostels) of $2.0 million, which was offset by an increase in cash of $4.5 million.

Additionally, the equity accounts remained constant at $150.6 million as at 30 June 2014. This is mainly due to a decrease in the asset revaluation reserve of $2.0 million and the operating deficit of $4.1 million, offset by realisation of the asset revaluation reserve of $1.2 million and a capital injection of $4.9 million received from the Department of Families, Housing, Community Services and Indigenous Affairs and later the Department of the Prime Minister and Cabinet for hostel upgrades.

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Board of Directors The names and details of the directors in office at any time during the financial year, including the period until the date of this report, and the Company Secretary, are as follows.

Kevin Smith, non-executive Chairperson

• Appointed Director from 15 July 2010 • Current term expires 12 December 2014

Significant changes in state of affairs The following significant changes in the company’s state of affairs occurred during the year:

• one property was divested

• one property was classified as an ‘asset held for sale’

• an independent ‘desktop’ valuation of all AHL’s hostels was undertaken for impairment purposes

• a tender process commenced for upgrades of hostels in the Northern Territory and on Thursday Island.

Significant events subsequent to reporting date No other matters or circumstances have arisen since the end of the financial year that significantly affected or may significantly affect the operations of AHL, the results of those operations, or the state of affairs of the company in subsequent financial years.

Qualifications Bachelor of Laws; Certificate of Practice Management; Solicitor of the Supreme Court of Queensland and High Court of Australia.

Experience A Board member since 15 July 2010, Kevin was appointed as AHL Chairperson on 14 June 2011. He is the Chief Executive Officer of Queensland South Native Title Services, a former Queensland State Manager of the National Native Title Tribunal and former Chairperson and Chief Executive Officer of the Aboriginal and Torres Strait Islanders Corporation for Legal Services in Brisbane. Kevin was admitted as a solicitor in 1994 and worked in private practice before taking up senior management positions in 1998. He is currently the Deputy Chairperson and Director of the National Native Title Council Limited and a member of the Native Title Research Advisory Committee at the Australian Institute of Aboriginal and Torres Strait Islander Studies.

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Pat Watson, non-executive Director

• Appointed Director from 28 January 2009 • Current term expires 8 October 2015

Experience A Board member since 28 January 2009, Pat is a career public servant. He was the Executive Director, Township Leasing, for the then Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA), in which position he was responsible for managing long-term township leases in Aboriginal communities in the Northern Territory. He spent time as the Group Manager of Corporate Services in the Aboriginal and Torres Strait Islander Commission and Aboriginal and Torres Strait Islander Services. He was also Chief Financial Officer for the then Department of Education, Employment and Training; served overseas as the Deputy Permanent Delegate to the United Nations Educational, Scientific and Cultural Organization and the Organisation for Economic Co-operation and Development (OECD); and was Counsellor, Education, to France.

Special responsibilities Pat is the Chairperson of the AHL Audit and Risk Management Committee.

Hugo Johnston, non-executive Director

• Appointed Director from 7 August 2007

• Current term expires 6 August 2014

Qualifications Higher National Diploma (Hotel Management), University of West London; Certificate in Governance Practice and Administration, Chartered Secretaries Australia.

Hugo is a Justice of the Peace and an Associate Fellow of the Australian Institute of Management.

Experience

Hugo Johnston was appointed as an AHL Director on 7 August 2007.

Hugo was recently appointed to the Board of Kakadu Tourism in the Northern Territory. Hugo runs a hotel and tourism consultancy business with a focus on Indigenous opportunity.

Formerly, he was employed for 17 years with Accor Asia Pacific, during which time he was based in Auckland, Brisbane, Sydney and Melbourne. He held a number of executive regional operational roles and was also the General Manager Development for the Pacific. Hugo also held a business strategy role with Accor and was instrumental in developing and launching the Base backpacker/hostel brand in Australia and New Zealand. Prior to that, he was the General Manager of Rydges Hotels in the Northern Territory and Sydney. He also held senior operational roles with Southern Pacific Hotels (now InterContinental).

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Kerrynne Liddle, non-executive Director

• Appointed Director from 20 November 2010 • Current term expires 19 November 2016

Qualifications Master of Business Administration, University of Adelaide; Bachelor of Arts (double major in management and business), University of South Australia; Diploma, Australian Institute of Company Directors. Kerrynne is a Vincent Fairfax Executive Leadership Programme Fellow.

Experience A Board member since 20 November 2010, Kerrynne is an Arrernte woman who was born and raised in Central Australia but now lives in Adelaide.

Kerrynne worked almost exclusively in the private sector as a media and communications specialist before her current role as Manager Aboriginal Participation with Santos Ltd.

She has experience on government and not-for-profit boards predominantly in the area of affordable housing and education. She has been a non-executive Director, South Australian Housing Trust and non-executive Director, SA Affordable Housing Trust. She is a previous member of the University of South Australia Council and is a current Member of the Council of the University of Adelaide.

Kerrynne has a Centenary Medal for services to the Australian community as a journalist, has been Chair, Tandanya National Aboriginal Cultural Institute; and was an inaugural member of the Aboriginal Foundation South Australia, set up to benefit native title holders in South Australia through the exploration of economic development opportunities.

Wayne Jackson PSM, non-executive Director

• Appointed Director from 27 February 2009 • Current term expires 8 October 2015

Qualifications Bachelor of Economics (Hons), Monash University. In 2006, Wayne was awarded a Public Service Medal for outstanding service in the development and implementation of social policy.

Experience A Board member since 27 February 2009, Wayne is currently Chair of the Ethics Committee, Australian Institute of Health and Welfare. He was previously a public policy consultant. He is a former Deputy Secretary of FaHCSIA and has extensive experience in the development and implementation of social policy, including income support and community services.

Wayne chaired the FaHCSIA Risk Assessment and Audit Committee, was a member of the Australian Statistics Advisory Council and the Bureau of the OECD Social Policy Committee, and has been a government representative on a number of independent policy review bodies.

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Qualifications Master of Business Administration, University of Adelaide; Bachelor of Arts (double major in management and business), University of South Australia; Diploma, Australian Institute of Company Directors. Kerrynne is a Vincent Fairfax Executive Leadership Programme Fellow.

Experience A Board member since 20 November 2010, Kerrynne is an Arrernte woman who was born and raised in Central Australia but now lives in Adelaide.

Kerrynne worked almost exclusively in the private sector as a media and communications specialist before her current role as Manager Aboriginal Participation with Santos Ltd.

She has experience on government and not-for-profit boards predominantly in the area of affordable housing and education. She has been a non-executive Director, South Australian Housing Trust and non-executive Director, SA Affordable Housing Trust. She is a previous member of the University of South Australia Council and is a current Member of the Council of the University of Adelaide.

Kerrynne has a Centenary Medal for services to the Australian community as a journalist, has been Chair, Tandanya National Aboriginal Cultural Institute; and was an inaugural member of the Aboriginal Foundation South Australia, set up to benefit native title holders in South Australia through the exploration of economic development opportunities.

Vanessa Elliott, non-executive Director

• Appointed Director from 20 November 2010 • Current term expires 19 November 2016

Qualifications Bachelor of Arts, Communications and Cultural Studies, Curtin University; Advanced Certificate in Aboriginal Musical Theatre, Western Australian Academy of Performing Arts, Edith Cowan University.

In 2006, Vanessa was a finalist in the Western Australian Premier’s Awards for Excellence in Public Sector Management and for the Indigenous Governance and Leadership Programme. She was awarded the Centenary Medal in 2004 for service to Australian society in business leadership. In 2001, Vanessa was awarded the national NAIDOC Youth of the Year award and the Telstra Young Business Women’s Award.

Experience A Board member since 20 November 2010, Vanessa is a Senior Human Resources Advisor with Woodside Energy Limited. Prior to that, she was the External Affairs Manager with Newmont Asia Pacific. Vanessa was formerly employed by the Western Australian Department of Local Government and Regional Development in the area of governance and community development.

Vanessa is currently the Co-Chair of the Chamber of Minerals and Energy of Western Australia’s Aboriginal Working Group, Chair of Australian Indigenous Women in Mining and a member of Healthway’s Arts Advisory Committee.

Gina Smith, non-executive Director

• Appointed Director from 13 December 2011 • Current term expires 12 December 2014

Qualifications Diploma of Arts, Aboriginal Community Administration, University of South Australia; fluent in Warumungu language.

Experience Gina Smith was appointed as an AHL director on 13 December 2011. Gina is a Warumungu and Warlmanpa woman and was the Deputy Chair of the Northern Territory Central Land Council. She was elected to the position from

April 2010 and served on the council’s board until 2011. She was the first woman to become a deputy chair in the Land Council.

Gina moved back to her homelands to help get families home by using the income from mining on her lands to develop community infrastructure and sustainable jobs through economic development with pastoralists, mining companies, local service providers and government.

In addition, Gina was Councillor for Patta Ward, Barkly Shire; the Director and Chairperson of the Manungurra Aboriginal Corporation; President of the Julalikari Council Aboriginal Corporation for six years; and the Northern Territory Local Government Association representative on the Aboriginal Medical Services Alliance Northern Territory Working Group.

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David Evans, non-executive Director

• Appointed Director from 24 June 2013 • Current term expires 23 June 2016

Qualifications Master of Business Administration, University of Tasmania; Bachelor of Commerce, University of Queensland; Graduate, Stanford University — National University of Singapore Executive Programme; Diploma, International Company Directors Course, Shanghai; Fellow, CPA Australia; Fellow, Financial Services Institute of Australasia; Fellow of the Australian Institute of Company Directors.

Experience David has had over 30 years senior banking and finance experience in Australia and the Asia-Pacific region. As a career banker, he gained extensive experience in retail, business and commercial banking as well as in finance company operations. His executive roles included Chief Manager Westpac Fiji Islands, Chief Credit Officer Westpac Western Australia and Senior Manager Indigenous Banking Solutions Westpac. David’s career also included an appointment as a Director with KPMG’s risk advisory practice in Western Australia.

David is now a management consultant and an accredited facilitator for the Australian institute of Company Directors, delivering strategy and risk training programmes for board directors as well as Indigenous governance training. He also facilitates governance programs in the Asia-Pacific region for the Institute.

David has been active in the not-for-profit sector for a number years, including as President and board member for the National Heart Foundation, Western Australia Division; a director of Transparency International, Fiji; and an executive member of the Australian Institute of International Affairs. He is currently an independent director of Ngarluma Yindjibarndi Foundation Limited in the Pilbara of Western Australia and an independent member on the Queensland Police Service Audit and Risk Committee.

Other previous board appointments included Independent Director on an Indigenous Trust in the Pilbara and Trustee of the Murdoch University Veterinary trust in Perth Western Australia.

Georgina McKenzie, Chief Financial Officer/Company Secretary

• Appointed Company Secretary on 6 February 2012

Ms Georgina McKenzie currently holds the position of Chief Financial Officer and Company Secretary. Ms Cherryl-Anne Navarro acted in the position from 4 February 2013 to 2 August 2013, while Georgina was on maternity leave.

Georgina is a member of the Institute of Chartered Accountants, Australia, holds a Master of Business Administration and is a board member and Treasurer of SIDS and Kids ACT.

It is encouraging to know that together we are supporting

Indigenous people all over Australia.

Staff member — National office, Canberra

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Directors’ meetings During 2013-14, the Board met five times and the Audit and Risk Management Committee met five times. In addition to the five board meetings, the Board met four times out of session to discuss specific agenda items and to finalise the new 2014-2017 Strategic Plan.

Each Director’s attendance at the five scheduled Board meetings during the year is shown in Table 20.

Remuneration policy The Remuneration Tribunal determines the company’s remuneration policy for the directors and the CEO. The tribunal approves the company’s terms and conditions of remuneration relating to the appointment and retirement of the Board members and of the CEO.

The remuneration and terms of conditions of employment for the senior executives are in accordance with the Public Service Act 1999 and common law contracts.

The non-executive directors receive the superannuation guarantee contribution required by the government, which is currently 9 per cent, and do not receive any other retirement benefits.

The total remuneration of the directors and senior executives of the company in 2013-14, and the relevant remuneration bands, are shown in Table 21.

Indemnities and insurance AHL maintains directors’ and officers’ liability insurance. The insurance covers AHL officers in respect of legal liabilities (including legal expenses) that a director or officer may be legally obliged to pay in certain circumstances. The policy has some exclusions, such as wilful breach of duty, breach of professional duty and any claim arising out of libel, slander or defamation.

The company also covers personal accident and travel insurance for directors for travel on official company business.

Proceedings on behalf of company No person has applied for leave of a court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings.

The company was not a party to any such proceedings during the year.

Related party disclosures There were no related party disclosure transactions in 2013-14.

Rounding The company is an entity to which ASIC Class Order 98/100 applies. Accordingly, amounts in the financial statements and the Directors’ Report have been rounded to the nearest thousand dollars.

Auditor’s independence The directors received an Independence Declaration from the Auditor-General for the year ended 30 June 2014. A copy of the report has been included with the financial report.

Resolution of directors This report is made in accordance with a resolution of the Board of Directors.

Kevin Smith Chairperson 26 September 2014

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Table 20: Board and Audit and Risk Management Committee attendance, 2013-14

Name Board meetingsa

Audit and Risk Management Committee meetings

Number eligible to attend

Number attended

Number eligible to attend

Number attended

Mr Kevin Smith (Chairperson)

5 5 - -

Mr Hugo Johnston 5 5 5 5

Mr Pat Watson 5 5 5 5

Mr Wayne Jackson 5 5 - -

Ms Kerrynne Liddle 5 5 - -

Ms Vanessa Elliott 5 5 - -

Ms Gina Smith 5 4 - -

Mr David Evans 5 5 - -

a Ex cludes out-of-session teleconferences.

Table 21: Remuneration of directors and executives, 2013-14

Category Remuneration band Number of individuals

Directors $0-$29,999 0

$30,000-$59,999 7

$60,000-$89,999 1

Total $287,044 8

Senior executives $0-$159,999 1

$175,000-$204,999 0

$205,000-$234,999 2

$235,000-$264,999 1

$325,000-$354,999 1

Total $1,077,920a 5b

a A ggregate amount of total remuneration of senior executives shown above.

b I ncluded in the total number of senior executives is Ms Cherryl-Anne Navarro (Acting Chief Financial Officer/ Company Secretary), who filled the position from 1 July 2013 to 2 August 2013 while Ms Georgina McKenzie was on maternity leave. AHL had only four senior executive positions at any one time during 2013-14.

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6.2 F inancial statements

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Aboriginal Hostels Limited ABN 47 008 504 587

Statement of Profit and Loss and Comprehensive Income for the period ended 30 June 2014

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 JUNE 2014 Note 2014 2013

$'000 $'000

CONTINUING OPERATIONS

INCOME Revenue from Commonwealth Government 2A 38,806 42,312

Revenue from State and Territory Governments 2B 2,051 2,186

Hostel accommodation revenue 13,641 12,770

Interest received 427 297

Other income 2C 362 3,533

Total income 55,287 61,098

OPERATING EXPENSES

Employee benefits 3 (29,124) (30,399)

Hostel accommodation expenses (3,336) (3,159)

Administration expenses 4A (9,831) (9,797)

Property operating expenses 4B (8,894) (8,856)

Depreciation and amortisation 4C (4,265) (3,878)

Grants to community operated hostels (3,872) (4,461)

Finance expenses (65) (66)

Construction activities completed on behalf of other agencies 4D - (314)

Total expenses (59,387) (60,930)

Net surplus / (deficit) 5 (4,100) 168

OTHER COMPREHENSIVE INCOME

Items that have not been reclassifed to profit or loss

Realisation of revaluation reserve - Land 1,017 -

Realisation of revaluation reserve - Building 224 -

Revaluation of art and artefacts 11B

- 2

Revaluation of land 11B 1,040 37,891

Revaluation of buildings 11B - 31,173

Total other comprehensive income 2,281 69,066

Total comprehensive surplus / (deficit) (1,819) 69,234

Surplus / (deficit) attributable to the Australian Government (1,819) 69,234

Total comprehensive surplus / (deficit) attributable to the Australian Government (1,819) 69,234

The accompanying notes form part of these financial statements.

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Aboriginal Hostels Limited ABN 47 008 504 587

Statement of Financial Position as at 30 June 2014

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2014 Note 2014 2013

$'000 $'000

ASSETS

CURRENT ASSETS Cash and cash equivalents 7A 18,046 13,535

Trade and other receivables 8A 938 2,968

Other current assets 9 123 207

Assets held for sale 10 600 -

Total current assets 19,707 16,710

NON-CURRENT ASSETS Property, plant and equipment 11A&B 138,483 141,494

Intangible assets 12A&B 187 244

Total non-current assets 138,670 141,738

Total assets 158,377 158,448

LIABILITIES

CURRENT LIABILITIES Provision for employee benefits 13 2,173 2,142

Trade and other payables 14A 2,910 3,048

Total current liabilities 5,083 5,190

NON-CURRENT LIABILITIES Provision for employee benefits 13 2,018 2,045

Trade and other payables 14A 695 679

Total non-current liabilities 2,713 2,724

Total liabilities 7,796 7,914

Net assets 150,581 150,534

EQUITY

Contributed equity 92,999 88,081

Retained surplus / (deficit) (10,765) (7,906)

Asset revaluation reserve 68,347 70,359

Total equity 150,581 150,534

The accompanying notes form part of these financial statements.

3

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Aboriginal Hostels Limited ABN 47 008 504 587 Statement of Changes in Equity for the period ended 30 June 2014 ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587 STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 JUNE 2014

2014 2013 2014 2013 2014 2013 2014 2013

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Opening balance

Balance carried forw ard from previous year (7,906)

(8,086) 88,081 88,081 70,359 1,305 150,534 81,300

(7,906) (8,086) 88,081 88,081 70,359 1,305 150,534 81,30

0

Comprehensive income for the period Net surplus / (deficit) for the Period (4,100) 168 -

- - - (4,100) 168

Asset revaluation reserve - Art and artefacts -

- - - - 2 - 2

Realisation of asset revaluation reserve - Land 1,0

17 - - (1,017) - -

Realisation of asset revaluation reserve - Building

224 - - (224) - -

Asset revaluation reserve - Land

1,040 37,891 1,040 37,891

Asset revaluation reserve - Buildings

- 31,173 - 31,173

Impairment of assets

(1,811) (1,811)

Total comprehensive income for the Period (2,859)

168 - - (2,012) 69,066 (4,871) 69,234

Contribution by owners Equity injection

4,918 4,918 -

Other transfers Asset revaluation reserve reductions - art and artefacts disposals

- 12 - - - (12) - -

Total other transfers

- 12 - - - (12) - -

Closing balance as at 30 June 2014 (10,765) (7,906) 92

,999 88,081 68,347 70,359 150,581 150,534

The accompanying notes form part of these financial

statements.

Total Equity

Contributed Equity/Capital

Retained Earnings

Asset Revaluation Reserve

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Statement of Cash Flows for the period ended 30 June 2014

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 JUNE 2014 Note 2014 2013

$'000 $'000

CASH FLOW FROM OPERATING ACTIVITIES

Receipts from Commonwealth Government 38,736 43,086

Receipts from State and Territory Governments 2,051 3,963

Receipts from hostel accommodation customers 13,531 9,540

GST received from the Australian Taxation Office 1,920 840

Interest received 427 300

Other income received 554 3,371

Donations received - 162

Payments to suppliers (23,229) (23,195)

Payments to construction suppliers (36) (1,140)

Payments to employees (29,955) (30,978)

Grants to community operated hostels (4,062) (4,577)

Net cash from / (used) in operating activities 7B (63) 1,372

CASH FLOW FROM INVESTING ACTIVITIES

Proceeds from sale of property, plant and equipment 3,537 3,620

Payments for property, plant and equipment (3,852) (682)

Payments for intangibles (29) (9)

Net cash from / (used) in investing activities (344) 2,929

CASH FLOW FROM FINANCING ACTIVITIES

Equity injection received 4,918 -

Net cash generated from financing activities 4,918 -

Net increase/(decrease) in cash held 4,511 4,301

Cash and cash equivalents at beginning of the financial year 13,535 9,234

Cash and cash equivalents at the end of the financial year 7A 18,046 13,535

The accompanying notes form part of these financial statements.

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Notes to the financial statements for the period ended 30 June 2014

Note 1 106

Note 2 116

Note 3 117

Note 4 118

Note 5 119

Note 6 120

Note 7 124

Note 8 125

Note 9 126

Note 10 126

Note 11 127

Note 12 130

Note 13 132

Note 14 132

Note 15 133

Note 16 134

Note 17 135

Note 18 136

Note 19 136

Note 20 136

Note 21 136

Note 22 136

Note 23 139

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Notes to the financial statements for the period ended 30 June 2014

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014

Note 1: Summary of Significant Accounting Policies

Corporate information

Aboriginal Hostels Limited (AHL) is a company limited by guarantee, incorporated and domiciled in Australia. The address of AHL’s registered office is Capital Centre, 2-6 Shea Street, Phillip, ACT, 2606.

Basis of preparation

The financial report is a general purpose financial report that has been prepared in accordance with the Corporations Act 2001, and the Australian Accounting Standards (including Australian Accounting Interpretations) and other authoritative pronouncements of the Australian Accounting Standards Board (AASB). AHL is classified for financial reporting purposes as a not-for-profit entity under the Corporations Act 2001 and the Australian Accounting Standards.

The financial report, except for cash flow information, has been prepared on an accrual basis and on a historical cost basis modified where applicable by the measurement at fair value of selected assets and liabilities.

The financial report is presented in Australian dollars and all values are rounded to the nearest thousand dollars ($’000) unless otherwise stated.

(a) Accounting Policy Changes

The accounting policies adopted by AHL during 2013-14 are consistent with those of the previous financial year and the following changes required with the introduction of new and amended Australian Accounting Standards and AASB Interpretations.

(b) Reporting period

AHL’s reporting 12 month period commenced 1 July 2013 and ended 30 June 2014 and the comparative figures include the prior 12 months period from 1 July 2012 to 30 June 2013.

(c) New accounting standards and interpretations for application in future periods

No accounting standards have been adopted by AHL earlier than the required application date.

AHL’s assessment of new and amended accounting standards and interpretations relevant to the company in future years are set out below:

Current financial year

ï¿» AASB 13 Fair value measurement - To increase consistency of the measurement and disclosure of assets and liabilities that require carrying at fair value, AASB 13 establishes a fair value hierarchy that categorises these assets and liabilities into three levels. ï¿» AASB 119 Employee benefits - AASB 119 introduces changes to the accounting for

employee benefits liabilities/assets and the classification of short-term and long-term employee benefits. ï¿» AASB 2012-2 Amendments to Australian Accounting Standards, Disclosures and Offsetting Financial Assets and Financial Liabilities - AASB 2012-2 amends AASB 7 Financial

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Notes to the financial statements for the period ended 30 June 2014

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Notes to the financial statements for the period ended 30 June 2014

Instruments: Requires disclosure of information that will enable users of an entity's financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with the entity's recognised financial assets and recognised financial liabilities, on the entity's financial position. ï¿» AASB 2012-5 Amendments - States that if prior year changes are not material a third

balance sheet is not necessary.

Changes to future years

ï¿» AASB 1031 Materiality - Amended to remove the guidance on how to assess materiality ï¿» AASB 1055 Budgetary reporting - Sets out budgetary disclosure requirements for Whole of Government, General Government Sector (GGS) and not-for-profit entities within the GGS. ï¿» AASB 139 Financial instruments - Replaces AASB 139 requirements for recognising and

measuring financial instruments by AASB 9. The revised AASB 9 addresses the classification and measurement of financial assets and financial liabilities ï¿» Changes to these standards are not expected to significantly impact AHL’s financial statements in future years.

(d) Significant accounting judgements and estimates

No accounting assumptions or estimates have been identified, other than those disclosed elsewhere within these statements, as having a significant risk of causing material adjustments to the carrying amount of assets and liabilities in the current or future years.

(e) Income tax

No provision for income tax has been raised as AHL is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

(f) Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, except where the GST incurred is not recoverable from the Australian Taxation Office.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable or payable to the Australian Taxation Office is included with other receivables and payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST component of cash flows arising from investing or financing activities which are recoverable from, or payable to the Australian Taxation Office are presented as cash flows included in receipts from customers or payable to suppliers.

(g) Contributions by owners

Amounts that are designated as ‘equity injections’ for the year (less any formal reductions) are recognised directly into contributed equity in that year.

(h) Revenue recognition

Revenue is recognised to the extent it is probable that the economic benefits will flow to AHL and the revenue can be reliably measured. The following specific recognition criteria must be met before

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Notes to the financial statements for the period ended 30 June 2014

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Notes to the financial statements for the period ended 30 June 2014

revenue is recognised.

Commonwealth, State and Territory government contributions for outputs

Contributions from government agencies for the delivery of capital and operating outputs are recognised as revenue except where the expenditure is reciprocal in nature. Where AHL receives funding for a specific purpose it is deemed to be reciprocal in nature and the revenue is recognised only when it has been earned and any unspent funding is recognised as unearned revenue.

Rendering of services

Revenue received for the provision of hostel accommodation is recognised upon the delivery of the service to customers, with all outstanding hostel tariff revenue accounted for as trade receivables, revenue payable by State and Territory organisations.

Resources received free of charge

Resources received free of charge by AHL are recognised as revenue when the ‘fair value’ can be reliably determined and the services would have been purchased if they had not been donated. AHL does not include an estimate of the value of hostels provided to AHL free of charge to operate in its financial statements as these arrangements almost always result in AHL incurring additional net costs rather than benefits.

No value has been recognised in AHL's current or prior year financial statements for resources received free of charge.

Other income

Other income is recognised and measured at the fair value of the consideration received or receivable to the extent it is probable that the economic benefits will flow to AHL and the income can be reliably measured.

Contributions

A contribution occurs when AHL receives an asset or cash without returning approximately equal value to the parties that provided the cash or asset for example property donations, grant funding to deliver administered programs. Contributions are referred to under Accounting Standard AASB 1004 as non-reciprocal transfers of economic benefits. Income from contributions is recognised at the time the revenue is received, not in the period when the expense is incurred. The only exception is tariff revenue from State, Territory, and local government agencies which is accounted for in the same way as tariff revenue from any other debtor.

(i) Expense recognition

Resources provided free of charge

Resources provided free of charge by AHL are recognised as expenses when and only when the ‘fair value’ can be reliably determined and the services would have been sold if they had not been donated. Resources provided free of charge are recorded as either an expense or a loss depending on their nature. Hostels provided by AHL to charitable organisations to operate free of charge to provide services to Aboriginal and Torres Strait Islander people are excluded from this policy and no

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Notes to the financial statements for the period ended 30 June 2014

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Notes to the financial statements for the period ended 30 June 2014

value has been estimated or recognised in AHL’s financial statements in the current or prior financial years.

(j) Project expense

The Commonwealth, State and Territory governments from time to time provide AHL with funding to oversight the delivery of particular construction projects on their behalf and on behalf of other entities. The expenditure relating to these projects is not capitalised by AHL but is instead recognised in AHL’s accounts as an expense when it is spent because AHL does not own these construction projects while in progress, or at the completion of the building works.

(k) Revenue received in advance

Unspent revenue relating to contributions, grants and other funding from Commonwealth, State and Territory governments is recognised as ‘revenue received in advance’ only where there is a present obligation to repay all or part of the unspent funding, because AHL have not met specific conditions attached to the contributions, grants and other funding from State and Territory governments at balance date.

(l) Employee benefits

Leave provisions

A provision is made for AHL’s liability for employee entitlements arising from services rendered by employees at the reporting date to the extent that they have not been settled. These benefits include wages and salaries, annual leave and long service leave.

Liabilities for short-term employee benefits (as defined in AASB 119 Employee Benefits) arising in respect of wages and salaries, annual leave and any other employee benefits expected to be settled within twelve months of the reporting date are measured at their nominal amounts based on remuneration rates which are expected to be paid when the liability is settled.

Other employee entitlements payable later than twelve months have been measured at the present value of the estimated future cash outflows to be made for those entitlements.

The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave, as it is non-vesting and the average sick leave taken in future years by employees of AHL is estimated to be less than the annual entitlement for sick leave.

Leave liabilities are calculated on the basis of employees’ remuneration, including AHL’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Superannuation

Staff at AHL are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or of each employee’s chosen superannuation fund.

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Notes to the financial statements for the period ended 30 June 2014

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Notes to the financial statements for the period ended 30 June 2014

The CSS and PSS are defined benefit schemes of the Australian Government. The PSSap is a defined contribution scheme. From 1 July 2005, new employees are eligible to join the PSSap scheme. Where staff do not indicate a preference, PSSap is the default superannuation fund.

Contributions are made by AHL to the above schemes at the rates determined by an actuary to be sufficient to meet the costs to the Commonwealth Government of the superannuation entitlements of AHL’s employees. AHL recognises contributions as expenses when incurred.

(m) Trade and other receivables

Receivables for goods or services are recognised at the nominal amounts due less any allowances for impairment. The collectability of debts is reviewed at year end. An allowance is recognised when the collectability of the debt is no longer probable and reported as a provision for impairment. The 'No Pay No Stay' policy is in place to reduce the level of irrecoverable debts from guests and hostel accommodation tariff payable by institutional debtors (e.g.: State and Territory government agencies). Debts are either paid upfront or within 60 days of the accommodation being provided to guests.

(n) Property, plant and equipment (includes fit out in leased properties, art and artefacts)

Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total) or they are art and artefacts where AHL has no capitalisation threshold.

Art, artefacts, land and buildings are carried at ‘fair value’ less depreciation, whereas leasehold improvements, plant and equipment are carried at historic cost less accumulated depreciation and less any identified impairment losses. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount. A formal assessment of recoverable amount is made when impairment indicators are present.

Independent valuations

The last independent valuation of land and building was undertaken by Australian Valuation Solution (AVS) as at 30 June 2014.

These independent valuations were undertaken by AHL to: obtain the current values of land and buildings for accounting and insurance purposes, identify potential impairment to historical values, and ensure AHL’s assets are not carried at amounts greater than ‘fair value’ as required by accounting standard AASB 136, Impairment of Assets.

AHL plan to undertake revaluations of all AHL owned land, buildings, art and artefacts, including reassessments of the remaining useful lives of all AHL owned buildings, art and artefacts, every 3 years and reflect these valuations and remaining useful lives in AHL’s asset register and accounts.

Valuation policy for art and artefacts

Art and artefacts were revalued in AHL’s accounts for the first time in 2011-12 (as at 30 June 2012) at ‘fair value’ based on independent valuations rather than at ‘historic cost’ or at a nominal value if received as a gift. In 2012-13 these assets continue to be valued at ‘fair value’ and AHL has assigned a minimum management valuation of $50 to all art and artefacts which were: previously recorded in

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Notes to the financial statements for the period ended 30 June 2014

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014

the assets register at nil or $1 and not revalued, newly acquired assets received during 2012-13 via donation, and identified for the first time during the 2012-13 stocktake. All valuation increases have been recognised in the ‘Art and Artefacts Revaluation Reserve’. All art and artefacts continue to be depreciated over 100 years. Although all care is taken by AHL to protect its art and artefacts, AHL does not have a formal ‘preservation plan’ in place to protect these assets indefinitely. Consequently, these assets cannot be classified as heritage assets and have not been assigned unlimited useful lives.

Valuation policy for land and buildings

AHL changed the policy used to value land, buildings and building improvements in 2012-13 (as at 1 July 2012) from ‘historic cost’ to ‘fair value’ as determined by independent valuers. In previous year’s AHL valued land, buildings and building improvements in its accounts at ‘historic cost’ regardless of the value or if the property was originally transferred to AHL for a nominal fee. AHL changed the method used to assign the estimated remaining useful life of all buildings and building improvements in 2012-13. This methodology continues to be used in 2013-14.

In prior years AHL depreciated all buildings and buildings improvements over 25 years from the date the building works were acquired or completed. This policy was applied regardless of the age or condition of the building (many of which were very old, in a poor state of repair, or designated as heritage buildings). The estimated remaining useful lives of AHL’s buildings and building improvements recorded in the accounts for depreciation purposes have been independently determined by AHL’s independent valuers as of 1 July 2012. Following the valuation, the estimated useful remaining lives of AHL’s buildings changed from an initial 25 years to between nil and 48 years and this resulted in significant adjustments to annual depreciation expenses. The net valuation increases were recognised last year in AHL’s Land and Buildings Revaluation Reserves.

New acquisitions are initially valued at ‘historic cost’ and subsequently revalued to ‘fair value’ as part of the next scheduled independent tri-annual revaluation process. All donated properties are independently revalued and accounted for at ‘fair value’ in the year of acquisition.

Disclosure of leasehold improvements

AHL records the cost of office fitouts and capital improvements over $2,000 undertaken by AHL in leased properties at ‘historic cost’ and depreciates the cost over the life of each lease.

Where lease contracts require the restoration of the premises to original condition on conclusion of the lease, the estimated cost of restoring the site and dismantling the fitout is to be accounted for as an increase to the value of the leasehold asset, with a corresponding increase to the ‘provision for makegood’ and amortised over the life of the lease.

AHL had no ‘leasehold makegood’ liabilities in 2013-14 or 2012-13.

New asset categories

AHL established two new asset categories in 2012-13, for solar panels and improvements to properties managed by AHL under informal arrangements. The first new category incorporates all solar panels and equipment which have been assigned an estimated useful life for accounting purposes of 10 years. All solar panels and equipment assets previously capitalised as either buildings (depreciated over 25 years) or as electrical equipment (depreciated over 5 years) are now accounted for in this new asset category with required accumulated depreciation and depreciation expense

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Notes to the financial statements for the period ended 30 June 2014

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Notes to the financial statements for the period ended 30 June 2014

adjustments reflected in the net adjustments to current year building, plant and equipment figures reported in Notes 11A, 11B and 4C.

The second new asset category was established in 2012-13 to separately track and consistently account for the capitalisation and amortisation of improvements to a number of old hostel buildings which AHL continues to manage and maintain on behalf of other entities under long standing verbal (‘informal lease type’) arrangements. Improvements to these properties are being accounted for in the same way as similar properties which have formal 5 year lease agreements in place. AHL’s Executive team have been involved in negotiations with the respective property owners to either end these long standing arrangements and return the properties to the owners or enter into formal short term lease arrangements. AHL only continued to operate a few properties under this informal ‘lease type’ of arrangement at 30 June 2014, and decisions on the future of these informal long term arrangements are expected to be finalised in next few years when more modern replacement properties become available. A five year estimated remaining useful life has been assigned to capital improvements to these properties which have been funded by AHL. These ‘informal lease type’ improvements have been combined with leasehold improvement assets for disclosure purposes in AHL’s 2013-14 financial statements, disclosed in notes 11A, 11B and 4C.

Depreciation of property, plant and equipment

Depreciable property, plant and equipment with the exception of leasehold improvement assets are written off to their estimated residual values over their estimated useful lives using the straight line method of depreciation commencing from the time the asset is available for use. Leasehold improvements are depreciated on a straight line basis over the estimated useful life of the improvements.

Depreciation rates (useful lives) at the end of each reporting period together with necessary adjustments are recognised in the current and future reporting periods as appropriate. Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

Asset category 2014 2013

Buildings 0-48 years 0-48 years

Leasehold improvements* 5-15 years 5 -15 years

Solar panels and equipment # 10 years 10 years

Furniture and fittings 5 years 5 years

Computer equipment 3 years 3 years

Office machinery 5 years 5 years

Electrical equipment 5 years 5 years

Art and artefacts 100 years 100 years

Notes:

* leasehold improvements include fitout of AHL’s National Office which are depreciated over the 15 year lease improvements to all other leased office, and hostel accommodation, and hostels operated by AHL under verbal arrangements are depreciated over 5 years.

# solar panels and equipment is a new asset category established in 2012-13.

The aggregate amounts of depreciation and amortisation expenses allocated for each class of asset during the reporting period are disclosed in notes 11A, and 4C. AHL’s capitalisation threshold for property, plant and equipment is $2,000.

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Notes to the financial statements for the period ended 30 June 2014

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014

Gains and losses on disposal

Gains and losses on disposals are determined by comparing proceeds from sale of assets with the carrying value of each asset. These gains or losses are included in the statement of comprehensive income.

Work in progress - Property, plant and equipment

The full cost of construction work undertaken on AHL owned projects is capitalised in work in progress (WIP) at historical cost. Once completed, these assets are transferred from WIP to the respective asset classes within property, plant and equipment. However, where AHL receives funding to construct hostels or maintain hostels on behalf of other agencies, the full cost is immediately expensed and not capitalised. These hostels are capitalised by the respective owners upon completion and handover by AHL.

Condition assessments and planned hostel upgrades

In 2012-13 AHL put on hold all non-essential repairs and maintenance and undertook a comprehensive company-wide condition assessments of all hostels to identify the condition of the current stock of hostels and the nature and cost of repairs and capital upgrade work required to upgrade and where required, replace some of AHL’s hostels and related furniture and fittings. AHL has a long term plan in place to bring all hostels up to minimum acceptable standards to ensure they meet client expectations, are located in areas of highest need, and AHL can afford ongoing maintenance costs.

AHL received approval to spend an additional $6.1m ($4.9m in 2013-14 and $1.2m in 2014-15) in capital New Policy Proposal (NPP) funding to undertake planned hostel upgrades for 9 hostels in Northern Australia in 2013-14 and 2014-15. Procurement processes are currently underway to conduct this work.

(o) Intangibles

Software

AHL's intangibles comprise purchased software which is carried at cost less accumulated amortisation and less any impairment losses. Software is amortised on a straight line basis over its anticipated useful life commencing when the software is installed ready for use. The useful life of AHL’s software is estimated at five years and the value is assessed annually for impairment. AHL’s capitalisation threshold for software is $2,000.

Work in progress - software

The full cost of purchasing IT software and customising it for AHL’s business operations is capitalised in WIP at historical cost until the IT systems are installed ready for use by. The full cost of purchasing and developing the completed software is then transferred from WIP to the appropriate software category in the asset register and amortised over the estimated useful life of the software. Any software development costs not directly related to the development of the final installed software is expensed. Software licence fees are capitalised separately from the software and amortised over the life of each licence.

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Notes to the financial statements for the period ended 30 June 2014

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014

(p) Impairment of assets

At the end of each reporting period, AHL reviews the carrying values of its assets to determine whether there is any indication that those assets have been impaired. If such an indication exists because the recoverable amount of the asset, (i.e.: fair value less selling costs) is lower than the asset’s carrying value, the difference is recognised as an expense.

AHL believes that all property, plant, equipment and software are accurately valued and reflect the current condition of these assets.

(q) Leases

All lease payments relate to operating leases where all the risks and benefits substantially remain with the lessor, are recognised as expenses on a straight-line basis over the lease term.

Lease incentives incorporated in operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term.

(r) Financial instruments

Recognition and measurement

Financial assets and financial liabilities are recognised when AHL becomes a party to the contractual provisions to the instruments and are held at ‘fair value’. ‘Fair value’ represents the amount that an asset could be exchanged or liability settled between knowledgeable willing parties at balance date.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts over the expected life of the financial asset, or where appropriate, a shorter period.

Income is recognised on an effective interest rate basis except for financial assets that are recognised at ‘fair value’ through profit or loss.

(s) Trade payables

Trade creditors represent the liability outstanding at the end of the financial year for goods and services received by AHL before year end which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

(t) Provisions

Provisions are recognised when AHL has a legal or constructive obligation as a result of past events, where it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provision record AHL’s best estimate of the amounts required to settle the obligations at the end of the financial year.

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Notes to the financial statements for the period ended 30 June 2014

(u) Contingent liabilities and assets

Contingent liabilities and assets are not recognised in the statement of financial position but are reported in the relevant notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an existing liability or asset in respect of which settlement is not probable or the amount cannot be reliably measured. Contingent assets are reported when settlement is probable, and contingent liabilities are recognised when settlement is greater than remote.

(v) Fair value measurement

AHL deems transfer between levels of the fair value hierarchy to have continued at the end of the reporting period

(w) Cash and cash equivalents

Cash and cash equivalents include: cash on hand and at bank, deposits held at call with banks, and other short-term deposits.

(x) Grants to community hostels

Individual service level agreements are in place between AHL and Community Organisations which receive grant funding from AHL to operate community hostels. This program is referred to as Community and Corporate Partnership Program (CCPP). AHL recognises a grant expense upon payment of each grant as required by AASB 1004. Community hostels run hostels which provide housing and specialist support service to Aboriginal and Torres Strait Islander guests generally not provided by AHL, for example hostels supporting drug rehabilitation services.

(y) Comparative figures

Where required by the Accounting Standards, comparative figures have been adjusted to conform with presentation changes introduced by AHL in the current financial year.

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Notes to the financial statements for the period ended 30 June 2014 ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587 Note to the financial statement for the period ended 30 June 2014

Note 2A: Revenue from Commonwealth Government Note 2014 2013 $'000 $'000

Operating funding for continuing activities AHL general operations Department of Prime Minister and Cabinet (PM&C) (in 2012-13 FaHCSIA)

Payment to CAC agencies - Operational funding 1 38,374 38,457

Additional operating contributions - 498

Specific Purpose Grant Contributions 2

Department of Education, Employment and Workplace Relations (DEEWR) Indigenous Youth Mobility Program (IYMP) 3 - 1,657

Department of Health (DoH) Tackling Indigenous Smoking 60 -

38,434 40,612

Funding for operation of hostels managed by AHL on behalf of other agencies Department of Prime Minister and Cabinet (PM&C) (in 2013-14 DEEWR)

Wadeye Secondary Education Boarding Facility 4 372 1,700

372 1,700

Total revenue from Commonwealth Government 38,806 42,312

1 AHL moved from FaHCSIA to the PM&C portfolio following the Administrative Arrangements Orders of 18 September 2013.

2 These grants are defined as non-reciprocal transfers under accounting standard AASB 1004 Contributions, therefore revenue is accounted for at the time of receipt and liabilities are not raised for unearned revenue received in advance. 3

AHL handed the management and operation of IYMP funded hostels to DEEWR in December 2012. AHL have now divested all interest in properties which previously housed IYMP hostels.

4 DEEWR provided AHL with operational grant funding to operate the Wadeye hostel for two years in June 2012. However, the six month delay in opening the facility has resulted in $1.5m being carried forward as unspent revenue at 30 June 2013, hence the lower revenue received and recorded as at 30 June 2014. Future funding is to be received from PM&C following the AAO changes 18 September 2013.

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Notes to the financial statements for the period ended 30 June 2014

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

Note to the financial statement for the period ended 30 June 2014

Note 2B: Revenue from State and Territory Governments1 Note 2014 2013 $'000 $'000

Operating funding for continuing activities

Northern Territory Department of Health

Akangkentye Hostel 409 536

Apmere Mwerre Visitor Park 1,171 1,118

Northern Territory Department of Housing Alyerre Hostel 471 415

Victorian Government - Department of Human Services

Supported Accommodation Assistance Program 2 - 117

Total revenue from State and Territory Governments 2,051 2,186

Note 2C: Other income

Gain on sale of property, plant and equipment 1 323 3,356

Rent received 39 15

Donations received - 162

Total other income 362 3,533

Note 3: Employee benefits

Wages and salaries 23,385 24,252

Annual leave 1,953 2,101

Long service leave 6 406

Superannuation 3,780 3,640

Total employee benefits 29,124 30,399

1 AHL sold the George Wright Hostel in 2013-14 which no longer met operational requirements. AHL sold the following 5 hostels during 2012-13: Warrina Hostel (NSW), Joe McGinness Hostel (QLD), Allan Bell Hostel (SA), Gladys Elphick Hostel (SA) and Ngadu Hostel (NSW).

1 These grants are defined as non-reciprocal transfers under accounting standard AASB 1004 Contributions, therefore revenue is accounted for at the time of receipt and liabilities are not raised for unearned revenue received in advance. 2

This funding agreement with the Victorian Government ended during 2012-13.

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Notes to the financial statements for the period ended 30 June 2014 ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587 Note to the financial statement for the period ended 30 June 2014

Note 4A: Administration expenses Note 2,014 2013

$'000 $'000

Consultants and contractors 1,669 1,580

Travel and accommodation 1,865 2,003

Training and recruitment 415 559

Information technology and communications 946 1,733

Insurance 2,996 2,103

Directors' fees 15C 340 287

Audit fees 16 112 109

Bad debts 80 136

Other 1,408 1,287

Total administration expenses 9,831 9,797

Note 4B: Property operating expenses

Operating lease expense:

- Minimum lease payments 1,093 1,391

- Contingent lease payments - 29

Total operating lease expense 1,093 1,420

Repairs and maintenance 3,473 2,457

Condition assessments of AHL's hostels - 203

Property management improvement services - 216

Minor furnishing 459 445

Fuel and power 1,868 1,986

Rates 716 867

Other 1,285 1,262

Total property operating expenses 8,894 8,856

Note 4C: Depreciation and amortisation

Depreciation:

Buildings 2,859 2,689

Plant and equipment 1,104 942

Art and artefacts 14 14

3,977 3,645

Amortisation:

Leasehold improvements 202 161

Intangibles 86 72

288 233

Total depreciation and amortisation 4,265 3,878

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Aboriginal Hostels Limited ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014 ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587 Note to the financial statement for the period ended 30 June 2014

Note 4D: Construction activities completed on behalf of other Note 2,014 2013 agencies $'000 $'000

Wadeye Secondary Education Boarding Facility

(Wadeye)1 - 314

Total expenditure on hostels owned by other agencies2 - 314

1 AHL completed the construction at the Wadeye hostel, on behalf of DEEWR in June 2012, and in 2012-13 returned $314k to DEEWR to project manage the landscaping at Wadeye. AHL now operate Wadeye on DEEWR's behalf. 2

AHL was not involved in construction activities on behalf of other agencies in 2013-14.

Note 5: Net surplus / (deficit) from continuing operations

Net surplus / (deficit) from continuing operations (4,100) 168

Adjusted for the financial impact of AHL undertaking construction projects on behalf of other agencies

Expenses incurred in constructing Wadeye 1 - (314)

- (314)

Net surplus / (deficit) from continuing operations related to AHL's core business of operating aboriginal hostels (4,100) 482

1 AHL completed the construction at the Wadeye hostel, on behalf of DEEWR in June 2012, and in 2012-13 returned $314k to DEEWR to project manage the landscaping at Wadeye. AHL now operate Wadeye on DEEWR's behalf.

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Aboriginal Hostels Limited ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014 ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587 Note to the financial statement for the period ended 30 June 2014

Note 6A: Fair Value Measurement

Fair value $'000 Level 1 inputs $'000

Level 2 inputs $'000 Level 3 inputs $'000

Non-financial assets: Land 42,620 - 34,170 8,450

Buildings 88,373 - 4,869 83,504

Land1 150 - 150 -

Buildings1 450 - - 450

Leasehold Improvements 1,264 - - 1,264

Total non-financial assets 132,857 - 39,189 93,668

Non-financial assets - - - -

Fair value Measurement - Highest & Best Use AHL's assets are held for operational purposes and not held for the purposes of deriving a profit. The highest and best use of each asset has been considered with the current use of the Karinga Hostel and Galawu Hostel not considered to be at their highest and best use.

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Note 6: Fair Value Measurement

The following tables provide an analysis of assets and liabilities that are measured at fair value. The different levels of the fair value hierarchy are defined below.

Fair value measurements at the end of the reporting period by hierarchy for non-financial assets in 2014

Fair value measurements at the end of the reporting period using

Assets not measured at fair value in the statement of financial position:

1 AHL is currently holding a property for sale that is no longer essential to operational requirements and recognised as non-recurring. It is intended this asset will be disposed of within the next 12 months. Fair value has been determined at fair value less cost to sell in accordance with AASB 5 Non-Current Assets Held for Sale and Discontinued Operations.

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Aboriginal Hostels Limited ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

Note to the financial statement for the period ended 30 June 2014

Note 6B: Level 1 and Level 2 transfers for recurring fair value measurements

Level 1 to Level 2 2014 $000

Level 2 to Level 1 2014 $000

Non-financial assets: Land - -

Buildings - -

Total non-financial assets - -

Recurring fair value measurements transferred between Level 1 and Level 2 for assets and liabilities

Transferred from

There have been no transfers between levels of the hierarchy during the year.

AHL's policy for determining when transfers between levels are deemed to have occurred can be found in Note 1. Note 6C: Valuation techniques and inputs for Level 2 and Level 3 fair value measurements

Category (Level 2 or Level 3)

Fair value

Valuation technique(s)1

Inputs used Range

(weighted average)2

Non-financial assets: Land 2 34,320 Market Approach Adjusted market

transactions

Land 3 8,450 Market Approach Adjusted market

transactions (10.0%) - 10.0%

Buildings (AUC) 2 816 Replacement Cost Replacement Cost New Buildings 2 4,053 Market Approach Adjusted market

transactions

Buildings 3 5,370 Market Approach Adjusted market

transactions (15.0%) - 15.0%

Buildings 3 1,876 Income Approach Rental rate per week $150 - $300

Capitalisation rate 7.5% - 10.5%

Buildings 3 76,709 Depreciated

Replacement Cost Replacement Cost New Consumed economic benefit /

Obsolescence of asset

4.0% - 1.3% (2.0%) per annum

Leasehold Improvements

3 1,264 Depreciated

Replacement Cost Replacement Cost New (price per square metre) Consumed economic

benefit / Obsolescence of asset

6.7% - 20.0% (7.1%) per annum

Level 2 and 3 fair value measurements - valuation technique and the inputs used for assets in 2014

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Notes to the financial statements for the period ended 30 June 2014

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014

Note 6C Valuation techniques (continued)

1. There have been no changes to valuation techniques.

2. Significant unobservable inputs only. Not applicable for assets or liabilities in the Level 2 category. There were no significant inter-relationships between unobservable inputs that materially affect fair value.

Recurring and non-recurring Level 3 fair value measurements - valuation processes

AHL procured the service of the Australian Valuation Office (AVO) to undertake a comprehensive valuation of all non-financial assets at 30 June 2012. AHL tests the procedures of the valuation model as an internal management review at least once every 12 months (with a formal revaluation undertaken once every three years). If a particular asset class experiences significant and volatile changes in fair value (i.e. where indicators suggest that the value of the class has changed materially since the previous reporting period), that class is subject to specific valuation in the reporting period, where practicable, regardless of the timing of the last specific valuation. The entity has engaged Australian Valuation Solutions (AVS) to provide written assurance that the models developed comply with AASB 13.

One property held by AHL was revalued utilising a different valuation technique. This resulted in an overall increase to the fair value measurement of this asset.

Significant Level 3 inputs utilised by the entity are derived and evaluated as follows:

Land and Buildings - Adjusted Market Transactions

AHL controls assets situated in locations where property markets experience few transactions. Reference was made to available sales evidence together with other relevant information related to local economic, property zoning and property market conditions. The Valuer has used significant professional judgement in determining the fair value measurements.

Buildings - Market Rental and Capitalisation Rate

The income capitalisation approach has been adopted to determine the fair value of the buildings asset class. Under the income capitalisation approach the net market rental is capitalised at an appropriate yield as determined from comparable sales transactions. The analysis and selection of an appropriate market rental and yield from evidence with varying degrees of comparability to the subject property is determined based on professional judgement.

Buildings & Leasehold Improvements - Consumed economic benefit / Obsolescence of asset

Assets that do not transact with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured utilising the cost (Depreciated Replacement Cost or DRC) approach. Under the DRC approach the estimated cost to replace the asset is calculated and then adjusted to take into account its consumed economic benefit / asset obsolescence (accumulated depreciation). Consumed economic benefit / asset obsolescence has been determined based on professional judgment regarding physical, economic and external obsolescence factors relevant to the asset under consideration.

The weighted average is determined by assessing the fair value measurement as a proportion of the total fair value for the class against the total useful life of each asset.

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Notes to the financial statements for the period ended 30 June 2014 ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014

Note 6C Valuation techniques (continued)

Recurring Level 3 fair value measurements - sensitivity of inputs

Land & Buildings - Adjusted Market Transactions

The significant unobservable inputs used in the fair value measurement of AHL's land and buildings asset classes relate to the adopted price per square metre. A significant increase (decrease) in this input would result in a significantly higher (lower) fair value measurement.

Buildings - Market Rental and Capitalisation Rate

The significant unobservable inputs used in the fair value measurement of AHL's building asset classes relate to the potential market rental and market capitalisation rate. A significant increase (decrease) in the market rental would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the market capitalisation rate would result in a significantly lower (higher) fair value measurement.

Buildings & Leasehold Improvements - Consumed economic benefit / Obsolescence of asset

The significant unobservable inputs used in the fair value measurement of AHL's building asset classes relate to the consumed economic benefit / asset obsolescence. A significant increase (decrease) in this input would result in a significantly lower (higher) fair value measurement.

Note 6D: Reconciliation for recurring Level 3 fair value measurements

Non-financial assets

Leasehold Improvements

Land Buildings Total

2014 $'000

2014 $'000

2014 $'000

2014 $'000

Opening balance1 1,388 8,450 85,031 94,870

Total gains/(losses) in accumulated depreciation2

(124) - (1,527) (1,651)

Sales - - - -

Settlements - - - -

Transfers into Level 33 - - - -

Transfers out of Level 33 - - - -

Closing balance 1,264 8,450 83,504 93,218

Changes in unrealised gains/(losses) recognised4 - - -

Recurring Level 3 fair value measurements - reconciliation for assets

1. Open balance as determined in accordance with AASB 13. 2. The presentation of these gains/(losses) in the Statement of Comprehensive Income will be dependent upon on AHL’s accounting policy and the requirements of accounting standards.

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Aboriginal Hostels Limited ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014 ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014

Note 6D: Reconciliation for recurring Level 3 fair value measurements (continued)

3. There have been no transfers between levels of the hierarchy during the year. 4. The presentation of unrealised gains/(losses) in the Statement of Comprehensive Income will depend on AHL’s accounting policy and the requirements of accounting standards.

AHL's policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.

Note7A: Cash and cash equivalents Note 2014 2013

$'000 $'000

Cash at bank 16,350 12,341

Cash in imprest accounts 1,532 1,032

Donation account 164 162

Total cash and cash equivalents as stated in Statement of Financial Position 18,046 13,535

Total cash and cash equivalents as stated in the Statement of Cash Flows 18,046 13,535

Note 7B: Cash flow information Reconciliation of cashflow from operations with net comprehensive income

Net comprehensive income for the period (1,819) 69,234

Non-cash items Realisation of revaluation reserve - Land (1,017) -

Realisation of revaluation reserve - Building (224) -

Depreciation and amortisation 4,265 3,878

Asset revaluation reserve - Art and artefacts - (2)

Asset revaluation reserve - Land (1,040) (37,891)

Asset revaluation reserve - Buildings - (31,173)

Cash items Changes in assets and liabilities Net gain on sale of property, plant and equipment (323) (3,356)

Realised other receivable for prior year property disposal (1,901) -

(Increase) / Decrease in other assets 84 106

(Increase) / Decrease in trade and other receivables 2,030 944

Increase / (Decrease) in trade and other payables (122) (25)

Increase / (Decrease) in employee provisions 4 (343)

Net cash flow from / (used in) operating activities (63) 1,372

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Aboriginal Hostels Limited ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014 ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587 Note to the financial statement for the period ended 30 June 2014

Note 8A: Trade and other receivables Note 2014 2013

$'000 $'000

Current Trade receivables 860 836

Less: Provision for impairment (124) (44)

Total 736 792

GST receivable 170 248

Other receivables 32 1,928

Total trade and other receivables 938 2,968

Note 8B: Provision for impairment of receivables

Movements in the provision for impairment of trade receivables are noted below: 2013 $'000

Opening balance provision for impairment as at 1 July 2012 (44)

- Charge for year (136)

- Written off 136

Closing balance provision of impairment as at 30 June 2013 (44)

2014 $'000

Opening balance provision for impairment as at 1 July 2013 (44)

- Charge for year (80)

Closing balance provision for impairment as at 30 June 2014 (124)

Note 8C: Credit risk - Trade and other receivables

AHL does not have any material credit risk exposure to any single receivable or group of receivables.

The following table details AHL's trade and other receivables exposed to creditor risk with ageing analysis and impairment provided for thereon. Amounts are considered as 'past due' when the 'debt has not been settled within the terms and conditions agreed between the company and the customer or counter party to the transaction. Receivables that are past due are assessed for impairment by ascertaining solvency of the receivables and are provided for where there are specific circumstances indicating that the debt may not be fully repaid to the company.

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Aboriginal Hostels Limited ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014 ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587 Note to the financial statement for the period ended 30 June 2014

Note 8C: Credit risk - Trade and other receivables (continued)

Gross amount

Past due and impaired

Within initial trade terms 30

days 31-60 days 61-90 days >90 days

$'000 $'000 $'000 $'000 $'000 $'000

2014

Trade receivables 860 124 82 82 485 87

Other receivables 202 - 202 - - -

Total 1,062 124 284 82 485 87

2013

Trade receivables 836 44 159 157 110 366

Other receivables 2,176 - 2,176 - - -

Total 3,012 44 2,335 157 110 366

Note 9: Other current assets Note 2014 2013

$'000 $'000

Prepayments 123 207

Total other current assets 123 207

Note 10: Other current assets

Assets held for sale1 600 -

Total assets held for sale 600 -

AHL does not hold any financial assets which would otherwise have been impaired had terms not been recognised.

1 AHL held the Roy Thorne Hostel as held for sale as at 30 June 2014. The property was impaired by $1.343 million before re -classification as held for sale to reflect the estimated market value.

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Aboriginal Hostels Limited ABN 47 008 504 587 Notes to the financial statements for the period ended 30 June 2014 Note 11A: Schedule of property, plant and equipment

2014 2013

Gross Book Accumulated Net Book Gross Book Accumulated N

et Book

Value Depreciation Value Value Depreciation Value

$'000 $'000 $'000 $'000 $'000 $'000

Land and buildings Land at fair value

42,620 - 42,620 42,790 - 42,790

Total land

42,620 - 42,620 42,790 - 42,790

Buildings at fair value 92,834 (5,277) 87,557 94,120 (

2,780) 91,340

Add: Work in progress at historic cost 816 -

816 30 - 30

Total buildings 93,650 (5,277) 88,373 94,150 (2,780) 91,370

Leasehold improvements at historic cost 1,944 (680) 1

,264 1,866 (478) 1,388

Total leasehold improvements 1,944 (680) 1,264 1,866 (47

8) 1,388

Total land and buildings 138,214 (5,957) 132,257 138,80

6 (3,258) 135,548

Plant and equipment Plant and equipment at historic cost 7,775 (2,925) 4,

850 6,386 (1,830) 4,556

Total plant and equipment 7,775 (2,925) 4,850 6,386 (1,8

30) 4,556

Art and artefacts Art and artefacts at fair value 1,404 (28) 1,376 1,404

(14) 1,390

Total art and artefacts 1,404 (28) 1,376 1,404 (14) 1,390

Total property, plant and equipment 147,393 (8,910) 13

8,483 146,596 (5,102) 141,494

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587 Notes to the financial statements for the year ended 30 June 2014

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Aboriginal Hostels Limited ABN 47 008 504 587 Notes to the financial statements for the period ended 30 June 2014 Notes to the financial statements for the year ended 30 June 2014 Note 11B: Reconciliation of the opening and closing balances of property, plant and equipment 2014 (Continued)

Buildings Work In Leasehold Total Land Plant and Art and

Land Buildings Progress Improvements and Buildings Equip

ment

Artefacts

Total

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

As at 30 June 2013

Opening gross book value

42,790

94,120

30

1,866

138,806

6,386

1,404

146,596

Opening accumulated depreciation -

(2,780) - (478) (3,258) (1,830) (14) (5,102)

Opening net book value at 30 June 2013 42,790 91,340 30 1,388 135,548 4,556 1,390 141,494

Additions:

By acquisition

-

1,145 1,228 78

2,451 1,401 - 3,852

Capitalised from w ork in progress -

442 (442) - - - - -

Disposal of assets (1,060)

(250) - - (1,310) (3) - (1,313)

Transfers betw een asset categories (150)

(450) - - (600) - - (600)

Asset revaluation reserve increment 1,040

- - - 1,040 - - 1,040

Impairment of assets

1

- (1,811) - - (1,811) - - (1,811)

Depreciation expense -

(2,859) - (202) (3,061) (1,104) (14) (4,179)

Closing net book value at 30 June 2014 42,620

87,557 816 1,264 132,257 4,850 1,376 138,483

Net book value as at 30 June 2014 represented by

Closing gross book value 42,620 92,834 816

1,944 138,214 7,775 1,404 147,393

Closing accumulated depreciation -

(5,277) - (680) (5,957) (2,925) (28) (8,910)

Closing net book value at 30 June 2014

42,620 87,557 816 1,264 132,257 4,850 1,376 138,483

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587 1During 2013-14 the Trilby Cooper and Allaw ah Grove

Hostels w ere impaired by $33K and $435K respectively due to significant w ater damage sustained

by these properties. By 30 June 2014 these properties w ere returned to their previous condition and are currently fully operational. The Roy Thorne Hostel w as also impaired during 2013-14 by $1.343m to refl

ect the current market value prior to being transferred to an asset held for sale.

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Aboriginal Hostels Limited ABN 47 008 504 587 Notes to the financial statements for the period ended 30 June 2014 Notes to the financial statements for the year ended 30 June 2014 Note 11C: Reconciliation of the opening and closing

balances of property, plant and equipment 2013

Buildings Work In

Leasehold

Total Land

Plant and

Art and

Land Buildings Progress Improvements and Buildings Equip

ment Artefacts Total

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

As at 30 June 2012 Opening gross book value 5,198 103,341 32 1,624

110,195 4,921 1,425 116,541

Opening gross book value - restatement adjustment 2 (1,403)

- 783 (618) 617 - (1)

Adjusted opening gross book value 5,200 101,938 32 2,40

7 109,577 5,538 1,425 116,540

Opening accumulated depreciation -

(29,633) - (388) (30,021) (1,958) - (31,979)

Opening accumulated depreciation - restatement adjustment -

(5,805) - (319) (6,124) (768) - (6,892)

Adjusted opening accumulated depreciation

- (35,438) - (707) (36,145) (2,726) - (38,871)

Adjusted opening net book value as at 30 June 2012 5,200 66,500 32

1,700 73,432 2,812 1,425 77,669

Additions:

By acquisition

1 196 30 13 240 428 2 670

Capitalised from w ork in progress

-

30

(30)

-

-

-

-

-

Writeback of over accrual -

- (2) - (2) - - (2)

Transfers betw een asset categories -

(2,597) - - (2,597) 2,597 - -

Asset revaluation reserve increment 37,891 31,173 -

- 69,064 - 2 69,066

Depreciation expense -

(2,689) - (161) (2,850) (943) (14) (3,807)

Disposals

(302) (1,273) - (164) (1,739) (338) (25) (2,102)

Closing net book value at 30 June 2013 42,790

91,340 30 1,388 135,548 4,556 1,390 141,494

Net book value as at 30 June 2013 represented by Closing gross book value 42,790 94,120 30

1,866 138,806 6,386 1,404 146,596

Closing accumulated depreciation -

(2,780) - (478) (3,258) (1,830) (14) (5,102)

Closing net book value at 30 June 2013 42,790 91,340 3

0 1,388 135,548 4,556 1,390 141,494

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

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Aboriginal Hostels Limited ABN 47 008 504 587 Notes to the financial statements for the period ended 30 June 2014 Note 12A: Schedule of intangible assets

2014 2013

Closing

Closing

Gross book Accumulated Net Book Gross Book Accumulated N

et Book

Value Amortisation Value Value Amortisation Value

$'000 $'000 $'000 $'000 $'000 $'000

Software Softw are at historic cost

427 (257) 170 398 (171) 227

Work in progress at historic cost

17 - 17 17 - 17

Total software

444 (257) 187 415 (171) 244

Note 12B: Reconciliation of the opening and closing

balances of software 2014 2014

Work In Total

Software Progress Software $'000 $'000 $'000

As at 30 June 2013 Opening gross book value

398 17 415

Opening accumulated amortisation (171) -

(171)

Adjusted opening net book value at 30 June 2013 227 1

7 244

Additions: By purchase

29 17 46

Amortisation expense

(86) - (86)

Write off

- (17) (17)

Closing net book value at 30 June 2014 170 17

187

Net book value as at 30 June 2014 represented by Closing gross book value

427 17 444

Closing accumulated amortisation

(257) - (257)

Closing net book value at 30 June 2014 170 17

187

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587 Notes to the financial statements for the year ended 30 June 2014

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Aboriginal Hostels Limited ABN 47 008 504 587 Notes to the financial statements for the period ended 30 June 2014 Note 12C: Reconciliation of the opening and closing

balances of software 2013

Work In Total

Software Progress Software

$'000 $'000 $'000

As at 30 June 2012 Opening gross book value

353 52 405

Opening accumulated amortisation (131) -

(131)

Opening accumulated amortisation - restatement adjustment

5 - 5

Adjusted opening accumulated amortisation (126) -

(126)

Adjusted opening net book value at 30 June 2012

227 52 279

Additions: By purchase

17 39 56

Capitalised from w ork in progress

74 (74)

Amortisation expense

(72) - (72)

Disposals

(19) - (19)

Closing net book value at 30 June 2013

227 17 244

Net book value as at 30 June 2013 represented by Closing gross book value

398 17 415

Closing accumulated amortisation (171)

- (171)

Closing net book value at 30 June 2013 227 17

244

Notes to the financial statements for the year ended 30 June 2014 ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

132

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Aboriginal Hostels Limited ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

Notes to the financial statements for the year ended 30 June 2014

Note 13: Provision for employee benefits Note 2014 2013

$'000 $'000

Provision for annual leave 1,873 1,834

Provision for long service leave 2,318 2,353

Total employee benefits 4,191 4,187

Employee benefits expected to be settled No more than 12 months 2,173 2,142

More than 12 months 2,018 2,045

Total employee benefits 4,191 4,187

Note 14A: Trade and other payables

Current Trade payables 1,739 1,764

Employee payables 1,041 1,158

Lease incentive payable 43 43

Revenue received in advance 33 53

Project payables - 30

Other payables 54 -

Total current 2,910 3,048

Non-current Unearned lease incentive payable 510 553

Lease payables 185 126

Total non-current 695 679

Total trade and other payables 3,605 3,727

Note 14B: Financial liabilities within trade and other payables

Total trade and other payables 3,605 3,727

Less: Lease incentive payables (553) (596)

Less: Lease payables (185) (126)

Financial liabilities as trade and other payables 2,867 3,005

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Aboriginal Hostels Limited ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

Notes to the financial statements for the year ended 30 June 2014

Note 15A: Names of directors and key management personnel in office at any

time during the financial year are:

Directors

Mr Kevin Smith Chairperson and Non-Executive

Mr Hugo Johnston Non-Executive

Mr Pat Watson Non-Executive

Mr Wayne Jackson PSM Non-Executive

Ms Kerrynne Liddle Non-Executive

Ms Vanessa Elliot Non-Executive

Ms Gina Smith Non-Executive

Mr David Evans Non-Executive

Key management personnel

Ms Joy Savage Chief Executive Officer

Ms Georgina McKenzie Chief Financial Officer / Company Secretary

Mr Jeff Svigos General Manager - Business

Development

Ms Katrina Fanning General Manager - Operations

Ms Cherryl-Anne Navarro Acting Chief Financial Officer / Company Secretary from 4 February 2013 to 2 August 2013

Note 15B: Related party disclosures

There are no related party disclosure transactions for 2013-14 (nil in 2012-13).

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Notes to the financial statements for the period ended 30 June 2014 ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587 Notes to the financial statements for the year ended 30 June 2014

Note 15C: Directors' remuneration

Year Short-term Post-employment Total

benefits benefits

Directors' Superannuation

Fees contributions

$ $ $

2014 310,868 28,976 339,844

2013 263,343 23,701 287,044

Note 15D: Key management personnel remuneration

Year Short-term Post-employment Long-term Total

benefits benefits benefits

Salary, fees Superannuation Long service

and leave contributions leave

$ $ $ $

2014 935,419 123,044 19,457 1,077,920

2013 1,112,696 106,863 19,475 1,239,034

Note 16: Auditors' remuneration

Note 2014 2013

$'000 $'000

Amounts paid or payable to:

Australian National Audit Office Audit of AHL's annual financial statements1 112 109

Total auditors' remuneration 112 109

1 No other services were provided by the Australian National Audit Office in 2013-2014 or 2012-2013.

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Aboriginal Hostels Limited ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

Notes to the financial statements for the year ended 30 June 2014

Note 17A: Operating lease commitments1

Note 2014 2013

$'000 $'000

Not later than 1 year 1,597 1,700

Later than 1 year and not later than 2 years 1,351 1,324

Later than 2 years and not later than 5 years 2,800 2,813

Later than 5 years 6,454 7,184

Total 12,202 13,021

Note 17B: Capital expenditure commitments:

Not later than 1 year - 514

Total - 514

Note 17C: Project expenditure commitments

Not later than 1 year 1,266 488

Later than 2 years and not later than 5 years - -

Later than 5 years - -

Total 1,266 488

Note 17D: Commitments receivable

GST recoverable on the commitments listed in Notes 17A, 17B and 17C: Operating leases 1,109 1,183

Capital and major maintenance expenditure - 47

Project expenditure 115 44

Total 1,224 1,274

The outstanding unsecured commitments on unexpired term of leases for office space and hostel accommodation are non-cancellable operating leases contracted but not recognised in

the financial report with a five-year term. Increases in lease commitments may occur in line with the Consumer Price Index (CPI).

1Comparatives for operating lease commitments in 2012-13 have been updated to include AHL's vehicle fleet commitments.

136

AHL Annual Report 2013-2014

Aboriginal Hostels Limited ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

Notes to the financial statements for the year ended 30 June 2014

Note 18: Resources received and provided free of charge

In 2013-14 AHL had the use of five hostel properties which they received and operated free of charge (five in 2012-13).

In 2013-14 AHL provided one NSW property free of charge to an outside organisation who operate hostels for Aboriginal and Torres Strait Islander people for the full year.

The value of the benefits received and provided free of charge during 2013-14 as in prior years, have not been estimated by AHL.

Note 19: Economic dependency

AHL currently receives the majority of its funding from the Commonwealth, State and Territory Governments and is therefore financially dependent on them.

Note 20: Contingent assets and liabilities

At 30 June 2014, AHL had no quantifiable or less than remote contingent assets or liabilities (nil in 2012-13).

Note 21: Events after balance date

No events after balance date requiring reporting have occurred.

Note 22: Financial risk management

AHL's financial instruments consist mainly of deposits with banks, accounts receivable and accounts payable. The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows:

2014 2013

Note $'000 $'000

Financial assets Loans and receivables Cash and cash equivalents 7A 18,046 13,535

Trade and other receivables 8A 768 792

Total financial assets 18,814 14,327

Financial liabilities Trade and other payables 14B (1,750) (1,751)

Total financial liabilities (1,750) (1,751)

137

6 Financial Report

Aboriginal Hostels Limited ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

Notes to the financial statements for the year ended 30 June 2014

Note 22: Financial risk management (continued)

Financial risk management policies

The AHL Executive team work closely with their staff to track and monitor financial performance against financial targets and manage financial risks. Risk management policies are approved and reviewed by the Executive team on a regular basis. These include credit risk policies and future cash flow requirements.

Specific financial risk exposures and management

The main risks AHL is exposed to through its financial instruments are credit risk and liquidity risk. There have been no substantive changes in the types of risks the company is exposed to, how these risks may arise, or the Board of Directors' objectives, policies and processes for managing or measuring the risks, from the previous period.

Note 22A: Credit risk exposure

Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial deficit for AHL.

AHL does not have any material credit risk exposures as its major source of revenue is funding from Commonwealth, State and Territory Governments.

Credit Risk Exposure

Trade and other receivables that are neither past due nor impaired are considered to be of high quality. Aggregates of such amounts are as detailed in Note 8.

AHL has no significant concentrations of credit risk exposure to any single counterparty or group of counterparties. Details with respect to credit risk of trade and other receivables are provided in Note 8.

Note 22B: Liquidity risk

Liquidity risk arises from the possibility that the company might encounter difficulty in settling its debts or otherwise meeting its obligations in relation to financial liabilities. The company manages this risk through the following mechanisms:

ï¿» preparing forward looking cash flow analysis in relation to its operational, investing and ï¿» financing activities; ï¿» maintaining a reputable credit profile; ï¿» managing credit risk related to financial assets; ï¿» only investing surplus cash with major financial institutions; and ï¿» comparing the maturity profile of financial liabilities with the realisation profile of financial

assets.

138

AHL Annual Report 2013-2014

Aboriginal Hostels Limited ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

Notes to the financial statements for the year ended 30 June 2014

Note 22B: Liquidity risk (Continued)

The tables below reflect an undiscounted contractual maturity analysis for financial liabilities.

Cash flows realised from financial assets reflect management's expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed. The timing of cash flows presented in the following table to settle financial liabilities reflects the earliest contractual settlement dates.

Financial liability and financial asset maturity analysis:

2014 2013 2014 2013

$'000 $'000 $'000 $'000

Financial liabilities due for payment Trade and other payables (excluding unearned revenue) (1,750) (1,751) (1,750) (1,751)

Total expected outflows (1,750) (1,751) (1,750) (1,751)

Financial assets - cash flow realisable Cash and equivalents 18,046 13,535 18,046 13,535

Trade and other receivables 768 792 768 792

Total anticipated inflows 18,814 14,327 18,814 14,327

Net (outflows) / inflows on financial instruments 17,064 12,576 17,064 12,576

Within 1 Year Total

139

6 Financial Report

Aboriginal Hostels Limited ABN 47 008 504 587

Notes to the financial statements for the period ended 30 June 2014

ABORIGINAL HOSTELS LIMITED ABN 47 008 504 587

Notes to the financial statements for the year ended 30 June 2014

Note 23: Trust accounts

Note 23A: May Ames bequest account

Note 2014 2013

$ $

CAPITAL ACCOUNT

Opening balance 75,563 75,570

Bank fees - (7)

Closing balance of capital account 75,563 75,563

OPERATING ACCOUNT

Opening balance 9,334 8,306

Bank interest 892 1,033

Bank fees - (5)

Closing balance of operating account 10,226 9,334

Closing balance of May Ames bequest account 85,789 84,897

Note 23B: Ashley Cooper bequest account

CAPITAL ACCOUNT

Opening balance 125,000 125,000

Closing balance capital account 125,000 125,000

OPERATING ACCOUNT

Opening balance 16,604 14,443

Bank interest 1,488 2,173

Bank fees - (12)

Closing balance of operating account 18,092 16,604

Closing balance of Ashley Cooper bequest account 143,092 141,604

During 2006-07 $137,189 was received by AHL from the estate of the late Ashley Cooper to be used for the benefit of secondary school children in South Australia and Northern Territory. The funds have been invested by AHL in the following Commonwealth Bank of Australia bank accounts:

AHL administers the following two trust accounts in accordance with the individual bequests. As these trust accounts are not AHL monies, they have not been incorporated into AHL's financial statements but have been instead reported separately in this note.

During 1981-82 $46,980 was received by AHL from the estate of the late May Ames to be used for the benefit of secondary school children. The funds have been invested by AHL in the following Commonwealth Bank of Australia bank accounts:

APPENDICES

Appendix 1: Hostel addresses 142

Appendix 2: Hostel occupancy rates 148

142

AHL Annual Report 2013-2014

Appendix 1: Hostel addresses These tables provide details of the hostels operated or supported by Aboriginal Hostels Limited at 30 June 2014.

Table A1.1: Hostels—Western Australia

Hostel Address

Accommodation type Total capacity

Company-operated hostels

Allawah Grove Hostel 133 Great Eastern Highway South Guildford WA 6055 Multipurpose 46

Broome Hostel

52 Forrest Street Broome WA 6725

Renal 20

Derbal Bidjar Hostel 6-8 Harrow Street Maylands WA 6051

Medical 32

Kabayji Booroo Hostel

44-54 Villiers Street Derby WA 6728

Multipurpose 49

Kununurra Hostel (managed by the Top End Regional Office)

Lot 302 on DP 44064 Victorian Highway Kununurra WA 6743

Secondary education

40

South Hedland Hostel

3 Hamilton Road South Hedland WA 6722

Medical/Renal 48

Trilby Cooper Hostel 12-14 Hannan Street Kalgoorlie WA 6430

Multipurpose 48

Community-operated hostels

7 Mile Rehabilitation Centre Lot 1370 Great Northern Highway Wyndham WA 6740

Substance use rehabilitation

30

Boomerang Youth Hostel 97 Gregory Street Geraldton WA 6530

Multipurpose 20

Bunara Maya Hostel 21 Hamilton Road South Hedland WA 6722

Multipurpose 20

CAPS Coolgardie Hostel 88-92 Sylvester Street Coolgardie WA 6429

Secondary education

42

Karalundi Aboriginal Education Centre Great Northern Highway Via Meekatharra WA 6642

Secondary education

60

Continued

APPENDICES

143

Appendices

Hostel Address

Accommodation type Total capacity

Milliya Rumurra Hostel 78 Great Northern Highway Broome WA 6725

Substance use rehabilitation

22

Ngulla Mia Boarding Facility 295 Manning Road Waterford WA 6152

Secondary education

18

Wongutha CAPS Hostel 625, Lot 3 East Gibson Road East Gibson WA 6448

Secondary education

50

Wunan House

167 Coolibah Drive Kununurra WA 6743

Tertiary education and training 14

Table A1.2: Hostels—Top End

Hostel Address

Accommodation type Total capacity

Company-operated hostels

Corroboree Hostel 11 Kirkpatrick Street Katherine NT 0850

Multipurpose 113

Daisy Yarmirr Hostel 37 Glencoe Crescent Tiwi NT 0810

Multipurpose 64

Fordimail Student Hostel Lot 2041 Zimin Drive Katherine NT 0850

Secondary education

42

Galawu Hostel

10 Finniss Street Darwin NT 0800

Multipurpose 41

Gudang Dalba Hostel Bambatj Road Royal Darwin Hospital Campus Darwin NT 0810

Antenatal/Women’s medical 16

Kardu Darrikardu Numida Hostel Nilihn Drive Wadeye NT 0822

Secondary education

40

Katherine Women’s Medical Hostel Knotts Crossing Road Katherine NT 0850

Antenatal/Women’s medical 10

Nagandji Nagandji-Ba Hostel 14 Verbena Street Nightcliff NT 0810

Renal 17

Nhulunbuy Hostel Bottlebrush Avenue Nhulunbuy NT 0880

Multipurpose 42

Silas Roberts Hostel 21 Packard Street Larrakeyah NT 0820

Multipurpose 57

Community-operated hostels

Dolly Garinyi Hostel 60 Boulter Road Berrimah NT 0820

Substance use rehabilitation

30

FORWAARD

33 Charles Street Stuart Park NT 0820

Substance use rehabilitation

16

144

AHL Annual Report 2013-2014

Table A1.3: Hostels—Queensland

Hostel Address

Accommodation type Total capacity

Company-operated hostels

Canon Boggo Pilot Hostel 145-147 Douglas Street Thursday Island QLD 4875

Secondary education

35

Elley Bennett Hostel 501 Brunswick Street New Farm QLD 400

Multipurpose 28

Iris Clay Hostel

261-269 Sturt Street Townsville QLD 4810

Multipurpose 46

Jane Arnold Hostel 155 Moray Street New Farm QLD 4005

Multipurpose 30

Jumula Dubbins Hostel 60 Victoria Parade Thursday Island QLD 4875

Multipurpose 42

Kabalulumana Hostel 37-41 Pamela Street Mount Isa QLD 4825

Multipurpose 41

Kuiyam Hostel

162 Grafton Street Cairns QLD 4870

Multipurpose 72

Mackay Hostel

49-53 Boddington Street Mackay QLD 4740 Multipurpose 38

Musgrave Park Hostel 196 Boundary Road West End QLD 4101

Multipurpose 17

Neville Bonner Hostel

5 Bridge Street Berserker QLD 4701

Multipurpose 47

Tonky Logan Hostel 20 Bernarra Street Rasmussen QLD 4815

Renal 41

Yumba Hostel

55 Gray Road West End QLD 4101

Multipurpose 73

Community-operated hostels

AFL Cape York House 53-75 Buchan Street Portsmith QLD 4870

Secondary education

48

Born Free Hostel 27 Brooke Street Highgate Hill QLD 4101

Homeless 13

Bowman Johnson Hostel 5 Oxford Street South Brisbane QLD 4101

Homeless 20

Ferdy’s Haven

Lot 474 Coconut Grove Palm Island QLD 4814

Substance use rehabilitation

24

Gamba Lodge

91 Nicholson Street Dalby QLD 4405

Multipurpose 10

Gindaja Rehabilitation Centre 207 Back Beach Road Yarrabah QLD 4871

Substance use rehabilitation

12

Jessie Budby Healing Centre 27 Llewellyn Street New Farm QLD 4005

Substance use rehabilitation

28

145

Appendices

Hostel Address

Accommodation type Total capacity

Joyce Wilding Hostel 2371 Logan Road Eight Mile Plains QLD 4113 Multipurpose 27

Milbi Farm

65 Lindleys Road Etna Creek QLD 4702

Multipurpose 13

Mookai Rosie Bi-Bayan

15-17 Valda Close Edmonton QLD 4869

Medical/Antenatal 12

Stagpole Street Hostel

7-9 Stagpole Street West End QLD 4810

Substance use rehabilitation

30

Table A1.4: Hostels—South Eastern Australia

Hostel Address

Accommodation type Total capacity

Company-operated hostels

Biala Hostel (for girls) 38 Lyly Road Allambie Heights NSW 2100 Secondary

education

23

Chicka Dixon Hostel 90 Liverpool Road Enfield NSW 2136

Multipurpose 15

Durungaling Hostel 19 Spruce Street Lambton NSW 2299

Tertiary education and training 11

Ee-Kee-Na Hostel 52 Rockvale Road Armidale NSW 2350

Tertiary education and training 14

Geraldine Briggs Hostel 17-19 Wyndham Street Shepparton VIC 3630

Multipurpose 25

Grey Street Hostel 2 Grey Street Dubbo NSW 2830

Secondary education

11

Harry Nanya Hostel 362 Deakin Avenue Mildura VIC 3500

Multipurpose 13

Kirinari Hostel— Newcastle (for boys) 15 Myall Road Garden Suburb NSW 2289

Secondary education

18

Kirinari Hostel— Sydney (for boys) 340 Box Road Sylvania Heights NSW 2224

Secondary education

30

Tamworth Hostel 179 Johnston Street Tamworth NSW 2340

Multipurpose 32

Tony Mundine Hostel 203 Catherine Street Leichhardt NSW 2040

Tertiary education and training 31

William T Onus Hostel

75 Westgarth Street Northcote VIC 3070

Multipurpose 28

Continued

146

AHL Annual Report 2013-2014

Hostel Address

Accommodation type Total capacity

Community-operated hostels

Benelong’s Haven 2054 South West Rocks Road Kinchela NSW 2440 Substance use

rehabilitation

48

Galiamble Halfway House (for men) 66 Grey Street St Kilda VIC 3182

Substance use rehabilitation

20

Gu-Dgodah Hostel 270/Lot 5 Talga Road Rothbury NSW 2320

Substance use rehabilitation

16

Lady Gladys Nicholls Hostel 56 Cunningham Street Northcote VIC 3070

Multipurpose/ Tertiary education and training 14

Mayaroo Hostel

113 Wine Country Drive Cessnock NSW 2325

Multipurpose (weekend)

10

Namatjira Haven 108 Whites Lane Alstonville NSW 2477

Substance use rehabilitation

14

Orana Haven Hostel 1 Byrock Road Gongolgan NSW 2839

Substance use rehabilitation

20

Sheraton House (for men) 87 Cherry Street Ballina NSW 2478

Homeless 10

The Glen Centre 50 Church Road Chittaway Point NSW 2261 Substance use

rehabilitation

20

Winja Ulupna Hostel (for females) 14 Charnwood Crescent St Kilda VIC 3182

Substance use rehabilitation

7

Worowa Aboriginal College (for girls) 60-80 Barak Lane Healesville VIC 3777

Secondary education

46

Yitjawudik Men’s Recovery Centre 985 Toolamba Road Toolamba VIC 3614

Substance use rehabilitation

7

147

Appendices

Table A1.5: Hostels—Southern Central Australia

Hostel Address

Accommodation type Total capacity

Company-operated hostels

Akangkentye Hostel 34 South Terrace Alice Springs NT 0870

Multipurpose 65

Alyerre Hostel

16 Bath Street Alice Springs NT 0870

Medical/Renal 43

Apmere Mwerre Visitor Park 15 Len Kittle Drive Alice Springs NT 0870

Multipurpose 155

Ayiparinya Hostel Lot 8139 Larapinta Drive Alice Springs NT 0870 Multipurpose 90

Lois O’Donoghue Hostel 34 Johnson Street Port Augusta SA 5700

Multipurpose 23

Luprina Hostel

2 Clement Street Dudley Park SA 5008

Multipurpose 20

Mulgunya Hostel 55 Dew Street Thebarton SA 5031

Medical 11

Nindee Hostel

2 Oban Street Beulah Park SA 5067

Multipurpose 22

Sid Ross Hostel

15 Gap Road Alice Springs NT 0870

Medical 39

Topsy Smith Hostel 14-18 Renner Street Alice Springs NT 0870

Renal 40

Wangkana Kari Hostel

Lot 782 Patterson Street Tennant Creek NT 0860

Secondary education

42

Community-operated hostels

CAAAPU

290 Ragonesi Road Alice Springs NT 0870

Substance use rehabilitation

20

148

AHL Annual Report 2013-2014

Appendix 2: Hostel occupancy rates These tables provide details of the occupancy of hostels owned and operated by Aboriginal Hostels Limited at 30 June 2014.

Table A2.1: Occupancy of company medical hostels

Location Hostel

Average resident beds available Occupancy

WA Derbal Bidjar 28 72%

WA South Hedland 43 61%

TE Gudang Dalba 17 65%

TE

Katherine Women’s Medical

9 43%

SCA Alyerre Hostel 39 86%

SCA Mulgunya 10 68%

SCA Sid Ross 37 92%

WA = Western Australia, TE = Top End, QLD = Queensland, SCA = Southern Central Australia

Note: ‘Average resident beds available’ excludes beds closed for maintenance.

Table A2.2: Occupancy of company renal hostels

Location Hostel

Average resident beds available Occupancy

WA Broome 18 63%

TE

Nagandji Nagandji-Ba

15 89%

QLD Tonky Logan 36 48%

SCA Topsy Smith 37 89%

WA = Western Australia, TE = Top End, QLD = Queensland, SCA = Southern Central Australia

Note: ‘Average resident beds available’ excludes beds closed for maintenance.

149

Appendices

Table A2.3: Occupancy of company multipurpose hostels

Location Hostel

Average resident beds available Occupancy

WA Allawah Grove 41 80%

WA Kabayji Booroo 43 82%

WA Trilby Coopera 5 70%

TE Corroboree 100 80%

TE Daisy Yarmirr 62 84%

TE Galawu 36 82%

TE Nhulunbuy 31 77%

TE Silas Roberts 47 72%

QLD Elley Bennett 23 90%

QLD Iris Clay 40 62%

QLD Jane Arnold 32 62%

QLD Jumula Dubbins 40 50%

QLD Kabalulumana 37 64%

QLD Kuiyam 66 58%

QLD Mackay Hostel 34 41%

QLD Musgrave Park 15 65%

QLD Neville Bonner 56 49%

QLD Yumba 67 58%

SEA Chicka Dixon 13 64%

SEA Geraldine Briggs 23 54%

SEA Harry Nanya 13 50%

SEA Tamworth 29 50%

SEA William T Onus 22 58%

SCA Akangkentye 54 79%

SCA Apmere Mwerre 147 70%

SCA Ayiparinya 84 81%

SCA Lois O’Donoghue 21 61%

SCA Luprina 20 66%

SCA Nindee 20 66%

WA = Western Australia, TE = Top End, QLD = Queensland, SEA = South Eastern Australia, SCA = Southern Central Australia

a T rilby Cooper was closed for refurbishment from 16 August 2013 to 7 July 2014.

Note: ‘Average resident beds available’ excludes beds closed for maintenance.

150

AHL Annual Report 2013-2014

Table A2.4: Occupancy of company secondary education hostels

Location Hostel

Average resident beds available Occupancy

WA Kununurra 40 13%

TE Fordimail 34 49%

TE

Kardu Darrikardu Numida

40 70%

QLD Canon Boggo Pilot 21 60%

SEA Biala 19 77%

SEA Grey Street Hostel 10 48%

SEA Kirinari Newcastle 15 81%

SEA Kirinari Sydney 39 42%

SCA Wangkana Kari 34 37%

WA = Western Australia, TE = Top End, QLD = Queensland, SEA = South Eastern Australia, SCA = Southern Central Australia

Note: ‘Average resident beds available’ excludes beds closed for maintenance.

Table A2.5: Occupancy of company tertiary education and training hostels

Location Hostel

Average resident beds available Occupancy

SEA Durungaling 10 54%

SEA Ee Kee Na 13 56%

SEA Tony Mundine 26 64%

SEA = South Eastern Australia

Note: ‘Average resident beds available’ excludes beds closed for maintenance.

END NOTES

Abbreviations and acronyms 152

Compliance index 153

Subject index 157

152

AHL Annual Report 2013-2014

ABBREVIATIONS AND ACRONYMS

AHL Abor iginal Hostels Limited

APS A ustralian Public Service

FaHCSIA D epartment of Families, Housing, Community Services and Indigenous Affairs

OECD Or ganisation for Economic Co-operation and Development

WHS w ork health and safety

153

End notes

COMPLIANCE INDEX

AHL is bound by various legislative requirements to disclose certain information in its annual report. The main requirements are detailed in the Commonwealth Companies (Annual Reporting) Orders 2011.

Requirement

Annual reporting orders referencea

Page Compliance Comments

Approval by Directors

Clause 5 96 Complies Out-of-session board

meeting on 26 September 2014.

Details of exemptions granted by Finance Minister in regard to reporting requirements

Clause 6 There were no

exemptions granted during the financial year.

Parliamentary standards of presentation

Clause 7 Through-

out

Complies

Plain English and clear design Clause 8 Through-

out

Complies

Responsible Minister

Clause 9 75 Complies The responsible minister

for the 2013-14 reporting period is Senator the Hon Nigel Scullion, Minister for Indigenous Affairs. For the period 1 July 2013 to 18 September 2013 the then Minister for Families, Community Services and Indigenous Affairs, the Hon Jenny Macklin MP, was the responsible minister.

Ministerial Directions

Clause 10a and 10b 75 There were no ministerial

directions received during the financial year.

Continued

154

AHL Annual Report 2013-2014

Requirement

Annual reporting orders referencea

Page Compliance Comments

General policy orders Clause 10 c 75 Complies There were no General

Policy Orders received during the financial year.

Freedom of information

Clause 10 83 Complies

Work health and safety

Clause 10 71 Complies

Ecologically sustainable development and environmental performance

Clause 10 83-84 Complies AHL operates in

accordance with the principles outlined in the Environment Protection and Biodiversity Conservation Act 1999.

Directors Clause 11 90-94 Complies

Organisational structure Clause 12 11 Complies Organisation chart

13 Map of hostel locations

across Australia

142-147 Addresses of AHL hostels

Board committees and their main responsibilities

Clause 12 a 76, 79-80 Complies

Education and performance review for directors

Clause 12 b 77 Complies

Ethics and risk management policies

Clause 12 c 81, 83 Complies

Any legislation that specifically applies to the company, by name

Clause 12 d 75 Complies

Related entity transactions Clause 13 96 There were no related

party disclosure transactions in 2013-14.

Continued

155

End notes

Requirement

Annual reporting orders referencea

Page Compliance Comments

Significant events: key activities and changes affecting the company

Clause 14 a 90 Complies

Key activities and changes affecting the company: amendments to constitution and any relevant legislation

Clause 14 b 75 There were no

amendments to the constitution or any relevant legislation in 2013-14.

Key activities and changes affecting the company: changes to membership structure

Clause 14 c 77 Complies There were no key

activities or changes affecting the company and no changes to the membership structure in 2013-14.

Key activities and changes affecting the company: amendments to legislation specific to company, by name

Clause 14 d 75 There were no

amendments to relevant legislation that affected the operations or structure of the company during 2013-14.

Significant judicial or administrative tribunal decisions, judicial decisions and administrative tribunals

Clause 15 a 82 There were no

judicial decisions and no decisions of administrative tribunals during 2013-14 that significantly impacted the operations of the company.

Continued

156

AHL Annual Report 2013-2014

Requirement

Annual reporting orders referencea

Page Compliance Comments

Significant judicial or administrative tribunal decisions, reports by the Auditor-General, a parliamentary committee, the Commonwealth Ombudsman, the OAIC or ASIC

Clause 15 b 82 Complies In 2013-14 AHL complied

with all ASIC reporting requirements.

Compliance Index

Clause 18 153 -156 Complies

Information from subsidiaries

Clause 16 75 AHL does not have

any subsidiaries.

Disclosure requirements for GBEs

Clause 17 75 AHL is not a GBE.

Index Clause 18 157 Complies

ASIC = Australian Securities and Investment Commission; GBE = government business enterprise; OAIC = Office of the Australian Information Commissioner

a Commonwealth Companies (Annual Reporting) Orders 2011.

157

End notes

SUBJECT INDEX

A abbreviations and acronyms, 152

Aboriginal and Torres Strait Islander Act 2005, 75

Aboriginal and Torres Strait Islander staff, AHL, 12, 26, 33, 59

academic achievements, celebration of, 44-45

accidents and incidents, 71

accommodation services, provision of, ii, 7, 12, 50, 80, 89; see also community-operated hostels; company-operated hostels and houses; guest capacity; hostels; medical hostels; mothers and children, services for; multipurpose hostels; occupancy rates; renal hostels; secondary education hostels; short-term accommodation, provision of; tertiary education and training hostels

accountability framework, 80-82; see also corporate governance

acronyms and abbreviations, 152

addresses, hostels, 142-147

administrative arrangements order, 22; see also machinery of government changes, impact on AHL

Akangkentye Hostel, Alice Springs, 51

Alice Springs Visitor Park; see Apmere Mwerre Visitor Park, Alice Springs

Alyerre Hostel, Alice Springs, 51

annual report, requirement for, x, 76

antenatal hostels; see Gudang Dalba Hostel, Darwin; Katherine Women’s Medical Hostel

Apmere Mwerre Visitor Park, Alice Springs, 51

appendices, 142-150

APS Employee Census 2013-14, 67

Archives Act 1983, 75

asset revaluation, 89; see also financial statements

audit; see Australian National Audit Office (ANAO); evaluations and reviews; external scrutiny; internal audit

Audit and Risk Management Committee, 50, 76, 79, 80, 81, 82, 96

meeting attendance, 97

Auditor-General, 81, 82; see also Australian National Audit Office (ANAO)

Auditor-General Act 1997, 75

Australia Day Achievement medallions, 62-65

Australian Indigenous Mentoring Experience, 47

Australian Information Commissioner, 82

Australian Institute of Company Directors, 77

Australian National Audit Office (ANAO), 79, 82

governance guidelines, 10, 83

Independence Declaration, 96

independent audit report, 98-100

Australian Public Service Code of Conduct, 78, 83

Australian Public Service 2013-14 Employee Census, 67

Australian Public Service Values, 78, 83

available beds; see guest capacity

awards, 62-66

158

AHL Annual Report 2013-2014

B beds, availability; see guest capacity

Biala Hostel, Sydney, vii, 46

Board, 8

Charter, 77

committees, 76, 79-80

Directors, 77, 90-94

meetings, 76, 78, 96

attendance, 97

performance evaluation, 78

remuneration, 78, 96, 97

role and responsibility, 75, 76-77

training, 77

see also Directors’ Report

boarding facilities, educational; see secondary education hostels; tertiary education and training hostels

Business Integrity Unit, 81, 82; see also internal audit

business planning, 75

C Canon Boggo Pilot Hostel, Thursday Island, 36

capacity, guest; see guest capacity

capital funding, 18, 89; see also financial statements

casual employment arrangements, 62

CEO Sleepout, participation in, viii

Chairperson

message from, 7-8

remuneration, 97

role, 77

charters

Board, 77

Customer Service, 82

Chief Executive Officer, message from, 7-8

Chief Executive Officer Sleepout, participation in, viii

client satisfaction surveys; see Resident Survey

Code of Conduct (APS), 78, 83

collaboration; see partnerships

Comcare, 71

committees, management, 76, 79-80; see also Audit and Risk Management Committee; Finance Working Group; Tariff Working Group

Commonwealth Authorities and Companies Act 1997, 75, 81

Commonwealth Companies (Annual Reporting) Orders 2011, 76

Commonwealth Disability Strategy, 85

Commonwealth Electoral Act 1918, 75

Commonwealth Ombudsman, 82

communications framework, introduction of, 7

Community and Corporate Partnerships Programme, 31, 43, 50; see also community-operated hostels

community consultation, 51, 54

community-operated hostels, 12, 43, 50

addresses, 142-147

expenditure, 20

guest capacity, ii, 31, 35, 142-147

occupancy rates, 33, 34

see also accommodation services, provision of; Community and Corporate Partnerships Programme; company-operated hostels and houses; hostels

159

End notes

community partnerships; see Community and Corporate Partnerships Programme; partnerships

community reference groups, 54; see also community consultation

company, establishment of, iv, 9

Company Directors Course Diploma, 77

company loyalty milestones, 65

company-operated hostels and houses, 12, 43

addresses, 142-147

expenditure, 20

guest capacity, ii, 31, 34, 142-147, 148-150

locations map, 13

occupancy rates, 33, 34, 148-150

see also accommodation services, provision of; community-operated hostels; hostels; medical hostels; multipurpose hostels; renal hostels; secondary education hostels; tertiary education and training hostels

company overview, 7-13; see also Directors’ Report

company structure, 11

complaints handling system, 82, 85

compliance index, 153-156

Compliance Report, 76

conflicts of interest disclosure, 77

Constitution, AHL, 76, 77

construction works, funding, 20, 89; see also refurbishment and maintenance works

consultation, community, 51, 54

contacts

annual report, inside front cover

offices, back cover

corporate governance, 7, 10, 75-85

corporate partnerships; see Community and Corporate Partnerships Programme; partnerships

corporate planning, 75; see also 2014-2017 Strategic Plan; 2011-13 Corporate Plan

Corporations Act 2001, 10, 75

Customer Service Charter, 82

D data collection and management, capacity and occupancy, 35

Dean ‘Rocky’ Smith Memorial Award, 44

delegations, 76, 80

deliverables, programme, 22, 23; see also performance measures

demographics, staff, 59

Department of Families, Housing, Community Services and Indigenous Affairs, 89; see also Families, Housing, Community Services and Indigenous Affairs Portfolio

Department of Prime Minister and Cabinet, 51, 89

responsibility for Indigenous affairs, 7

Directors, Board; see Board

Directors’ Report, 89-97

disability strategy report, 85

diversity, workplace, 12, 59

divestment of hostels, iii, 89, 90

duty of care responsibility, 35, 36, 67, 85

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AHL Annual Report 2013-2014

E ecologically sustainable development and environmental performance, 83-84

education, enabling access to, ii, 9, 10, 26, 31, 43; see also secondary education hostels; tertiary education and training hostels

education, training and employment opportunities; see education, enabling access to; secondary education hostels; tertiary education and training hostels

education hostels; see secondary education hostels; tertiary education and training hostels

employment and training hostels; see tertiary education and training hostels

enterprise agreement, 67

Environment Protection and Biodiversity Conservation Act 1999, 75, 83

ethical standards, 78, 83; see also Australian Public Service Code of Conduct

evaluations and reviews, 50

accommodation facilities operations, iii, 50

Board performance, 78

funding agreements, 51

operating procedures, 7

tariff policy, 79

see also Australian National Audit Office (ANAO); Commonwealth Ombudsman; external scrutiny; internal audit

Executive Management Team, 76

expenditure, 20-22; see also financial statements; financial summary

external scrutiny, 81-82; see also Australian National Audit Office (ANAO); Commonwealth Ombudsman; judicial review

F Fair Work Act 2009, 75

Families, Housing, Community Services and Indigenous Affairs Portfolio, 22; see also Department of Families, Housing, Community Services and Indigenous Affairs

feedback, residents, ii, 36-38, 54; see also complaints handling system

female staff, 59

Finance Committee, establishment of, 80

Finance Working Group, 76, 80

financial report, 89-139; see also Directors’ Report; financial statements

financial statements, 98-139

financial summary, 18-22, 89; see also financial statements

fortieth anniversary celebrations, iv-vi

Fraud Control Plan, 81

fraud management procedures, 79, 81; see also Audit and Risk Management Committee; internal audit

Freedom of Information Act 1982, 75, 83

full-time staff, 59

funding; see financial statements; financial summary

funding agreements, renewal of, 51

G Garma Festival 2013, 60-61

General Policy Orders, 75

Geraldine Briggs Hostel, Shepparton, 10, 28

governance, corporate, 7, 10, 75-85

governing legislation, 75

government agencies, collaboration with, 26, 51

161

End notes

government priorities, achieving, 26-27

Grey Street Secondary Education Hostel, Dubbo, 44

Gudang Dalba Hostel, Darwin, iii, 27, 48-49

guest capacity, ii, 31, 32, 34-35, 142-147, 148-150

H Headspace, 47

health and safety management; see work health and safety

health services, enabling access to, iii, 9, 10, 27, 31, 48, 52, 53; see also Gudang Dalba Hostel, Darwin; Katherine Women’s Medical Hostel; medical hostels; mothers and children, services for; renal hostels

highlights for 2013-14, ii-ix

history of AHL, iv, 9

hostels

addresses, 142-147

divestment of, iii, 89, 90

guest capacity, ii, 31, 32, 34-35, 142-147, 148-150

locations map, 13

occupancy rates, ii, 7, 31, 33-36, 50, 148-150

planned upgrades, iii, 90

funding for, 18, 20, 89

see also accommodation services, provision of; community-operated hostels; company-operated hostels and houses; medical hostels; multipurpose hostels; renal hostels; secondary education hostels; short-term accommodation, provision of; tertiary education and training hostels

Hostel Support Division, 82

I improvement notice, Comcare, 71

incident reports, work health and safety, 71

income, 18-20; see also financial statements; financial summary

indemnities and insurance, 96

Independence Declaration, Auditor-General’s, 96

independent reviews and evaluations; see Australian National Audit Office (ANAO); external scrutiny

Indigenous Advancement Strategy, government’s, 8

Indigenous Australians, AHL staff, 12, 26, 33, 59

Indigenous Youth Mobility Programme, 68

cessation of AHL role, 20

induction program, Directors, 77

Information Publication Scheme, 83

information technology management, iii

insurance, liability, 96

interim recruitment arrangements, government, 59, 62

internal audit, 79, 81; see also Audit and Risk Management Committee

Internal Audit Strategic Plan, 81

internal control framework, 80; see also Audit and Risk Management Committee; internal audit

J judicial review, 82

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AHL Annual Report 2013-2014

K Kardu Darrikardu Numida Hostel, Wadeye, ii, 51, 54; see also Wadeye boarding facility, NT

Katherine Women’s Medical Hostel, 20, 27; see also mothers and children, services for

key performance indicators, 22, 23, 33, 80

L learning and development

hostel managers, 47

staff, 67, 83

legislative framework, 75

letter of transmittal, x

liability insurance, 96

locations map, 13

loyalty milestones, 65

M machinery of government changes, impact on AHL, 7; see also administrative arrangements order

maintenance works; see refurbishment and maintenance works

male staff, 59

medical hostels, iii, 27, 31, 33, 51, 52

occupancy rates, 33, 148

snapshot, 48-49

see also Gudang Dalba Hostel, Darwin; Katherine Women’s Medical Hostel; mothers and children, services for; renal hostels

Minister, responsible, 75

Minister for Indigenous Affairs, ix, 75

Ministerial Directions, 75

Mothers and Bubs facility, iii; see also Gudang Dalba Hostel, Darwin; mothers and children, services for

mothers and children, services for, iii, 27, 47; see also Gudang Dalba Hostel, Darwin; Katherine Women’s Medical Hostel

multipurpose hostels, 27, 50, 53

occupancy rates, 148-149

N NAIDOC celebrations, iv, vii

National Disability Strategy 2010-2020, 85

non-English speaking background, staff, 59

non-ongoing staff, 59, 62

Northern Territory Government, funding agreement with, 51

notifiable incidents, work health and safety, 71

O objectives, company, 7, 23, 76, 89

occupancy rates, ii, 7, 31, 33-36, 50, 148-150; see also guest capacity

occupational health and safety; see work health and safety

office contacts, inside back cover

office locations map, 13

Ombudsman, Commonwealth, 82

ongoing staff, 59

operating resources and expenditure, 24-25; see also financial statements; financial summary

operating results, 89; see also financial statements

Operations Manual, development, 7

163

End notes

organisational structure, 11; see also programme structure

outcome and programme structure, 22-23

overview, company, 7-13

ownership, company, 10, 75, 89

P parliamentary committees, 82

partnerships, 7, 26, 33, 50, 51, 53; see also Community and Corporate Partnerships Programme; Northern Territory Government, funding agreement with; state and territory governments

Partnerships, Reconciliation and Prosperity project, 60

part-time staff, 59

Patient Assisted Travel Scheme, 53

people with disability, staff, 85; see also disability strategy report

performance indicators; see key performance indicators

performance management, staff, 7, 67

performance measures, 23; see also deliverables, programme; key performance indicators

performance summary, 18-38

financial, 18-22 (see also financial statements)

Personal Information Digests, 82

plans and planning, corporate, 75

portfolio budget statements, 22, 23, 33

postnatal and prenatal care; see Gudang Dalba Hostel, Darwin; Katherine Women’s Medical Hostel; mothers and children, services for

prepaid bookings, 36, 53

pricing policy; see tariffs

Prime Minister and Cabinet Portfolio

responsibility for Indigenous affairs, 22

see also Department of Prime Minister and Cabinet

priorities for 2014-15, iii

Privacy Act 1988, 75, 82

private sector, collaboration with; see Community and Corporate Partnerships Programme; partnerships

programme structure, 22-23

Public Interest Disclosure Act 2013, 75

Public Sector Governance: Better Practice Guide (ANAO report), 10, 83

Public Sector Workplace Bargaining Policy, 67

Public Service Act 1999, 75, 83, 96

Q quality assurance systems, 50

R recognition, staff, 62-66

recruitment, staff, 59, 62

reference groups, community, 54; see also community consultation

refurbishment and maintenance works, 31, 36, 85; see also upgrades, hostel

regional office network, 12, 13

rehabilitation case management, 71

related party disclosures, 96

remote and regional areas, service provision, 7, 31, 43, 48, 50, 53

remuneration

Directors, 78, 96, 97

senior executives, 97

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AHL Annual Report 2013-2014

Remuneration Tribunal, 79, 96

renal hostels, 51, 52

occupancy rates, 149

see also Tonky Logan Hostel, Townsville

Resident Survey, 36-38; see also feedback, residents

responsible Minister, 75

retention, staff, 7, 62

revaluation of assets, 89; see also financial statements

revenue and expenditure; see expenditure; financial statements; financial summary; income

risk management strategy, iii, 76, 79, 80, 81; see also Audit and Risk Management Committee

Royal Darwin Hospital, 48; see also Gudang Dalba Hostel, Darwin

S safety; see work health and safety

Safety, Rehabilitation and Compensation Act 1988, 75

satisfaction, residents; see complaints handling system; feedback, residents; Resident Survey

secondary education hostels, ii, 9, 20, 26, 31, 35-36, 43, 50, 51

occupancy rates, 35, 36, 149-150

snapshots, vii, 44-45, 46

senior executives remuneration, 97

short-term accommodation, provision of, ii, iii, 7, 9, 26, 31, 50; see also hostels

significant changes in state of affairs, 90

snapshots

Aboriginal Hostels Limited celebrates its fortieth anniversary, iv-vi

Biala Hostel student enjoys success in study and sport, 46

Chief Executive Officer sleeps out to help the homeless, viii

Cooperation delivers supplementary health services for renal patients, 52

Cross-border travel scheme assists patients in remote and regional areas, 53

Education forum delivers insights for hostel managers, 47

Garma Festival 2013, 60-61

General Manager of Operations receives Woman of the Year award, 66

Girls from Biala Hostel dance to remember the Yirrkala bark petitions, vii

Gudang Dalba Hostel provides support for mums from the bush, 48-49

Minister visits the National Office, ix

New South Wales students celebrate academic achievements, 44-45

Past residents visit Geraldine Briggs Hostel in Shepparton for morning tea, 28-29

Regional Manager, South Eastern Australia, treks Kokoda in the spirit of reconciliation, 68-69

Sausage sizzle in Shepparton, 10

Tamworth Hostel celebrates 10 years of operation, 14-15

staffing profile, 12, 33, 59

165

End notes

staff recruitment, 59, 62

state and territory governments

funding from, 18-19

partnerships with, 26, 51, 89

Strategic Plan 2014-2017, 75

Strategic Risk Management Plan, 81; see also risk management strategy

structure, company, 11; see also programme structure

superannuation guarantee contribution, 96

surveys

resident satisfaction, 36-38, 54 (see also feedback, residents)

staff, 67

sustainability report, ecological, 83-84

T Tamworth Hostel, 14-15

tariffs

as income source, 18, 19, 20

policy, 12, 38

review, 79

Tariff Working Group, 76, 79

temporary accommodation; see accommodation services, provision of; short-term accommodation, provision of

territory and state governments; see state and territory governments

tertiary education and training hostels, ii, 8, 9, 26, 31, 43

occupancy rates, 150

Tonky Logan Hostel, Townsville, 52; see also

renal hostels

Torres Strait Islander staff, AHL; see Aboriginal and Torres Strait Islander staff, AHL

training; see learning and development

training and tertiary education, enabling access to; see tertiary education and training hostels

training hostels; see tertiary education and training hostels

transmittal letter, x

Trilby Cooper Hostel, Kalgoorlie, 36

turnover, staff; see retention, staff

2011-13 Corporate Plan, 75

2013-14 APS Employee Census, 67

2013-14 portfolio budget statements, 23; see also portfolio budget statements

2014-2017 Strategic Plan, 75

U upgrades, hostel, iii, 90

funding for, 18, 20, 89

V values, company, 10; see also Australian Public Service Values

vision, company, 10; see also objectives, company

vocational training accommodation services; see tertiary education and training hostels

voluntary redundancies, 59

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AHL Annual Report 2013-2014

W WA Country Health Service, 53

Wadeye boarding facility, NT, 20; see also Kardu Darrikardu Numida Hostel, Wadeye

Which Way, Safe Way Work Health and Safety Strategy, iii, 7, 71; see also work health and safety

Woman of the Year award, 66

women, health services for; see Gudang Dalba Hostel, Darwin; Katherine Women’s Medical Hostel; mothers and children, services for

workers’ compensation; see Comcare

workforce diversity, 12, 59

work health and safety, iii, 27, 71; see also Which Way, Safe Way Work Health and Safety Strategy; Work Health and Safety Strategy

Work Health and Safety Act 2011, 71, 75

work health and safety management system, 71

Work Health and Safety Strategy, 67; see also Which Way, Safe Way Work Health and Safety Strategy

workplace diversity, 12, 59

workplace relations, 67

Y year ahead, iii

years of service milestones, 65

Yirrkala bark petitions, vii, 60

Yolngu people, vii, 60

Yothu Yindi Foundation, 60

youths, services for; see secondary education hostels; tertiary education and training hostels

Contact information AHL staff are located at the following offices across Australia.

For more information visit ahl.gov.au.

South Eastern Australia Regional Office 5th Floor 128-134 Chalmers Street Surry Hills NSW 2010

P 02 9310 2777

Southern Central Australia Regional Office Suite 2 Ground Floor Lindsay Place Building 15 Leichhardt Terrace Alice Springs NT 0870

P 08 8952 6544

National Office Canberra Level 1 Capital Centre 2-6 Shea Street Phillip ACT 2606

P 02 6212 2000

Western Australia Regional Office Unit 9 Ascot Cove 152 Great Eastern Highway Ascot WA 6104

P 08 9479 5953

Top End Regional Office 1st Floor CML Building 59 Smith Street Darwin NT 0800

P 08 8981 4388

Queensland Regional Office 110 McLeod Street Cairns QLD 4870

P 07 4051 4588