Multicap Annual Report 2016 [PDF]

Contents

Our Progress 2 3 5 6 8 10 12

Patron’s letter Multicap’s Legacy & Purpose Chair & CEO’s report Strategic Plan NDIS update Multicap snapshots & trends Share Bayside

Person-Centred Approach 14 Strategic Priorities 15 Our Support & Services 21 Specialist Services 22 Staff 23 Health & Safety 24 Leadership team

Community Integration 26 Strategic Priorities 27 Avegates 30 Our Innovations 32 Volunteers

It was a great honour that the first event I attended as Patron of Multicap was the official opening of the new Ford House building at Eight Mile Plains in March 2016. This was indeed a memorable event and one which symbolised many of the strengths of this uplifting Queensland organisation: its determination to innovate, while centrally focussing on individual needs; its commitment to stronger community partnerships; and its firm understanding of its history. Together, these elements are wonderfully reflected in Multicap’s slogan: “Together we are a positive circle of support… In all ways and always.”

Sustainable Services

I was also privileged, with Kaye, to see another powerful manifestation of this ethos when we visited the Monte Lupo Arts – Multicap’s enterprise service – exhibition at this year’s Ekka.

34 Strategic Priorities 35 Marketing & Media 36 Fundraising 37 Systems & Infrastructure 38 Board of Directors 39 Governance 40 Committee Reports

That ethos is also reflected in other Multicap achievements during the reporting period: increasing to 800 the number of individuals and their families receiving Person-Centred Approach care; increasing accommodation options so that Queenslanders with disabilities can live dignified, fulfilling lives; continuing to develop other innovative models of service delivery; and preparing, at an organisational level, for National Disability Insurance Scheme implementation.

Financials 41 Discussion & Analysis 42 Directors’ Report 43 Statement of Comprehensive Income 44 Statement of Financial Position 45 Statement of Changes in Equity 45 Statement of Cash Flows 46 Notes to the Financial Statements 54 Independent Auditor’s Report 55 Life Members

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A message from our Patron

2016

As Governor, on behalf of all Queenslanders, and as Patron, I wholeheartedly thank the Board, the staff and volunteers, the wonderful donors, supporters and community partners, and the families and individuals at the centre of Multicap’s work, for another stellar year of achievement. All of you are part of the enriching Queensland story – now 54 years strong! – that is Multicap. I very much look forward to further supporting you during my time as Governor. His Excellency the Honourable Governor of Queensland

Paul de Jersey AC

FRONT COVER IMAGE: Ford House Opening with Multicap Chairman Prof John McAuliffe AM, His Excellency the Honourable Paul de Jersey AC, Governor of Queensland, Multicap CEO Joanne Jessop, The Hon. Coralee O’Rourke MP (Minister for Disability Services), Lesley, David, Marianne, Diane, Simon, Leean and staff members Robert and Delyce.

An exciting journey... Multicap’s legacy and purpose Multicap has been operating since 1962, starting from humble beginnings and has grown to become a leader in disability services throughout Queensland and Northern New South Wales. We stand by our sole purpose: the quality of life of people with disability and their families is enhanced by our support. Through our support, people with disability are encouraged to imagine every possibility and to fulfil their potential. Nilu, featured on page 31, is just one person with disability achieving amazing things, and we are proud to support her. By accessing assisted employment through Makeables, Nilu has developed greater independence, a greater social network, and achieved a number of work and life goals. Nilu is a dedicated employee, and Multicap is lucky to have her as part of our family. Nilu’s skill base demonstrates the importance of Multicap’s sole purpose, and our passion to support people with disability to pursue their ambitions. We create opportunity. We are champions of possibility. We inspire partnerships of support. Our door is always open. Multicap has been enhancing people’s quality of life for 54 years. It’s what we do.

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4

2016

CEO & Chairman’s Report We have had such an exciting journey over the past 12 months across Multicap, and throughout this Annual Report we have shared some of the stories and achievements of the people we support, their families and our staff. We continue to demonstrate how our activities have been aligned to our three strategic priorities of Person-Centred Support, Community Integration and Sustainable Services and we have achieved, or have in progress, 95% of the actions we identified in the 2011-2016 Strategic Plan. Our new Strategic Plan 2016-2021 provides the framework for the next part of our exciting journey as we transition into the National Disability Insurance Scheme (NDIS), and is the result of many collaborative conversations with a wide range of stakeholders. You will find a summary of the foundations we have identified as essential for delivering quality services and our key areas of focus on page 7. During the year we welcomed new people into our Multicap circle of support with 56 people transitioning to Makeables from CPL; and Share Bayside merging with Multicap in response to the growing need for services in the Redlands. You will find more information about this successful merger on page 12. Our staff continue to excite and amaze us with their skills and commitment to improving the quality of life for our customers. Three people received 20 year Service Awards, eight people

received 15 Year Awards, 28 people received Ten Year Awards and 50 people received Five Year Awards. We are thankful for and appreciate the contribution of all our staff and volunteers. We also received over 80 individual nominations and 20 team nominations for Skilled Committed Staff Awards, showcasing the high regard held by our staff for their work colleagues. As expected, our work in preparing our customers and their families, as well as our staff, for the imminent transition into the National Disability Insurance Scheme has consumed most of our focus and resources during the year. The lack of clarity regarding the rollout across Queensland has continued, with the pricing finally published in March 2016, just in time for the early launch in Townsville. Despite these challenges, Multicap is fully supportive of the intent of the NDIS in offering a better future and more choice and control for people with disability, and our staff continue to work alongside our customers and their families to ensure they are well prepared and ready for their first planning meeting with the National Disability Insurance Agency staff.

Multicap does in our communities that ensures better outcomes for people with disability. Our Directors and our Senior Management Team are an integral part of our exciting journey. Without their wisdom, skill and input we could not have achieved what we have over the past year and we appreciate and value their contribution. Finally, thank you to every customer who has chosen us to support them over the past year. We are honoured to share your aspirations and excited every day by what you achieve.

Joanne Jessop CEO

Professor John McAuliffe AM Chairman

All three levels of government (Local, State and Federal) have continued with their strong support for the work

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LOOKING back

Finalisation of the Multicap Strategic Plan 2011-2016

Multicap had a five year strategic plan with three key priorities. These priorities set the framework for delivering more innovative, accountable and sustainable services that meet our sole purpose of ensuring the quality of life of a person with disability and their family is enhanced by our support.

Outcomes by Key Priorities Person-Centred Approach

Community Integration

Sustainable Services

Strategies

Strategies

Strategies

S1 Quality services S2 Innovations S3 Outcomes S4 Engagement with customers, families, staff and partners S5 Person-centred processes

S1 Relationships with Government S2 Brand recognition S3 Corporate/philanthropic partnerships S4 Community links S5 Innovation

S1 Resources S2 Partnerships S3 Diversity of revenue S4 Operational efficiency S5 Sustainable business models S6 Reporting S7 Risk Management S8 Asset portfolio

We identified 180 different actions, of which 88% were achieved and 7% are still in progress. The actions in progress will be reviewed and incorporated into the new business and operational plans for the 2016-2021 period.

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2016

LOOKING FORWARD

Multicap’s focus will remain on improving the quality of life for people with disability whilst recognising the NDIS is a fundamental business process change

Multicap’s core services will change over time according to market demands

Multicap Strategic Plan 2016-2021 The Strategic Plan provides the framework empowering our customers to choose Multicap to provide them with innovative, accountable and sustainable services that meet their individual needs.

Multicap’s geographic footprint will expand in response to customer needs and growth opportunities

Multicap will actively grow over the next five years as we respond to customer needs

Multicap will maintain a sound financial base Multicap will increase customer satisfaction by attracting and retaining the right staff

Multicap will ensure staff development meets emerging customer and organisational needs

Multicap will only acquire assets as a tool for service delivery

Multicap will leverage existing assets to provide capital for our growth strategy

Multicap’s assets need to enable flexible service models that respond to future market demands

Multicap will maintain funding flexibility to respond to the changing environment

KEY AREAS OF FOCUS FOR 2016 - 2021 STRATEGIC PLAN Our approach is always centred around the person

We are integrated into our local communities

Our growth in services is sustainable

We are an employer of choice

Our systems and process are streamlined

We have disciplined financial and capital management

STRATEGIC CAPABILITIES - THE FOUNDATION To deliver our key areas, Multicap has identified six strategic capabilities we will continue to develop as foundations for our quality service.

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LOOKING FORWARD

The NDIS and Multicap’s Preparation

Multicap’s Timeline

1961 Support group established

March 1962 Inaugural meeting of the Multiple Handicapped Association of Queensland (TMHAQ)

1964 Growth led to property purchase in New Farm, and the year finished with 23 enrolled children and young adults

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2016

1973

1980

New Farm property sold and TMHAQ moved to Eight Mile Plains location named Multicap Meadows

More land purchased and 48 children enrolled in the school

March 1976 Ford House, new purpose-built accommodation for children with high needs, is completed

1978 Arts & Crafts therapy introduced

1984 Apex House opened its doors

1986 New school building opened

1987 Introduction of Disability Services Act resulting in increased referrals to Multicap for young adults with disability

LOOKING FORWARD

The NDIS and Multicap’s Preparation (Cont...)

Multicap is committed to assisting the people we support and their families to have a smooth transition from the State funded disability system into the Federally funded National Disability Insurance Scheme (NDIS). The State and Federal Governments have agreed to a three year transition for people living in Queensland, commencing in July 2016 and ending in June 2019. The roll-out is by Local Government Area (LGA) with North Queensland and Western Queensland moving across in the first year, and South-East Queensland moving across in year three. Our regional teams, with support from our customer engagement and corporate services teams, have been having conversations with our customers and their families to ensure people are prepared. Transitioning into the NDIS does not mean people have to change their current arrangements with Multicap if they are satisfied with the service and support they receive.

My First Plan

Our locations

My First Plan is the initial document NDIS participants complete, and it is an essential base for developing supports and documenting personal goals. Multicap has developed a personalised tailored planning tool which people can use when they select Multicap as one of their NDIS service providers.

Currently, Multicap delivers services across approximately 100 unique locations in Queensland & NSW.

This will help our customers and their families determine exactly what reasonable and necessary supports they need to live a happy, fulfilled life with as much independence as possible. Our Multicap team will continue to work alongside our customers and their families including accompanying them to their first planning meeting with NDIS staff when requested to do so.

1991

June 2010

Monte Lupo pottery production studio opens

336 staff employed & 10,235 support hours/week including day, respite and accommodation services

1992 Community Access Service established

2000 Accommodation or respite services now open across QLD

2012 Multicap celebrates 50 years

2016 New Ford House opened

2000

2016

TMHAQ became ‘Multicap’

Multicap welcomes the transition to NDIS

TOTAL STAFF

676

TOTAL CUSTOMERS ASSISTED

722

TOTAL NEW JOBS

109

1 Far North Queensland 2 North Queensland 3 Central Queensland 4 South West Queensland

5 6 7 8

North Coast Brisbane South East Queensland New South Wales

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THE JOURNEY

How we’ve grown

Robert and Simon at Ford House opening

Our Snapshot 10

2016

HOURS OF SUPPORT

SOCIAL SUPPORT

ASSISTED EMPLOYMENT

SELF DIRECTED & IN-HOME SUPPORT

HOURS

PEOPLE

PEOPLE

PEOPLE

335,732

435

86

37

THE JOURNEY

How we’ve grown (Cont...) Employer of choice ACCOMMODATION

164

PEOPLE

2012

4,258

2014

2015

2016

Hewitt Employee Engagement

-

-

51%

52%

61%

Volunteer Hours

-

12,737

16,401

16,420

15,836

Staff Retention

87%

82%

81%

82%

78%

Number staff (FTE)

284

309

369

407

495

Number of Assisted Employees

30

30

30

30

86

-

-

36

34

20

18

18

22

4

5

5

Hours of training per FTE

RESPITE

2013

Number of internal promotions Social Enterprise running

1

2

NIGHTS

Customer experience 2013

2014

2015

2016

STEPS

Human Services Quality Framework Audit

-

Zero nonconformities

-

Zero nonconformities

-

PEOPLE

Systems Integration

-

-

Riteq Carelink Plus

Multinet

Bluejeans video conferencing, Helpdesk, Website

Community Visitor program (outstanding issues)

10

4

29

26

32

Increased hours of support

5%

6%

28%

15%

10%

Increased accommodation places

33%

3%

8%

4%

34%

Increased respite bed nights

6%

-26%

18%

13%

-3%

-

-

13

21

25

Fleet vehicles

52

55

64

66

87

Number of Multicap Hubs

8

9

11

12

14

28

Financial sustainability 2012

2013

2014

2015

2016

Revenue $ (000)

$23,037

$25,867

$29,710

$34,976

$40,721

Revenue Growth

20%

12%

15%

18%

16%

Operating Surplus

2.8%

2.6%

2.3%

7.1%

2.6%

Current Ratio

0.99

1.12

1.10

1.30

1.42

Direct Service Support % of Expenses

68%

70%

72%

72%

72%

55

53

47

56

44

Debtor Days

2012

Avegates assisted holidays

11

looking forward

Share Bayside

In 2014 the Boards of Share Bayside and Multicap commenced discussions about how the two organisations could work collaboratively to meet the growing need for services and support for people with disability in the Redlands. The respective Boards considered all options and concluded that the best way of achieving the maximum benefits and opportunities, and securing the joint future of both organisations in the transition into the National Disability Insurance Scheme, was to merge. The merger required the leadership of skilled managers from both organisations, guided by two Boards of Directors. All Share Bayside’s customers and almost all of their staff chose to move across to Multicap.

Since the merger on 1 July 2015, the combined organisation has gone from strength to strength, including a diverse and expanded career path for staff, an increased choice of services and support for people with disability living in Redlands, and most recently the establishment of a much-needed community hub. A booklet has been produced to honour the legacy of Share Bayside, to record the organisation’s impact from its establishment in 1989 until the merger with Multicap in 2015, and to share the stories of some of the people who have received the high level tailored care for which the organisation is known.

When asked to sum up the legacy of Share Bayside, Judy Mayfield, Director from 2000 to 2011, said, “Share was just simply an example of a brilliantly run organisation, providing support for people with disabilities. From a small group of parents who had a vision of providing housing and support services for their sons and daughters, Share grew to an organisation that supported people living in 15 properties, employed over 35 staff, and had the reputation of a great organisation.”

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2016

Adrian, featured in the booklet, with his wife Laura

Esmond, featured in the booklet

Roanne, featured in the booklet, and her husband Craig

Person-Centred Approach

Person-Centred APPROACH

Strategic Priority

WHAT WE HAVE ACHIEVED!

TARGET Growth of 10% year on year in outputs for people with disability

Our Regional Managers

Accommodation places increased by 34% Hours of service increased by 15%

Staff turnover was less than 10%

Staff turnover was 22% in 2015-16

Three new innovative models developed and implemented by 2016

Repositioned Avegates as a tailored social support. Expanded opportunities for assisted employment with the establishment of Makeables

More than 50% families/ carers participate in family consultations

25.6% of families/carers participated in family consultation sessions during the year

Response rate to family/ carer survey increased to greater than 70% by 2016

Response rate to family/carer survey in 2014-15 was 19.4%

Quality Certification maintained for the next three years with no nonconformities

Multicap maintained no nonconformities for the last 2 years across all regions

Cathy White

2016

Jon Mewett

Michelle Thomas

Dip Mgt, Dip Dis

MSpecEd, Cert IV Mental Health

Regional Manager

Regional Manager North Coast

Regional Manager Central/North QLD

Regional Manager Brisbane

With Multicap since 2013

With Multicap since 1998

With Multicap since 2014

Inspiration | Mother Teresa – her kindness, love, and selfless acts to improve the lives of many people who have faced adversity and disadvantage.

Inspiration | Martin Luther King Jnr – he chose to lead change by taking a non-violent approach to protesting inequality, inspiring people to dream.

Inspiration | Amelia Earhart – aside from her pioneering achievements as a pilot, her bravery and boundless pursuit of her passion despite the status quo of her time was extraordinary.

Jeramy Hope

Tony Abbott

With Multicap 2013-2016

With Multicap 2014–2016

Regional Manager

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Karen Bailey

Systems Manager

With Multicap since 2013 Inspiration | Annie Sullivan - who taught Helen Keller, inspires me with her dedication to learning and finding better strategies for herself and her students.

Person-Centred APPROACH

Day to day purpose Matthew is ready for life post-school with Ipswich Hub When Matthew entered his final year of school, his family were filled with uncertainty and deeply concerned about his future. Matthew’s grandmother Helen sat down to read the local paper one day and opened to the page announcing the opening of Multicap’s Ipswich Hub, Limestones. Helen now sees this as a day that would change Matthews’s life forever.

Multicap activities, classes and lessons remain some of the most utilised services through all our locations, offering a range of personalised, one-on-one and group activities designed to enhance the lives and experiences of participants. Ranging from physical to creative activities, life skills and fun social inclusion programs, these

services provide participants with enriching activities. Activities, classes and lessons are offered in a range of locations, with key centres at Eight Mile Plains, Rockhampton and Ipswich, with other group and individual activities occurring throughout Queensland and northern New South Wales.

After contacting Limestones and being impressed with the attitude of the staff, Helen decided the centre would be a great option for Matthew when he finished school. From the day the Hub opened in September 2015, the staff arranged for Matthew to visit each week and spend time at there to ensure his transition to a new environment would be as comfortable as possible. As a local year 12 student, spending regular time at the centre will make the transition from high school much more comfortable.

self-reliant and follows simple instructions which did not happen before. I was very worried last year as he used to try to run away from school but he doesn’t try anymore because he is content. Multicap staff take him to the park and swimming. He is so much happier – he loves it here. “All I’ve ever wanted is for Matthew to be safe and happy and for him to reach his full potential, whatever that may be. I have seen so many changes in Matthew this year, he is doing things I never thought he would do and I want him to stay at Multicap because I know he will be looked after so well.” Staff at Limestones have discovered that Matthew loves to play the piano and watch golf on television. The addition of a portable putting green in the music room means Matthew can now develop another new skill and learn how to hit a hole in one!

Matthew’s grandmother Helen is full of praise for the Ipswich Hub. “The staff are absolutely marvelous,” Helen said. “Since attending the Hub full time, Matthew has become more

Person-Centred Approach

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Person-Centred APPROACH

Encouraging people & building futures Machinery and milestones with Josh at Makeables Gaining employment that is both flexible and meaningful can be a challenge, and Multicap’s assisted employment provides significant opportunities to many people with disability. Josh, a customer from Redlands, is one of dozens of assisted employees who enjoys the benefits of employment in a supported environment. Josh is no stranger to the workforce, with several years of fast food experience under his belt. Deciding he wanted to try something different, Josh took up the opportunity to volunteer in a field that had always interested him: the packaging and industrial preparation sector.

Multicap works hard to enrich and enhance the lives of people with disability, and for those seeking more independence, we strive to provide employment preparation, and where possible, employment opportunities. By gaining employable skills, vocational training and workplace education, our assisted employees can pursue a future filled with possibility and independence.

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Our groundbreaking social enterprise structure provides assisted employment to 86 individuals in a supported environment. Employment opportunities range from factory packaging to hospitality work to art studio employment. The social enterprise team is continually training and supporting our customers in a wide range of employable skills. Multicap aims to train assisted employees to enable them to obtain employment anywhere they choose.

Josh started volunteering at Makeables in Tingalpa, a Multicap social enterprise. Within a week, Josh was offered part time employment, and now works a few days a week in the warehouse. Tasks vary with each shift, ranging from packaging goods to counting and finalising orders. Josh enjoys both the variety and the ability to form good working relationships with his colleagues.

“It’s really good here at Makeables,” Josh said. “I’ve made lots of friends, and I really like the mix of jobs I get to do each day. I like working with the machines. I like anything with machines.” He’s hoping to put this passion for machines towards one day obtaining his forklift driving licence, which he can then use at the warehouse. He’s also planning to get some machinery of his own to operate: “I’m saving up for a car,” he said. Josh is one of the lucky few who can say he enjoys going to work each day, and Makeables is fortunate to have such a dedicated employee.

Person-Centred APPROACH

Enabling sustained independence Michael’s year of milestones Eight Mile Plains’ Ford House provides a very special service for Multicap customers: Ford House provides accommodation for those in the Short Term Emergency Accommodation Services (STEPS) program. As a key Multicap respite facility, the customers who engage with Ford House often achieve significant milestones. Michael has been a familiar face at Ford House, having utilised the respite service for about 12 months. Michael entered Ford House displaying significant anxieties, coming from a highly institutionalised environment, at times sharing his home and life with as many as 50 other people.

Respite at Multicap means many things: an afternoon for a carer to get some jobs done, a night for the customer to enjoy some personal time, a week of independence for everyone, or longer term respite while transitioning to a new form of accommodation. Multicap offers respite in many locations across Queensland that

provide a break and some independence for all involved. Our team provides both short and long-term respite, at the family home, in the general public, or at one of our respite facilities. Respite can even take on the form of a holiday, organised between the respite team and Avegates.

In need of support and a caring and calm environment, this is where the Ford House team was able to step in and help. When Michael first arrived, he would only leave the house three days a week, visiting the same location, with the same support worker. He refused to go on outings with other customers or support workers, and he insisted on taking three $5 notes with him, requiring significant support to purchase anything while out and about. In one short year, Michael has made amazing advances. His anxiety has greatly reduced, he will now go out with any

of the support workers and other customers to visit a range of shops, and will carry a range of notes and coins that he is happy to control. Michael is now enjoying far greater independence, and will now use the self-checkouts independently. The Ford House team are excited for Michael’s future, as his progress means he may soon be ready to transition to a permanent home.

Short Term Emergency Accommodation Services (STEPS) The South Brisbane team is a leading provider of Short Term Emergency Accommodation Services through a collaborative partnership with, and joint funding by, the Queensland State Government. These services are designed to respond to individuals with disability, living in our local community who are at risk of becoming, or are currently homeless. With a focus on crisis intervention and stabilisation, this service aims to assist people at a time of need and support them through their transition into longer term living arrangements. In February 2016 Multicap proudly unveiled a new sixbedroom purpose built facility in Eight Mile Plains providing muchneeded capacity for STEPS. Person-Centred Approach

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Person-Centred APPROACH

Delivering the right of independent living Jayde’s amazing journey with Multicap’s accommodation and support When Jayde arrived at the Multicap Emerald residence in February 2015, she was an introverted young lady with some very rigid habits. Jayde would not wear anything other than her favourite black leggings, sandshoes and blue polo shirt, and she avoided contact with others by remaining in her room, meaning she was very socially isolated. Visiting the shopping centre was a terrifying ordeal, and Jayde would never go anywhere or do anything without her treasured button collection, which she had used as a coping tool since the age of five.

Jayde and her parents at the Rockhampton Dinner Dance

Having a place to call home is one of the greatest privileges in life, and Multicap is proud to offer this solution to our people across Queensland in a variety of ways. Whether it is independent living, supported accommodation or high-care living, Multicap has been coordinating and constructing the

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2016

best options available to fit the needs of our customers. Our accommodation services have grown throughout the year, with new housing options developed throughout the state, and with exciting plans for new residences to be developed in the coming year.

In the 18 months Jayde has been living in the Multicap Emerald accommodation, she has achieved significant milestones. Jayde now accompanies her support worker to the shopping centre to visit the stores and buy groceries, and now loves to come out of her room to socialise with her flatmate, assist with dinner preparations and cleaning up, and gets involved in a number of other household jobs. The support staff nearly fell over when Jayde came out of her room one morning in

a completely different shirt, and since that day she has never again worn another polo shirt. Through the support and assistance of the staff, Jayde has also put away her button collection, as she no longer needs them! The most exciting moment of Jayde’s new life with Multicap was celebrated by her family and support workers at the Avegates Gala Ball in Rockhampton. She wore a beautiful new outfit, complete with immaculately styled hair and a splash of nail polish, and for the first time in her life, Jayde shared a dance with her father Calvin – a very emotional experience for everyone who witnessed it. Jayde’s incredible development has not gone unnoticed, with support workers absolutely blown away by her growth in the past year, but it’s Calvin, her father, who can put it best: “We never need to buy another lotto ticket in our life. We won the lottery the day Jayde came to Multicap.”

Person-Centred APPROACH

Encouraging skill development Developing skills and experience at Pine Rivers In January 2016, the North Coast region entered into a partnership with the local Stephens IGA. As a result of this partnership, customers in the region were offered training and work experience in the IGA, enabling them to gain experience and build their confidence. This partnership has been invaluable for developing a range of life and social skills, and has fostered a sense of accomplishment and pride for many participants. Leaving school, finding out ‘what comes next’, and trying to find employment, can be a daunting experience for anyone, and it was no different for Liam. It became increasingly nerve-wracking for Liam to leave the house as both his parents were away at work, and he soon found himself

Personal development can mean many different things to different people. At Multicap, it means making the best of every situation and learning new skills. Through one-on-one and group activities, participation in community events and with the assistance of dedicated support

completely cut off from his friends and any social life. The Multicap Pine Rivers Hub enabled Liam to gain a wonderful group of friends who he meets both within and outside the activities on offer. An active participant in the region’s activities, Liam decided he wanted to take the next step forward in his personal development, and this year started work experience at Stephens IGA. Since starting at IGA, Liam’s selfconfidence has blossomed, and he will now start conversations with customers and colleagues, and has even made a few new friends at work. Multicap are excited to see how Liam’s skills and confidence continue to develop, and the team is proud to have facilitated this exciting and important opportunity.

workers, our customers strive for personal development in all that they do. Personal development has become a key goal for each and every activity at Multicap, and every team member strives to help our customers develop in new and meaningful ways.

Person-Centred Approach

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Person-Centred APPROACH

Living the dream Customised support for our rugby supporters During footy season, most Friday nights (with the occasional Thursday or weekend game) involve a group trip to the stadium as part of our Broncos Supporters Club. All of this has been organised and facilitated through Multicap, and the staff delivering this project to our customers. A number of customers in the Redlands, South Queensland region, are passionate about their sport. The Multicap team have delivered some fantastic customised support for this eager group, enabling them to put their passion into practice: cheering on the Brisbane Broncos at Suncorp Stadium.

The Multicap team believes that each individual deserves personalised, customised support to help them achieve their dreams. Multicap invests the time to understand each customer’s personal priorities and goals, and establishes customised supports that enable them to achieve these goals.

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2016

Customised support is a key aspect of every service we provide, but also outlines the highly personalised approach we take to supporting our customers. It reflects our person-centred approach, and celebrates the unique desires and goals of every individual we assist.

Five of our customers have season memberships, gaining entry to every home game like true Broncos fanatics! Catching the free supporter bus from Carindale, our customers join other fans in revving themselves up in preparation for the game. The season memberships also provide our customers with invitations to members-only meet and greet fan events.

Well-known for dressing from head to toe in supporter gear, the passion for their team cannot be missed! In fact, many people have seen them decked out in the Broncos colours, cheering for their favourite team from the stands. Multicap and the passionate Redlands support workers are proud to have delivered such a fun and socially inclusive opportunity that empowers customers to participate in their favourite pastime in a supported way.

Person-Centred APPROACH

Achieving amazing outcomes Natalie & Mitchell’s story

Multicap music therapy participants

Therapeutic Support Multicap offers a wide range of services to our customers to meet their needs and enhance their social and life skills. Ranging from music therapy and art therapy to hydro therapy and speech therapy, customers are able to engage in activities that promote good health, social cohesion and embrace learning and involvement.

Near the start of last financial year, the Specialist Services team had the pleasure of meeting Mitchell and his mum Natalie, who live in Toowoomba. Natalie is a full-time carer for Mitchell, who has Duchenne Muscular Dystrophy, and is currently accessing Multicap services through the government’s Your Life Your Choice initiative, before transitioning to the NDIS model. Natalie has found, since meeting their Multicap support team, that Mitchell has had some

great opportunities. Not only is everyday life a little bit easier with support and better future planning, but Multicap has helped Mitchell achieve some amazing outcomes. Mitchell has been supported in his independent living, and was even able to travel to see his younger brother graduate from the Royal Australian Army. The Specialist Services team will continue to work with Mitchell and Natalie as they prepare for the NDIS transition, and can’t wait to see how else we can help them achieve amazing outcomes.

Mel and her mother enjoying a night out

A new fee-for-service ‘Hitting the Right Note’ Music Therapy program has been introduced to prepare for transition to the National Disability Insurance Scheme (NDIS). Additional individual programs can be purchased for existing customers and any new programs will fall under this service model.

Positive Behaviour Support Positive Behaviour Support (PBS) is a continually changing landscape with customers coming and going. The PBS team works closely with the service areas to support those customers who fall under the scope of restrictive practice. The team has celebrated a very successful year, with behavioural success seen across the board. Customers Shaun and Mel have both had very successful years with the support of Specialist Services, and we are excited to see their progress in the year to come.

Our therapy team has worked to promote the new program externally and internally, resulting in an increase in enquiries. Music therapy is also highlighted in individual Person-Centred Plans recognising the positive experience and meaningful opportunities it has provided to meet individual needs. Shaun enjoying a fun day out

Person-Centred Approach

21

Person-Centred APPROACH

Staff

Staff Engagement

Enterprise Bargaining

The newly established Staff Engagement Committee held its inaugural meeting in November 2015. The committee provides a forum for consultation between the CEO and Multicap employees about workplace issues such as staff engagement, change management, and human resource policies.

The Multicap Enterprise Agreement 2015 was officially approved by the Fair Work Commission, pursuant to s. 185 of the Fair Work Act 2009, on September 2015.

Multicap Staff participated in the Aon Hewitt Best Employers’ Accreditation Program with an engagement score of 61%, a 9% increase from 2015. We are improving engagement by focusing on Communication, Career Opportunities, Senior Leadership and Brand as well as sustaining our work tasks focus.

Training Multicap has focussed on improving the quality of our internal training. We rolled out an online training program, which has allowed consistent and realtime delivery and assessment of compliance training, leaving more time and resources for practical face-to-face training. The appointment of a Learning and Development Specialist has also enabled a focus on improving the quality of our training through assessment and feedback around facilitator competencies. The online system was also used for Multicap’s Add Life conversations which provided a secure platform for staff and their managers to navigate planning and capture their feedback and performance. Over the last 12 months Multicap has transitioned staff training in Conflict and Challenging Behaviour Awareness to a new provider whose close involvement in the continual

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2016

development and refinement of training programmes and resources ensures they remain at the leading edge of workplace violence management.

Recruitment Assessment Centres Recruitment Assessment Centres have been used as our primary source of casual Disability Support Worker recruitment across the regions. This format has improved our chances of selecting a candidate’s potential, cultural fit and alignment with our goals and values. Not only is it a better use of time and money, but also ensures new staff can contribute well in a team environment by using a range of assessment activities to evaluate candidates’ ability and motivation to perform in group activities. Assessment centres occurred in Toowoomba, Gladstone, North Coast, Brisbane North & Redlands, Brisbane South and Gold Coast.

Staff in the Spotlight

opportunity to become Acting Service Manager at Multicap’s Gold Coast accommodation.

When Lorna Merrit joined Multicap in 2009 as a casual Disability Support Worker, she had no idea that just a few years later she would be leading a team of staff in a permanent full time role.

With the support of Multicap, and a commitment to her role providing care, Lorna has now progressed to a permanent position as Service Manager. Lorna said, “Working for Multicap has been a great opportunity for me to grow in my career. Multicap staff have been very supportive of my career progression and I have been constantly provided with interesting and relevant training. I feel valued working at Multicap. I am recognised for my dedication to our customers and given opportunities to grow my skills.”

Lorna worked at Multicap in 2009 and 2010 before taking a break from paid employment to care for her young family. Keen to return to Multicap in 2014, Lorna was once again employed as a casual support worker. In 2015 she was made permanent, before quickly being promoted to Service Leader at one facility, and then two facilities. Lorna’s dedication and devotion to her role saw her presented with the

Person-Centred APPROACH

Workers’ Compensation Multicap continues to demonstrate a strong commitment to effective management of workplace injuries and early return to work for our staff. Whilst our claims data shows a higher number of claims lodged in comparison to the industry average, these claims are predominantly minor in nature, with shorter claims duration and lowerthan-average monthly claim costs. This indicates that continued improvements to our management processes and return to work and rehabilitation practices at Multicap are having a positive overall impact.

Lost Time Injury Frequency Rate This rate measures Multicap’s health and safety performance through lost time injuries per million hours of work. A lost time injury is a work injury that results in an inability to work for at least one full day or shift any time after the day or shift in which the injury occurred.

Severity Rate The severity rate identifies the level of severity of the injury that resulted in lost time at work.

Safety & Risk Multicap’s Workplace Health and Safety incidents continue to trend downwards with a number of safety culture and training initiatives embedded into daily practice across the organisation. We have

Health & Safety

proactively adopted several Workplace Health & Safety Qld and WorkCover initiatives that complement our safety culture evolution and support the way in which our workers apply safety and risk processes. These include: • Our involvement in the Injury Prevention and Management Program (a joint initiative between WHS Qld and WorkCover Qld); • Adoption of the Participative Ergonomics for Manual Tasks (PErforM) risk assessment process; and • The upskilling of our staff across the organisation in risk assessment and Fire Evacuation Coordinator competency. We continue to undertake the required consultative, review and monitoring functions of a proactive safety management system. We have also commenced a review of our safety system processes, documentation and tools to ensure our safety practices and culture are relevant, compliant and support the diversity of people, tasks and environments at Multicap.

Quality Management Disability Services comes under the Human Services Quality Framework, and Assisted Employees come under the National Standards for Disability Services – Australian Disability Enterprises (NSDS ADE). The NSDS ADE 2nd Surveillance Audit was conducted in October 2015 at Tingalpa and Monte Lupo. The audit report stated that Multicap presents as a very well-managed, strategically focused, consumer centric organisation with a clear commitment to quality and continuous improvement. No non-conformances were received. Person-Centred Approach

23

Person-Centred APPROACH

Leadership Team BOARD

COMMITTEES

(see page 38)

(see page 40)

CEO Joanne Jessop

Qualifications | MBA, GAICD with Multicap since 2006

Inspiration | Rosa Parks showed what ordinary people can do when they stick fast to their beliefs in testing conditions.

PERSON-CENTRED APPROACH

COO Seth Grantley

Qualifications | MBA with Multicap since 2016

Inspiration | Richard Branson’s customerand employeecentric businesses have disrupted whole industries, and improved the business experience for all involved.

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2016

SUSTAINABLE SERVICES

GM PEOPLE & CULTURE

GM DISABILITY SERVICES

GM FACILITIES

Bev Wrona

Paul Vallance

Qualifications | BSc Human Services with Multicap since 2013

Qualifications | B Bus HRM, B Bus IRM, Dip Teac with Multicap since 2007

Qualifications | Social Worker, Adv Dip Comm Service Management with Multicap since 2013

Inspiration | His Holiness the 14th Dalai Lama inspires me for his wisdom, compassion and sense of humour.

Inspiration | Jamie Oliver overcame learning difficulties to build a global wellbeing movement that provides opportunities, advice and education.

Nigel Taylor

Inspiration | Robert Martin advocates for the rights of people with disability. Robert has a learning disability and now is a United Nations Committee member on the Rights of People with Disability.

CFO Julian Smart

Qualifications | B Bus, CPA with Multicap since 2011

Inspiration | Roman Emperor Trajan displayed inspirational leadership as he fought alongside his legions during the battle of Tapae (101AD), removing injured soldiers from the battlefield and bandaging their wounds.

COMMUNITY INTEGRATION

CHIEF INTEGRATION OFFICER

GM SOCIAL ENTERPRISE

Peter Loughnane

Qualifications | B Fine Arts, Grad Dip Ed with Multicap since 1998

Qualifications | B Health Sc., Grad Certs with Multicap since 2016

Inspiration | Paralympic Gold Medallist Dylan Alcott proves if you have passion and commitment, anything is achieveable.

Fiona Haynes

Inspiration | Frida Kahlo proved her artistic work, style, bravado and wit was visionary, and continues to inspire me and many others around the world.

GM MARKETING & COMMUNICATIONS

Marion Ganga

Qualifications | B Arts (Sociology, Public Admin.), MFIA with Multicap since 2016

Inspiration | Nelson Mandela (Madiba) proved inspiration and leadership with his statement: “It always seems impossible until it is done.”

Community Integration

COMMUNITY INTEGRATION

WHAT WE HAVE ACHIEVED!

TARGET

26

Strategic Priority

Minimum of one media release published per region

Total of 52 media releases published during the year: • Brisbane South – 9 • Brisbane North – 1 • North Coast – 8 • South East – 9 • Central Queensland – 13 • North Queensland – 6 • Statewide – 6

Participation in one community event each quarter in regions where services are delivered

Participation in a total of 23 events during the year: • Brisbane South – 13 • Brisbane North – 1 • North Coast – 4 • South East – 1 • Central & North Queensland – 4

Social enterprises contributes 5% of revenue by 2016

Social Enterprise contributed 0.5% revenue in 2016, similar to 2015

Revenue by Monte Lupo Packaging increases 10% each year (now Makeables)

Monte Lupo Arts & Packaging grew by 68% in 2016

Minimum of four Monte Lupo Art exhibitions per year

Monte Lupo Arts was involved in 9 exhibitions, with 2 hosted by Monte Lupo

Centre of Creative Arts holds one exhibition in each region where this service is offered

The Centre of Creative Arts services participated in 6 exhibitions and hosted 2 exhibitions

Establish one ambassador for each region where services are delivered

No new ambassadors brought onboard

External volunteers to assist with 90% of opportunities for volunteers

Volunteers filled 84.9% of available volunteer opportunities

2016

Our Innovations

COMMUNITY INTEGRATION

Diversity in our innovations

Experiences

Events

Holidays

Avegates provided plenty of unique and accessible adventures throughout the year for attendees to enjoy without the hassle of organising them.

This year Avegates hosted annual Dinner Dances in Rockhampton, Mackay and Brisbane. More than 250 people supported the three events, enjoying a night of glamour with live entertainment, amazing food and great company with family and friends.

1:1 Requested Holidays

A trip to the State of Origin in Brisbane sold out quickly with 15 attendees, and with plenty of planning and lots of cheering, a great night was had by all. A number of families also joined us for a tailored Island Day experience. Families boarded a catamaran for a scenic trip from Gold Coast to South Stradbroke Island, complete with gourmet BBQ lunch on arrival, a variety of beach games and activities and plenty of sunshine. The more adventurous tried their hand at kayaking, four-wheel driving and stand-up paddle boarding. These accessible events provide families the opportunity to enjoy a trip out together at a unique location, trying new things and having fun together.

In Rockhampton, guests arrived in style courtesy of the local vintage car club, Mackay guests were treated to a DJ and impromptu karaoke at a fantastic new venue, and Brisbane guests continued dancing long after the live band had finished, forcing two encores.

Social Clubs Avegates social clubs now exist throughout Queensland, enabling people to choose exactly where and when they want to go, and engage directly with their local community alongside peers and friends. The Social Clubs have visited some amazing events this year: The Royal Queensland EKKA show, the Abbey Medieval festival, Redcliffe Kite festival, Mackay Beach horse races, Mt Morgan Dam, and live sporting matches. Avegates now also offers focused social clubs in the following topics:

The Rockhampton Avegates Dinner Dance (photo courtesy of Daily Mercury, cars provided by the local car club)

• The Fine Diners Club • The Karaoke Club • Community Dances • The Theme Park Club • Movie Club

A few of the Avegates Theme Park Club

Avegates experienced unprecedented growth with 25 holidays delivered and many more requests. Two highlights came from opposite ends of the state: Toowoomba and Mackay. Michael from Mackay visited Townsville to check out the reef and the aquarium, while James and Patrick from Toowoomba spent their first holiday in many years staying by the beach at the Sunshine Coast.

Group Packages Avegates offers planned group holidays for guests. The new holiday guide highlights include:

• The first ever cruise delivered by Multicap; and • A record-breaking trip to Brisbane for the State of Origin.

Tailor-made options Our tailored packages are customised and planned by Avegates to realise the guest’s ideal holiday. For the Brown family, this meant a fully tailored family trip to Hong Kong. They had a fantastic trip with hassle-free preparation and support from Avegates.

An Avegates outing to the football

Sports Always Access Football provides opportunities for families and athletes to come together for adaptive and inclusive training sessions. This was a big year in realising our dream of developing more teams and an eventual mainstream league. Next financial year we will launch teams in Ipswich and Caboolture. The Always Access Football program is proud to have the support of Westfield Garden City and the Sunnybank Community and Sports Club, who have ensured the program’s longevity and popularity.

Mackay Watersports Come-And-Try Day Avegates Mackay held a very successful watersports come-and-try day. Participants tried stand-up paddle boarding and dragon boating, with support from qualified instructors. Everyone gave the activities their best shot, with a few surprising themselves by balancing and standing up! Mackay participants now enjoy Sports Days at the Harbour each month.

Community Integration

27

28

2016

Community Integration

29

COMMUNITY INTEGRATION

Diversity in our innovations (Cont...)

Monte Lupo Arts has gone from strength to strength. With ongoing classes and training in the Monte Lupo Arts Studio, our assisted employees are continually expanding their skills in a supportive environment. The team at Monte Lupo Arts are always working towards their next exhibition, and take great pride displaying their unique, high-quality work to the public. The interactions with the general public, through the gallery café setting, are invaluable in promoting selfesteem and skills development that we believe may lead to employment outside of Multicap.

The Banyo community continue to benefit from the hardworking Laundretto service. Laundretto continues to offer a range of quality laundry services, including a self-service laundry, a fluff-and-fold service and a dry cleaning service. Laundretto has expanded to now also offer a sameday ironing service, making the enterprise very competitive. Customers in Banyo also benefit from what is likely the cleanest laundry service in Brisbane. Our assisted employees meticulously clean each machine on a daily basis.

In addition to the daily Monte Lupo Gallery & Café operations and the numerous exhibitions Monte Lupo Arts Studio attended, we were very proud to be invited to facilitate sculpting masterclasses at SWELL 2015. More than 30 participants engaged in the masterclass sessions which were delivered by Monte Lupo Arts Studio with the help of an assisted employee. Assisting the masterclass was a huge confidence boost for this assisted employee, and the classes were so successful our team has been invited to host more sessions at SWELL 2016.

Timeline of Social Enterprise Events

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2016

Matthew leads the way with employment Assisted employee and artist Matthew has been a familiar face at the Monte Lupo Arts Studio for two years, where he contributes to the Monte Lupo stock and exhibitions. Following an exciting family trip to Africa, Matthew has poured his experience and inspiration into African designs for the artwork on the ceramic pieces in the studio. Monte Lupo Arts Studio is proud to enable assisted employees to embrace their creativity through their work and life experiences.

July 2015

September 2015

November 2015

GOMA Winter Design Market

SWELL festival

4 Island Festival

July 2015

October 2015

November 2015

Tranquilitea

Halloween

GOMA Christmas Markets

COMMUNITY INTEGRATION

Diversity in our innovations

On July 1st 2015, Multicap introduced the rebranded Makeables, a social enterprise previously operating under a partner organisation. As Makeables transitioned into Multicap’s social enterprise umbrella, Multicap welcomed the 57 assisted employees who transitioned with the brand. Makeables is now a hive of activity, filled with assisted employees engaging in a wide range of tasks.

The Multisnacks brand continues to operate locally and interstate. The assisted employees supply confectionary to six vendors across Queensland, New South Wales and the Australian Capital Territory. The Multicap Eight Mile Plains site also supports this enterprise, with several stands stocked with Multisnacks.

Operating in Rocklea and Tingalpa, Makeables was also able to maintain all existing business contracts following the transition, and have continued to successfully grow these contracts.

Multisnacks has a bright future, with plans to expand the service and stands to other Multicap regions and service locations. The social enterprise team is excited to grow this niche service.

Makeables services continue to expand with a new pallet wrapper at the Tingalpa location provided through the Gambling Community Benefit Funds.

(Cont...)

The sky’s the limit for Makeables assisted employee Nilu. Nilu is obtaining her forklift operating licence at Makeables Rocklea, where she currently works as a packaging assistant and across all tasks in the warehouse.

Nathan dedicated to his job

Nilu can now assist loading and unloading trucks and will complete 100 practical hours under supervision to obtain the licence. Nilu’s new skills are a huge benefit to the Makeables team, and will also provide her with skills for future employment outside Multicap.

Nathan has been a hardworking assisted employee at Multicap for more than 15 years, assisting with Monte Lupo as Fire Warden and WPH&S representative. Nathan takes these roles very seriously, and ensures his colleagues are working safely at all times. More recently, Nathan has also taken on the role of distributor for Multisnacks at the Multicap Eight Mile Plains location, distributing confectionary and collecting the money raised at the onsite stands.

November 2015

January 2016

Melbourne Cup

Out of Africa – Art Nuvo

December 2015

March 2016

Santa’s Whiskers

AIM – International Women’s Day table centres

The sky’s the limit!

May 2016 Mother’s Day – Alice in Wonderland

June 2016 Table centerpieces for the MIGAS (trade training) award ceremony

June 2016 Scopes & Sculptures at Sandgate Community Integration

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COMMUNITY INTEGRATION

Volunteers “Volunteering is so valuable,” Mark said, “as it is instantly appreciated by the customer so you feel immediately that you are giving back to people who truly deserve your time.” Volunteering together as a husband-and-wife team has also been a wonderful opportunity, as they know each other well, work well together, and share a mutual person-focused interest.

Mark and Min

Over the course of this year, Multicap enjoyed the support of hundreds of volunteers, ranging from one-off event support volunteers, to those who assist multiple times a week either directly interacting with customers or providing administrative support. Volunteers contribute hundreds of hours of work each month, and make so much of what Multicap does possible. Without the support of our wonderful volunteers, many of our activities would be difficult or impossible to do. Mark and Min are two amazing volunteers who assist in the Gold Coast region through the Avegates program. A husband and wife team, Mark and Min have made a huge contribution to the activities in their local region, and are proud supporters of Avegates and Multicap. Mark and Min have been involved as volunteers for about a year, volunteering for the Avegates Theme Park Club. Volunteering had been a goal for them for a while, and when Min came across the opportunity to volunteer with Multicap, they decided it was the perfect fit for them and their interests. Multicap is proud to have Mark and Min assisting the Avegates program, and Mark and Min agree that there is immense value in their contribution.

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2016

Volunteering with Avegates has not only provided Mark & Min with a great opportunity to get involved in some local voluntary support, but has also provided some amazing experiences. “One of the best days we have had with Multicap was on the island day out,” Mark said. “It was a great day of beach sports, activities, adventure and great food; a day that the customers could have their pick of things to do and they all had a fantastic day out. A highlight was on the ferry journey back to the mainland: some of the boat crew managed to get the attention of a nearby sea eagle who flew over the boat whist the crew tossed food scraps to it. It was an incredible sight and was the perfect end to a great day. “ Multicap is proud to have such dedicated and passionate volunteers making a difference in the lives of people with disability, and Mark and Min are quick to confirm the value of volunteering:

“Give it a go. It is such a rewarding experience that you won’t regret.”

Sustainable Services

SUSTAINABLE SERVICES

Strategic Priority TARGET

David, a Multicap assisted employee and computer enthusiast

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2016

WHAT WE HAVE ACHIEVED!

Revenue Growth to $40 million by 2016

Revenue increased by 16% to $40,721,975

Increase funds raised from donations/fundraising to 10% of revenue by 2016

Funds raised from donations/ fundraising decreased to 2.14% of operating revenue

Improve debtor days to a maximum of 45 days

Debtor days decreased to 44 days, down from 56 in 2015

Operating surplus to be a minimum of 3% of revenue

Operating surplus was 2.6% of revenue, just below the target

Compliance with agreed outputs in the service agreement between Multicap and the Department of Communities

Multicap delivered 94% of contracted output places and 108% of contracted output hours

Maintain the percentage of overheads at a maximum of 15% of revenue over the five years

Overheads were 11.8% of revenue

SUSTAINABLE SERVICES

Telling our story Our Media Profile The marketing team has collaborated with local, state and federal media on multiple media stories, ranging from organisational and structural news to customer stories and NDIS preparation. Monte Lupo Gallery & Café served as the perfect backdrop for a national story published on SBS in late June 2016. The story highlighted issues for nonEnglish speaking people with disability accessing information about the NDIS. Multicap was proud to speak with SBS, as many of our customers and staff come from linguistically and culturally diverse backgrounds. The story highlighted both Multicap’s valuable work, and the wonderful staff at Monte Lupo Gallery & Café.

Celebrating our Story The Marketing & Communications team has the great privilege of providing service and support to all other aspects of the organisation. As such, our events cover all organisation services and regions, our collateral is designed to celebrate and promote our customers and the staff who

support them, and the team has engaged a number of avenues to provide this service. With the input and collaboration of staff across the organisation, the Marketing team were able to celebrate the achievements and communicate change across the organisation.

In celebration of the Multicap story, and to prepare for industry competition and changes with the roll-out of the NDIS, Multicap has been working on a range of new marketing collateral. A new website, new brochures and a short video have all been designed to educate potential future customers about the benefits and services at Multicap.

This collateral will continue to develop and grow alongside Multicap, and celebrate the achievements of our customers and staff.

Key Marketing events • Brisbane Airport Corporation Festival of Flight • Annual Carols at Multicap • Disability Service Workers Conference • National Disability Insurance Scheme New World Conference expo • FashionAble • Southside Festival • Northside Festival • International Day for People with Disability • Ipswich Limestone St opening • Makeables Opening • Pit-stop health & wellbeing day • Groundbreaking in Rockhampton • Ford House Opening • National Disability Services Conference • National Volunteer Week celebration • Sunshine Coast Open Day • Giveability Day 2015

52

media releases published in 2015/2016 financial year

Multicap attended

18 expos during the year

Sustainable Services

35

SUSTAINABLE SERVICES Madeline Stuart & Miss Australia 2015 Tess Alexander at FashionAble

Fundraising & grants Major Donors

Bequest

Multicap relies on the community’s generosity to provide effective services and support for people with disability. We receive large contributions from both individuals and organisations that make a real difference in our support for people with disability. Thank you to each and every one of our generous major donors this past year:

We are grateful to the late Emma Russell, who left a generous and heartfelt gift of $25,023 to Multicap in her Will. A bequest in your Will is a final and long-lasting way of ensuring Multicap can continue to support people with disability.

• Tina Artes • Tina Emmi • Dowling Family Foundation • The Flannery Foundation • Ian Heather • Neil Heather • Ian & Christine Highet

• Miriam Ruth Lee • The McCaul Family • IGA Runcorn • JJ Richards & Sons • Margaret Robertson & Roger Livsey • David Swales

Capability Crew Capability Crew – our peer-to-peer fundraising initiative – continued this year with supporters joining in on the action and fundraising for Multicap through their networks. Thanks goes to the two hardworking Cability Crew members who raised $468.75 between them during the 2016 Resolution Run, and we hope to grow the Capability Crew in 2016-2017.

Lotteries

FashionAble 2015 FashionAble is our charity fundraiser highlighting ability and diversity. Our event, held in November 2015, featured Miss Australia 2015 Tess Alexander and rising fashion model Madeline Stuart. 150 people attended or participated, including our dedicated volunteers, sponsors and supporters.

Multicap’s Lottery Program has made 12 lucky winners a little better off over the last financial year. We held four Major Lotteries (including four Multi4Club Bonus Draws) and four Special Raffles featuring prizes such as vehicles and cash. We sold our tickets in a variety of ways including our call centre based at Eight Mile Plains, face-to-face, direct mail and online. We are very grateful to our wonderful lottery and raffle supporters who have helped us create opportunities for people with disability.

Grants Grant from

Gambling Community Benefit Fund - Round 86 Gambling Community Benefit Fund - Round 86 Gambling Community Benefit Fund - Round 86 Gambling Community Benefit Fund - Round 87 Gambling Community Benefit Fund - Round 87 Department of Communities, Child Safety and Disability Services Department of Communities, Child Safety and Disability Services Australian Disability Enterprises Sunnybank Community & Sports Club Grant Mazda Foundation Redlands City Council Department of Social Services

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2016

Grant for

Amount

Eight Mile Plains recreation area development Jukebox purchase Makeables Pallet Wrapper Marsden Respite kitchen upgrade Petrie Hub kitchen upgrade Elderly Parent Carer Innovation Initiative APIRAC capital works funding Leading Practice Grant Avegates Football – Eight Mile Plains Avegates Football - Caboolture Training for Monte Lupo workers Volunteer grant

$15,000 $7,996 $8,125 $23,433 $18,471 $843,000 $833,567 $250,000 $20,000 $10,905 $3,000 $1,678

SUSTAINABLE SERVICES

Sustainability Sourcing and introducing sustainability is a key aspect of the Facilities duties, and the team has ensured a range of sustainable services were rolled out throughout the year. By focusing on sustainability, Multicap is able to reduce our costs and expenditure, which allows us to funnel these cost savings into more services for our customers. New buildings, where possible, are built to emphasise natural light and decrease the need for excessive air conditioning, which has both environmental, financial and lifestyle benefits. The team have also standardised equipment across the company to ensure better efficiency in products and to reduce ongoing costs for replacement and repair.

Properties Multicap’s list of owned and managed properties remains a key source of sustainable services for our customers, with short, long-term and permanent Multicap accommodation available throughout the state for people with disability. The growth in property acquisition and property development was significant, with highlights including the opening of the new Ford House at Eight Mile Plains and demolition of the old Ford House, the opening of a new Hub – Limestones – in Ipswich, progress on Jardine Street Rockhampton running to

Infrastructure & Systems schedule with estimated completion in October 2016, and planning underway for the new property in Toowoomba. Significant property upgrades underway or in planning include: Mackay Hub, Maroochydore Hub, Redcliffe, Eight Mile Plains, Share Bayside, Marsden, Kuraby Hub, and Rocklea Makeables. Upgrades can include anything from paint jobs to entire bathroom or kitchen renovations, and all are designed to improve liveability and sustainability.

Vehicle Fleet Multicap uses Toyota vehicles for approximately 90% of our requirements. The facilities team have developed a range of efficiencies to ensure the fleet is operational and represents value for money. Multicap accesses Queensland Government contracts for vehicle procurement, short term vehicle rentals when required to meet needs, fuel and some other maintenance requirements. These contracts ensure significant cost savings. The team has also worked with AVA Vehicle Access Solutions to redesign the configuration of a Toyota Hiace 12-seater vehicle, which can now fit three wheelchairs instead of the previous two. This reconfiguration means we can provide more services to more customers, and can involve more people in our daily activities.

Procurement Multicap has sourced a number of contracts to reduce costs and increase our sustainability. Queensland Government contracts provided Multicap accommodation with general housing provisions, and a growing number of community contracts has provided Multicap with general housing setup of white and brown goods at a more sustainable price. General office products have also been standardised to reduce general office expenditure.

Sofware Systems Multicap has streamlined our applications to ensure staff have easy access to necessary resources. This included the introduction of a new workforce management system called Riteq which manages staff wages, and a new intranet for staff called Multinet. This provides staff with important organisation updates and access to staff resources. Blue Jeans, a video conferencing tool, has resulted in greater communication between staff in all areas of the organisation. It has also resulted in a significant reduction in travel costs, while improving attendance at centralised meetings by regional and remote leaders.

IT operations and support The Systems Team developed a user-friendly training program to assist Multicap staff in improving their computer skills. Multicap has also developed the capabilities of the Systems staff to better support our internal systems and infrastructure, which has resulted in significant cost savings by reducing our reliance on external contractors.

Network Infrastructure Multicap has created a new systems disaster recovery plan, and we are currently upgrading our network infrastructure as an additional safety precaution. The expected outcome will be more reliable systems and customer data backups, with the possibility of utilising cloud infrastructure in the future.

Hardware Multicap’s Systems team upgraded the organisation’s PC hardware to ensure it was more robust and fit for its purpose. We have seen cost savings as a result, with a reduction in the purchase of replacement PCs. Some staff have also been issued smartphones as part of a new staff mobility plan to increase safety, improve reporting capabilities, and streamline with the new Riteq system.

Sustainable Services

37

SUSTAINABLE SERVICES

Board of Directors

Chairman Prof John McAuliffe AM

John Gallimore

Anthony Oostenbroek

John joined the Multicap Board in 2006 and has held the position of President since the 06/07 year. John is a registered valuer, Life Member of the Australian Property Institute, and manages his own Consulting Practice. He is a Fellow of the Australian Institute of Building. For over 45 years he has been a Director and Chairman of commercial companies, all Catholic Hospitals in Brisbane, Aged Care and Community Groups including the Brisbane Housing Company. He is a Director of the Lady Bowen Trust and the Holy Cross Laundry. He is Chairman of the investment Companies John Bridgeman Ltd and Henry Morgan Ltd.

John joined the Multicap Board in 1997. He is a Consultant to, and former long-time partner of, the legal firm Allens Linklaters and its predecessors in Brisbane. John is also a Director of Brisbane Housing Company Limited, a charity providing and developing new social and affordable housing.

Anthony joined the Multicap Board in November 2007. He is a Chartered Accountant and consultant with more than 20 years’ experience in financial management and control, strategy, process improvement and risk management. He is currently consulting in relation to the implementation of the NDIS.

David Eades

Stewart Douglas

David joined the Multicap Board in 2004. He is an experienced CEO and company director who has over 30 years’ experience on commercial and not-for-profit boards, mainly in the human services sector.

Stewart joined the Multicap Board in February 2010 and served as Treasurer from 2010 to 2012. Stewart is an Audit Partner at accounting firm Bentleys.

LFAPI FAIB ACTCB MAICD

Treasurer Christopher Perkins BBus MBA FCPA GAICD

Chris joined the Multicap Board in 2012, and was appointed Treasurer in November 2012. He is the Chief Financial Officer of Mater Misericordiae Limited.

38

Directors

2016

BA LLB (Hons) FANZCN MAICD

MBA LFAPI MAICD

Harry Carrick FRICS MAICD

Harry joined the Multicap Board in 2008. An experienced business professional and former Managing Director of Turner & Townsend and The Rawlinsons Group in Australia, Harry is also a qualified project manager and chartered quantity surveyor. He provides independent advisory and review services to the property development and infrastructure sectors across Australia.

BCom (Hons) LLB CA MAICD

CA MAICD

Mary Hourigan-Mackinnon RN RM BMSc (Nursing)

Mary joined the Multicap Board in 2006. She is a Clinical Nurse at the Mater Hospital and has a family member who accesses services at Multicap.

Anna-Maree Shaw

BBus, BVisualArt, MBA GAICD Anna-Maree joined the Multicap Board in 2015. She is the Global CMO of Michael Hill with over 20 years’ experience in customer and product strategy, brand portfolio management, e-commerce, digital marketing, loyalty programs, CRM, business development and IT.

SUSTAINABLE SERVICES

Governance

CONSTITUTION

PURPOSE and VALUES

SENIOR MANAGEMENT

• Multicap is a not-for-profit company limited by guarantee under the Corporations Act 2001 (Cth)

• Multicap’s core purpose, which has remained the same since the organisation started in 1962, is to improve the quality of life for people with disability.

The Board reviews the performance of the CEO informally at each Board Meeting, and formally as part of the annual performance appraisal (conducted July –Sept each year)

• Multicap is a Public Benevolent Institution (PBI) and is endorsed as a Deductible Gift Recipient (DGR) with the Australian Tax Office

• Multicap’s ‘Great Expectations’ outlines our vision, values, and brand promise (see page 3).

• Multicap is registered as a Charity with the ACNC

Multicap’s Board

Currently has nine Directors who are tasked with ensuring that sound governance practices are in place.

Meets monthly to discuss governance issues, review performance against agreed measures, and consider the impact of changes in the external and internal environments.

Is supported in its work by four committees, each chaired by a Director and covering Finance, Risk and Audit, Property and Client Outcomes

Has Directors that are appointed by the members each year at the November AGM.

Performance

Effectiveness

Quality

Risk

Strategy

• Multicap monitors and reports on the organisation’s performance in a number of ways including the Annual Report and relevant contractual and compliance reports.

• The Multicap Board takes a skills based approach to Board and Committee membership

• Multicap is required to maintain quality certification as part of our contractual arrangements with State and Federal Governments

• Multicap has a risk management framework in place that is adaptive to changing internal and external factors, manages significant risks appropriately and has logical steps, processes and structures in place.

• The Multicap Board set the strategic direction by formulating and approving the Multicap Strategic Plan 2016 – 2021

• The key measures can be found on pages 14, 26 and 34 • The Client Outcomes Committee and Property Committee (Page 40) both review performance

• Multicap Directors use the Developing Your Board evaluation tool run from the Australian Centre of Philanthropy and Non-Profit Studies at QUT • Multicap Directors are provided with annual membership of the Australian Institute of Company Directors to assist them in professional development, and supported to complete the AICD Company Directors Course.

• Multicap uses Institute for Healthy Communities Australia (IHCA) to certify under Joint Accreditation System of Australia and New Zealand (JAS-ANZ) standards • Multicap successfully completed the Human Services Quality Framework interim audit in May 2015, with zero non-conformities across all standards in all six regions • Outputs independently audited by HLB Mann Judd

• The Finance committee and the Audit and Risk Management Committee (Page 40) both review and monitor risk. • Multicap has a full-time Risk Advisor who works with staff to minimise risk. Multicap uses Comsure to assist in all our insurance requirements as part of risk mitigation

• The Strategic Plan was then passed to the CEO and Executive Managers for implementation • The Board and the CEO have a role in overseeing the monitoring and reporting of agreed actions.

Sustainable Services

39

SUSTAINABLE SERVICES Audit and Risk Management Committee The Committee assists Multicap’s Board of Directors in fulfilling its oversight responsibilities for the financial reporting and audit process, the system of internal control, the management of risk, and the process for monitoring compliance with laws, regulations and the code of conduct. The Committee has three members and, to complement scheduled meetings during the 15/16 year, informal discussions were held with management on significant matters as needed and significant matters were discussed at a whole of Board level. Members of the Finance Committee attended meetings when important financial reporting and audit matters were being discussed. During the year, the Committee has continued to focus on enhancements to Multicap’s internal control, risk management and compliance systems, largely through meetings with management, reviews of thirdparty reports (e.g. quality review, financial audit, work health and safety) and visits to Multicap’s facilities. The Committee reviewed the organisation’s risk management framework and focussed on tracking transition activities in preparation for the introduction of the National Disability Insurance Scheme. The Committee has received support and cooperation

40

2016

Committees

from management, and has monitored implementation of various enhancements that seek to support the achievement of Multicap’s objectives. The Committee has also worked closely with Multicap’s independent external auditors to ensure that the nature and extent of their audit procedures provide sufficient and appropriate assurances regarding Multicap’s financial activities and position.

Anthony Oostenbroek BCom (Hons) LLB CA MAICD

Chair

Property Committee The Multicap Property Committee supports the Board in managing and developing Multicap’s property portfolio to meet the increased and changing needs for suitable properties to allow Multicap to deliver an expanded range of high needs disability services. Supported by continued capital funding from the Queensland State Government and generous donations from individual donors, Multicap continues with its development of a range of properties to support our customers and services. A new purpose built facility, replacing the old Ford House, was completed early this year at Eight Mile Plains which will meet the needs of customers and support staff in delivering services. Construction is nearing completion on four new onebedroom units at Jardine Street,

Rockhampton which will provide accessible and sustainable accommodation for people with disability in residential aged care or public health facilities. Design work has been completed and tenders are being sought for the redevelopment works at West Street Toowoomba which will provide a base for Multicap’s services in the area. In response to an invitation from the Queensland Government as part of the Elderly Parent Carer Innovation Initiative, Multicap’s proposal to build two houses at Finucane Road Alexandra Hills has been accepted and work is progressing on the design and securing town planning approvals for the development. The Property Committee continues to work to support Multicap’s delivery of a growing range of disability services being offered to customers and their families throughout Queensland.

Harry Carrick FRICS MAICD

Chair

Client Outcomes Committee During the 2015/2016 year the Client Outcomes Committee progressed its objectives, meeting six times under the leadership of Mary Hourigan-Mackinnon. The expanded Committee membership provided expertise from professionals in relevant fields such as academia, contemporary disability practice and service

delivery models. Valuable input continued to be obtained from parents of Multicap’s customers. Outcomes are minuted and reported to the Board of Directors.

Finance Committee

The Committee continues to support Multicap’s sole purpose of enhancing the quality of life of people with disability and their families, and looks forward to working collaboratively to achieve more positive outcomes over the coming year. Thank you to all Committee members for their valuable contribution to our sole purpose.

The Finance Committee assists the Board of Directors in the discharge of their duties with regard to the stewardship and management of Multicap’s financial affairs. In particular, the Committee regularly monitors the financial performance of the organisation against the approved strategic and business plans. The Committee is comprised of Board members and co-opted members. The Chief Executive Officer and the Chief Financial Officer are invited to the monthly Finance Committee meetings at the discretion of the Committee. The responsibilities of the Committee include: providing financial direction and advice to the Board, providing advice and assistance to the CEO and CFO in matters of financial management, establishing financial goals and objectives, establishing finance-related policies, assessing the annual budget, and analysing interim and annual financial reports. The operating business performance and earnings outlook remains consistent with strategic objectives and performance expectations of the company. The Committee continues to monitor and provide pertinent advice to management in relation to the ongoing implementation of the National Disability Insurance Scheme. As the organisation begins to execute the new five year Strategic Plan, the Committee will monitor the organisation’s performance against financial strategic targets.

Mary Hourigan-Mackinnon

Chris Perkins

The four areas of focus for the Committee during the year were: • What services and support do our new and existing customers want? • What is happening in disability research that we can benefit from? • What do our customers want to know? • How do we assist our customers to stay safe and healthy? The Local Area Advisory Committees have continued to meet during the year and provide valuable feedback from families in all regions where Multicap delivers services. Membership of these committees includes local families, customers, and other interested people, and they are supported by Multicap Regional Managers and staff.

RN RM BMSc (Nursing)

Chair

B Bus MBA FCPA GAICD

Chair

Discussion & Analysis of the Financial Statements For the year ending the 30th June 2016 the Company has recorded an operating surplus of $1,067,250 compared to an operating surplus of $2,477,924 for the previous year. 2014/15 did include supplementary funding of $1,832,011 being received due to the agreement reached between Australian and Queensland governments in relation to the Fair Work Equal Remuneration Order handed down in 2012. Excluding the supplementary funding, the comparative operating surplus from our core services was $877,966, and represents an increase of $189,284 or 22%. This year’s surplus represents 2.62% of operating revenue (2015: 7.08% or 1.95% excluding supplementary funding) and is required to fund capital expenditure which is generally not funded from recurrent government grants, and to provide a buffer for any unexpected business pressures. The Company’s total surplus after recognising non-operating revenues is $4,479,133 which included the gain of $2,689,766 generated from the merger with Share Bayside (refer note 23) and the addition of $844,090 in

Bequests

capital grants for the finalisation of the construction of the Jardine Street units.

Key items:

The Company has continued to grow during the year with expansion of our core services in Queensland particularly in the Redlands and the Sunshine Coast. Our Company has invested in the Makeables assisted employment division which has seen an increase in supported employment places. The Company continues to invest in infrastructure to provide services to customers (directly or indirectly) and has continued to maintain and improve our existing facilities. Operating revenue has increased to $40,721,975 (2015: $34,976,199) or 16%. The new services in the Redlands and Sunshine Coast regions have added $4,325,000 while services that opened in 2015 have contributed a further $496,000 in revenue. The Company continued to receive indexation (2.79%) from the Queensland Government which assisted in funding EBA wage increases. Non-grant revenue has increased $940,262 or 19% with increased sales from Makeables and

customers’ fees through the new locations and maturing services. Both fundraising and general donation revenue declined from the previous year down to $869,705 (2015: $1,070,549), but this was offset by funds raised through our Multisnacks brand which saw revenue increase $218,000. Although the Company is contracted by the State Government to provide services and this contributes to 83% of the Company’s funding, investment in social enterprises and fundraising continues to provide other sources of revenue to fund capital expenditure and improvements to services. Our overall expenditure continues to remain at 97.35% of revenue as the Company ensures that expenditure on services is delivered in the most cost effective manner without affecting services, and is prepared where required to invest in systems and processes that will deliver improved service delivery in the future. Our growth in services has contributed to our employee costs increasing by 24%. This reflects that our business is in service delivery and our employee costs as a % of revenue remains an acceptable 75.9% of revenue.

Along with costs from new and maturing services the Company continues to invest in facilities with increased expenditure across our sites and assets on maintenance. The Company reduced direct fundraising costs and is seeing benefits from lower Workers’ Compensation premium rates compared to our industry. The Company’s statement of financial position continues to remain strong. Our cash position has improved over the year to $7,071,410 (2015: $5,782,410). Our current assets exceed our current liabilities by $2,406,402 up from $1,542,597 in the previous year. The value of the Company’s property, plant and equipment has increased to $23,010,582 (2015: $18,904,772) primarily driven by the merger with Share Bayside, completion of Ford House and construction of Jardine Street Stage 2 units in Rockhampton. The Company continues to invest in new and replacement assets with over $300,000 added in equipment and $900,000 in motor vehicles. Net cash provided from operating activities remain strong at $1,944,015 despite being a decrease on the previous year. The Company continues to use cash generated from

When preparing your Will, after considering your immediate family, you may want to consider a bequest to Multicap. Our passion for every individual’s right to connect to and realise the possibilities available to them, drives us to always believe there is a way. Your gift or bequest will ensure we can respond to these needs. For more information please contact us on (07) 3340 9000 or visit: www.multicap.org.au

operations and financing activities to cover the net spend on investing activities, resulting in an increase in cash of $1,289,000 to close the year with balances of cash held to $7,071,410.

Independent Audit Report on Accuracy of Management’s reporting to the Disability Services National Minimum Dataset (DS NMDS) HLB Mann Judd conducted an audit of Multicap’s compliance with statutory reporting to the Disability Services National Minimum Dataset (DS NMDS). HLB Mann Judd measured management’s internal processes and records to give assurance that the data reported to the DS NMDS is accurate and complete for the period from 1 July 2015 to 30 June 2016. Multicap has complied, in all material respects, with the statutory reporting requirement to the DS NMDS as measured by management’s internal processes and records for the period from 1 July 2015 to 30 June 2016.

41

Directors’ Report The Directors present their report on Multicap Limited for the financial year ended 30 June 2016.

Directors

The Directors of Multicap Limited at any time during the year and since the end of the financial year are:

Name

Qualifications

Multicap Experience (in years)

Responsibilities

Current at 30 June 2016 Prof John McAuliffe LFAPI FAIB ACTCB AM MAICD

11

Christopher Perkins

4

John Gallimore David Eades Anthony Oostenbroek Stewart Douglas Mary HouriganMackinnon Harry Carrick

Chairman Member of Property Committee Member of Audit & Risk Management Committee BBus MBA FCPA Treasurer Chair of Finance Committee MAICD BA LLB(Hons) Member of Audit & Risk Management Committee Member of Property Committee FANZCN MAICD MBA LFAPI MAICD Member of Property Committee Bcom(Hons) LLB CA Chair of Audit & Risk Management Committee Member of Finance Committee MAICD CA MAICD Member of Finance Committee RN RM BMSc Chair of Client Outcomes Committee (Nursing) FRICS FAIQS MAIPM Chair of Property Committee MAICD

Principal Activity & Objectives As reflected in the Company’s constitution, Multicap’s sole purpose is to enhance the quality of life of people with disabilities and their families. The principal activity during the year to achieve this is to provide support services through the following programs: • In home support • Hubs • Accommodation • Social Enterprises • Respite Services • Supported Employment • Social Support

19 12 10 7 11

Multicap’s vision is to be the leading source of creative and sustainable support options for people with disabilities, particularly those with high and complex needs. To achieve this vision, Multicap has set three strategic priorities as part of its five year strategic plan which ended 30th June 2016. The next five years will see Multicap implementing its new strategic plan to achieve its stated vision. The strategic capabilities and relevant targets are reported in the Annual Report.

8

Anna Maree Shaw BBus BVisualArt (appointed 20th MBA GAICD

1

November 2015)

Directors’ Meetings

The number of Directors meetings (including committee meetings) and the number of meetings attended by each of the Directors of Multicap Limited during the Financial Year are:

Name

Prof John McAuliffe AM Christopher Perkins John Gallimore David Eades Anthony Oostenbroek Stewart Douglas Mary HouriganMackinnon Harry Carrick Anna Maree Shaw

Board Meetings

Finance Committee

Audit & Risk Management Committee

Property Committee

42

2016

Person-Centred Approach

Client Outcome Committee

A

B

A

B

A

B

A

B

A

B

10 10 10 10 10 10

10 7 9 7 10 7

12 12 12

10 9 9

3 3 3 -

2 2 3 -

3 3 3 -

3 3 0 -

-

-

10

5

-

-

-

-

-

-

7

4

10 6

10 6

-

-

-

-

3 -

3 -

5

5

A | Number of meetings held during the time the Director held office during the year. B | Number of meetings attended.

When required the Board will create Committees to delegate tasks. During the year a Strategy Committee and a Nominations Committee were formed and tasked with development of the next five year strategy and to review applicants for a vacant Board position. Both Committees reported back to the Board.

Focus on growth of quality services across Queensland, innovation in new and established services, outcomes for individuals we support and engagement with customers, families, staff and partners so individuals with disabilities are at the centre of our circle of support.

Community Integration Focus on developing our community links, creating new and innovative opportunities for people with disabilities, strengthening our corporate partnerships and increasing relationships with all three levels of government.

Sustainable Services Focus on diversity and growth in revenue streams, managing growth and risk, maximising operational efficiency and maintaining transparency in reporting.

Key Performance Measures Multicap Limited measures its own performance through the use of both quantitative and qualitative benchmarks. These benchmarks are used by the Directors to ensure Multicap delivers on its vision and to assess the financial sustainability of the company. Key performance measures are reported throughout the Annual Report.

Results The company recorded an operating surplus of $1,067,520 in the current financial year compared to an operating surplus of $2,477,924 in the previous year ($645,913 excluding supplementary funding). Revenues for the current financial year grew by $5,782,776 from $34,976,199 to $40,721,975. Factors driving revenue growth include expansion of services on the Sunshine coast, increase in the Company’s supported employment businesses and the merger with Share Bayside Inc. Indexation from the State Government and new customers accessing our core services also contributed to the increase in revenue. Employee costs increased $6,026,915 to $30,889,132 which is in line with the expansion of services and EBA increases. The majority of new employees are due to the increase in services and supported employment with a smaller number of corporate services roles added for the ongoing management of the incoming National Disability Insurance Scheme in 2016. The Company’s operating surplus represents 2.62% of operating revenue (2015: 7.08%) and is required to remain sustainable in the future and to help fund capital expenditure which is typically not funded from recurrent government grants. The Company’s strategic aim in 2016 is to achieve an operating surplus that represents 3% of revenue. The Company’s net surplus after recognising nonoperating items is $4,479,133 (2015: $3,608,971). Non-operating revenues include non-recurrent government capital grants and the gain on the business combination with Share Bayside Inc. Signed on behalf of the Board in accordance with a resolution of Directors.

Prof John McAuliffe AM Chairman | Brisbane 28/10/16

Chris Perkins Director | Brisbane 28/10/16

Statement of Comprehensive Income for the year ended 30 June 2016 OPERATING revenue Grant revenue Supplementary Grant Revenue Other revenue

Notes 2 2 2

Total operating revenue

2016 34,931,424 - 5,790,551

40,721,975

2015 29,148,795 977,115 4,850,289

34,976,199

OPERATING expenditure Employee benefits expense Property and utility expenses Consumables and provisions Contractors remuneration Direct fundraising costs Insurance and workers compensation Transport expenses Other expenses Finance costs Bad and doubtful debts 3 3 Depreciation, impairment and amortisation expense

30,889,132 2,122,252 1,273,476 1,185,450 337,053 878,781 548,925 870,229 71,127 36,000 1,442,030

24,862,217 1,711,757 1,086,492 902,546 444,575 761,023 574,873 720,962 68,629 21,754 1,343,447

Total operating expenditure

39,654,455

32,498,275

Surplus for the year on operating activities

1,067,520

2,477,924

NON-OPERATING activities Revenue Capital grants Gain on business combination

2 2, 23

Total non-operating revenue

844,090 2,689,766

1,155,569 -

3,533,856

1,155,569

Expenditure Grant expenditure

122,243

24,522

Total non-operating expenditure

122,243

24,522

Surplus for the year

4,479,133

3,608,971

Other comprehensive income

TOTAL COMPREHENSIVE INCOME

-

4,479,133

-

3,608,971

*The operating surplus for 2014/15 is $2.478M. As disclosed in note 2 of the financial statements $977,115 in supplementary funding was received that relates financial years 2013 and 2014. For information purposes the surpluses for these years have been normalised to highlight the effect of the supplementary funds.

43

Statement of Financial Position ASSETS Current assets

Notes

for the year ended 30 June 2016

2016

2015

Cash and cash equivalents 4 5 Trade and other receivables Inventories Prepayments

7,071,410 628,046 75,028 362,832

5,782,410 609,029 79,249 191,139

Total current assets

8,137,316

6,661,827

Non-current assets Property, plant and equipment Intangible assets

6 7

23,010,582 379,679

18,904,772 450,676

Total non-current assets

23,390,260

19,355,448

Total assets

31,527,577

26,017,275

LIABILITIES Current liabilities Trade and other payables Borrowings Provisions Grants received in advance

8 10 11 9

Total current liabilities

1,446,902 289,746 2,204,747 1,789,519

1,852,448 326,880 1,760,372 1,179,530

5,730,914

5,119,230

Non-current liabilities Borrowings Provisions

10 11

525,075 471,179

178,987 397,782

Total non-current liabilities

996,254

576,769

Total liabilities

6,727,168

5,695,999

Net assets

24,800,409

20,321,276

EQUITY

44

2016

Retained surplus

24,800,409

20,321,276

Total equity

24,800,409

20,321,276

Statement of Changes in Equity

Auditor’s Independence Declaration

for the year ended 30 June 2016

Retained Surplus Balance at 1 July 2014 16,712,305 Comprehensive income

Surplus for the year Other comprehensive income for the year

3,608,971 -

Balance at 30 June 2015 20,321,276 Comprehensive income

Surplus for the year Other comprehensive income for the year

Balance at 30 June 2016

Statement of Cash Flows

4,479,133 -

24,800,409

Total

16,712,305 3,608,971 -

20,321,276

24,800,409

for the year ended 30 June 2016

2016

2015

Receipts from government operating grants Receipts from customers and members Receipts from fundraising activities Donations and bequests received Payments to suppliers and employees Interest received Finance costs paid Net cash provided by operating activities 14(b)

37,396,305 4,753,591 611,112 262,570 (41,161,871) 158,199 (75,891)

31,837,617 3,374,767 695,339 301,789 (32,459,635) 168,939 (74,870)

1,944,015 Cash flows from investing activities

3,843,946

Proceeds from sale of property, plant and equipment Receipts from government capital grants Payment for property, plant and equipment Payment for Intangible assets Cash acquired through business combination

71,535 1,485,846 (3,218,772) (33,774) 731,196

88,794 1,125,887 (3,856,315) (297,868) -

Net cash used in investing activities (963,969) Cash flows from financing activities

(2,939,502)

Repayment of borrowings Proceeds from borrowings

Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year 14(a) Cash and cash equivalents at end of year

As lead auditor for the audit of the financial report of Multicap Limited for the year ended 30 June 2016, I declare that to the best of my knowledge and belief, there have been no contraventions of: a) the auditor independence requirements of the Corporations Act 2001 in relati on to the audit; and b) any applicable code of profe ssional conduct in relation to the audit. This declaration is in respect

of Multicap Limited.

4,479,133 -

Notes

Cash flows from operating activities

under s.307C of the Corporations Act 2001 to the Directors of Multicap Limited

(329,290) 638,244

(148,187) -

308,954 1,289,000 5,782,410 7,071,410

(148,187) 756,257 5,026,153 5,782,410

CJM King | Partner Brisbane, Queensland 28 September 2016

Directors’ De c

laration

60.15 of the per section Australian Ch arities and N profits Comm ot-forission Regula tion 20 13 The Direct ors of the Company Directors’ declare th opinion: at in the a) there are reason ab le grounds to the register be ed debts, as an entity is able to pa lieve that y all of its d when th ey becom payable; e due and b) the fin ancial requiremen statements and note s satisfy th ts of the Au e Not-for-pr stralian Ch ofits Com arities and mission Ac c) give a t 2012; and true and fa ir view financial po sition as at of the company’s performan 30 June 20 ce for the financial ye 16 and of its that date. ar ended on Signed in accordance with subsec of the Aust ra tion 60.15(2 Commissio lian Charities and No ) n Regulatio t-for-profi t n 2013.

Prof John McAuliffe AM Chairman Brisbane 28 Septem ber 2016

Chris Perk ins Treasurer

45

Notes to the Financial Statements for the year ended 30 June 2016 Note 1: Statement of significant accounting policies Corporate information Multicap Limited (“the Company”) is a not-for-profit entity, incorporated as a public company limited by guarantee and is domiciled in Australia. The Company provides sustainable support options for people with multiple disabilities and challenging and complex behaviours and their families and carers in Queensland. The registered office is located at 269 Padstow Road, Eight Mile Plains, Qld 4113.

Basis of preparation Multicap Limited applies the Australian Accounting Standards - Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010.2: Amendment to Australian Accounting Standards arising from Reduced Disclosure Requirements. The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and to meet the requirements of section 60.40 of the Australian Charities and Not-for-profit Commission Regulation 2013 (ACNC Regulation). Australian Accounting Standards set out accounting policies that the Australian Accounting Standards Board has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions to which they apply. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated. The financial report was approved by

46

2016

the Directors on 28 September 2016.

Revenue is measured at the fair value of consideration, net of GST, received or receivable by the Company for the following activities.

services. Where these grants relate to the provision of services, (or the purchase of assets) and the grants stipulate conditions which must be met before funding can be utilised, they are reported as a liability in the statement of financial position. When grant revenue is received whereby the Company incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt. If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied. Non-reciprocal grant revenue for the acquisition of assets is recognised in the statement of comprehensive income when the entity obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the Company and the amount of the grant can be measured reliably. Multicap Limited receives nonreciprocal contributions of assets from the government and other parties for no consideration or a nominal value. These assets are recognised at fair value on the date of acquisition in the statement of financial position, with a corresponding amount of income recognised in the statement of profit or loss and other comprehensive income.

Government grants

Client service revenue

Basis of preparation The financial report, except for the cash flow information, has been prepared on an accruals basis, is based on historical costs and does not take into account changing money values or, except where specifically stated, current valuations of non-current assets. The Company is a not-for-profit entity, therefore the terms “profit” or “loss” do not appropriately describe the nature of the Company’s activities. Accordingly the words “Surplus/ (Deficit)” have been substituted for the terms “Profit/(Loss)”. The financial statements are presented in Australian Dollars and have been rounded to the nearest dollar. When required by Accounting Standards or for clarity, comparative information has been reclassified to achieve consistency with the current financial figures and other disclosures.

Going Concern Basis The Company is economically dependent on the Queensland Government for the funding of services. This funding is provided under successive agreements and is generally increased annually to assist in meeting the increased cost of providing services.

Significant accounting policies (a) Revenue

Revenue from state and federal government funding is recognised as income in the period in which the Company provides the related service or acquires an asset for which funding was provided. A significant part of the Company’s funding is from state and federal government grants to fund

Revenue from the provision of services to customers is recognised upon the delivery of the service.

Sale of goods

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of

the goods passes to the customer.

the Income Tax Assessment Act 1997.

Donations, bequests and fundraising activities

(d) Goods and services tax (GST)

Interest revenue is recognised as it accrues using the effective interest rate method.

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis except for the GST component of investing and financing activities which are disclosed as operating cash flows.

Capital grants

(e) Cash and cash equivalents

Capital grants are non-recurrent grants used for the purchase of assets. When capital grants are used for assets where the ownership is not retained by the Company, the purchases are disclosed as non-operating expenditure.

Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to cash.

Business Combinations

(f) Trade and other receivables

Donations and bequests are recognised as revenue when they are received by the Company.

Contributions of assets

Revenue from the contribution of assets, including the right to receive cash or other assets without providing approximately equal value to the parties providing the contribution is recognised when the Company receives the asset or has an unconditional right to receive the asset.

Interest revenue

Business combinations occur where an acquirer obtains control over one or more businesses. The Company accounts for business combinations using the acquisition method when control is transferred to the Company. The consideration transferred is measured at fair value, as are the net identifiable assets acquired. Any gain on a bargain purchase is recognised in the statement of comprehensive income statement as a non-operating activity. Transactions costs are expensed as incurred.

(b) Finance costs Finance costs are recognised as an expense in the period in which they are incurred.

(c) Income tax A provision for income tax has not been raised as the Company is exempt from income tax under Division 50 of

Trade receivables principally consist of amounts due from customers for the supply of merchandise and services. These amounts are recognised and carried at the original invoiced amount. Collectability of trade receivables is reviewed on an ongoing basis. Individual debts that are known to be uncollectible are written off when identified. An impairment allowance is recognised when there is objective evidence that the Company will not be able to collect the receivable. Financial difficulties of the debtor or debts more that 90 days overdue are objective evidence of impairment.

(g) Inventories Inventories principally consist of raw material, work in progress and finished goods for resale by Monte Lupo, Makables or Multisnacks. Inventories are measured at the lower of cost

The accompanying notes form part of these financial statements

Notes to the Financial Statements for the year ended 30 June 2016 and net realisable value. Cost is defined as the cost of bringing each inventory item to its present location and position, cost is determined on a first-in first-out basis. Net realisable value is taken to be the estimated net selling price of an item in the ordinary course of business after deducting the necessary costs of sale.

(h) Property, plant and equipment Each class of property, plant and equipment is measured on the cost basis and is therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event that the carrying amount of property, 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. The depreciable amount of all fixed assets, excluding freehold land and uncommissioned assets, is depreciated on a straight-line basis over the assets’ estimated useful economic life to the Company commencing from the time the asset is first held ready for use. The depreciation rates that have been applied are as follows: Buildings - 10 to 50 years Plant and equipment - 3 to 10 years Motor vehicles - 3 to 4 years Buses - 4 to 5 years Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount. These gains or losses are included in the statement of comprehensive income.

(i) Intangible assets Intangible assets acquired separately are initially measured at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortisation and any accumulated impairment losses. Intangible assets are amortised

over their useful lives as follows: Computer software - 3 to 10 years Trademarks and licences - 10 years

(j) Impairment of non-financial assets The carrying values of nonfinancial assets (property, plant and equipment and intangible assets with a finite useful life) are reviewed for impairment at each reporting date, with the recoverable amount being estimated when events or changes in circumstances indicate that the carrying value may be impaired. The recoverable amount of nonfinancial assets is the higher of fair value less costs to sell and value in use. Depreciated replacement cost is used to determine value in use. Depreciated replacement cost is the current replacement cost of the nonfinancial asset less, where applicable, accumulated depreciation to date, calculated on the basis of such cost. Impairment exists when the carrying value of an asset exceeds its recoverable amount. The asset is then written down to its recoverable amount. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

(k) Leases Operating leases

Operating lease payments are recognised as an expense in the statement of comprehensive income on a straight line basis over the term of the lease.

Finance leases

Finance leases, where the Company obtains substantially all the risks and benefits incidental to the ownership of the leased asset, are capitalised at the inception of the lease at the fair value of the leased asset or, if lower, the present value of the minimum lease payments. Lease payments are

allocated between the reduction of the lease liability and finance charges so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised as an expense in the statement of comprehensive income. Capitalised lease assets are depreciated on a straight line basis over the shorter of their estimated useful life or the term of the lease if there is no reasonable certainty the Company will obtain ownership by the end of the lease term.

(l) Trade and other payables Trade and other payables are unpaid liabilities for goods and services provided to the Company before the end of the financial year. The fair value of these amounts is deemed to be equal to their cost. The Company usually settles these amounts within 45 days.

Other long-term employee benefits

(m) Interest bearing loans and borrowings Interest bearing loans and borrowings are initially recorded at fair value less directly applicable transaction costs. Following initial recognition interest bearing loans and borrowings are measured at amortised cost using the effective interest rate method. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the balance date.

(n) Financial instruments - nonderivative financial instruments The Company’s exposure to financial instruments is limited to trade and other receivables, trade and other payables and interest bearing loans and borrowings. The accounting policies applied to these financial instruments are described above. The Company does not have any derivative financial instruments.

(o) Employee benefits Short-term employee benefits

Provision is made for the Company’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service, including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled. The Company’s obligations for short-term employee benefits such as wages, salaries and leave are recognised as a part of current trade and other payables in the statement of financial position. The Company classifies employees’ long service leave as other longterm employee benefits as they are not expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. Provision is made for the Company’s obligation for other long-term employee benefits, which are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures, and are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Upon the re-measurement of obligations for other long-term employee benefits, the net change in the obligation is recognised in profit or loss classified under employee benefits expense. The Company’s obligations for long-term employee benefits are presented as non-current liabilities in its statement of financial position, except where the company does not have an unconditional right to defer

settlement for at least 12 months after the end of the reporting period, in which case the obligations are presented as current liabilities.

(p) Revenue received in advance A significant part of the Company’s funding is from state and federal government grants to fund services. Where these grants relate to the provision of services (or the purchase of assets) in the following financial year, they are reported as a liability in the statement of financial position.

(q) Adoption of new and revised accounting standards During the current year the Company adopted all of the new and revised Australian Accounting Standards and Interpretations applicable to its operations which became mandatory. It has been determined by the Company that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its operations and therefore no change is necessary to the Company’s accounting policies.

New accounting standards and interpretation not yet adopted The following new accounting standards, amendments to standards and interpretations have been identified as those which may impact the Company in the period of initial application. AASB 9 Financial Instruments addresses the classification, measurement and de-recognition of financial assets and financial liabilities. The standard is not applicable until 1 January 2018 but is available for early adoption. There will be no impact on the Company’s accounting for financial liabilities or financial assets as it impacts available for sale financial assets and accounting for financial liabilities that are designated at fair value through profit and loss, and the Company does not have any such assets or liabilities. The de-recognition

The accompanying notes form part of these financial statements

47

Notes to the Financial Statements for the year ended 30 June 2016 rules have been transferred to the new standard from AASB 139 Financial Instruments: Recognition and Measurement and have not been changed. The Company has not yet decided to early adopt the standard. AASB 15 Revenue from contracts with customers introduces a five step process for revenue recognition with the core principle of the new Standard being for entities to recognise revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the entity expects to be entitled in exchange for those goods or services. Accounting policy changes will arise in timing of revenue recognition, treatment of contract costs and contracts which contain a financing element. AASB 15 will also result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. “The standard will be applicable to annual reporting periods beginning on or after 1 January 2018 but is available for early adoption. The changes in revenue recognition requirements in AASB 15 may cause changes to the timing and amount of revenue recorded in the financial statements as well as additional disclosures.“ The Company has neither assessed the impact of AASB 15 nor decided to early adopt the standard. AASB 16 Leases will replace AASB 117 ‘Leases’ and for lessees this will eliminate the classifications of operating leases and finance leases. Subject to exceptions, a ‘right-of-use’ asset will be capitalised in the statement of financial position, measured as the present value of the unavoidable future lease payments to be made over the lease term. The exceptions relate to short-term leases of 12 months or less and leases of low-value assets (such as personal computers and small office furniture) where an accounting policy choice exists whereby either a ‘right-of-use’ asset is recognised or lease payments are expensed to profit or loss as incurred. A liability corresponding to the capitalised lease will also be recognised, adjusted for lease prepayments, lease incentives received, initial direct costs incurred and an estimate of any future restoration, removal or dismantling costs.

48

2016

Straight-line operating lease expense recognition will be replaced with a depreciation charge for the leased asset (included in operating costs) and an interest expense on the recognised lease liability (included in finance costs). In the earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under AASB 117. However, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results will be improved as the operating expense is replaced by interest expense and depreciation in profit or loss under AASB 16. For classification within the statement of cash flows, the lease payments will be separated into both a principal (financing activities) and interest (either operating or financing activities) component. AASB 16 Leases is applicable to annual reporting periods beginning on or after 1 January 2019. The Company will adopt this standard from 1 July 2019 but the impact of its adoption is yet to be assessed by the Company.

(r) Key judgments and assumptions The Board evaluates estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends, economic data obtained both externally and within the Company.

Allowance for impairment of receivables

As disclosed in note 5 and note 15 to the financial statements, trade and other receivables include amounts totalling $569,005 for unpaid customer and other fees. An allowance for impairment of $23,755 has been made against these amounts. Management believes that the amount recoverable will exceed the total outstanding net of the provision.



Notes

2016

2015

Note 2: Revenue Operating Revenue from (non-reciprocal) Government Grants and Other Grants - State Government Funding - recurrent - State Government Funding - non recurrent - Australian Government Department of Social Services - Other grant revenue

Total grant revenue

32,545,823 1,160,000 1,135,980 89,621

28,178,715 501,388 390,899 77,793

34,931,424 29,148,795

SACS Funding Supplementation - State Government Funding - SACS Funding Supplementation 2012 to 2014

-

977,115

In 2015, the Australian and Queensland Governments reached an agreement on the National Partnership Agreement on the Pay Equity for the Social and Community Services (SACS) Sector. This agreement provides supplementary funding to meet increased wage costs due to the Equal Remuneration Order (ERO) decision on 22nd June 2012. The Company received a back payment of $977,115 during the prior financial year that related to the period 1st December 2012 to 30 June 2014. An additional $854,896 was received that relates to the prior financial year and is disclosed within State Government Funding - recurrent.

Other revenue - Fundraising revenue - Customer fees and brokerage - General donations - Membership subscriptions - Sale of goods - Interest - Gain on disposal of motor vehicles - Other revenue

607,627 3,809,038 262,078 2,097 885,955 164,985 - 58,771

708,067 3,037,854 362,482 2,639 426,250 156,479 27,142 129,376

Total operating revenue

5,790,551 4,850,289

Total operating revenue

40,721,975 34,976,198

Revenue received in advance

Management believes that revenue held in advance as disclosed in Note 9: Grants received in advance has been correctly calculated and relates to services or asset purchases within the next 12 months.

Non operating revenue - State Government grants – capital - Net gain on business combination 23

844,090 2,689,766

1,155,570 -

Total capital grants and donations

3,533,856 1,155,570

Total revenue

44,255,831 36,131,768

The accompanying notes form part of these financial statements

Notes to the Financial Statements for the year ended 30 June 2016

Notes

2016

2015

Note 3: Operating surplus from ordinary activities

2016

2015

Leasehold improvements

Depreciation of property, plant and equipment 1,329,058 61,897 Amortisation of intangible assets - Impairment losses Bad and doubtful debts 36,000 Rental expense on operating leases - minimum lease payments 628,682 Remuneration of the auditor - audit of the financial statements 28,000 Loss on disposal of motor vehicles and Property 17,504

1,062,982 48,412 232,052 21,754

Leasehold improvements at cost less: Accumulated depreciation

1,031,600 (237,755)

993,862 (158,191)

Total Leasehold improvements

793,845

835,671

402,628

Plant and equipment - at cost less: Accumulated depreciation Motor vehicles - at cost less: Accumulated depreciation Hire purchase motor vehicles - at cost less: Accumulated depreciation

28,000 -

Note 4: Cash and cash equivalents



Notes

Note 6: Property, plant & equipment (Cont...)

The surplus for the year includes the following specific expenses:

Cash on hand Cash at bank Cash on short term deposit



7,086 2,455,687 4,608,637

8,299 2,733,966 3,040,145

7,071,410 5,782,410

As at 30 June 2016 $4,608,637 was held on short term deposit. Cash at Bank earns interest at on-call rates. The interest rates earned on deposits was between 1.25% to 2.88% (2015: 2.12% to 3.25%).

Plant and equipment 3,538,603 3,252,473 (2,565,254) (2,283,788) 968,685 973,349 1,508,828 1,473,691 (641,668) (429,748) 1,043,943 867,160 1,713,013 1,129,175 (679,930) (628,372) 1,033,083 500,803

Total plant and equipment

2,873,592 2,513,431

Total property, plant and equipment

23,010,582 18,904,772

Reconciliation Reconciliations of the carrying amounts for each class of property, plant & equipment are set out below:

Note 5: Trade and other receivables

Land and buildings

Current Customer fees and other trade receivables less: Allowance for impairment of receivables Accrued revenue Other receivables

569,005 (23,755) 545,250 24,578 58,218

543,912 (19,047) 524,865 52,716 31,448



628,046

609,029

Carrying amount at beginning of year Additions Disposals Impairment losses Depreciation expense

15,555,670 13,414,859 4,345,890 2,730,787 (76,584) - (232,052) (481,831) (357,924)

Carrying amount at end of year

19,343,145 15,555,670

Leasehold Improvements

The exposure to credit and currency risks and impairment losses related to trade and other receivables are disclosed in Note 17 - Financial risk management.

Carrying amount at beginning of year Additions Depreciation expense

835,671 30,530 (72,356)

752,392 154,117 (70,838)

Note 6: Property, plant & equipment

Carrying amount at end of year

793,845

835,671

Carrying amount at beginning of year Additions Disposals Depreciation expense

968,684 302,992 (12,913) (285,414)

1,001,221 235,041 (267,578)

Carrying amount at end of year

973,349

968,684

Land and buildings

Plant and equipment

Freehold land - at cost Buildings - at cost Buildings - work in progress less: Accumulated depreciation less: Impairment losses

7,866,469 13,940,060 663,250 (2,894,582) (232,052)

6,820,090 11,446,573 382,841 (2,861,782) (232,052)

Total land and buildings

19,343,145 15,555,670

The accompanying notes form part of these financial statements

49

Notes to the Financial Statements for the year ended 30 June 2016

Notes

2016

2015

Note 6: Property, plant & equipment (Cont...)

Carrying amount at end of year

1,660,875 312,159 (61,651) (366,637)

Trade payables Accrued employee benefits Other accrued expenses and sundry payables Other payables

1,900,243 1,544,746



Computer software - at cost Website - work in progress

728,151 30,125

767,377 -

less: Accumulated amortisation

(389,546)

(335,137)

Total computer software

368,730

432,240

Trademarks and licences Trademarks and licences at cost

66,053

66,053

less: Accumulated amortisation

(55,104)

(47,617)

Total trademarks and licences

10,949

18,436

Total intangible assets

379,679

450,676

Reconciliation Computer software 432,240 33,774 30,125 -

128,476 344,917 -

Amortisation Expense

(54,409)

(41,153)

Carrying amount at end of year

441,730

432,240

Trademarks and licences 18,436 -

24,331 1,364

Amortisation expense

(7,487)

(7,259)

Carrying amount at end of year

10,949

18,436

2016

549,459 222,644 618,761 56,038

373,145 1,048,439 467,872 (37,008)

1,446,902 1,852,448

Operating revenue received in advance Capital grants received in advance



825,913 963,606

1,114,056 65,474

1,789,519 1,179,530

Grants received in advance consists of government funding received but services were not delivered at balance date (refer Note 1(p)). Capital grants received in advance consists of government funding received but assets have not yet been procured or constructed.

Note 10: Borrowings Current Bank loan payable - secured Hire purchase liability - secured

50,000 239,746

50,000 276,880



289,746

326,880

Non - Current

Reconciliations of the carrying amounts for each class of intangible asset are set out below:

50

2015

Note 9: Grants received in advance

Computer software

Carrying amount at beginning of year Additions

2016

Current

1,544,746 901,046 (56,092) (489,456)

Note 7: Intangible Assets

Carrying amount at beginning of year Additions Work in Progress Website Disposals

Notes

Note 8: Trade and other payables

Motor Vehicles Carrying amount at beginning of year Additions Disposals Depreciation expense



Bank line of credit - secured Hire purchase liability - secured

5,000 520,075

5,000 173,987



525,075

178,987

The bank loan is a $1,000,000 line of credit with Commonwealth Bank of Australia and commenced in June 2007 and matures in 2017. The line of credit was drawn to $50,000 at 30 June 2016 and at 30 June 2015. Interest is payable on the outstanding balance at a market rate. The outstanding balance on the bank loan is secured by a first mortgage over Ellison Road, Aspley. The facility is subject to an annual review by the Commonwealth Bank of Australia and therefore the amount drawn on the facility is presented as current as the Company does not have unconditional right to defer settlement of the liability for at least twelve months after the balance date. The line of credit is a $732,000 facility with Westpac Banking Corporation and commenced in March 2010. The line of credit is a 30 year facility and matures in 2040. The line of credit was drawn to $5,000 at 30th June 2016 and is secured by a first mortgage over two of the Company’s properties located at Lee Close Runcorn. The hire purchase liabilities are for hire purchase agreements taken out to purchase motor vehicles. Interest is payable on the outstanding amounts on the individual agreements at rates of between 3.94% and 7.70%. The individual agreements are held under a revolving bulk facility with Westpac Banking Corporation. At 30 June 2016 the limit on the facility was $950,000, of which $759,821 was drawn at 30 June 2016.

The accompanying notes form part of these financial statements

Notes to the Financial Statements for the year ended 30 June 2016

Notes

2016

2015

Note 10: Borrowings (Cont...) Credit standby arrangements with the Company’s bankers At reporting date the Company had the following credit arrangements in place: Loan facility Line of credit facility Credit card facility Hire purchase and leasing facility



1,000,000 732,000 15,000 950,000

1,000,000 732,000 15,000 950,000

2,697,000 2,697,000

Facilities utilised at reporting date: Loan facility Line of credit facility Credit card facility Hire purchase and leasing facility



As at 30 June 2016, the Company employed 495 full time equivalent employees. (2015: 407). Employee provisions represent amounts accrued for annual leave and long service leave. The current portion for this provision includes the total amount accrued for annual leave entitlements and the amounts accrued for long service leave entitlements that have vested due to employees having completed the required period of service. Based on past experience, the company does not expect the full amount of annual leave or long service leave balances classified as current liabilities to be settled within the next 12 months. However, these amounts must be classified as current liabilities since the company does not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlement. The non-current portion for this provision includes amounts accrued for long service leave entitlements that have not yet vested in relation to those employees who have not yet completed the required period of service.



Notes

2016

2015

- not later than 12 months - between 12 months and 5 years Minimum hire purchase payments less: Future finance charges

239,746 594,481 834,227 (74,406)

276,880 212,217 489,097 (38,230)

Present value of minimum hire purchase payments

759,821

450,867

Note 12: Hire purchase commitments Payable - minimum hire purchase payments

50,000 5,000 - 759,821

814,821

50,000 5,000 450,867

505,867

Facilities not utilised at reporting date: Loan facility Line of credit facility Credit card facility Hire purchase and leasing facility

950,000 727,000 15,000 190,179

950,000 727,000 15,000 499,133



1,882,179

2,191,133

Certain motor vehicles and buses used by the entity have been acquired under hire purchase agreements (refer Note 10). The motor vehicle hire purchase commitments are non-cancellable hire purchase agreements contracted with a three to five-year term. No capital commitments exist in regards to the hire purchase commitments at year-end.

Note 13 - Segment reporting The Company has three operating segments which are described below. The operating segments reflect the Company’s three major areas of activity which are all based in Australia.

Disability Enterprises The credit card and loan facilities are secured by registered first mortgage over property situated at 487 Ellison Road Aspley 4034. The line of credit facility is secured by registered first mortgages over property situated at 9 and 11 Lee Close Runcorn 4113. The hire purchase and leasing facility is secured by fixed charges over motor vehicles purchased with the facility.

Note 11: Employee Provisions

Employee Provisions

Opening balance at 1 July 2015 Additional provisions raised during year Amounts used

2,158,156 2,351,913 (1,834,143)

Balance at 30 June 2016 2,675,926 Current liability for employee entitlements Annual Leave Long Service Leave

Current liability for employee entitlements

1,666,113 538,634

1,365,371 395,003

2,204,747 1,760,374

471,179

Disability services and fundraising

This segment includes the Company’s specialist disability services and all other operations of the Company. The Company’s other operations exist to support the Company’s specialist disability services.

Community Care

This segment includes the Company’s Community Care, In-Home support and centre based services and social support services of the Company.

Disability Enterprises

2016 Segment Revenue - Grant revenue - Other operating revenue - Non operating revenue

Non - Current liability for employee entitlements Long service leave

This is a self supporting segment which provides employment opportunities for people with disabilities. This segment consists of Monte Lupo Arts, Makeables, Monte Lupo Gallery & cafe. Monte Lupo Arts produces, exhibits and sells a wide range of individual artworks and tableware. Makeables provides re-packaging and other business services.

397,782

Total segment revenue

Disability Services & Community Fundraising Care

Total

2016

2016

2016

2016

1,160,088

31,969,989

1,801,347

34,931,424

467,853

5,152,991

169,707

5,790,551

21,089

3,512,767

-

3,533,856

1,649,030

40,635,747

1,971,054

44,255,831

The accompanying notes form part of these financial statements

51

Notes to the Financial Statements for the year ended 30 June 2016 Note 13 - Segment reporting (Cont...)



2015

2015

2015

2015

415,068

27,971,597

1,739,245

30,125,910

- Other operating revenue

235,605

4,454,046

160,638

4,850,289

5,000

1,135,262

15,307

1,155,569

Net cash provided by operating activities

655,673

33,560,904

1,915,190

36,131,767

Depreciation and amortisation expense Segment surplus

2016

2016

2016

2016

-

44,185

-

44,185

47,265 (362,413)



1,369,069

25,696

1,442,030

4,748,780

92,766

4,479,133 31,527,577

Segment Assets & Liabilities - Segment assets

236,383

31,190,416

100,778

- Segment liabilities

165,040

6,431,362

130,766

6,727,168

135,861

5,474,346

4,025

5,614,232

- Segment capital expenditure

2015 Segment Revenue

- Non operating revenue Total segment revenue Interest expense

-

45,884

-

45,884

Depreciation and amortisation expense

20,657

1,303,618

19,172

1,343,447

Segment surplus

38,003

3,414,610

156,358

3,608,971

Segment Assets & Liabilities - Segment assets

203,655

25,677,844

135,775

26,017,275

- Segment liabilities

58,740

5,508,124

129,135

5,695,999

- Segment capital expenditure

12,349

3,743,888

54,728

3,810,964

During the year the Company expanded the Disability Enterprises by providing an additional 56 supported employee places across two new locations. The Company has appropriately increased its investment in the enterprises to support the sustainable growth of the business and to ensure continued employment of the Company’s new and existing supported employees. During the year the business combination with Share Bayside Inc positively impacted on the Disability Services and Fundraising segment as reported in Note 23.

Note 14: Cash flow information

2016

2015

(a) Reconciliation of cash Cash at the end of the financial year as shown in the Cash flow statement is reconciled to the related items in the Statement of financial position as follows:

Cash on hand Cash at bank Cash on short term deposit



2016

7,086 2,455,687 4,608,637

2015

4,479,133 (844,090) 122,243

3,608,971 (1,155,569) 24,522

1,442,030 17,504 (2,689,766)

1,343,447 (27,142) -

4,528 (171,694) 4,221 (689,974) (247,893) 517,773

(122,935) (31,578) (30,126) 505,340 (544,678) 273,694

(b) Reconciliation of cash flow from operations to surplus for the year

- Grant revenue

Interest expense

2016

Total

Surplus for the year Income from government capital grants Grant expenditure Non-cash flows in surplus for the year - Depreciation, Impairment and amortisation - (Loss) on disposal of property, plant and equipment - Gains arising from business combination Changes in assets and liabilities - (Increase) / Decrease in receivables - (Increase) / Decrease in other assets - (Increase) / Decrease in inventories - Increase / (Decrease) in payables - Increase / (Decrease) in other liabilities - Increase / (Decrease) in provisions



52

Notes

Note 14: Cash flow information (Cont...)

Disability Services & Community Fundraising Care

Disability Enterprises

8,299 2,733,966 3,040,145

7,071,410 5,782,410

1,944,015 3,843,946

Note 15: Financial risk management Financial Risk Management Policies The Audit and Risk Committee is responsible for monitoring and managing the Company’s compliance with its risk management strategy and consists of senior board members. The Audit and Risk Committee’s overall risk management strategy is to assist the Company in meeting its financial and services targets while minimising potential adverse effects on financial performance. Risk management policies are approved and reviewed by the Audit and Risk Committee on a regular basis. The Company’s financial instruments consist of short term deposits with banks, accounts receivable, accounts payable, leases and borrowings. The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies adopted in the preparation of these financial statements, are as follows:

Financial assets Cash and cash equivalents Customer fees and other trade receivables (net) Other receivables

4 5 5



7,071,410 545,250 58,218

5,782,410 524,865 31,448

7,674,878 6,338,723

Financial liabilities at amortised cost Interest bearing loan Line of credit Hire purchase agreements Current trade and other payables

10 10 12, 14 10



50,000 5,000 759,821 1,168,220



50,000 5,000 450,867 841,017

1,983,041 1,346,884

The accompanying notes form part of these financial statements

Notes to the Financial Statements for the year ended 30 June 2016 Note 16: Fair Value Measurements

Notes

2016

2015

Membership / Course costs (Cont...):

Notes

2016

A.M Shaw

Net fair value of financial assets and liabilities All financial assets and liabilities have a net fair value equal to their carrying amount.

Note 17: Commitments for expenditure Operating lease commitments The Company has various non-cancellable operating leases as lessee of rented property. The lease payments are charged to expenses in the period in which they are incurred. Under the terms of these leases the Company has commitments for future rental payments on properties leased to the Company for a defined term. The leases are generally for periods of up to 12 months.

2015

7,233

-

Consulting / Professional Services:

10,999

3,668

A Oostenbroek H Carrick

- 20,164

7,800 -



20,164

7.800

The remuneration of other Key Management Personnel consists entirely of short term employee and post employment benefits. The total remuneration of the Company’s key management personnel, which is included in the statement of comprehensive income under the heading of employee benefits, is:

Payable - minimum lease payments - not later than 12 months - between 12 months and 5 years

534,392 316,778

244,614 122,891



851,170

367,505

The property lease commitments are non-cancellable operating leases. Leases with a five-year term are not recognised in the financial statements. Increase in lease commitments can occur in line with the consumer price index (CPI).

Capital Expenditure Commitments The Company with the assistance of a capital grant from the State Government is building Apartments at Jardine Street, Rockhampton. Construction is expected to be completed by December 2016. The estimated cost to complete is approximately $873,836.

Short term employee benefits Post employment benefits

504,727 47,949

469,860 44,637

Other related parties Other related parties include immediate family members of key management personnel and entities that are controlled, or significantly influenced by those personnel, either individually or collectively with their immediate family members.

Note 20: Economic dependency The continued existence of the Company in its present form and with its present programs is dependent on Government policy and on continued funding for the Company’s administration, programs and services.

Note 21: Contingent liabilities

Note 18: Related party transactions In accordance with the Company’s Constitution, the members of the Board of Directors are entitled to be renumerated subject to approval from members at the Annual General Meeting. No Director has received remuneration during the financial year. Since the end of the previous financial year none of the members of the Directors have entered into a material contract with the Company. During the year ended 30 June 2016 the Company rented a property at Hartopp Lane, Kelvin Grove from Brisbane Housing Company Ltd. The total rent paid in the year was $42,120 (2015: $42,120). One member of the Board of Directors, J Gallimore, is a Director of the Brisbane Housing Company Ltd. Professor J McAuliffe AM resigned from the position of Director of Brisbane Housing Company Ltd during the financial year. During the year ended 30 June 2016 the Company engaged in project management services from Tara Consulting Pty Ltd for the construction of Stage 2 apartments at Jardine St Rockhampton. The total fees paid in the year was $20,164. One member of the Board of Directors, H Carrick is a Director of Tara Consulting Pty Ltd. Transactions between the Company and related parties are on normal commercial terms and conditions no more favourable than those available to other persons unless otherwise stated.

Note 19: Key management personnel The Company’s key management personnel are those persons who have the responsibility and authority for planning, directing and controlling the day to day activities and strategic direction of the Company. In addition to the Directors (refer note 18) the Company’s key management personnel consists of the Chief Executive Officer, the Chief Operating Officer (from April 16), the General Manager - Disability Services, the Chief Integration Officer (from April 16) and the Chief Financial Officer. As disclosed in Note 18 the Company’s Directors currently perform their duties in a voluntary capacity and do not receive any remuneration. During the year ended 30th June 2016 the Company paid membership fees to the Australian Institute of Company Directors for eight of the nine Directors and one Company Directors Course.

Membership / Course costs:

2016

2015

Prof J McAuliffe AM J Gallimore D Eades A Oostenbroek H Carrick S Douglas C Perkins

538 538 538 538 538 538 538

524 524 524 524 524 524 524

Some of the Company’s properties and other assets were acquired with federal and state government capital grants. In some cases the Company may be required to relinquish ownership of these assets, or repay a proportion of the grant, if the terms and conditions of the grant agreement are not complied with. Typically this would occur if the Company disposed of the asset within a specified time, or used the asset for a purpose contrary to the terms of the grant agreement. The Company is not aware of any such circumstances existing as at the date of the financial statements and does not intend to act in a manner that would allow such circumstances to arise in the future.

Note 22: Limitation of members liability The Company is a company limited by guarantee and in accordance with the Constitution, in the event of Multicap Limited being wound up, the liability would not exceed $10 per member. At 30 June 2016 the number of members was 207 (2015: 193).

Note 23: Business combinations On the 1st July 2015 the Company implemented its merger for the business of Share Bayside Inc for nil consideration as approved by the members of Share Bayside Inc at a special general meeting held on the 25 June 2015.

2016

Identifiable assets acquired and liabilities assumed Property, plant and equipment Trade and other receivables Cash and cash equivalents Employee entitlements Trade and other Payables Grants owing

2,641,082 23,545 731,196 (223,237) (96,498) (386,322)

Net identifiable assets and liabilities assumed

2,689,766

Consideration paid on business combination



Gain on business combination of Share Bayside for no consideration

-

2,689,766

The accompanying notes form part of these financial statements

53

Multicap Limited ABN 40 120 240 686 Independent Auditor’s Report To the members of Multicap Limited: We have audited the accompanying financial report of Multicap Limited (“the company”), which comprises the statement of financial position as at 30 June 2016, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, notes comprising a summary of changes in equity and the statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the declaration by the Board of Directors.

Charities and Not-for-profits Commission Act 2012 (ACNC Act) and is appropriate to meet the needs of the the members. The Directors’ responsibility also includes such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Directors’ Responsibility for the Financial Report

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

The Directors of the company are responsible for the preparation and fair presentation of the financial report that gives a true and fair view and have determined that the basis of preparation described in Note 1 of the financial report is appropriate to meet the requirements of the Australian

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due

to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.

Auditor’s Opinion In our opinion, the financial report of Multicap Limited has been prepared in accordance with Division 60 of the Australian Charities and Not-for-Profits Commission Act 2012, including: (a) giving a true and fair view of the registered entity’s financial position as at 30 June 2016 and of its financial performance and cash flows for the year ended on that date; and (b) complying with Australian Accounting Standards to the extent described in Note 1, and Division 60 of the Australian Charities and Not-for-Profits Commission Regulation 2013.

Our audit did not involve an analysis of the prudence of business decisions made by Directors or management. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

HLB MANN JUDD Chartered Accountants

Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

CJM King Partner Brisbane, Queensland Date: 28 September 2016

PATRON His Excellency the Honourable Paul de Jersey AC Governor of Queensland SECRETARY Sandra Williams PAST LIFE MEMBERS 1965 1965 1967 1967 1967 1972 1972 1974 1979 1984 2003 2009 2013

Rev S B Ford Brisbane Caledonian Society & Burns Club LS Frost Pty Ltd CTO Staff, Brisbane Mrs U Mulholland Rev S R Ramsden Mr N P Scott Mr L N Saunders Mrs M Ramsden Mr A E Walker Mr D Kenway Dr R J Andrews MBE OAM Mrs Gwen Easlea

LIFE MEMBERS 1996 1999 2001 2001 2004 2007 2013 2013

Mr N Rendell Ms R Shepherd Mrs M Rudken Dr N Heather Mr M Sprenger Mrs D Wilkinson Mrs Donna Bock Mr Glen Easlea

AUDITORS

HLB Mann Judd

LEGAL PARTNERS

Aegis Legal Allens Linklaters (additional pro bono work provided) Hynes Lawyers McCullough Robertson

BANKING PARTNERS

Commonwealth Bank of Australia Westpac Bank