21700 tjw annual report 2017 - the junction works effort to force industry efficiency, certain ndis...

Creating new possibilities in people’s lives

ANNUAL REPORT 2017

2 THE JUNCTION WORKS

FRONT COVER: Cherry Blossoms, by the Children of Holsworthy OOSH

Message from our Chairperson, Greg Smith

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Message from our Chief Executive Officer, Chris Campbell

Disability Services Report

Children’s Services Report – Holsworthy OOSH and Vacation Care

Youth Services Report

Community Services Report

People and Culture Report

Financial Executive Summary

Financial Highlights 2016/17

ANNUAL REPORT 2017 3

Message from our ChairpersonThis annual report marks the first full year of the National Disability Insurance Scheme (NDIS) for The Junction Works. After a number of years spent forecasting and planning for the scheme, now is an appropriate time to reflect on its actual impact, as well as some of the challenges and implications for organisational governance and the wider sector.

At the industry level a range of challenges have arisen for not-for-profit providers grappling with the complexities of transitioning to a more commercial operation (albeit within a managed market) required by the business model of the National Disability Insurance Agency (NDIA). We are already witnessing a rationalisation of the industry: through providers curtailing the range of services they offer, or exiting the industry altogether; smaller, more vulnerable organisations merging with larger providers in an effort to realise economies of scale or to access the capital required to restructure; and the intervention of the private sector into more lucrative parts of the scheme. This rationalisation process has a long tail, with the promise that the industry will look very different into the future.

Strategically The Junction Works has positioned itself by proactively taking on the NDIS opportunity, realigning our service mix to remain financially sustainable under the new system, developing new business models and exploring partnerships with a range of likeminded entities and individuals, all while retaining our strong client focus and high quality of care.

I believe that The Junction Works is in a strong position to be able to pursue opportunities that will enable us to further our Mission and expand our services to meet the needs of current and future clients.

At the operational level, the most challenging aspect of the NDIS for not-for-profit providers, including The Junction Works, is understanding and implementing the new commercial rules of business. Moving from a single funding source in ADHC, which paid for services in advance of delivery, to a system of fee-for-service paid on invoice is only part of the challenge. Changing an organisational mindset to one that appreciates the relationship between the (currently regulated) price of disability supports and the cost of service, and grasps the notions of unitary costing and profit margin, is also required.

A further operational challenge relates to NDIS price setting by the National Disability Insurance Agency (NDIA), which is in the unusual position of being both price regulator and

purchaser. As noted by the Productivity Commission1, in an effort to force industry efficiency, certain NDIS prices have been set deliberately low. For The Junction Works this has meant being vigilant about producing procedural and commercial efficiencies. We have done this through expanding our capability in business and systems analytics, and encouraging the development of new and flexible ways of providing supports. We continue to remain vigilant about the cost of administration under the NDIA’s clunky procedures and much maligned on-line payment control system.

I am pleased to report that over the past twelve months The Junction Works has been able to expand our services and offer new services that meet the needs and demands of local families, particularly children and young people requiring skill development, therapy services and recreational programs. I acknowledge and thank TJW staff for stepping up to the challenges of NDIS, and adapting to ongoing change while continuing to make a positive impact on the lives of the people we support.

Just as the NDIS has required new business skills and capability at the operational level, it places new demands on the skills and knowledge of Boards. More than ever, not-for-profit Boards are required to engage in good governance, take a sound, systematic approach to decision making, and clearly articulate a strategic direction that responds to the external environment and serves the organisation’s purpose. In part, this requires seeking and digesting critical information needed to enable Directors to make decisions about key risks and opportunities. Under the NDIS, it also requires a more commercial orientation, strong strategic leadership and robust communication between the Board and Management. I believe The Junction Works holds these proficiencies.

The Board, Executive and Employees of The Junction Works are excited about the organisation’s future. We look forward to working closely over the coming year with all of our stakeholders - clients and families, donors and supporters, volunteers and staff - to ensure we continue to create new possibilities in people’s lives.

1 Productivity Commission 2017, National Disability Insurance Scheme (NDIS) Costs, Position Paper, Canberra.

Greg Smith


Message from our Chief Executive Officer

Indeed The Junction Works has experienced a successful year. After twelve months of NDIS turmoil, this success is grounded in the strong relationships we have forged with families as together we transitioned to the NDIS.

Around 95 per cent of the families we support chose The Junction Works to partner with them through their NDIS journey. While not all NDIS Plans fully reflect the needs of Participants, together we were able to strike a substantially higher rate of success than many other families who have had to meet the challenges of NDIS on their own.

Accordingly, I commence this Annual Report by thanking our families for choosing The Junction Works to support them through their NDIS transition. I thank them for their patience as we established a range of new forms and procedures. And I thank them for continuing to choose The Junction Works as their primary support provider.

I would also like to thank the staff of The Junction Works and especially our Connect Workers and Support Co-ordinators, who have assisted families to prepare for NDIS planning meetings, liaised with Local Area Coordinators to get Participants better outcomes, and absorbed much of the pressure that the transition has produced.

The National Disability Insurance Scheme (NDIS) is not perfect. As many a media article has reported, to date the scheme has generally failed to meet expectations. The rollout has been rushed, funding of plans has been uneven, and Local Area Coordinators (LACs) and Planners have proved to be under-prepared and inconsistent. For providers, NDIS procedures are

complex and it’s IT portal clumsy. This has increased the administrative burden at a time when providing quality services should be our sole focus.

Nevertheless, the principle of ‘choice and control’ that underpins the NDIS is one worth supporting.

Choice and control is about people with disability, their families and carers having control over the course of their lives, including the flexibility to make decisions about the disability services and supports they use. Evidence suggests that when people with disability are provided with greater choice and control over the services they require, they achieve better outcomes and quality of life.

The Junction Works will continue to work with National Disability Services (NDS), our peak industry body, to place pressure on the National Disability Insurance Agency (NDIA) to improve those aspects that are undermining the potential of NDIS, including better planning processes and realistic pricing supports.

The NDIS is enabling us to be more flexible about the suite of services we provide, and the way we provide them. For instance, demand by local families has encouraged us to commence weekend recreation programs for children and young people

and to expand our weekend program for adults. We are extending our therapy services and skill development programs, and providing more opportunities for young adults to achieve greater independence.

There are some exciting times ahead for The Junction Works.

As any Marketer will tell you, one of the functions of an Annual Report is to convey the glossy story of organisational success and the achievements of the year gone by.

Chris Campbell


In close consultation with families we are advancing new models of supported accommodation, with the first new group home built under the NDIS due to open next April. This beautifully designed, adaptable, purpose-built facility in Edmondson Park will be home to five young adults currently living at home. The Junction Works will be actively supporting these young people, and their parents to plan their transition and to settle into their new home.

We are determined to provide homes where residents can express their identity, interests and passions, where they can provide hospitality, and enjoy a sense of friendship and belonging.

While much of our organisation was concentrating on matters NDIS, our Children’s, Youth and Community Services got on with what they do best, providing targeted services, opportunities and practical support to children, young people and families living in South West Sydney. Our staff are exceptional at working at the local level, collaborating with stakeholders including other community organisations, educational institutions, local business, government departments and our generous volunteers to deliver the greatest impact. I thank them for their initiative and their passion.

The generosity of The Junction Works’ corporate supporters enables us to provide the extra support required to make a real difference in the lives of some of our community’s most vulnerable members. I particularly wish to thank Clarendon Homes, the major sponsor of The Junction Works’ annual Golf Day fundraiser, Dr Sushil and Alka Anand, Meridian IT, Deep Blue Plumbing and Sargents Pies for their generous, long-term support of our Mission.

The Board of The Junction Works comprises talented and committed individuals. Their good governance and strategic leadership is ensuring a bright future for the organisation. I would like to thank each of them for their commitment to the organisation, particularly to Helen Lyons who, after eight years as Chair, stepped down from this critical position in June, and Greg Smith, who has taken on this responsibility.

Respect:We embrace the diversity of people

Integrity: We are honest, ethical and compassionate in our actions

Excellence:We adapt and strive to produce the best results

Creativity: We are flexible and imaginative in how we work

Vitality: We are filled with energy, confidence and belief

Our Mission:

Our Values:

Creating new possibilities in people’s lives


BUSINESS PRACTICES is a broad-based skill development program that focusses on business development concepts and practices required to operate a micro-business.

In 2017 students were coached to develop and market products through digital and practical experiences. Groups developed pitches for their product, which were presented to the CEO, and budgets developed to get their micro-businesses up and running.

One group developed a business selling the ultimate plastic free, bio-degradable, cotton shopping bag called ‘Exo-Scope’ using the promotional tag “Just one bag can save thousands of sea life”.

Other groups developed the Project Siren Cap “To protect your eyes and hair” and another the ‘BillyTec’ t-shirt. All products will be available for sale in 2018.

Disability Services Report

Number of people who accessed TJW Support Coordination in 2017

Becoming Work Ready in The Works Teaching Kitchen

THE WORKS RESTAURANT is open most Friday’s at The Junction Works Austral Service Centre and provides front and back of house experiences for young people interested in hospitality.

Front of house roles include the maitre d’hotel, servers, and bus persons and back of house roles include the expediter, chefs and dishwashers. All restaurant tasks are covered, from ironing tablecloths and table setting, to plating up and taking out the rubbish.

The restaurant can serve up to 30 staff and clients at any one sitting. So like any restaurant, it can get pretty hectic. Learning to manage stress is an important part of the experience, as is working in a team.

Bread baking, deserts and food preparation are undertaken during the week by other classes within The Works Teaching Kitchen.

Exo-Scope Team: Francesca, Jason, and Khoa with CEO, Chris Campbell.

In 2017 The Works Teaching Kitchen provided two 26 week programs designed to introduce young men and women with a disability to work practices involved in hospitality and in establishing a micro-business.

Skill Development Curriculum:

Total number of Programs offered in 2017

Number of Programs in Creative and Performing Art

Number of Programs in Cowpastures Community Garden and Shed

Number of Programs in The Works Teaching Kitchen

Number of Digital Inclusion Programs

2929613

145 13424Number of people who received TJW Therapy Services in 2017

Number of children and young people accessing TJW’s new Kids Connection and Youth Connection recreational programs

Key Figures for 2017


One area of pent up demand in South West Sydney is weekend recreation programs for children and young people.

In 2017 The Junction Works established Kids Connection and Youth Connection programs, which focus on developing social skills with peers in a recreational setting. Held initially over weekends and then school holidays, activities are developed to meet the specific needs of each Participant. Groups are small enough for each child and young person to receive personalised attention to help them achieve their skill development goals.

The flexibility provided by the NDIS has enabled us to extend our therapy services and skill development programs, and provide more opportunities for young adults to become more independent.

NDIS provides opportunities for both Participants and Service Providers

But for our guys, this fabulous form of percussive dance is performed purely for the joy of it.

Tap Dancing was introducing into our Skill Development Curriculum in 2017 and is taught by Senior Support Worker and

Dance Teacher, Sarah Webb.

The troupe performed for the first time as part of The Junction All Stars Concert ‘The Power of the Dream’ at the Casula Powerhouse Theatre in July, to a full house.

For The Junction Works one of the benefits of the NDIS is we are now in a position to be more flexible about the services we provide, and have been able to expand our range of services in line with the demand of local families. The Cowpastures Community Garden

is growing from strength to strength

In 2018 The Cowpastures Community Garden will be offering NDIS School Leaver Employment Support (SLES) for young people interested in working in garden maintenance and horticulture. The Junction Works’ SLES programs provide Participants with real world work experiences and tailored, on the job training that meets the needs of the individual.

Tap Dancing requires timing, coordination and concentration. It’s great exercise and good for the cardiovascular system.

Dance to the Rhythm

282Number of People who accessed TJW Community Participation and Skill Development Programs in 2017


Holsworthy OOSH and Vacation CareThe Junction Works’ Outside of School Hours Care is a safe, stimulating and welcoming environment for school age children that encourages their physical, and emotional development, and intellectual potential.

We value and respect each child’s uniqueness and strive for the inclusiveness of all children. We embrace the diversity of families and endeavour to work in partnership with parents in our planning for children’s wellbeing and learning.

The Junction Works has been operating the service since 1999. Although the actual centre is located in the grounds of Holsworthy Public School, the service does not receive any funding or direction from the school outside of licensing commitments. We do, however, maintain

75 62 7294 74 90Before School Care After School Care Vacation Care

FAMILIES FAMILIES FAMILIESCHILDREN CHILDREN CHILDREN


Taronga Park Zoo Excursion during the April 2017 School Holidays – The OOSH team devise different Vacation Care activities and excursions to meet the interests and needs of different age groups to ensure children remain engaged and enjoy their school holidays.

A prime focus of OOSH Director, Kerri Coggin and her team in 2017, was to empower the children to develop a creative, inspirational space for themselves within the centre.

Number of families and children who access:

effective communication lines with the school executive and thank Peter Ward, Principal, for his ongoing support of Holsworthy OOSH.

At first the children were reticent to use their creativity and claim the space.

However, as these photos indicate, they soon became a powerhouse of ideas and industriousness, making paper mache planets and transforming one corner of the centre into a comfy space station; turning walls into a collidescope of images and colour (for instance the cherry blossoms on the cover of this report) and creating a well-used reading nook. Themes change with the seasons and new ideas.

The children’s ingenuity will be harnessed over the next twelve months to turn some of the outdoor spaces into similarly inspired creations.


Youth Clicks ReportIn 2017 The Junction Works’ Youth Services was restructured into one overarching Youth Clicks service, with the aim of being able to leverage skills and resources across the various programs, and to expand our presence and impact in South West Sydney.

Youth Clicks is about providing opportunities and practical support to enable young people in South West Sydney to be better equipped to meet life’s challenges. It does this through a multi-component model of prevention, empowerment and early intervention with the following service streams:

1. Youth Clicks Universal is a community-based youth program that encourages peer support, civic responsibility and leadership skills. Funded primarily by FACS Community Builders (with additional support from non-government grants) Youth Clicks Universal operates in Liverpool and Claymore / Eagle Vale in Campbelltown. The program gives young people the opportunity to meet

with other young people and enjoy a range of meaningful activities including providing mentoring support for children in The Junction Works’ 2168 Program, developing leadership skills and supporting the local community through a range of volunteering experiences.

2. Youth Clicks Case Management is an early intervention youth and family support program that provides individualised support to young people aged 12-17 living in South West Sydney. Specialist case managers are experienced in dealing with young people from all backgrounds and those who are at risk of abuse, have mental health issues, trauma and behavioural issues.

3. Youth Clicks Workshops - Our vibrant youth team works with high schools in South West Sydney to deliver workshops for students on a range of life skills and developmental issues including dealing with bullying and violence, healthy living, self esteem, sexual health, financial health and anger management.

The Youth Clicks team operates out of Wattle Grove Community Centre. You can contact the team on Ph: 9825 2575.


THE MERGE: Youth Clicks participants from Holsworthy and Eagle Vale High School came together to volunteer at the Claymore Community, Easter Holiday Picnic at Nepean Dam (see the Community Service Report)

53 220

6,312

3,482 2,830

Number of young people enrolled in Youth Clicks Universal Leadership Committee in 2017

Number of healthy options breakfasts provided by Youth Clicks in 2017:

Holsworthy High School Breakfast Club

Eagle Vale High School Breakfast Club

Number of young people who participated in Youth Clicks Universal skills and development activities

Youth Clicks Team welcomed into Eagle Value High School

In 2017 the Youth Clicks team developed a relationship with Eagle Vale High School, to introduce Youth Clicks Universal and a Breakfast Club into the school community.

While the venture is proving a great success (with over 2,830 breakfasts being served to hungry students in 2017!), even better still is the ‘merging’ of Youth Clicks groups from Liverpool and Campbelltown.

The ‘Merge’ as we call it, is providing greater social connectivity and peer support between participants as well as more opportunities to be involved in stimulating volunteering opportunities requiring civic responsibility and leadership skills.


Community Services Report

In an era of digital communication, hyper mobility and virtual networks community centres play a vital role as an anchor for people experiencing local change and community struggle.

They are places where people of all ages gather to enrich their bodies and minds, find support and encouragement and foster feelings of community and civic pride. They provide real people with real support in real time.

At The Junction Works our community centres are places where we work with residents in need of support to improve social and economic engagement and we equip people with the skills and motivation to improve their life chances.

At Wattle Grove Community Centre we also focus on providing social support and connectivity with highly mobile Australian Defence Force families to ensure parents and their children feel comfortable and engaged with their local community.

The Junction Works provides services from three Family and Community Services (FACS) funded community centres in South West Sydney: in Wattle Grove / Holsworthy, Claymore and Tallowood Community Centre in Ambarvale. Where a physical locale is not available, as in the case of Macquarie Fields, we have partnered with local public schools through their Schools as Community Centres (SaCC) initiative.

In 2016 Curran Public School invited The Junction Works to become a community partner within its SaCC. Since then we have also worked with Guise Public School and

Macquarie Fields Public School, all within the Macquarie Fields area. We continue to facilitate value-adding projects within these schools that are having a positive impact on local families. Projects in 2017 included supported playgroups, parenting workshops, holiday programs for children, Science Week workshops for pre-schoolers and a regular Therapeutic Clinic operated by our Allied Health Team.

In July 2017 The Junction Works partnered with Bunnings Crossroads and Campbelltown to run School Tree Day for Planet Ark’s National Tree Day at Curran Public School.

Bunnings Warehouse generously provided citrus trees, herbs, vegetables and bush tucker plants for the school’s Aboriginal Bush Tucker Garden, as well as soil, sugar cane mulch, gardening gloves and utensils for the children to use and keep at the school! And children, teachers, parents and volunteers enjoyed a day of planting trees and shrubs and learning how to grow some great food!

47,850 2,744 354 2,090People connected with information and referral

People attended community events

People who attended community consultations

People attending community workshops and skill development


Community Centres in 2017 – Providing real people with real support in real time

Claymore Community CentreCnr of Glenroy Drive and Gould Road, Claymore, 2559Ph: 4626 2007

Tallowood Community Centre2 Littimer WayAmbarvale, 2560Ph: 4625 7333

The Fields Community Services Macquarie Fields, 2564Ph: 8777 0500Mb: 0409 448 409

Wattle Grove Community CentreVillage Way, Wattle Grove, 2173 Ph: 9825 2575

The Junction Works Community Services


A gift of timeOn 27 July 2017 Liverpool City Council recognised the contribution of The Junction Works and its Volunteers with a ‘Gift of Time’ celebratory dinner and award ceremony. The event was attended by Simone Stanton, Community Development Coordinator and community volunteer Yuliya Lukina.

Yuliya is one of our community treasures, volunteering at Wattle Grove Community Centre supporting new mums and dads at our playgroup as well as providing administrative support.

48,298 16,867

People provided with community capacity building resources

People attending social inclusion programs

Community is alive and well in ClaymoreWhen the news went out to residents of Claymore inviting them to an Easter Holiday Picnic in April this year, we weren’t expecting such a large response.

It took two 50 seater coaches and a line-up of cars and mini buses to transport over 150 residents to the beautiful Nepean Dam for a day of games, craft, an Easter Egg Hunts, raffles and giveaways. Lunch included a delicious BBQ of marinated chicken and a range of salads.

The event was an initiative of the FACS funded Housing Communities Program and Claymore Community Centre, with the purpose of providing an opportunity for locals to meet each other, and for parents (and grandparents) to enjoy their children and young people in a fun, stress free environment.

Celebrating VolunteersIn 2017, 56 volunteers committed 12,700 hours of time supporting the mission of The Junction Works. We acknowledge the impact that they make in our community, and thank them for their generosity.

During National Volunteer Week 2017, The Junction Works recognised the generous contribution of our volunteers with ‘high tea’ and spirited performances by music ensembles from Thomas Hassall Anglican School.

Source: Community figures are from FACS Community Builders On-line Data Report - TJW Community Centres

What to do about a Pea up the Nose

When CPR KiDS provided a workshop on Baby CPR and First Aid at our Wattle Grove Mums & Bubs group, the word spread amongst local families and we saw an increase in numbers at the second instalment a week later.

As a Critical Care Paediatric Nurse, the facilitator was well qualified to share her experiences of providing first aid, relieving chocking and performing CPR on infants and young children.

The sessions consisted of theory, discussion and plenty of time to practice on infant sized mannequins.

With curiosity in their eyes, the bubs watched as their mother’s practiced on the mannequins. A couple of the babies even had a go themselves!

The workshops received great feedback, with parents saying they felt more confident to respond to children needing emergency first aid.


People and Culture

“Change may be daunting but it is also a positive thing”My name is Abbey Anderson. I started working with The Junction Works as a Support Worker in August 2014.

Before that I worked as an Events Coordinator for a short time before realising that I wanted to work with people with a disability, and so I went back to study.

Growing up with a brother with a disability

has given me a strong passion for empowering and supporting others with a disability.

Earlier this year, following stints as a Senior Support Worker and Acting Program Coordinator, I was promoted to the role of Program Coordinator at The Element (Day Program) in Liverpool. I was really excited to be offered the chance to lead a great team and to put some of my ideas about disability support into practice.

In fact, the role has enabled me to develop some really constructive ways to enable the people we support to achieve their goals and aspirations. Building strong rapport with their parents and families is also important, to ensure we’re all moving in the same direction.

In this role you need to learn to work in a fast paced environment. And some days, of course, are challenging. We’re dealing with human beings after all, so you never know what issue might arise.

It’s a good time to be working in disability support. There are many changes occurring within the industry and The Junction Works. But I’m enjoying the challenge of doing things differently -- better. What motivates me is leading my team to find and create new and exciting opportunities that increase the quality of life of the people we support.

For any community service provider its primary resource is its people. At The Junction Works, the initiative, enthusiasm and knowledge of our employees across our service divisions - disability, community, youth and children’s services – are what drives our Mission of ‘creating new possibilities in people’s lives’.

2017 Staff Snapshot

Adapting to changing work roles in Disability ServicesAt The Junction Works we understand that a skilled, valued and motivated workforce directly contributes to enhanced quality of life outcomes for people with a disability. At the same time we recognise that work roles and the skills required of disability support workers are changing within disability services.

Although care and compassion remain the foundational elements of the support worker’s role, the orientation towards person centred practice and the expectation that people with a disability will live more autonomous and meaningful lives has increased the range and complexity of skills that support workers require. The increasing role that information technology is playing in both the lives of people with disability and in organisational practice is a further challenge for an industry that has been relatively sheltered from digital innovation.

Creativity, versatility and flexibility are skills highly valued in the new disability support environment. As is the ability to plan and implement micro-strategies that support people with disability to achieve their goals and greater autonomy. In other words, problem solving and solution design is replacing adherence to a set of rules.

At The Junction Works we have commenced the journey from a strong focus on policy and prescription to an environment that enables individuals and staff to achieve their goals. While such deep cultural change does not come easily, the disruption caused will make disability work at The Junction Works so much more interesting, impactful and ultimately rewarding for our employees, well into the future.

146 12,700113 33

Number of Permanent Employees

Number of hours volunteers contributed in 2017Part timeFull time

Total Hours of Staff Training and Professional Development in 2017

Number of Tertiary Students undertaking placements at TJW in 2017

2,934 13 (1,300 hours of placement support)


South West Sydney Clubs were most generous in their support for The Junction Works in 2017, awarding us with three Club Grants totalling $25,300.Mounties Group donated $10,000 to turn a parched patch of dirt adjacent to our Austral Service Centre, into a multifunctional outdoor space with a soft play surface. The project will enable our recreational programs for children with a disability to provide more stimulating, outdoor activities, improving both the amenity and aesthetic of the place.

Canley Heights RSL and Sporting Club provided $10,300 for the provision of a bathroom ceiling hoist system, for the support of adults with complex and high support needs. And Campbelltown Catholic Club donated $5,000 towards taking five young people from Eagle Vale High School to our 2017 SPARK Festival where the supported adults with disability to enjoy their SPARK experience.

Grants and Fundraising

Peter Campbell, CEO Clarendon Homes (far right), with his winning team

MAJOR SUPPORTERS IN 2017

In recent times, a growing number of aging parents have approached us about long-term housing options for their son or daughter they currently care for at home. Given the shortage of supported accommodation for people with a disability in South West Sydney and the growing demand of families, The Junction Works has embarked on a strategy to add to our existing supported accommodation stock. The first two of these purpose-built homes are due for completion in early 2018.

Throughout 2017 we have been raising money for the furnishing and fit out of

these properties. We are delighted to advise that Sargents Pies Charitable Foundation donated $50,000 in 2017 for this cause.

Our two annual fundraising events, Junk Free June and our Clarendon Cup Charity Golf Day raised $75,000 towards these projects, with the generous support of many individuals, local businesses and corporations support.

At The Junction Works we view these people as partners in our Mission to create new possibilities in people’s lives. We thank them for their generosity.

Community Support for our Mission


Executive Summary on Financial HighlightsOperationsThe Junction Works’ operations for the year ended 30 June 2017 provided a surplus of $2.7 million. This compares favorably to the prior year surplus from operations of $1.5 million. The surplus include revaluation of assets of $0.4 million.

Total revenue for the year of $15.4 million included $13.6 million government and other grants. This is an increase of $0.8 million over the prior year’s revenue of $12.8 million. The majority of non-government revenue came from attendance and service fees ($0.8 million).

Expenses totaled $12.7 million, with the majority of costs being employee ($9.8 million) and administration ($1.2 million).

Financial PositionTotal assets of The Junction Works at 30 June 2017 were $15.5 million, an increase of $2 million on the prior year. This increase is mainly in the form of additional cash at bank. Liquidity remains strong with $5.4 million cash at bank and $2.8 million term deposits. Non-current assets include $5.7 million land, buildings and $0.7 million plant and equipment.

Total liabilities at the end of the financial year were $2.4 million. The major portion of liabilities is grants received in advance ($0.6 million) and employee leave entitlements ($0.9 million).

The current ratio at the end of the financial year (current assets divided by current liabilities) was 4.09, which shows that The Junction Works has more than sufficient cash and other current assets to meet its short-term commitments.

The Junction Works had a strong equity position, being total assets less liabilities, of $13 million. This represents an increase of $2.6 million from the prior year.

Cash FlowThe Junction Works’ cash balance (not including bank term deposits) increased by $1.3 million during the financial year to $5.4 million.

Future Financial PositionThe $8.2 million cash and term deposits held, along with the surplus planned for the coming year provide a solid financial base for continuing The Junction Works’ programs and investing in assets with a view to continuation of the improvement and expansion of our programs.

The Junction Works is very well placed financially to participate in the significant growth opportunities that are presenting for the short and medium term.

Financial and Risk GovernanceThe Board reviews a financial dashboard report that provides financial performance compared to budget and financial position compared to prior periods as well as key financial ratios at each board meeting. The financial performance for the financial year was in accordance with the budget approved by the Board.

The Board also receives strategic and other risks registers and a comprehensive Workplace Health and Safety report at each Board meeting.


Financial Highlights

A summary of the significant items appearing in the financial report, and the comparative for the 2017 year is as follows:

Item 2017 2016 $ Increase/ % increase/ (Decrease) (Decrease)

Operating Revenue 14,950,819 14,134,324 816,495 5.78%

Operating Expenditure 12,256,157 12,612,588 (356,431) (2.83%)

Net Operating Surplus 2,694,662 1,521,736 1,172,926 77.08%

Total Net Surplus 2,694,662 1,521,736 1,172,926 77.08%

Total Assets 15,510,406 13,523,952 1,986,454 14.69%

Total Liabilities 2,425,931 3,134,139 (708,208) (22.60%)

Net Assets 13,084,475 10,389,813 2,694,662 25.94%

Proportional of Funding Received Proportional of Funding Spent

GOVERNMENTGRANTS 91%

PROPORTIONAL OFFUNDING RECEIVED

SERVICE & BROKERAGE FEES 5% INVESTMENT 1%OTHER 1%

FUND RAISING 2%

AMINISTRATION 10%

COLLABORATIVEPARTNERSHIP 3% SERVICE DELIVERY

& PROGRAMS 87%

PROPORTIONAL OFFUNDING SPENT

GOVERNMENTGRANTS 91%

PROPORTIONAL OFFUNDING RECEIVED

SERVICE & BROKERAGE FEES 5% INVESTMENT 1%OTHER 1%

FUND RAISING 2%

AMINISTRATION 10%

COLLABORATIVEPARTNERSHIP 3% SERVICE DELIVERY

& PROGRAMS 87%

PROPORTIONAL OFFUNDING SPENT


In accordance with the requirements of section 60-40 of the Australian Charities and Not-for-profits Commission Act 2012, as lead auditor for the audit of The Junction Works Limited for the year ended 30 June 2017, I declare that, to the best of my knowledge and belief, there have been no contraventions of any applicable code of professional conduct in relation to the audit.

GRANT THORNTON AUDIT PTY LTD

Chartered Accountants

James Winter

Partner - Audit & Assurance

Sydney, 18 October 2017

Level 17, 383 Kent Street

Sydney NSW 2000

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T +61 2 8297 2400

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Grant Thornton Audit Pty Ltd CAN 130 913 594

A subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation.


Responsible Entities’ Declaration

Declaration by the Principal Officer in accordance with the Charitable Fundraising Act NSW 1991


Statement of Profit or Loss and Other Comprehensive IncomeFor the year ended 30 June 2017

Notes 2017 $

2016 $

Revenue 3 14,564,015 13,862,785

Other income 3 386,804 271,539

Employee benefits expense (9,826,547) (8,910,138)

Client expense (282,622) (452,121)

Depreciation and amortisation expense (427,393) (435,105)

Repairs, maintenance & vehicle running expense (403,793) (492,163)

Rental expense (204,923) (207,854)

Fundraising expense (26,539) (23,845)

Partner expense (294,725) (426,643)

Administration and other expense (1,269,615) (1,664,719)

Surplus for the year 2,214,662 1,521,736

Revaluation of assets 480,000 -

Other comprehensive income for the period 480,000 -

Total comprehensive income for the period 2,694,662 1,521,736

This statement should be read in conjunction with the notes to the financial statements.


Statement of Financial PositionAs at 30 June 2017

Notes 2017 $

2016 $

Assets

Current

Cash and cash equivalents 4 5,482,848 4,111,862

Trade and other receivables 5 477,084 42,741

Financial assets 6 2,818,905 2,730,448

Other assets 7 289,123 284,705

Current assets 9,067,960 7,169,756

Non-current

Property, plant and equipment 8 6,412,728 6,352,797

Capital works-in-progress 28,138 -

Financial assets 1,580 1,399

Non-current assets 6,442,446 6,354,196

Total assets 15,510,406 13,523,952

Liabilities

Current

Trade and other payables 9 1,502,229 2,262,680

Provisions 10 697,868 614,954

Borrowings 11 13,124 52,498

Current liabilities 2,213,221 2,930,132

Non-current

Provisions 10 212,710 190,883

Borrowings 11 - 13,124

Non-current liabilities 212,710 204,007

Total liabilities 2,425,931 3,134,139

Net assets 13,084,475 10,389,813

Funds

Reserves 1,310,000 830,000

Accumulated Funds 11,774,475 9,559,813

Total Funds 13,084,475 10,389,813



Statement of Changes in FundsFor the year ended 30 June 2017

Notes Asset Revaluation

Reserve $

Accumlated Funds

$

Total Funds $

Balance at 1 July 2015 830,000 8,038,077 8,868,077

Surplus for the year - 1,521,736 1,521,736

Other comprehensive income - - -

Total comprehensive income for the year - 1,521,736 1,521,736

Balance at 30 June 2016 830,000 9,559,813 10,389,813

Balance at 1 July 2016 830,000 9,559,813 10,389,813

Revaluation increment 480,000 - 480,000

Surplus for the year 2,214,662 2,214,662

Other comprehensive income - - -

Total comprehensive income for the year - - -

Balance at 30 June 2017 1,310,000 11,774,475 13,084,475



Statement of Cash FlowsFor the year ended 30 June 2017


Notes 2017 $

2016 $

Operating services

Receipts from:

• government grants 14,617,667 12,937,504

• customers 770,188 1,198,528

• dividend income 62 91

• interest income 78,233 82,610

Payments to suppliers and employees (13,919,730) (11,812,325)

Net cash provided by operating activities 12 1,546,420 2,406,408

Investing activities

Purchase of property, plant and equipment (34,299) (274,019)

Proceeds from disposals of property, plant and equipment - 72,697

Purchase to acquire/(proceeds from expired) held-to-maturity investments (88,637) (91,274)

Net cash provided by / (used in) investing activities (122,936) (292,596)

Financing activities

Repayment of borrowings (52,498) (52,498)

Net cash from / (used in) financing activities (52,498) (52,498)

Net change in cash and cash equivalents 1,370,986 2,061,314

Cash and cash equivalents, beginning of year 4,111,862 2,050,548

Cash and cash equivalents, end of year 4 5,482,848 4,111,862


Report on the Audit of the Financial Report

OpinionWe have audited the accompanying financial report of The Junction Works Limited (the “Company”), which comprises the statement of financial position as at 30 June 2017, and the statement of profit or loss and other comprehensive income, statement of changes in funds and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and the Responsible Entities’ declaration.

In our opinion the financial report of The Junction Works Limited has been prepared in accordance with the requirements of the Australian Charities and Not-for-profits Commission Act 2012, including:

1. giving a true and fair view of the Company’s financial position as at 30 June 2017 and of its financial performance for the year then ended; and

2. complying with Australian Accounting Standards and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.

Basis for Auditor’s Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Entity in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of the Responsible Entities for the Financial Report

The Responsible Entities of the Company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the ACNC Act and the Charitable Fundraising Act NSW 1991 and Regulation 2015, and for such internal control as the Responsible Entities determine is necessary to enable the preparation of the financial report that is from material misstatement, whether due to fraud or error.

In preparing the financial report, the Responsible Entities are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Responsible Entities either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Level 17, 383 Kent Street

Sydney NSW 2000

Correspondence to:

Locked Bag Q800

QVB Post Office

Sydney NSW 1230

T +61 2 8297 2400

F +61 2 9299 4445

E [email protected]

W www.grantthornton.com.au

Independent Auditor’s ReportTo the Members of The Junction Works Limited

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firmis a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation.


Auditor’s Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit 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.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Responsible Entities.

• Conclude on the appropriateness of the Responsible Entities’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

GRANT THORNTON AUDIT PTY LTD

Chartered Accountants

James Winter

Partner - Audit & Assurance

Sydney, 18 October 2017

ABN 79 133 200 905

135 Thirteenth Avenue, Austral NSW 2179

PO Box 15, Austral NSW 2179

Ph: 02 8777 0500

Email: [email protected]

www.thejunctionworks.org

About the Junction WorksThe Junction Works is a ‘For Purpose’ provider of mainstream and specialist services, supporting individuals, families and communities in Sydney’s South West.

With our Mission of ‘Creating new possibilities in people’s lives’ we focus on delivering creative and enriching community, youth, children’s and disability services that are designed to improve the quality of people’s lives.

The Junction Works is ISO 9001 certified, which means we meet international and domestic standards for ensuring quality services, continuous improvement and customer satisfaction.

You can find out more about The Junction Works on our website at www.thejunctionworks.org and our Facebook page at www.facebook.com/junctionworks

2017 SPARK Festival

Further photos are on our Facebook page www.facebook.com/junctionworks/

21700 tjw annual report 2017 - the junction works effort to force industry efficiency, certain ndis...

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