annual report 2018-2019 final - acacia living

AcaciaLivingGroup–AnnualReport2018-2019

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2018/2019

ANNUALREPORT


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OurVisionAcacia Living Group is the first preference for the provision ofinnovative quality community and residential aged care andindependent retirement living options to the general community,including ex-service men and women and their dependents inWesternAustralia.

OurMissionAs a registered charity, Acacia Living Group provides accessibleoptionsacrossthefullcontinuumofcarefortheagedinthegeneralcommunity, including ex-service men and women and theirdependents.

OurValuesCaring,Trust,Respect,Openness,Integrity,FairnessandCompassion.


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Chairman’sReportOnbehalfof theAcacia LivingGroup’sBoardofDirector’s I ampleased topresentthecompany’sAnnualReportfortheyearended30June2019.IamalsoproudtoreportthatwithoperationsspanningRetirementLiving,Residential Care, Home Care, Respite Care, Veterans Home Care, andmanagement services to two unrelated operators of Residential Care andRetirementLivingbusinesseswehavecontinued toprovideour services inchallenging and uncertain economic conditions, unstable politicalenvironments, constrained funding and intense industry media scrutinywithoutinterruptionorreductiontoourqualityandstandardsofservice.We welcomed the establishment of a Royal Commission into Aged CareQualityandSafetyonthe8thOctober2018andtheCommission’sinvitationof the 30th November 2018 to respond to a number of specific questionsrelatingtoourHomeCareservicesandResidentialCareFacilitiesbythe8thFebruary 2019. The opportunity for all operators to assist the RoyalCommission will hopefully inform the drafting of recommendations tocurrent and successive governments for the betterment of aged careservices to the elderly in our community. The Board and seniormanagement team remain committed to ensuring the best possible care,servicesandoutcomesforthoselivinginourcommunitiesandinourcare.In keeping with this commitment and following a competitive tenderprocesswe commenced constructionof a 32 bed extension to our 55 bedMeadowSpringsresidentialcarefacilityinSeptember2018.Constructionand landscaping are scheduled to be completed and ready forcommissioning inDecember2019providingadditional residential carebedoptionstothecommunityofthePeelregion.Our retirement village upgrade and extension projects continued with thedelivery and installationof threemodular exhibitionhomes to theGeraldton‘Beachlands’ Retirement Village in early November 2018. The exhibitionhomes generated considerable interest with 95 guests attending the officialopeningoftheVillageCommunityCentre,launchoftheexhibitionhomesandVillage Open Day that took place on Saturday 17th November 2018. TheHonourableLaurieGrahamMLC,MemberforAgriculturalRegion,representingthe Honourable Mick Murray MLA, Minister for Seniors and Ageing;Volunteering; Sport and Recreation officially opened the Community CentreandwasjoinedbyHisWorshiptheMayoroftheCityofGreaterGeraldton,Mr


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ShaneVanStyn,andme for theunveilingof thecommemorativeplaqueandcuttingoftheribbontoopentheexhibitionhomes.CivilworksforStage3oftheJurienBayretirementvillagewerecompletedin December 2018 providing new roads and curbing, paved caravan andboat storage parking bays, and boundary walls along Bashford Street andthe southern boundary. We are grateful for the continued support fromthe Shire of Dandaragan Council and senior management team; and MrShane Love MLA, Member for Moore, in our endeavours to provideaccommodationandcareservicesintheregion.Menora Gardens Residential Care Facility kitchen and scullery upgradeswere also completed during November 2018 providing both an improvedworkingenvironmentandmealfacilitiesforresidents.As isevident theBoard remainscommitted to thepursuit, investmentanddevelopment of further opportunities to expand our accommodation andcareservicestothebroadercommunity.OurStrategicPlanreinforcesthiscommitment and provides the Board, Chief Executive Officer and seniormanagementteamwithacommonvisionandfocus,withagreedgoalsandstrategies.We remain cognisant of the complex regulatory framework our businessdivisions operate within and the importance of ongoing compliance withrelevant legislation. The Board is confident our governance principles,togetherwithourstrategicandoperationalriskmanagementandmitigationprinciplesaresufficientlyrobustanddependableenoughtoensurewewillcontinuetomeetbothourstrategicandcharitableobjectives.Acacia Living Group continues to deliver the intended charitable serviceoutcomes across the portfolio despite the ongoing challenges associatedwith the Federal Government’s Aged Care Reforms, fiscal constraints anddepressedmarketconditions.TheBoardjoinsmeinthankingtheExecutiveteamandemployeesfortheircommitmenttoensuringthebestpossibleoutcomesforthoseentrustedtoourcare.Ourendoffinancialyearresultsagainhighlightstheeffectivenessof our executive team, guided by our Chief Executive Officer, KevinDavidson, during ongoing regulatory change and challenging commercialconditions.


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My Board colleagues and I welcomed the re-appointment of Mr Robert(Bob) Kucera APM, JP as Deputy Chairman and Director; and Mr GeoffMartinasaDirectorof theAssociation’sBoard for threeyear termsat theDecember 2018 Annual General Meeting. Mr Kucera and Mr Martin’sprofessional acumen and experience will ensure the Board continues todischargeitscorporategovernanceresponsibilitieswiththeutmosteffect.Finally, I again commend my Board colleagues for their ongoing time,professionalism and astute-timely advice. Their altruistic commitment,dedication and compassion continue to ensure outstanding organisationaloutcomesand theongoingprovisionofessential services to those inneedandtheagedandinfirminWesternAustralia.KEVINCAMPBELL,AM


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ChiefExecutiveOfficerReportDuringthe2018/2019reportingperiodourresidents,clientsandemployeeshave benefited from Acacia Living Group’s proven ability to govern andmanage effectively in a changing and challenging operating environment,while continuing to actively pursue and invest in diversified businessopportunitiesanddeliveruponourcharitableobjectives.AcaciaLivingGroupOverview871residentsandclientsmayreceiveourservicesatanyonetime:

• 228or26.18%ResidentialAgedCareresidents;• 449or51.55%IndependentLivingUnitresidents;• 173or19.86%HomeCareclients(includingprivateclients);• 11or1.26%VeteransHomeCareclients;• 5or0.575%NationalCarerRespiteProgram(130annually);• 5or0.575%JurienBayRespiteClients.

AcaciaLivingGroupalsoprovidesfullmanagementservicestoarecognisedcharitableorganisation,WattleHillCareIncorporated:

• 62bedResidentialAgedCareFacility;and• 51IndependentLivingUnits.

Separately,AcaciaLivingGroupprovidesfinancialadvisoryservicestoarecognisedcharitableorganisation,QuambieParkWaroonaIncorporated:

• 45bedResidentialAgedCareFacility;and• 37IndependentLivingUnits.

532peopleassistAcaciaLivingGrouptoachieveourcharitableobjectives:

• 450or84.6%arefulltime,parttime,orcasualemployees(asatlastpayperiodofFY2018/2019);

• 82or15.4%arevolunteers(includesBoardmembers).WhowashelpedbyourcharityinFY2018/19?

Elderlywomenandmenfromthegeneralcommunity,peoplefromdiverseculturaland linguisticbackgrounds,peopleat riskofhomelessness,peoplewith disabilities, people with chronic or terminal illness, people who arefinanciallyand/orsociallydisadvantaged,peoplewholiveinruralorremote


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locations, people from an Indigenous background, veterans and theirdependants.ResourcesandOperatingLocations

AcaciaLivingGroupoperatesthefollowingservicesinWesternAustralia:

• BeachlandsRetirementVillage,Geraldton• JurienBayRetirementVillage• CoralEstateRetirementVillage,Mandurah• MandurahRetirementVillage• MenoraGardensRetirementVillage• PearsonRetirementVillage,Menora• JacarandaGardensRetirementVillage,CanningVale• MeadowSpringsResidentialCareFacility• MenoraGardensResidentialCareFacility• GeraldtonHomeCareServices• JurienBayHomeCareServices• MandurahHomeCareServices• PerthMetropolitanHomeCareServices• SouthWestRuralHomeCareServices• JurienBayRespiteCentre• GeraldtonNationalCarerRespiteProgram• GeraldtonBudgetAccommodation• VeteransHomeCareServices(Mid-West)• VeteransCommunityNursingServices(Wheatbelt,Southwest,Midwest,

PerthMetro)• WattleHillCareBunbury(ResidentialCareFacilityandRetirementVillage

–ManagementServices)KeyandCharitableActivitiesCharitableObjectives

Thefollowingoutlineofourkeyandcharitableactivitiesprovidesaninsightas to how these activities assist us achieve our charitable objectives. TheBoard,ManagementTeam,EmployeesandVolunteersremaincommittedtoourcharitableobjectives:

(1) To provide aged and infirm persons who are in needycircumstances, includingbutnot limitedtoarmedforcesveteransand their dependants, with accommodation, care and assistanceservices within aged care facilities, respite centres, retirement


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villages, other residential facilities and by providing communitycareservices.

(2) Inordertoenableandassist theachievementandfundingofthemain objects stated in sub-rule (1), an incidental object is toprovide aged and infirm persons who are not in needycircumstanceswith accommodation, care and assistance serviceswithin aged care facilities, respite centres, retirement villages,other residential facilities and by providing community careservices.

(3) Toprovidecareandassistanceofthehigheststandardfortheagedandinfirmpersons.

The property and income of Acacia Living Group is applied solely towardsthe promotion of our charitable objects and no part of that property orincome may be paid or otherwise distributed, directly or indirectly, toMembersoftheAssociation.RetirementVillages

Acacia Living Group Retirement Villages are located at Geraldton, JurienBay,Menora(twovillages),Mandurah(twovillages)andCanningVale.In keeping with the Board’s strategic commitment to the pursuit anddevelopmentoffurtheropportunitiestoexpandouraccommodationandcareservices to the broader community, our retirement village upgrade andextension projects continued with the delivery and installation of threemodular exhibition homes to the Geraldton ‘Beachlands’ Retirement Villagebeing completed in earlyNovember 2018. The exhibition homes generatedconsiderable interest with 95 guests attending the official opening of theVillage Community Centre, launch of the exhibition homes and Village OpenDaythattookplaceonSaturday17thNovember2018.TheHonourableLaurieGrahamMLC, Member for Agricultural Region, representing the HonourableMickMurrayMLA,Minister for Seniors and Ageing; Volunteering; Sport andRecreation officially opened the Community Centre and was joined by HisWorshiptheMayoroftheCityofGreaterGeraldton,MrShaneVanStyn,andour Chairman, Kevin Campbell AM for the unveiling of the commemorativeplaque and cutting of the ribbon to open the exhibition homes. A secondvillageOpenDayonSaturday25thMay2019 led to72guestsvisiting thesiteresultinginseveralhomesbeingleased.CivilworksforStage3oftheJurienBayretirementvillagewerecompletedin December 2018 providing new roads and curbing, paved caravan and


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boat storage parking bays, and boundary walls along Bashford Street andthesouthernboundary.The Board remains committed to providing affordable quality housingoptions and care services for the aged inmetropolitan and regional areasofferingsuitablechoicesforthosewishingtoeitherremainlivinginormovetoeithergeographiclocation.We are grateful for the continued support from the City of GreaterGeraldton Mayor and Council, the Shire of Dandaragan President andCouncil, Mr Laurie Graham MLC, Member for Agriculture, and Mr ShaneLove MLA, Member for Moore, in our endeavours to provide affordablequalityaccommodationandcareservicesinregionalareas.Mandurah Village, Coral Estate Village, Menora Gardens Village, PearsonVillage, Beachlands Village, and Jacaranda Gardens Village continue toperform satisfactorily in depressed market conditions, with each villageofferingavarietyofretirementvillageschemeleasesorrentalleaseoptions.

Members of the Menora Gardens & Pearson Retirement Villages 90’s Club – 2019

Acacia Living Group continues to provide shorter term Retirement Villageaccommodationona‘rentalonly’basistomeetdemandandassistincaringand supporting the aged. The rent payable is substantially belowmarketrental values for similar residential properties. The leasing terms providemembers of the general community experiencing poverty, distress,disadvantage, financial hardship, social isolation, loneliness or in


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necessitous circumstance access to safe and secure independent livingaccommodation. Home Care services and visitation services are alsoavailablewhenrequired.Thirty-nineunitsor10.1%ofourRetirementVillageportfolioisallocatedasrental accommodation. Across the retirement village portfolio operatingdeficits totalling $284,303 have been subsidised and absorbed by AcaciaLivingGroupinkeepingwithourcharitableobjectives.ResidentialCare

Residential Care Facilities at Menora Gardens (178 beds) and MeadowSprings (55 beds) continue to operate at capacity, providing premiumstandards of residential care and support, while meeting regulatorycompliance.Bothfacilitiesmaintainedcompliancewithallstandardsduringscheduled and unannounced assessment inspections by the Aged CareQuality and Safety Commission (formerly the Aged Care Quality Agency)duringthereportingperiod.Menora Gardens Residential Care Facility kitchen and scullery upgradeswere completed during November 2018 providing both an improvedworking environment for employees and enhanced meal facilities for ourresidents.Followingacompetitive tenderprocessconstructionofa32bedextensiontoour55bedMeadowSpringsResidentialCareFacilitybeganinSeptember2018. Construction and landscaping are scheduled to be completed andreadyforcommissioning inDecember2019providingadditionalresidentialcarebedoptionstothecommunityofthePeelregion.Fully supported residents account for approximately 51 placements ofAcacia LivingGroup’s annual residential care placements in furtheranceofourcharitableobjects.We continue to receive positive feedback regarding the provision of careand living environment in our Menora Gardens and Meadow Springsfacilities from residents, their families and visitors such as aged careaccreditation standards assessors. The Board and senior managementteamareappreciativeandproudoftheprofessionalandsustainedeffortourresidentialcareteamshaveappliedoveranextendedperiodoftimetoachievesuchexceptionaloutcomes.


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HomeCare

TheCommonwealthHomeCarePackagesProgramprovidesolderpeoplewhowant to stay at home with access to a range of ongoing personal services,support services and clinical care that help them with their day-to-dayactivities.

Acacia Living Group’s Home Care services are available for clients inGeraldton, Jurien Bay, North Metropolitan region of Perth, Eastern HillsregionofPerth,MandurahandtheRuralSouthWest. Intermediate(Level3) and High Care (Level 4) care programs remain in high demand.Regrettably, wait times in excess of twelve months continue to beexperiencedbymany clients for these levels of care tobeoperationaliseddue to congestion on the national queue. Some clients have accessedlower levels of care from Level 1 and Level 2 programs while waiting forLevel 3 and Level 4 packages to become available. Despite these difficultand demanding circumstances our Home Care teams have continued toprovidethebestpossiblecareandsupporttoourclientsandtheirfamilies.Veterans' Home Care (VHC) is a Department of Veterans’ Affairs (DVA)program designed to assist eligible DVA clientswho need a small amount ofpracticalhelptocontinue living independently intheirownhome. AcaciaLivingGroupprovidesVHCservicessuchasdomesticassistance,personalcare,safety-relatedhomeandgardenmaintenanceandrespitecaretoclientsintheGeraldtonregion.AcaciaLivingGroupcontinuestopursueHomeCaregrowthopportunitiesinmetropolitan and regional areas in what has become a congested andstronglycontestedmarketplace. Ourobjectiveremainstoprovideahighquality of care and service to clients while satisfying our regulatorycomplianceobligations.

CommunitySupport

Acacia Living Group continues to provide meeting room facilities free ofcharge to the Mount Lawley-Inglewood RSL Sub Branch Committee andmembers, and the WA Aged Sailors, Soldiers and Airmen’s Relief FundTrusteesmonthlymeetings.TrainingandDevelopment

Acacia Living Group has maintained its commitment to foster a culture ofcontinuous improvement by investing in our employees and providing them


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with ongoing learning and development opportunities. Approximately$154,881 was directed to employee training sessions during the year. Thisfigure does not include internal employee time associated with “toolbox”sessionsundertakennoron-the-jobbuddyshifts.Employeenumbersattendingtraining1duringFY2018/19areasfollows:

• Externallydelivered–640• Internallydelivered–2930• Induction–172

EmployeeRecognition

Award ceremonies are held annually to recognise significant servicemilestones, successful completion of training courses and to acknowledgethevaluablecontributionofouremployeesandvolunteers.

AustraliaDayAwardCeremony2019

(L-R)LindaJackson(GeneralManager);KevinCampbellAM(Chairman)

AcaciaLivingGroupChairman,MrKevinCampbellAM,presentedMsLindaJacksonwiththeNationalAustraliaDayCouncilAchievementMedallionandCertificate on the 25th January 2019 in recognition of her sustained

1 Internallydeliveredtrainingincludesallannualmandatorytrainingupdates,toolboxsessionsandidentified

training needs as a result of performance development activities. Externally delivered includesmodulesundertaken through Altura Learning on-line education, as well as off-site attendance at training orseminars.


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outstanding service to residents of Retirement Villages, Residential CareFacilities, recipients of Home Care services; and dedication to herresponsibility formanagement services to external operators and ongoingsupporttohercolleagues.TheNational Australia Day Council AchievementMedallion and Certificateprovide theAcacia LivingGroupBoard and seniormanagement teamwithan opportunity to acknowledge and recognise outstanding individual andteamcontributionsintheleaduptoAustraliaDay.CorporateReportingObligations

TheBoardandseniormanagementteamapplaudedtheestablishmentofaRoyal Commission into Aged Care Quality and Safety on the 8th October2018. We gratefully accepted the Commission’s invitation of the 30thNovember2018torespondtoanumberofspecificquestionsrelatingtoourHome Care services and Residential Care Facilities and look forward toassistingtheCommissionfurther,ifinvitedtodoso,priortothefinalreportdue date of November 2020. We are optimistic the opportunity for alloperators to assist the Royal Commissionwith their enquirieswill providepracticaland informed industryadvicethatwillassistwiththe formulationof recommendations to current and successive governments for thebettermentofagedcareservicestotheelderlyinourcommunity.Acacia Living Group remains compliant with the regulatory and mandatoryreportingrequirementsoftheAgedCareAct1997(Cth),RetirementVillageAct1992 (WA), Retirement Villages Regulations 1992, Fair Trading (RetirementVillages Code) Regulations 2015 (WA), Land Administration Act 1997 (WA),Associations Incorporation Act 1987, Australian Charities and Not-for-ProfitsCommission(ConsequentialandTransitional)Act2012,CorporationsAct2001(Cth), Fair Work Act 2009 (Cth), The Personal Property Securities Act 2009(Cth), Workplace Gender Equity Act 2012, Privacy Act 1988 (Cth), Food Act2008, Guardianship and Administration Act 1990 (WA), Occupational Safetyand Health Act 1984 (WA), and the Veterans’ Home Care and Veterans’CommunityNursingServicesGuidelines(DepartmentofVeterans’Affairs).


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Acknowledgements

I join the Chairman and Board members in acknowledging and thankingLotterywestfortheirongoingfinancialsupportofAcaciaLivingGroupinitiativesthatensurethebestpossiblecareandsupportforouragedclientsandthoseinnecessitous circumstances. Similarly, Programme Maintenance Servicesongoing support of the Menora Gardens and Pearson Village 90’s Club isgreatlyappreciatedbyourresidentsandtheirfamilies. Inthesameway,thegenerousemployeeincentiveprogramsofferedbyHarveyNormanCanningtonSuperstore and HBF Health Insurance are also highly valued by our team.ThankyoutoLotterywest,ProgrammeMaintenanceServices,HarveyNormanCannington, and HBF Health insurance for their ongoing support duringchallengingcommercialenvironments.I extend my sincere thanks to the Acacia Living Group management team,employees and our committed volunteerswho continue to deliver outcomeswellbeyondallpossibleexpectations.TheBoardandIaretrulyindebtedandgratefulfortheprofessionalism,loyalty,dedication,enthusiasmandoptimismdemonstratedbythosewhoworkandvolunteeratAcaciaLivingGroup.ToourChairman, Kevin Campbell AM, and fellow Directors, The Honourable Robert(Bob)KuceraAPM,JP,TheHonourableRayHalliganFIPA,FFA,MrGeoffMartin,MsRaeFreemanJP,andMsCinziaDonaldIconvey,onbehalfofallemployees,clients, residents and families, and volunteers, our profound appreciation forgenerously providing their professional expertise, experience, patience andtimetoensurethecontinuedsuccessofAcaciaLivingGroup.


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FinancialSummary2018/2019

ThesefiguresareanextractoftheauditedannualaccountswhichhavebeenproducedinaccordancewiththeAustralianAccountingStandards.

2018-2019 2017-2018

'000 '000REVENUE

Subsidies 21,684 22,922Fees 7,957 9,512OtherIncome 1,604 1,755

31,245 34,189EXPENDITURE

Employment 20,669 19,470ImpairmentofAssets 4,411 -Other 12,200 10,419Depreciation 1,515 1,349

38,795 31,238

PROFIT/(LOSS)FROMORDINARYACTIVITIES (7,550) 2,951

FAIRVALUEGAINONNETINVESTMENTASSETS (2,267) (3,620)

TOTALCOMPREHENSIVEINCOME/(LOSS) (9,817) (669)

ASSETS

Current&Cash 16,144 19,125Property,Plant&Equipment 50,624 47,946InvestmentProperty 155,373 174,047Other 1,287 801

TOTALASSETS 223,428 241,919

LIABILITIES

Payables 2,211 2,794Provisions 2,644 2,196Bonds/RADs&ResidentRefundableBonds 151,696 162,062Borrowings 31,647 30,400Other 710 130

TOTALLIABILITIES 188,908 197,582

NETASSETS 34,520 44,337


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AcaciaLivingGroupBoardMembers

ChairmanMrKevinCampbell,AM

DeputyChairmanTheHonRobertCKucera,APM,JP

DirectorTheHonRayHalliganFIPA,FFA

DirectorMrGeoffMartin

DirectorMsRaeFreeman,JP

DirectorMsCinziaDonald

ChiefExecutiveOfficerMrKevinDavidson,MVO,OAM

JurienBay


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GrandviewApartments–MenoraGardens

CORPORATEOFFICE16FreedmanRoad,MENORAWA6050

Telephone:+61893700200Facsimile:+61893702249

Email:[email protected]:www.acacialiving.com.au

annual report 2018-2019 final - acacia living

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