ANNUAL REPORT 2014 - Legacy Australia · a Disability. Regular outings, activities, and an annual...

ANNUAL REPORT 2014Caring for the families of incapacitated and deceased veterans

Legacy Melbourne

Legacy Melb Annual Report 2014.indd 1 16/02/2015 11:35 am

Legacy Melbourne

293 Swanston Street, Melbourne, Victoria 3000 GPO Box 4312, Melbourne, Victoria 3001

Tel: (03) 8626 0500 Fax: (03) 9663 3015 Email: [email protected] ABN 78 043 769 632

www.legacy.com.au/melbourne

Front cover

As part of Melbourne Legacy’s commemoration of the Centenary of ANZAC, the above mural of the Legacy Torch was installed in the foyer of Legacy House Melbourne. The Legacy torch is surrounded by a specially-designed art deco-style frieze of poppies

symbolising remembrance and a border of Legacy badges reminiscent of a line of soldiers. This mosaic complements Melbourne Legacy’s larger Centenary of ANZAC StreetArt Mural in Drewery Lane at the back of Legacy House – shown in part on the front

cover of the 2014 Annual Report with Shelley and her children, Junior Legatees, Alana and Tyrie.


2 Our Mission, Our Vision & Our Services

3 Our Patron

4 - 5 Board of Management

6 Directors’ Report

8 Our Program and Activity Objectives

9 Our Operations and Performance

10 President’s Report

12 Chief Executive’s Report

13 Current Operations

14 - 15 Legacy Melbourne Staff Team

Contents.

Legacy Melbourne

ANNUAL REPORT 2014

16 - 24 Review of Operations

25 Statement of Comprehensive Income

26 Statement of Financial Position

27 Statement of Changes in Equity

28 Statement of Cash Flows

29 - 44 Notes to the Financial Statements

45 Directors’ Declaration

46 - 47 Auditors’ Report

48 Auditor’s Independence Declaration

Legacy Melbourne Annual Report 2014 | 1


Our MissionOur mission is fully encapsulated in the Charter of Legacy which reads as follows:

“THE SPIRIT OF LEGACY IS SERVICE”

The care of dependants of those who served their country; namely, veterans who gave their lives or health on operational service or subsequently, and Australian Defence Force members who died in service, affords a field for service.

Safeguarding the interests of dependants, especially children, is a service worth rendering.

Personal effort is the main essential.

Inasmuch as these are the activities of Legacy, it is our privilege to accept the legacy of the fallen.

Our VisionFor the strategic period 2014-2023:

We will renew Melbourne Legacy to provide leadership, remain relevant and deliver valued services.

Our ServicesPersonal Counselling

Melbourne Legacy provides comfort and support to more than 14,000 widows. It employs professional Welfare Officers to assist the Legatees to provide caring personal support.

Welfare Assistance

Families receive direct financial grants or loans to help in cases of special housing or welfare needs.

Pension Claims & Advocacy

Legacy provides personal help with War Widow’s Pension claims and appeals.

Education of Children

Legacy gives priority to the education of the children of Legacy families. Education grants are made to help with fees, books, clothing and travel expenses.

Holiday Camps & Activities

Melbourne Legacy cares for some 263 Legacy Dependants with a Disability. Regular outings, activities, and an annual camp are included in general support available to our Dependants with a Disability. Legacy arranges camps and activities for Junior Legatees to provide the opportunity for cultural, physical and personal growth.

Widows’ Clubs

Legacy helps widows respond to isolation and loneliness. It fosters social interaction and recreational outings through local Widows’ Clubs, special interest groups and healthy living activities.

2 | Legacy Melbourne Annual Report 2014


Our PatronThe Honorable Alex Chernov, AC QC Governor of Victoria

a) The Hon Alex Chernov AC QC, Governor of Victoria inspects the Guard at Legacy’s 83rd ANZAC Commemoration Ceremony for Students.

b) Legacy Widows make an annual pilgrimage to the Shrine of Remembrance to mark the start of Legacy Week.

c) Legacy Statue of a Widow and Children is located in the Garden of Appreciation, Shrine of Remembrance, Melbourne.



Board of Management

From left to right: Front Row: Joan Miller, Ian Harrison, Bryce Phillips, Sharon Percival Back Row: Jim Burrows, Graeme King, David Cull, David Kelly, Adrian Lombardo

Ian Harrison - Aged 73Retired Manager

2012-2013: Vice Chairman (Operations)

2013: Chairman Elect

2014: Chairman

Bryce Phillips - Aged 78Retired Medical Practitioner

2010-2011: Vice Chairman (Operations)


2012-2013: Chairman

2014: Immediate Past Chairman

Adrian Lombardo – Aged 69Retired Financial Advisor

2014: Vice Chairman (Operations)

David Kelly - Aged 66Retired Manager


2000: Chairman

2001: Immediate Past Chairman

2012-2014: Vice Chairman (Marketing)

Graeme King - Aged 67Retired Project Manager

2009-2014: Honorary Treasurer

Jim Burrows - Aged 64Management Consultant

2012-2014: Member

Joan Miller - Aged 81Retired Widows’ Club Co-ordinator

1999-2014: Member

Sharon Percival - Aged 55Artist

2013 - 2014: Member

David Cull – Aged 67Chief Executive

2003-2014: Secretary



Board of Management

Meetings of the Board of ManagementDuring the financial year, 12 meetings of the Board of Management were held. Attendees were:

Chairman:

W. I. Harrison

Vice Chairmen:

D. W. A. Kelly

A. J. Lombardo*

Secretary:

D. W. Cull

Treasurer:

G. A. King

Immediate Past Chairman:

F. B. Phillips

Members:

J. Burrows, J. Miller, S. Percival

Name Board Meetings

Eligible to Attend Attended

W. I. Harrison 12 11

F. B. Phillips 12 11

G. A. King 12 11

D. W. A. Kelly 12 9

J. S. Burrows 12 12

A. J. Lombardo* 10 7

C. G. Spence** 2 1

J. Miller 12 8

S. Percival 12 9

D. W. Cull 12 10

* Appointed from 11/03/2014

** Resigned from 11/03/2014



Your directors present their report on the Company for the financial year ended 31 December 2014. The names of directors in office at any time during or since the end of the year are set out on pages 4 to 5.

For the financial year the Company recorded a surplus before finance income of $2,283,233. After taking account of finance income of $91,092 attributable to a net gain on disposal of investments, the company recorded a surplus of $2,374,325. In addition, after taking account of the net change in fair value of available-for-sale assets, it recorded a total comprehensive income amount of $2,694,913, as set out on page 25.

The directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

No significant changes in the Company’s state of affairs occurred during the financial year.

The principal activity of the Company during the year was the provision of care within the Melbourne metropolitan area to the dependants of incapacitated and deceased veterans who died on operational service or subsequently, and of the dependants of Australian Defence Force personnel who lose their lives as the result of their service including peacekeeping missions and natural disaster relief or training. No significant change in these activities occurred during the year.

To finance its principal activities, the Company derives its revenue mainly from public donations, bequests, grants, investments and rental income.

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial years.

Likely developments in the operations of the Company and the expected results of those operations in future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the Company.

The Company’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a State or Territory.

No dividends have been paid or declared since the start of the financial year.

Since the end of the previous financial year the Company has not indemnified, or made a relevant agreement for indemnifying against a liability, any person who is or has been an officer or auditor of the Company. During or since the end of the financial year the Company has not given an indemnity or entered an agreement to indemnify any directors or the auditor of the Company.

During the financial year the Company has paid premiums in respect of directors’ and officers’ liability and legal expenses’ insurance contracts for the year ended 31 December 2014 and

since the financial year, the Company has paid, or agreed to pay, premiums in respect of such insurance contracts for the year ending 31 December 2015. Such insurance contracts insure against certain liability, subject to specific exclusions, persons who are or have been directors or executive officers of the Company.

The directors have not included details of the nature of the liabilities covered or the amount of the premium paid in respect of the directors’ and officers’ liability and legal expenses’ insurance contracts, as such disclosure is prohibited under the terms of the contract.

No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The Company was not a party to any such proceedings during the year.

No persons were officers of the Company during the financial year and were previously partners of the current audit firm, KPMG, at the time KPMG undertook an audit of the Company.

A copy of the auditor’s Independence Declaration and a copy of the Auditor’s Report, as required under sections 307C and 308 of the Corporations Act 2001, are set out on pages 46 to 48.

Legacy Melbourne manages the investments which are incorporated in Patriotic Fund No. W36, with advice from an investment consultant. The total of funds available at 31 December 2014 was $15,350,621 as detailed on pages 37 - 38.

The work of Legacy Melbourne is summarised under the heading Review of Operations on pages 16 to 24. The directors acknowledge the dedicated efforts of all Legatees and staff who have contributed throughout the year to deliver such meaningful assistance to the families of our deceased veterans. Special mention is also made of all the generous individuals, trusts, foundations and corporate partners and Government agencies who provide the funds essential for the organisation to continue to deliver its caring service. The support received from the State and Federal Governments is gratefully acknowledged.

Our commitment to the Australian Defence Force (ADF) continues to be of major importance and a special highlight of the past year was the outstanding level of support current serving members of the ADF provided to assist with fundraising for Legacy Melbourne.

Directors’ Report for the year ended 31 December 2014

W. I. HarrisonDirectorFebruary 2015



World War 1 Legacy Widows, Vera Gee and Mabel Cummings lay a wreath on behalf of Legacy during the Lone Pine Ceremony at the 2014 ‘Back to Caulfield’ race day and are pictured with Melbourne Legacy President, Ian Harrison, and former State Minister for Veterans’ Affairs, The Hon Damian Drum.



Widows

Provide compassionate, timely and valued service, care and support to the widows enrolled in Melbourne Legacy, ensuring that they are central to Legacy’s focus.

Youth

Provide opportunities for Junior Legatees and valued services that enable individuals to develop personally and academically, as well as to interact together for social and emotional support.

Dependants with a Disability

Provide opportunities for Legacy Dependants with Disabilities and valued services that enable individuals to develop personally and socially, as well as to increase their independence and inclusion in the community.

Provide housing, financial and advocacy support where necessary to assist both the dependant and their family/carer.

Finance

Establish and maintain financial arrangements and procedures to ensure secure, efficient and cost effective financial transactions. Maximise returns on invested funds within approved guidelines.

Public Relations

Raise the profile and public awareness of Legacy to foster appreciation and empathy for the service that Legacy provides, in order to meet the organisation’s needs to attract support with fundraising contributions and a volunteer workforce comprised of members committed to deliver valued services.

Fundraising

Enhance Legacy funding through donations from individuals, business, public and private trusts and grants through professional, ethical fundraising focused on positive donor relationships and communication of the importance of Legacy’s work in the community.

Our Program and Activity Objectives

Property

Establish and maintain premises appropriate to the need for co-ordination of services and recreational facilities for Legacy widows, dependants, Legatees and staff.

Legatees

Maintain a team of volunteer members (Legatees) who are well-trained and highly committed to Legacy’s underlying principles and who are dedicated to do their utmost to assist Legacy’s work.

Staff

Maintain a highly motivated, well-trained, efficient and effective staff team.

Administration

Acquire and maintain physical assets and support services appropriate to the needs of Legacy widows, dependants, Legatees and staff.

Corporate Governance

Develop a positive culture throughout the organisation with a forward-looking outlook and willingness to embrace change.

External Relationships

Maintain co-operative association and working relationships with other Ex-Service and Community Organisations, Government bodies and the business sector.

Melbourne Legacy’s long-term objectives are encapsulated in the Mission and Vision Statements published on page 2. The following objectives were adopted for 2014 covering delivery of all our welfare programs and administrative activities:



Our Operations and PerformanceMelbourne Legacy’s key activities and achievements for 2014 are summarised in the Review of Operations section of this report (pages 16 to 24).

The 2014 Melbourne Legacy Business Plan set down specific action items with target dates and nominated personnel responsible for the performance for each of the objectives set out on page 8.

In 2014, budget forecasts were prepared for revenue and expenditure in relation to all programs and administration areas and progress against approved budgets was monitored continually throughout the year by Management Staff, Legacy Committees and the Board of Management.

The Melbourne Legacy Board of Management accepted overall responsibility for monitoring progress against budget forecasts and achievement of Business Plan performance targets.

The 2014 financial result detailed in this report shows that the Company recorded a surplus. In addition, after taking account of the net change in fair value of available-for-sale assets, a positive total comprehensive income amount was achieved. Pleasingly total revenue exceeded budget forecast and expenditure was contained within approved budget allocations. The accounts also show that Melbourne Legacy continues to maintain a strong balance sheet and cash flows.

The Board of Management also concluded that targets set in the 2014 Melbourne Legacy Business Plan were substantially achieved to the overall benefit of Legacy widows and dependants.

Students participated in laying wreaths around the Cenotaph at the Shrine of Remembrance during Legacy’s 83rd ANZAC Commemoration Ceremony for Students.



2014 continued to be a very busy year, with the various activities relating to the 100th anniversary of the commencement of WW1 and many commemorative and wreath laying services added to the normal Legacy activities.

Activities worth highlighting include the Lone Pine Ceremony at the ‘Back to Caulfield’ P.B. Lawrence Stakes Day, where two World War 1 Legacy Widows laid wreaths; record numbers of students attending the 83rd Legacy ANZAC Commemoration Ceremony for Students at the Shrine of Remembrance; record numbers of Legacy Widows attending the commemoration service and lunch at the commencement of Legacy Week; Marvellous Melbourne Weekend for 7 Contemporary Widows and their 10 children; the 6 day Winter Camp at Millgrove in the Yarra Valley, attended by 50 Junior Legatees from the ACT, NSW, QLD, SA and VIC; the 8 day Tropical North Queensland Camp for 14 dependants with mild intellectual disabilities; and a series of mosaic workshops where participants were encouraged to contribute to Legacy’s Centenary of ANZAC StreetArt Mural, located on the rear wall of Legacy House in Drewery Lane, Melbourne.

Over 500 students between the ages of 12 and 14 years participated in the Legacy Junior Public Speaking Award. The State Winner and Runner-up competed in the National Final held in Townsville in November with a Victorian student becoming the National Champion. This result has given Victoria five National Winners in the last six years.

“Once again the support of the serving members of the ADF in fundraising during the year has been outstanding, with record results from their involvement during the

Legacy Week Badge Appeal.”The activities that Melbourne Legacy provides for widows, children or those with a disability, are not possible without the tireless efforts of the marketing and fundraising teams, including staff, Legatees and volunteers, who ensure that our financial position remains robust.

Melbourne Legacy values the support of State and Federal Government sources, the Returned and Services League and other Ex-Service organisations and the cooperation of the Department of Veterans’ Affairs.

Once again the support of the serving members of the ADF in fundraising during the year has been outstanding, with record results from their involvement during the Legacy Week Badge Appeal.

Early in the year, the Board endorsed the updated Legacy Melbourne Company Constitution as well as the 2014 – 2023 Strategic Plan.

Melbourne Legacy was host to 47 of the 50 Legacy Clubs at Conference in November 2014 and there was overwhelming

endorsement for the change of name from Legacy Australia Council to Legacy Australia Incorporated and the adoption of a new Constitution.

Our Chief Executive, David Cull, advised the Board that he intends retiring once a replacement can be appointed in 2015 David has served Legacy for 24 years in the positions of Manager – Fundraising and Public Relations; Secretary – Legacy’s National Marketing Committee; Manager – Welfare/Pensions Operations and Chief Executive. David is to be commended for his exceptional service and support given to Presidents, staff and Legatees.

On behalf of the Board of Management I thank all Legatees, volunteers and staff for their continuing commitment and work with the Legacy family. It has been a privilege to serve as President in 2014 and I sincerely thank everyone who has provided support, and advice throughout the year.

Legatee Ian HarrisonPresident

President’s Report



Melbourne Legacy President, Ian Harrison, and Junior Legatee, Rachael Bowen, proudly holding the Legacy Torch during Legacy’s 83rd ANZAC Commemoration Ceremony for Students.



The past year had many pleasing highlights and among the most satisfying was the positive start to implementation of the 2013-2024 Melbourne Legacy Strategic Plan. A worthwhile volume of material has already been assembled for the initial roll out of a comprehensive Legatee Training Program, which is scheduled to proceed in the first quarter of 2015. Preparations have also been made for our new ‘Legacy In Touch’ program, which will involve Legatees making personal contact and surveying the majority of current Legacy Widows, with a view to identifying and responding to any current unmet individual needs that may exist.

In 2014, our welfare outlays included responding to critical needs identified for several families of veterans whose health has been impacted by their service as the result of post-traumatic stress. Although there has been only a small number to date, it is has been quite uplifting to learn how much that support has been valued.

Our wonderful workforce of Legatees and staff continue to work cooperatively and effectively in delivering the full range of Melbourne Legacy welfare services which are illustrated by the figures published on page 13 of this report. Funding for ancillary medical services and for treatment of macular degeneration are examples of the practical and meaningful welfare assistance provided.

We are delighted that our education grants and scholarships in 2014 continued to benefit Legacy youth at primary, secondary and tertiary level, making a real difference in their lives now and well into the future. Also, camps and activities organised for our Legacy youth and dependants with a disability were well attended and all attracted positive feedback. That is especially rewarding to those Legatees, staff and volunteer helpers who put in many long hours of preparation.

In 2014, Melbourne Legacy established contact with some 500 recently bereaved widows and continued to provide health, welfare and recreational information to around 14,000 enrolled widows via distribution of our very popular bi-monthly Newsletter “The Answer”. Over the past 12 months, we continued to give high priority to supporting War Widow’s Pensions claims and appeals and we are confident that our involvement is helping to maximise the number of successful outcomes and thereby make a real life difference for many individuals.

“We are delighted that our education grants and scholarships in 2014 continued to benefit Legacy

youth at primary, secondary and tertiary level, making a real difference in their lives now and

well into the future.”

Extensive positive media coverage of Legacy’s work was received throughout the 2014 year and that media exposure was very helpful to our fundraising results. Legacy depends heavily on the generosity of the public and it is most encouraging that our cause continues to be so strongly supported via donations and bequests from the general public. We also receive helpful funding support from Trusts/Foundations, State and Commonwealth Governments and from our corporate partners who are acknowledged in this report.

The challenging targets set out in the 2014 Melbourne Legacy Business Plan were substantially achieved – details of the specific program objectives are included on page 8. Up-to-date information about our work, latest news and special events is available on our website: www.legacy.com.au/melbourne.

We are fully satisfied that our marketing, property and administrative expenses are all being tightly controlled and are reasonable and appropriate. The wonderful financial results recorded for 2014 have further enhanced Melbourne Legacy’s very sound balance sheet.

All in all, the above report indicates a highly satisfactory state of affairs which has made easier my decision to retire after 24 happy and fulfilling years of employment with Melbourne Legacy. In 2015, I will join the ranks of enthusiastic Legacy supporters.

David CullChief Executive

Chief Executive’s Report

Melbourne Legacy, Chief Executive, David Cull



Current Operations*

* Figures current at March 2014

** Full-time equivalent staff numbers

LEGACY, MELBOURNE: BRANCHES – 8

Covering Melbourne Metropolitan Area including Bayside, Inner Eastern, North West, Northern, Oakleigh/Waverley, Outer Eastern, Prahran/Malvern, Western.

Legacy Widows enrolled for care: 9,000

Junior Legatees enrolled: 18

Dependants with a Disability enrolled: 215

Volunteer Legatees providing care: 214

Paid employees providing support: 22**

Widows’ Clubs organised for mutual support: 28

Expenditure on Legacy benefits and support: $2,182,000

MELBOURNE LEGACY GROUPS – 12

Covering outer metropolitan Melbourne and regional areas including Alexandra/Yea/Mansfield, Benalla/Euroa/Violet Town, Central Gippsland, Cobram/Yarrawonga, East Gippsland, Latrobe Valley, North Gippsland, Numurkah/Nathalia, South Eastern, South Gippsland, Wangaratta/Myrtleford/Bright, Yarra Valley.







Expenditure on Legacy benefits and support: $333,000

MELBOURNE LEGACY BRANCHES & GROUPS

Total Figures







Expenditure on Legacy benefits and support: $2,515,000



Legacy Melbourne Staff Team

EXECUTIVE

Chief Executive

David Cull

Executive Support Staff

Lisa Bennett

Lynette Furlan

MARKETING

Development Manager

Tim Cansfield-Smith

Public Relations

Carmel McConnell

Community Relations

Bruce Roberts

Fundraising Support

Michelle Johnstone

Lillian Murray

Peter Samers Raymond LeongDavid Cull Tim Cansfield-Smith

FINANCE AND ADMINISTRATION

Finance Manager

Raymond Leong

Finance Officer

Brett Tillotson

Administration

Margret Pongers

Chandra Tamang

OPERATIONS

Manager, Operations

Peter Samers

Welfare/Disability Services

Ann Clendinnen

Jude Blandford

Vladimir Keca

Pensions Claims/Appeals

Jo Baful

Chris Brown

Katie Ronson

Verity Hollingworth

Widows’ Activities

Dot Byrne

Trisha Keevers

Sushila Tamang

Anna De Blasis

Personnel

Karen Tillotson



Legacy Melbourne Staff Team

Front row: (left to right)

Chandra Tamang, Dot Byrne, Verity Hollingworth, Anna De Blasis, Lillian Murray, Sushila Tamang, Carmel McConnell and Raymond Leong

Second Row:

David Cull, Michelle Johnstone, Jo Baful, Brett Tillotson, Lynette Furlan, Peter Samers, Ann Clendinnen, Trisha Keevers, Vladimir Keca, Lisa Bennett, Jude Blandford, Margret Pongers, Tim Cansfield-Smith, Katie Ronson, Bruce Roberts and Karen Tillotson

Absent:

Chris Brown



Review of Operations2014 Highlights – Celebrating the Centenary of ANZAC

The first year of implementation of the 2014-2023 Melbourne Legacy Strategic Plan saw pleasing progress with preparatory work to ensure the organisation is well placed to deliver valued services in the immediate and long-term future. New training material for our volunteer Legatee workforce has been compiled and is ready for delivery early in 2015. Documentation and procedures have been finalised for a new ‘Legacy In Touch’ initiative which will involve Legatees making telephone contact with a majority of our Legacy widows, with a view to identifying and addressing any current unmet welfare needs. Melbourne Legacy continues to provide welfare services to more than 14,000 widows, young people and Dependants with a Disability – all family members of Australian servicemen and servicewomen who have given their lives or health in service to our country. Since 1990, over 50,000 new veterans have served our country and the need for our services is still as real now as it has been in the past.

The personal contact which our Legacy Members, known as Legatees, have with Legacy Widows, children and other dependants is a unique feature of Legacy’s services. Some 600

Legatees give their time, energy and talent voluntarily to help respond to the welfare needs of those we serve.

Legatees come from all walks of life including veterans, current Australian Defence Force personnel, Legacy Widows and former Junior Legatees who were helped by Legacy in the past, and other people who feel motivated by Legacy’s ideals.

Legacy – Supporting those in needProviding valuable support for Legacy widows

Legacy is ready and committed to help the families of incapacitated and deceased veterans live full and happy lives.

A large majority of the 14,000 widows enrolled with Melbourne Legacy are the widows of World War 2 veterans. However, there are also widows of Korean and Vietnam war veterans (most in their 60s and 70s) and some 950 ‘Younger Widows’ between the ages of 50 and 75 and 23 ‘Contemporary Widows’ under the age of 50, most of whom have children in school or university.

Legacy Widows who encounter difficult personal circumstances receive comfort and security in the following ways:

Junior Legatees, Kate (left) and Clare Lewin lost their father, Mark Lewin in a Service training accident when they were four months old and 21 years later the twins are pictured with their mother, Helen Lewin.



Financial assistance

Legacy provides widows facing financial hardship with grants, loans and subsidies towards medical and transport costs. During 2014, we assisted Legacy Widows with 95 pension claims and 18 Veterans Review Board Appeals, significantly improving financial circumstances and future health care options of those for whom the outcome was approval of a War Widow’s Pension.

We specifically introduced the Legacy Ancillary Medical Benefits Subsidy (LAMBS) to help widows like Patricia Hooke fund medical expenses.

“I nearly fell over when Gillian said that she would see if Legacy could offer some financial assistance through the LAMBS program…I am most grateful to Legacy for reimbursing my out of pocket expenses.” Patricia Hooke…Legacy Widow.

Health and welfare assistance

In 2014, Melbourne Legacy welfare staff responded to over 1,000 requests for assistance from widows and their families. They did so via telephone contact and home visits including providing advice on residential options, wills, powers of attorney and general age care issues. Legatees and staff undertook often complex advocacy on behalf of widows with the Department of Veterans’ Affairs, hospitals and local Councils.

We also conducted four ‘The Future Now’ seminars and contributed specialist welfare information to meetings of local Widows’ Clubs and special forums.

Melbourne Legacy has recently introduced ‘Ageing Well Living Well Seminars’ that aim to assist Legacy widows lead healthy and independent lives for as long as possible and to promote positive ageing. Topics include falls prevention, keeping active, eating well and preparing easy meals, staying connected and preventing social isolation.

IndependenceMelbourne Legacy continued to assist widows like Mrs Jean de Campo to stay in their homes longer by providing information, advice and support. We also linked widows to in-home care services, arranging necessary home maintenance, upgrading home security, and advising on the transition to residential aged care when necessary.

“Ann said exactly what I was hoping to hear! She gave me confidence to stay where I am. I was also very happy to learn that the Government now encourages the aged to stay at home as long as we can manage and that there is a wide range of services available if we need them.” Jean de Campo…Legacy Widow

Social inclusion

As widows age, they can find it increasingly difficult to engage in activities once taken for granted. To prevent social isolation, Melbourne Legacy ensures that widows have avenues for regular social interaction and companionship through group activities and monthly meetings of 67 Legacy Widows’ Clubs, which are run by the widows themselves. Regular activities

Legacy Widows receive mutual support when participating in regular exercise classes, special events and social outings.



for Legacy Widows include monthly group activities such as gentle exercise, swimming, walking, craft-making and outings to concerts and plays.

Melbourne Legacy’s bi-monthly magazine ‘The Answer’ continues to keep widows in touch with information about a variety of Legacy and community programs and activities of interest.

Legacy’s Younger Widows’ Group also met on a monthly basis during 2014 and organised several outings to cater for their interests. The Contemporary Legacy Widows catch up regularly when activities are organised for their children (Junior Legatees) and they also enjoy an occasional weekend away together.

Regardless of their age or the level of care required, Melbourne Legacy is committed to ensuring that no Legacy Widow will ever face life’s challenges alone.

Creating special times for our Dependants with a Disability

Legacy’s programs and services for Dependants with a Disability aim to promote a healthy lifestyle and reduce the social isolation of these particularly vulnerable dependants of Australia’s deceased veterans.

Melbourne Legacy currently offers support to some 260 enrolled Dependants with a Disability, aged from their 20s to their 80s. The level of impairment varies greatly but in many cases it is significant. While the primary care of these dependants is given by specialist support service providers, we help provide recreation opportunities which promote a healthy lifestyle, reduce social isolation and offer some respite for their parent and/or carer. We also help with referrals to services that provide equipment, appliances and home modifications.

On average, 45 Dependants with a Disability attended each of the monthly recreation days we organised in 2014. Activities included bowling, music and dance, a street party and an AFL football themed afternoon. These recreation days would not be possible without the support of some 15 young volunteers who take on the roles of carers and friends for these dependants.

We are very proud to have produced a film “People Like Us”, which celebrates our Dependants with a Disability and the volunteers who give their time so generously to help them enjoy the different experiences we provide.

For the 31st summer in a row, 60 Melbourne Legacy Dependants with a Disability experienced the fun and friendship of the Somers School Camp on the Mornington Peninsula. A group of young dedicated volunteers and staff created a diverse program of activities allowing our Dependants with a Disability to enjoy time together and offer respite for their regular carers.

Melbourne Legacy encourages all Dependants with a Disability to participate as much as possible in the decision-making process related to their individual well-being.

Helping Legacy youth reach their potential

Legacy continues to help young families through bereavement and supports them in their journey to build happy and productive lives.

Melbourne Legacy currently supports 24 children under the age of 18, and another 11 between 18 and 26 years of age in tertiary or further education. We fondly refer to these children of deceased veterans as ‘Junior Legatees’.

We offer opportunities for positive social, intellectual, emotional, and physical development to help our youth realise their potential. We help with education expenses as well as a range of experiential learning opportunities, co-curricular and after-school enrichment programs, and by supporting older youth to transition to vocational or higher educational training programmes.

In September 2014, Melbourne Legacy awarded seven Junior Legatees a Legacy Tertiary Scholarship. We gratefully acknowledge the Victorian Veterans Council for their contribution towards funding of these scholarships.

In addition, Melbourne Legacy provided 29 children and young people with grants to assist with education-related costs. These grants are made possible thanks to support from the Victorian Veterans Council, the Collier Charitable Fund, the Barbara Macrae Trust and some private donations.

During 2014, many Junior Legatees took the chance to re-connect, grow and support each other at two camps as well as during various weekend activities. Over 40 Junior Legatees ventured to the Sunshine Coast in January to enjoy the warm weather and participate in team-building and skirmish activities, while 50 Junior Legatees from around Australia participated in the Winter Camp at Millgrove in the heart of the Yarra Valley. This six day winter camp included a trip to the snow, a visit to Healesville Sanctuary to see native Australian animals in their natural habitat and some scenic bushwalks.

Legacy’s youth programs also support our ‘Contemporary Widows’ by providing time for mothers’ outings and respite from providing full-time care for their children.

Legacy - Engaging with the Community Commemorating the Centenary of ANZAC

Melbourne Legacy will continue to engage with the community in several commemorative events to mark the Centenary of ANZAC through until 2018.

On 16 August 2014 at the Caulfield Racecourse, the Melbourne Racing Club celebrated its 20 year association with Melbourne Legacy by commemorating the 100th anniversary of the beginning of World War 1, with the traditional Legacy Lone Pine Ceremony. Attendees then heard stories of the ‘First Shot of WW1’ and browsed through WW1 memorabilia provided and narrated by Fort Queenscliff Museum personnel.

The Centenary of ANZAC made the annual Legacy Widows’ pilgrimage to The Shrine of Remembrance and Commemoration



Many friendships are renewed at Legacy’s annual camp for Dependants with a Disability



Fifty Junior Legatees, including many from interstate, attended the 2014 Winter Camp organised by Melbourne Legacy at Yarra Valley.



Service particularly significant. On 31 August 2014, a record number of Legacy Widows attended the service at the Shrine which was followed by a lunch at a restaurant in Federation Square. Legacy Widows travelled to the Shrine from Melbourne Legacy Groups, Branches and Regional Clubs throughout Victoria, to support each other and to honour their spouses who were killed in action or died subsequently.

In November 2014, we launched the Legacy StreetArt Mural Project to engage our community in an exciting art installation of around 1,000 mosaic plaques highlighting the service of all Australian veterans dating back to World War 1. These plaques will be created over the four-year commemoration period and attached to the ground floor brick façade at the back of the Legacy House building in Melbourne.

Raising awareness and valuable funds

In 2014, Melbourne Legacy continued to pursue initiatives to raise community awareness of Legacy’s services and funds to support the families of incapacitated and deceased veterans.

Annual Legacy Badge Appeal We launched the 2014 Legacy Week Badge Appeal in September and ultimately raised over $800,000, the second highest result ever achieved. We acknowledge the hundreds of Australian Defence Force personnel who sold badges on 5 September, Badge Day, and in particular the efforts of the Defence Force School of Signals, HMAS Cerberus, Victoria Barracks, RAAF Williams and other ADF units who helped to raise over $270,000 from badge sales.

Direct marketing initiativesSeveral direct marketing appeals and campaigns conducted during the year were well supported.

Bequests Bequests help to build Melbourne Legacy’s long-term capability and provide our clients with a diverse range of welfare projects and services which they need and value.

144 people have shown their support by including a bequest to Melbourne Legacy in their Will. We recognise their support by inducting them as members of the Legacy Torch Society. In 2014 our income was greatly boosted by receipt of five major bequest payments.

EventsAt the ‘Back to Caulfield’ race day in August 2014, the Melbourne Racing Club presented Legacy with a generous donation of $6,000 from race sponsors. A record total was raised from sales of Legacy badges by Air Force cadets and Legacy volunteers on the day.

The Legacy at Huntingdale Charity Golf Day in January is a feature event of the year and the 2014 event was successful in raising $21,000. We greatly appreciate Huntingdale Golf Club’s generosity in hosting this charity golf event for over 80 years.

Trusts and foundationsMelbourne Legacy received grants from Charitable Trusts, Foundations and Government. We acknowledge in particular the Department of Veterans’ Affairs and the Victorian Veterans Council who have helped fund major projects including Legacy’s

ADF personnel at work on Legacy Badge Day with Legacy volunteer, Maureen Budgen. Legacy bears were available for sale with the traditional Legacy badges during the 2014 Legacy Annual Appeal which ran from 30 August - 6 September.



The annual summer holiday for our Dependants with a Disability would not be possible without the dedicated support from our young volunteers who helped out at the Legacy camp at Somers during January 2014.



summer camp for our Dependants with a Disability, the Legacy ANZAC Commemoration Ceremony for Students, Junior Legatee education scholarships and grants, publication of the widows’ newsletter ‘The Answer’ and Widow’s transport initiatives.

Melbourne Legacy also acknowledges the City of Melbourne, ANZ Trustees, Collier Charitable Fund, Lord Mayor’s Charitable Fund and other generous trusts, foundations and many private donors who kindly support the work of Legacy.

Corporate supportersWe further gratefully acknowledge all corporate supporters listed on the back inside cover of this report, particularly our corporate partners Allison Monkhouse Funeral Directors and ALH Group.

Legacy and the RSL nationally again shared over $1 million in proceeds from the VB ‘Raise a Glass’ Appeal in April 2014 and the Woolworths Supermarket April Appeal raised over $500,000 for Legacy nationally through sales of specialty Legacy merchandise.

Commemorating the FallenWhile activities and fundraising initiatives enable our welfare support programs to continue, Melbourne Legacy also organised several events in 2014 to honour the ANZAC spirit and remember those who sacrificed their lives or health in serving our country.

Hundreds of students laid wreaths as part of the pre-ANZAC Day ceremony at the Shrine of Remembrance on Wednesday 23 April. Students from long-standing participant schools Melbourne High School and Mac.Robertson Girls High provided the music. Melbourne High School Cadets provided the Vice Regal Guard of Honour for the event.

Four Shrine ambassadors dressed in World War 1 uniforms conducted the ‘Torch Escort’ ceremony and to the tune of “In Flanders Fields” the Torch was handed to Junior Legatee, Rachael Bowen who said, “It is an honour to carry the Legacy Torch for Legacy’s 83rd ANZAC Commemoration Ceremony for students. It is an important time that gives us the opportunity to commemorate all the men and women whose love and sacrifice

has enabled Australians to live in peace and freedom. For me personally, it provides an opportunity to honour my father Major John Bowen who passed away after 20 years of service.”

Melbourne Legacy again thanks the Victorian Veterans Council for providing funding support for the Legacy ANZAC Commemoration Ceremony for Students.

Approximately 1,500 students from over 300 Victorian schools participated in our 2014 Legacy Junior Public Speaking Award competition. The Award provides young students with a valuable opportunity to simultaneously enhance their verbal communication skills, and to reflect on Legacy’s ideals; voluntary service, caring and comradeship. The Victorian competition was won by Ballarat High School student Laura Benney whose great grandmother lost both her father and husband in conflicts. In her speech Laura, 15, said, “More than ever the work of Legacy is relevant, offering financial and moral support to families and their children.” Ultimately, in November 2014 Melbourne High School student Yathavan Karunanithy was chosen as winner of the national final held in Townsville

On 11 November 2014, Melbourne Legacy staged a special Remembrance Day event at the Park Hyatt Hotel, Melbourne to honour our World War 1 Widows. Melbourne Legacy Chief Executive, David Cull presented each of the seven World War 1 Widows with a woollen scarf with a red poppy pattern, as a momento from the special Commemoration Ceremony.

Showing our AppreciationThroughout 2014, all sections of the media demonstrated positive support for Legacy events and initiatives, and that support is something we greatly appreciate.

Melbourne Legacy is truly thankful for the input and ongoing commitment of all our generous donors, supporters and partners. Through those contributions we are able to provide the families of Australia’s incapacitated and deceased veterans with the support and assistance they need and deserve.

Regular group outings help Legacy Widows remain active and involved in the community.



Legacy Widow, Jan Dimmick laying a wreath at the Shrine of Remembrance on Legacy Sunday, 31 August 2014.

LEGACY, MELBOURNESTATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2014

Note 2014 2013$

Revenue from ordinary activities 5 5,365,568 5,071,720

Finance income – Interest, dividends & distributions 5 687,502 444,857

Total revenue 6,053,070 5,516,577

Employee benefits expense 6 1,804,906 1,783,060

Depreciation and amortisation expense 8 251,812 243,304

Welfare activities expenses 668,280 677,887

Property management expenses 186,334 207,766

Office expenses and other expenses 342,823 279,886

Appeal expenses 100,532 68,628

Fundraising and public relations expenses 415,150 425,192

Total expenses before finance income/(expenses) 3,769,837 3,685,723

Surplus/(deficit) before finance income/(expenses) 2,283,233 1,830,854

Finance income – Net gain/(loss) on disposal of investments

12(c) 91,092 696,583

Surplus/(deficit) for the period 2,374,325 2,527,437

Other comprehensive income

Net change in fair value of available-for-sale financial assets

320,588 896,142

Other comprehensive income/(loss) for the period 12(c) 320,588 896,142

Total comprehensive income/(loss) for the period 2,694,913 3,423,579

The statement of comprehensive income is to be read in conjunction with the notes to the financial statements set out on pages 29 to 44.

Page 2524 | Legacy Melbourne Annual Report 2014


LEGACY, MELBOURNESTATEMENT OF COMPREHENSIVE INCOME


Note 2014 2013$

Revenue from ordinary activities 5 5,365,568 5,071,720

Finance income – Interest, dividends & distributions 5 687,502 444,857

Total revenue 6,053,070 5,516,577

Employee benefits expense 6 1,804,906 1,783,060

Depreciation and amortisation expense 8 251,812 243,304

Welfare activities expenses 668,280 677,887

Property management expenses 186,334 207,766

Office expenses and other expenses 342,823 279,886

Appeal expenses 100,532 68,628

Fundraising and public relations expenses 415,150 425,192

Total expenses before finance income/(expenses) 3,769,837 3,685,723

Surplus/(deficit) before finance income/(expenses) 2,283,233 1,830,854

Finance income – Net gain/(loss) on disposal of investments

12(c) 91,092 696,583

Surplus/(deficit) for the period 2,374,325 2,527,437

Other comprehensive income

Net change in fair value of available-for-sale financial assets

320,588 896,142

Other comprehensive income/(loss) for the period 12(c) 320,588 896,142

Total comprehensive income/(loss) for the period 2,694,913 3,423,579

The statement of comprehensive income is to be read in conjunction with the notes to the financial statements set out on pages 29 to 44.

Page 25ABN 78 043 769 632 Legacy Melbourne Annual Report 2014 | 25


LEGACY, MELBOURNESTATEMENT OF FINANCIAL POSITION

As at 31 December 2014

Note 2014 2013$ $

CURRENT ASSETSCash and cash equivalents 9 and

12(b)1,319,479 2,066,542

Receivables 10 85,963 114,153Other Current Assets 13 545,495 -

TOTAL CURRENT ASSETS 1,950,937 2,180,695

NON-CURRENT ASSETSOther receivables 11 63,126 76,499Investments 12(a) 14,031,142 10,316,302Property, plant and equipment 13 14,848,379 15,555,777

TOTAL NON-CURRENT ASSETS 28,942,647 25,948,578

TOTAL ASSETS 30,893,584 28,129,273

CURRENT LIABILITIESPayables and other liabilities 14 505,198 429,945Employee benefits provisions 15 533,765 508,999

TOTAL CURRENT LIABILITIES 1,038,963 938,944

NON-CURRENT LIABILITIESPayables and other liabilities 14 90,000 66,137Employee benefits provisions 15 88,836 63,532

TOTAL NON-CURRENT LIABILITIES 178,836 129,669

TOTAL LIABILITIES 1,217,799 1,068,613

NET ASSETS 29,675,785 27,060,660

EQUITYReserves 16 14,864,221 14,623,421Retained earnings 16 14,811,564 12,437,239

TOTAL EQUITY 29,675,785 27,060,660

The statement of financial position is to be read in conjunction with the notes to the financial statements set out on pages 29 to 44.

Page 26

LEGACY, MELBOURNESTATEMENT OF CHANGES IN EQUITY


Note Reserves Retained earnings

Total equity

$ $ $

Balance at 1 January 2013 14,175,898 9,909,802 24,085,700

Total comprehensive income for the period

Net change in fair value of available-for-sale financial assets 896,142 - 896,142

Total other comprehensive income 896,142 - 896,142

Surplus/(Deficit) for the period - 2,527,437 2,527,437

Total comprehensive income 896,142 2,527,437 3,423,579

Transfers to and from reserves (448,619) - (448,619)

Balance at 31 December 2013 16 14,623,421 12,437,239 27,060,660

Balance at 1 January 2014Total comprehensive income for the period

14,623,421 12,437,239 27,060,660

Net change in fair value of available-for-sale financial assets 12(c) 320,588 - 320,588




Transfers to and from reserves 12(c) (79,788) (79,788)


The statement of changes in equity is to be read in conjunction with the notes to the financial statements set out on pages 29 to 44.

Page 27ABN 78 043 769 63226 | Legacy Melbourne Annual Report 2014


LEGACY, MELBOURNESTATEMENT OF FINANCIAL POSITION


Note 2014 2013$ $

CURRENT ASSETSCash and cash equivalents 9 and

12(b)1,319,479 2,066,542

Receivables 10 85,963 114,153Other Current Assets 13 545,495 -

TOTAL CURRENT ASSETS 1,950,937 2,180,695

NON-CURRENT ASSETSOther receivables 11 63,126 76,499Investments 12(a) 14,031,142 10,316,302Property, plant and equipment 13 14,848,379 15,555,777

TOTAL NON-CURRENT ASSETS 28,942,647 25,948,578

TOTAL ASSETS 30,893,584 28,129,273

CURRENT LIABILITIESPayables and other liabilities 14 505,198 429,945Employee benefits provisions 15 533,765 508,999

TOTAL CURRENT LIABILITIES 1,038,963 938,944

NON-CURRENT LIABILITIESPayables and other liabilities 14 90,000 66,137Employee benefits provisions 15 88,836 63,532

TOTAL NON-CURRENT LIABILITIES 178,836 129,669

TOTAL LIABILITIES 1,217,799 1,068,613

NET ASSETS 29,675,785 27,060,660

EQUITYReserves 16 14,864,221 14,623,421Retained earnings 16 14,811,564 12,437,239

TOTAL EQUITY 29,675,785 27,060,660

The statement of financial position is to be read in conjunction with the notes to the financial statements set out on pages 29 to 44.

Page 26

LEGACY, MELBOURNESTATEMENT OF CHANGES IN EQUITY


Note Reserves Retained earnings

Total equity

$ $ $

Balance at 1 January 2013 14,175,898 9,909,802 24,085,700

Total comprehensive income for the period

Net change in fair value of available-for-sale financial assets 896,142 - 896,142




Transfers to and from reserves (448,619) - (448,619)


Balance at 1 January 2014Total comprehensive income for the period

14,623,421 12,437,239 27,060,660

Net change in fair value of available-for-sale financial assets 12(c) 320,588 - 320,588




Transfers to and from reserves 12(c) (79,788) (79,788)


The statement of changes in equity is to be read in conjunction with the notes to the financial statements set out on pages 29 to 44.



LEGACY, MELBOURNESTATEMENT OF CASH FLOWS


Note 2014 2013$ $

Cash flows from operating activitiesDonations, grants and bequests received 4,556,974 4,248,705Rental income received 797,373 764,802Other income 11,221 58,213Payments to suppliers and employees (3,336,491) (3,265,743)

Net cash provided by operating activities 18 2,029,077 1,805,977

Cash flows from investing activitiesInterest, dividends, distributions/realised gains received

700,621 423,861

Payments for property, plant and equipment (93,813) (65,489)Payments for investments (4,471,036) (4,591,714)Proceeds from investments/return of capital 2,820,442 1,931,344

Net cash used in investing activities (1,043,786) (2,301,998)

Net increase/(decrease) in cash and cash equivalents 985,291 (496,021)

Cash and cash equivalents at 1 January 2,066,542 2,562,563

Cash and cash equivalents at 31 December 9, 12(a)and 18

3,051,833 2,066,542

The statement of cash flows is to be read in conjunction with the notes to the financial statements set out on pages 29 to 44.

Page 28

LEGACY, MELBOURNENOTES TO THE FINANCIAL STATEMENTS

Page1 Reporting entity 302 Basis of preparation 303 Significant accounting policies 31 - 344 Accounting policies, estimates and financial risk

management34 - 35

5 Revenue 356 Employee benefits expense 367 Auditor’s remuneration 368 Depreciation and amortisation expense 369 Cash and cash equivalents 3610 Receivables 3611 Other receivables 3612 Investments, cash and cash equivalents and finance

expenses37 - 38

13 Property, plant and equipment 3914 Payables and other liabilities 4015 Employee benefits provisions 4016 Capital and reserves 4117 Operating leases 4218 Reconciliation of cash flows from operating activities 4219 Related parties 4320 Bequests, trusts and foundations 43 - 4421 Company details 44



NOTES TO THE FINANCIAL STATEMENTS

1. Reporting entity

Legacy, Melbourne (the “Company”) is a company limited by guarantee, incorporated and domiciled in Australia.

The financial report was authorised for issue by the directors on 10 February 2015.

2. Basis of preparation(a) Statement of compliance

The financial report is a general purpose financial report which has been prepared in accordance with the standards of the Australian Accounting Standards Board (“AASB”) and the Corporations Act 2001. International Financial Reporting Standards (“IFRSs”) form the basis of AASB standards adopted by AASB and for the purpose of this report are called Australian equivalents to IFRS (“AIFRS”) to distinguish from previous Australian GAAP.

(b) Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following:

• available for sale financial assets (investments) are measured at fair value.• land and buildings are measured at fair value (directors’ valuation).

(c) Functional and presentation currency

These financial statements are presented in Australian dollars, which is the company’s functional currency.

(d) Use of estimates and judgements

The preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. These accounting policies have been consistently applied by the Company.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements made by management in the application of Australian Accounting Standards that have significant effect on the financial report and estimates with a significant risk of material adjustment in the next year are discussed in note 4.

Page 30


3. Significant accounting policies

The following is a summary of the material accounting policies adopted by the company in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

(a) Income and payroll tax

No income or payroll tax is payable as the company is tax-exempt.

(b) Inventories Legacy Appeal badges are expensed on purchase by the company. Stock of Legacy Appeal badges on hand at 31 December 2014 was valued at $62,844 (2013: $67,137) at cost. These stocks will be utilised in future fundraising activities.

(c) Property, plant and equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation.

PropertyFreehold land and buildings are measured on the fair value basis, being the amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s length transaction.

It is the policy of the company to have an independent valuation every three years, with annual appraisals being made by the directors.

Plant and equipment Plant and equipment are measured on the cost basis.

The carrying amounts for plant and equipment are reviewed annually by directors to ensure that they are not in excess of the recoverable amount from those assets. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the assets' employment and subsequent disposal.

Depreciation All plant and equipment are depreciated on a straight-line basis over the useful lives to the company commencing from the time the assets are held ready for use.

The depreciation rates used for each class of depreciable asset are:

Class of Fixed Asset Depreciation RatePlant and Equipment 10-20%Motor Vehicles 15%Buildings 2%




1. Reporting entity

Legacy, Melbourne (the “Company”) is a company limited by guarantee, incorporated and domiciled in Australia.

The financial report was authorised for issue by the directors on 10 February 2015.

2. Basis of preparation(a) Statement of compliance

The financial report is a general purpose financial report which has been prepared in accordance with the standards of the Australian Accounting Standards Board (“AASB”) and the Corporations Act 2001. International Financial Reporting Standards (“IFRSs”) form the basis of AASB standards adopted by AASB and for the purpose of this report are called Australian equivalents to IFRS (“AIFRS”) to distinguish from previous Australian GAAP.

(b) Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following:

• available for sale financial assets (investments) are measured at fair value.• land and buildings are measured at fair value (directors’ valuation).

(c) Functional and presentation currency

These financial statements are presented in Australian dollars, which is the company’s functional currency.

(d) Use of estimates and judgements

The preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. These accounting policies have been consistently applied by the Company.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements made by management in the application of Australian Accounting Standards that have significant effect on the financial report and estimates with a significant risk of material adjustment in the next year are discussed in note 4.

Page 30


3. Significant accounting policies

The following is a summary of the material accounting policies adopted by the company in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

(a) Income and payroll tax

No income or payroll tax is payable as the company is tax-exempt.

(b) Inventories Legacy Appeal badges are expensed on purchase by the company. Stock of Legacy Appeal badges on hand at 31 December 2014 was valued at $62,844 (2013: $67,137) at cost. These stocks will be utilised in future fundraising activities.

(c) Property, plant and equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation.

PropertyFreehold land and buildings are measured on the fair value basis, being the amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s length transaction.

It is the policy of the company to have an independent valuation every three years, with annual appraisals being made by the directors.

Plant and equipment Plant and equipment are measured on the cost basis.

The carrying amounts for plant and equipment are reviewed annually by directors to ensure that they are not in excess of the recoverable amount from those assets. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the assets' employment and subsequent disposal.

Depreciation All plant and equipment are depreciated on a straight-line basis over the useful lives to the company commencing from the time the assets are held ready for use.

The depreciation rates used for each class of depreciable asset are:

Class of Fixed Asset Depreciation RatePlant and Equipment 10-20%Motor Vehicles 15%Buildings 2%




3. Significant accounting policies (continued)

(c) Property, plant and equipment (continued)

The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at each reporting date. Following a re-assessment in 2006 the useful life of buildings was assessed to be 50 years.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the statement of comprehensive income.

(d) Employee benefits

Provision is made for the company's liability for employee benefits arising from services rendered by employees to balance date. Employee benefits expected to be settled within one year together with benefits arising from wages and salaries and annual leave which will be settled after one year, have been measured at their nominal amount. Other employee entitlements payable later than one year have been measured at the present value of theestimated future cash outflows to be made for those entitlements.

Contributions are made by the company to approved employee superannuation funds and are charged as expenses when incurred.

(e) Legacy Club of Melbourne Inc. and associated groups

Legacy, Melbourne is a company limited by guarantee formed to discharge the duties and obligations of its controlling entity, the Legacy Club of Melbourne Inc. The company is the holder of Legacy Melbourne Welfare Patriotic Fund No. W36 and Legacy House Building Patriotic Fund No. B3307 and reports to the Director of Consumer Affairs of Victoria in respect of the funds controlled under these numbers. The audited accounts presented in this report are the consolidated accounts of the aforementioned Patriotic Funds. The company is not the controlling entity as defined by Corporations Law and therefore does not incorporate the results of the other funding bodies administered by the Legacy Club of Melbourne Inc or associated groups.

(f) Cash

For the purposes of the statement of cash flows, cash includes cash on hand and at call deposits with banks or financial institutions, investments in money market instruments maturing within 90 days and is net of bank overdrafts.

(g) Revenue

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to financial assets.

Dividend/distribution revenue is recognised when the right to receive a dividend/distributions has been established. Donation and bequest income is recognised when the funds are received. All revenue is stated net of the amount of goods and services tax (GST).

Page 32



Any government grant is recognised in the statement of financial position initially as deferred income when there is a reasonable assurance that it will be received and that the entity will comply with the conditions attaching to it. Grants that compensate the entity for expenses incurred are recognised as revenue in profit or loss on a systematic basis in the same periods in which the expenses are incurred. Grants that compensate the entity for the cost of an asset are recognised in profit or loss as other operating income on a systematic basis over the useful life of the asset.

(h) Goods and services tax (GST)

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 expense. Receivables and payables in the statement of financial position are shown exclusive of GST.

(i) Comparatives

Comparative figures, where appropriate, have been reclassified so as to be comparable with the figures presented for the current financial year.

(j) Financial instruments

Recognition

Financial instruments are initially measured at cost on trade date, which cost includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Available-for-sale financial assets

A financial asset is classified in this category if acquired principally for the purpose of long-term investment which is subject to on-going monitoring, in accordance with the investment policy and within the requirements of AASB 139: Recognition and Measurement of Financial Instruments.Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses (see note 12(c)), are recognised in other comprehensive income and presented within equity in the investment realisation reserve. When an investment is derecognised, the cumulative gain or loss in equity is transferred to profit or loss.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.

Fair Value

Fair value is determined based on current bid prices for all quoted investments, where available. Where current prices are not available a directors’ estimate is made based on the most recent available information and the advice of an investment advisor (refer to Note 4(a) below).





(c) Property, plant and equipment (continued)

The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at each reporting date. Following a re-assessment in 2006 the useful life of buildings was assessed to be 50 years.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the statement of comprehensive income.

(d) Employee benefits

Provision is made for the company's liability for employee benefits arising from services rendered by employees to balance date. Employee benefits expected to be settled within one year together with benefits arising from wages and salaries and annual leave which will be settled after one year, have been measured at their nominal amount. Other employee entitlements payable later than one year have been measured at the present value of theestimated future cash outflows to be made for those entitlements.

Contributions are made by the company to approved employee superannuation funds and are charged as expenses when incurred.

(e) Legacy Club of Melbourne Inc. and associated groups

Legacy, Melbourne is a company limited by guarantee formed to discharge the duties and obligations of its controlling entity, the Legacy Club of Melbourne Inc. The company is the holder of Legacy Melbourne Welfare Patriotic Fund No. W36 and Legacy House Building Patriotic Fund No. B3307 and reports to the Director of Consumer Affairs of Victoria in respect of the funds controlled under these numbers. The audited accounts presented in this report are the consolidated accounts of the aforementioned Patriotic Funds. The company is not the controlling entity as defined by Corporations Law and therefore does not incorporate the results of the other funding bodies administered by the Legacy Club of Melbourne Inc or associated groups.

(f) Cash

For the purposes of the statement of cash flows, cash includes cash on hand and at call deposits with banks or financial institutions, investments in money market instruments maturing within 90 days and is net of bank overdrafts.

(g) Revenue

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to financial assets.

Dividend/distribution revenue is recognised when the right to receive a dividend/distributions has been established. Donation and bequest income is recognised when the funds are received. All revenue is stated net of the amount of goods and services tax (GST).

Page 32



Any government grant is recognised in the statement of financial position initially as deferred income when there is a reasonable assurance that it will be received and that the entity will comply with the conditions attaching to it. Grants that compensate the entity for expenses incurred are recognised as revenue in profit or loss on a systematic basis in the same periods in which the expenses are incurred. Grants that compensate the entity for the cost of an asset are recognised in profit or loss as other operating income on a systematic basis over the useful life of the asset.

(h) Goods and services tax (GST)

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 expense. Receivables and payables in the statement of financial position are shown exclusive of GST.

(i) Comparatives

Comparative figures, where appropriate, have been reclassified so as to be comparable with the figures presented for the current financial year.

(j) Financial instruments

Recognition

Financial instruments are initially measured at cost on trade date, which cost includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Available-for-sale financial assets

A financial asset is classified in this category if acquired principally for the purpose of long-term investment which is subject to on-going monitoring, in accordance with the investment policy and within the requirements of AASB 139: Recognition and Measurement of Financial Instruments.Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses (see note 12(c)), are recognised in other comprehensive income and presented within equity in the investment realisation reserve. When an investment is derecognised, the cumulative gain or loss in equity is transferred to profit or loss.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.

Fair Value

Fair value is determined based on current bid prices for all quoted investments, where available. Where current prices are not available a directors’ estimate is made based on the most recent available information and the advice of an investment advisor (refer to Note 4(a) below).





(k) Assets held for sale

Non-current assets or disposal groups comprising assets and liabilities, are classified as held-for-sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use. Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to sell. Any impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets, employee benefit assets, investment property orbiological assets, which continue to be measured in accordance with the Company’s other accounting policies. Impairment losses on remeasurement are recognised in profit or loss.Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortised or depreciated, and any equity-accounted investee is no longer equity accounted.

4. Accounting policies, estimates and financial risk management

(a) Accounting estimates and judgements

Management has been involved in the development, selection and disclosure of the Company’s critical accounting policies and estimates and the application of these policies and estimates. Critical accounting judgements in applying the Company’s accounting policies are described below.

All investments are measured at fair value based on the market value of the investment at reporting date.

Investment propertyThe Company has sub-let part of the Legacy House property but has decided not to treat this property as an investment property because its primary function is the Company’s administrative office. Accordingly this is still treated as property, plant and equipment.

(b) Financial risk management

(i) Market risk

The company has exposure to market risk arising from financial instruments in the investment portfolio. Market risk is the risk that changes in market prices, such as equity prices and interest rates that will affect the company’s income or the value of its holdings of financial instruments. The company engages independent experts to advise on the management of its investment portfolio. The objective of the company’s market risk strategy is to manage and control exposures to market risk within acceptable parameters, while optimising the return.

Page 34



(b) Financial risk management (continued)

(i) Market risk (continued)

Management monitors the mix of equity investments in the portfolio based on market prices. All investments within the portfolio are managed on an individual basis and all buy and sell transactions are approved by the investment committee.

(ii) Credit risk

Credit risk for the company arises from loans made to widows. The company limits its exposure to credit risk by regular review of the loan portfolio. No single credit exposure is permitted to exceed a predetermined limit.

(iii)Liquidity risk

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The company’s approach to manage liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liability when due, under both normal and stressed conditions, without incurring unacceptable cost or risking damage to the company’s reputation.

(iv) Interest rate risk

Interest rate risk is the Company’s exposure to interest rate movements and is limited to its cash trading accounts held at banks which bear interest rates at variable market rates, and certain investments with financial institutions which bear interest at variable market rates.

5. Revenue2014 2013

$ $Revenue from ordinary activities :- Donations and grants 1,998,837 1,694,077- Bequests 2,558,137 2,554,628- Property rents 797,373 764,802- Other income 11,221 58,213

5,365,568 5,071,720

Finance income – Interest, dividends & distributions:- Investment revenue - interest 69,363 93,870- Dividends and distributions/realised gains

received618,139 350,987

687,502 444,857Total revenue 6,053,070 5,516,577





(k) Assets held for sale

Non-current assets or disposal groups comprising assets and liabilities, are classified as held-for-sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use. Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to sell. Any impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets, employee benefit assets, investment property orbiological assets, which continue to be measured in accordance with the Company’s other accounting policies. Impairment losses on remeasurement are recognised in profit or loss.Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortised or depreciated, and any equity-accounted investee is no longer equity accounted.


(a) Accounting estimates and judgements

Management has been involved in the development, selection and disclosure of the Company’s critical accounting policies and estimates and the application of these policies and estimates. Critical accounting judgements in applying the Company’s accounting policies are described below.

All investments are measured at fair value based on the market value of the investment at reporting date.

Investment propertyThe Company has sub-let part of the Legacy House property but has decided not to treat this property as an investment property because its primary function is the Company’s administrative office. Accordingly this is still treated as property, plant and equipment.

(b) Financial risk management

(i) Market risk

The company has exposure to market risk arising from financial instruments in the investment portfolio. Market risk is the risk that changes in market prices, such as equity prices and interest rates that will affect the company’s income or the value of its holdings of financial instruments. The company engages independent experts to advise on the management of its investment portfolio. The objective of the company’s market risk strategy is to manage and control exposures to market risk within acceptable parameters, while optimising the return.

Page 34



(b) Financial risk management (continued)

(i) Market risk (continued)

Management monitors the mix of equity investments in the portfolio based on market prices. All investments within the portfolio are managed on an individual basis and all buy and sell transactions are approved by the investment committee.

(ii) Credit risk

Credit risk for the company arises from loans made to widows. The company limits its exposure to credit risk by regular review of the loan portfolio. No single credit exposure is permitted to exceed a predetermined limit.

(iii)Liquidity risk

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The company’s approach to manage liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liability when due, under both normal and stressed conditions, without incurring unacceptable cost or risking damage to the company’s reputation.

(iv) Interest rate risk

Interest rate risk is the Company’s exposure to interest rate movements and is limited to its cash trading accounts held at banks which bear interest rates at variable market rates, and certain investments with financial institutions which bear interest at variable market rates.

5. Revenue2014 2013

$ $Revenue from ordinary activities :- Donations and grants 1,998,837 1,694,077- Bequests 2,558,137 2,554,628- Property rents 797,373 764,802- Other income 11,221 58,213

5,365,568 5,071,720

Finance income – Interest, dividends & distributions:- Investment revenue - interest 69,363 93,870- Dividends and distributions/realised gains

received618,139 350,987

687,502 444,857Total revenue 6,053,070 5,516,577




6. Employee benefits expense2014

$2013

$Wages and salaries 1,534,600 1,551,162Contributions to approved superannuation funds 270,306 231,898Total employee benefits expense 1,804,906 1,783,060

2014$

2013$

7. Auditor’s remunerationRemuneration of auditor- Auditing services 18,500 18,500

18,500 18,500

2014$

2013$

8. Depreciation and amortisation expenseDepreciation of non-current assets- Plant and equipment 65,445 58,564- Motor vehicles 4,363 2,736- Buildings 182,004 182,004Total depreciation and amortisation expense 251,812 243,304

2014$

2013$

9. Cash and cash equivalentsBank Balances 117,487 100,090Bank At Call deposits 1,199,812 1,964,272Cash 2,180 2,180

1,319,479 2,066,542

2014$

2013$

10. ReceivablesSundry debtors and prepayments 85,963 114,153

85,963 114,153

2014$

2013$

11. Other receivablesLease incentives 63,126 76,499

63,126 76,499

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2014$

2013$

12. Investments, cash and cash equivalents and finance expenses

(a) InvestmentsInvestments in managed funds and listed equity securities detailed below.

14,031,142 10,316,302

Approved Investment FundsAustralian EquitiesPerpetual Wholesale Shares Plus Long-Short Fund 1,389,665 1,403,427Pengana Emerging Companies Fund 952,015 949,597CI Brunswick Fund 798,269 -Warakirri Charitable Select Equities Trust 1,250,215 1,226,424Total Australian Equities 4,390,164 3,579,448

Global EquitiesTempleton Global Growth Fund Ltd (TGG) 261,690 -SPDR S&P World ex Australia ETD (WXOZ) 321,160 -Franklin Global Growth Fund 454,869 -Grant Samuel Epoch Global Equity Shareholder Yield (unhedged) Fund 804,760 -Walter Scott Global Equity Fund (Hedged) 498,283 643,887Macquarie Asia New Stars No.1 Fund 199,308 -Platinum International Fund 287,202 807,132Total Global Equities 2,827,272 1,451,019

Interest Bearing SecuritiesUBS Diversified Fixed Income Fund 1,026,752 424,816Schroder Credit Securities Fund – Professional Class 709,565 717,946Schroder Credit Securities Fund – Wholesale Class 284,448 -UBS Diversified Credit Fund 992,504 574,037Total Interest Bearing Securities 3,013,269 1,716,799

Alternative InvestmentsAMP Capital Core Infrastructure Fund 781,671 714,823Schroder Real Return Fund CPI + 5% 505,011 -DMP Investment Fund 778,657 944,727ANZ OneAnswer Mortgage Trust 2,744 6,600Total Alternative Investments 2,068,083 1,666,150

Funds disposed during 2014Vanguard Aus. Property Securities Index Fund - 501,500BlackRock Aus. Equity Absolute Return Fund - 491,765Winton Global Alpha Fund - 819,636Total Funds disposed during 2014 - 1,812,901




2014$

2013$

12. Investments, cash and cash equivalents and finance expenses (continued)Cash and term deposits held for investment 1,732,354 -Subtotal Investment Funds 14,031,142 10,226,317

ASX listed shares received as a bequest (sold during 2014 - 89,985

Total of Investments in managed funds and listed shares, cash and term deposits held for investment

14,031,142 10,316,302

(b) Cash and cash equivalents held for operation purposes

1,319,479 2,066,542

Total of all funds available for investment and operation purposes

15,350,621 12,382,844

(c) Finance income

Recognised in profit or loss

Net gain/(loss) on disposal of available-for-sale financial assets transferred from equity 79,788 448,619

Net gain/(loss) on disposal of available-for-sale financial assets through profit or loss 11,304 247,964

Finance income recognised in profit or loss 91,092 696,583

Recognised in other comprehensive income

Net gain/(loss) in fair value of available-for-sale financial assets 320,588 896,142

Finance income recognised in other comprehensive income 320,588 896,142

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13. Property, plant and equipment

Legacy House

Melbourne, land &

buildings

WidowsClubrooms, Footscray

land & buildings

Total land&

Buildings

Plant&

Equipment

Motor Vehicles

Total

$ $ $ $ $ $

Balance at 1 January 2013 14,962,623 549,503 15,512,126 196,295 25,171 15,733,592Additions - - - 65,489 - 65,489

Depreciation expense (180,000) (2,004) (182,004) (58,564) (2,736) (243,304)

Balance at 31 December 2013 14,782,623 547,449 15,330,122 203,220 22,435 15,555,777

Balance at 1 January 2014 14,782,623 547,499 15,330,122 203,220 22,435 15,555,777Additions - - - 83,901 28,330 112,231Disposals - (22,322) (22,322)Depreciation expense (180,000) (2,004) (182,004) (65,445) (4,363) (251,812)Transferred to Current Assets pending sale

- (545,495) (545,495) - - (545,495)

Balance at 31 December 2014 14,602,623 - 14,602,623 221,676 24,080 14,848,379

The land and buildings were revalued by independent valuers using fair value to estimate the values. Legacy House was revalued on 17 October 2012 and the Footscray property was revalued on 2October 2012. The directors have concluded that there are no known grounds to vary those valuations.The Footscray property has been sold with settlement of the sale due for finalisation in February 2015 and accordingly the net book value ($545,495) has been classified as Other Current Assets.




14 Payables and other liabilities

2014 2013$ $

CurrentSundry creditors and non-trade payables 284,517 157,514Deferred income 220,681 272,431

505,198 429,945

Non – CurrentTenants’ bond monies 90,000 66,137

90,000 66,137

15 Employee benefits provisions2013

$2012

$

Current

Liability for long service leave 349,273 325,932Liability for annual leave 184,492 183,067

533,765 508,999

Non Current

Liability for long-service leave 88,836 63,532

The Company makes contributions to various employee choice approved superannuation funds. The amount recognised as expense was $270,306 For the year ended 31 December 2014 (2013: $231,898).

Page 40


16. Capital and reservesReconciliation of movement in reserves

Asset Revaluation & IncomeReserve

Investment Realisation

Reserve

Welfare Projects/Services Reserve

Staff Entitlements

ReserveTotal

ReservesRetained Earnings

Total Equity$

Balance at 1 January 2013 10,000,000 1,375,898 2,000,000 800,000 14,175,898 9,909,802 24,085,700

Revaluation of lands and buildings to directors’ valuations

- - - - - - -

Surplus for the period - - - - - 2,527,437 2,527,437

Total other comprehensive income

- 896,142 - - 896,142 - 896,142

Transfers to and from Reserves - (448,619) - - (448,619) - (448,619)

Balance at 31 December 2013

10,000,000 1,832,421 2,000,000 800,000 14,623,421 12,437,239 27,060,660



- - - - - - -



- 320,588 - - 320,588 - 320,588



10,000,000 2,064,221 2,000,000 800,000 14,864,221 14,811,564 29,675,785

Asset Revaluation & Income ReserveThis reserve relates to property, plant and equipment measured at fair value in accordance with applicable Australian Accounting Standards. The reserve also comprises of funds set aside for the maintenance and eventual replacement of Melbourne Legacy properties and associated chattels. Welfare Projects/Services ReserveThis comprises funds set aside to maintain commitments to current welfare projects and services to benefit Legacy widows and dependants.Investment Realisation ReserveThis reserve covers the net change in the cumulative fair value of available for sale listed equity and managed funds.Staff Entitlements Provisions ReserveThis reserve provides for accrued employee long services and annual leave benefits plus a contingency allowance.




14 Payables and other liabilities

2014 2013$ $

CurrentSundry creditors and non-trade payables 284,517 157,514Deferred income 220,681 272,431

505,198 429,945

Non – CurrentTenants’ bond monies 90,000 66,137

90,000 66,137

15 Employee benefits provisions2013

$2012

$

Current

Liability for long service leave 349,273 325,932Liability for annual leave 184,492 183,067

533,765 508,999

Non Current

Liability for long-service leave 88,836 63,532

The Company makes contributions to various employee choice approved superannuation funds. The amount recognised as expense was $270,306 For the year ended 31 December 2014 (2013: $231,898).

Page 40


16. Capital and reservesReconciliation of movement in reserves

Asset Revaluation & IncomeReserve

Investment Realisation

Reserve

Welfare Projects/Services Reserve

Staff Entitlements

ReserveTotal

ReservesRetained Earnings

Total Equity$



- - - - - - -



- 896,142 - - 896,142 - 896,142



10,000,000 1,832,421 2,000,000 800,000 14,623,421 12,437,239 27,060,660



- - - - - - -



- 320,588 - - 320,588 - 320,588



10,000,000 2,064,221 2,000,000 800,000 14,864,221 14,811,564 29,675,785

Asset Revaluation & Income ReserveThis reserve relates to property, plant and equipment measured at fair value in accordance with applicable Australian Accounting Standards. The reserve also comprises of funds set aside for the maintenance and eventual replacement of Melbourne Legacy properties and associated chattels. Welfare Projects/Services ReserveThis comprises funds set aside to maintain commitments to current welfare projects and services to benefit Legacy widows and dependants.Investment Realisation ReserveThis reserve covers the net change in the cumulative fair value of available for sale listed equity and managed funds.Staff Entitlements Provisions ReserveThis reserve provides for accrued employee long services and annual leave benefits plus a contingency allowance.



Retained EarningsThis is the equity of the company after providing the other reserves. From time to time, transfers may occur between this and other reserves.


17. Operating leases

Leases as lessorThe Company leases out part of its Legacy House property under operating leases. The future minimum lease receipts under non-cancellable leases are as follows:

2014 2013$ $

Less than one year 674,715 693,768Between one and five years 2,128,587 1,996,824More than five years 672,064 1,478,542

3,475,366 4,169,134

During the year ended 31 December 2014, $797,373 was recognised as rental income in the statement of comprehensive income (2013: $764,802) and $71,441 in respect of repairs and maintenance was recognised as an expense in the statement of comprehensive income relating to Legacy House property subject to rental leases (2013: $62,323).

18. Reconciliation of cash flows from operating activitiesNote 2014 2013

$ $Cash on hand and bank balances 9 119,667 102,270Bank At Call deposits with financial institutions 9 1,199,812 1,964,272Funds transferred for investment purposes 1,732,354 -

3,051,833 2,066,542Reconciliation of cash flow from operations with surplus from ordinary activitiesProfit for the period 2,374,325 2,527,437Adjustments for:

Interest, dividends, distributions/realised gains received

(687,502) (444,857)

Net (gain) / loss on disposal of investments/fixed assets

3,903 -

Depreciation and amortisation expense 251,812 243,304Write down/(back) of widows loans to amortised cost

24,314 3,363

Additional investment distributions received in units

(13,118) (20,996)

Realised (gain) / losses transferred to income account

(91,092) (247,964)

Investment funds windup (gain) / lossestransferred to Income account

- (448,619)

Changes in assets and liabilitiesDecrease/(increase) in receivables 28,190 17,064Decrease/(increase) in other receivables 13,373 16,032Increase/(decrease) in payables and other liabilities

74,802 99,568

Increase/(decrease) in employee benefits provisions

50,070 61,645

Cash flow from operations 2,029,077 1,805,977

Page 42


19. Related partiesThe names of each person holding the position of director during the financial year are:- W. I. Harrison- F. B. Phillips- D. W. A. Kelly - A. J. Lombardo (appointed 11/03/2014)- G. A. King

- J. Burrows - J. Miller- S. K. Percival - D. W. Cull- C.G. Spence (resigned 11/03/2014)

None of the aforementioned directors have received or are entitled to receive any remuneration from the Company, nor have directors or director related entities transacted with the Company during the year, other than on an arms length basis.

Transactions with key personnelIn addition to their salaries, the Company also provides certain non-cash benefits to management personnel. The annual compensation for key management personnel is as follows:

2014$

2013$

Salary 130,417 133,538Other short term employment benefits* (842) 4,505Long service leave benefits* 6,267 13,274Post employment benefits 35,875 24,387

171,717 175,704

* Short-term and long-term benefits represent movements in the annual leave and long service leave provision for the year.

Transactions with related partyThe Company also has transactions with the Legacy Club of Melbourne Inc. (“the Club”). The amount due from the Club was $6,481 for 2014 (2013: $6,449).

20. Bequests, trusts and foundations

(a) Bequests

Funds were received during the period from the Estates of the Late:

G. TregellasJ BirchS. VerhagenJ. ReidE. ThompsonR. Cohen

C. NevilleG. CohenP. SimpsonR. HattamB. ShearerA. Kiernan

P. HearschH. FergusonB. HawkinsM. MorcomM. EvansF. Midgely

J. WilliamsM. ChasemoreP. RodoredaL. Blackwell




20. Bequests, trusts and foundations (continued)

(b) Trusts and foundations

Donations were received during the financial period from:

William Angliss Charitable FundSylvia Barry TrustBell Charitable TrustH. & C. Brennan TrustT. & V. Coles TrustCollier Charitable FundJ. & D. Cromie TrustA. Elkington TrustMarian & E. H. Flack TrustLord Mayors Charitable FundMc Gregor EstateK&M Topliss FoundationG&J McDowell Trust

J. & E. McKenzie TrustLealand Ponton FoundationH. W. Pride Charitable TrustF. B. Shepherd TrustSpringwaters FoundationM. J. Sutton TrustJoe White BequestWhitehorse Community ChestWilliam & Dorothy Higgins TrustVarious Ex-Service AssociationsH. Yoffa FoundationK&W Harris TrustDorothy Love Trust

21. Company details

The registered office and principal place of business of the company is:

Legacy, Melbourne293 Swanston StreetMELBOURNE VIC 3000



KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative.

ABN 78 043 769 63246 | Legacy Melbourne Annual Report 2014



ABN 78 043 769 632 Legacy Melbourne Annual Report 2014 | 47


ABCD

KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Liability limited by a scheme approved under Professional Standards Legislation.

Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

To: the directors of Legacy Melbourne

I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 31 December 2013 there have been:

(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit.

KPMG

Paul J McDonaldPartner

Melbourne

11 February 2014


ABN 78 043 769 63248 | Legacy Melbourne Annual Report 2014


Melbourne Legacy gratefully acknowledges all generous supporters:


MELBOURNE LEGACY293 Swanston Street MELBOURNE VIC 3000 GPO Box 4312 MELBOURNE VIC 3001

P (03) 8626 0500 | F (03) 9663 3015

E [email protected] | ABN 78 043 769 632

www.legacy.com.au/melbourne

www.facebook.com/melbourne-legacy


ANNUAL REPORT 2014 - Legacy Australia · a Disability. Regular outings, activities, and an annual...

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