The directors present their report, together with the financial statements of the Consolidated Group, being the Company and its controlled entities, for the financial year ended 30 June 2014. 1. General information Directors The names of the directors in office at any time during, or since the end of, the year are: Names T Lawler A Deegan R Ferris J Lowe T McCosker P Murphy OAM Resigned 28 August 2014 S Gollan S Gordon AM G Calvert AO G Innes AM Appointed 23 May 2014 Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Principal activities The principal activity of the Consolidated Group during the financial year was providing a range of programs and services for people with disabilities, children and young people in crisis, people with mental health issues, aged care and support to refugees and asylum seekers. No significant change in the nature of these activities occurred during the year. Short and long term objectives The Consolidated Group is in its fourth year of a 5 year planning cycle with a strategic plan in place through to 2015. The Group’s 5 key areas are: 1. Embed the LWB Way 2. Partner with People and Change lives for the better 3. Improve Systems and Processes 4. Transform Disability Services 5. Sustain and Diversify Income The Group has and will continue to measure, review and report on these areas to determine the outcomes of the strategic plan on an ongoing basis. In line with the ongoing review, the Group adjusted these measures during the year, to ensure a successful alignment with our organisational vision and operational plans. Members guarantee Life Without Barriers (parent) is a company limited by guarantee. In the event of, and for the purpose of winding up of the company, the amount capable of being called up from each members and any person or association who ceased to be a member in the year prior to the winding up, is limited to $10, subject to the provisions of the company’s constitution. At 30 June 2014 the collective liability of members was $ 100 (2013: $ 90). Information on directors The names of each person who has been a director during the year and to the date of this report are: T Lawler Director Qualifications BCom, FCA, FAICD, FAIM Experience Independent non-executive director since July 2002 and Chair since 2002. Extensive experience as a Chartered Accountant providing business, internal audit, operational and strategic advice. Chair of PKF Lawler Corporate Finance. Chair of Ampcontrol Group. Chair of Hunter Water Corporation. Chair of Hunter Water Australia. Special responsibilities Chair. Member of the Finance and Audit Committee. Member of the Remuneration Committee. Trustee of the Life Without Barriers New Zealand Trust. A Deegan Director Qualifications BCom, LLB Experience Independent non-executive director since November 2004. Practising solicitor since 1978, currently a partner at Sparke Helmore, providing commercial advice specialising in information communications technology and intellectual property. Special responsibilities Chair of the Risk Management Committee. Member of the Remuneration Committee. Trustee of the Life Without Barriers New Zealand Trust R Ferris Director Experience Independent non-executive director since July 2002. Extensive experience in business management and organisational operations. Member of the National Carers Sub-Committee. Special responsibilities Chair of the Remuneration Committee. Member of the Reconciliation Committee. Member of the Research and Public Policy Committee. Trustee of the Life Without Barriers New Zealand Trust. J Lowe Director Qualifications BA, DipEd, FUNSIA Experience Independent non-executive director since April 2004. Extensive experience in senior government roles in community services, social justice, higher education and local government. Currently runs JL Consulting, a business that works on organisational change, governance, international disability service relations. Has served on a range of not-for-profit boards and is currently a Director of Every Voice, Australia. Special responsibilities Chair of the Life Without Barriers New Zealand Trust. Chair of the Research and Public Policy Committee. Member of the Remuneration Committee. Information on directors continued T McCosker Director Qualifications MAICD, MBA, B Comm Experience Independent non-executive director since July 2002. Extensive senior management experience in the public health sector. Chief Executive of NSW Health Pathology, NSW Health. Special responsibilities Chair of the Finance and Audit Committee. Member of the Risk Management Committee. Member of the Reconciliation Committee. P Murphy OAM Director - Resigned 28 August 2014 Qualifications ANIA, MAICD, JP Experience Independent non-executive director since July 2002. Extensive experience with commercial business operations management and as a director. Managing Director of Churchill’s Carpet Court, Newcastle, NSW Australia S Gollan Director Qualifications MSW , BA (AbAffAdmin) Experience Independent non-executive director since March 2006. Has worked professionally and academically in a range of human services fields and has over thirty years of experience in the health, youth, children and community services. Sharon is known for her work as a facilitator of Cultural Respect and Safety training that can lead to respectful partnerships between Aboriginal and Non Aboriginal Australians. Special responsibilities Chair of the Reconciliation Committee. S Gordon AM Director Qualifications LLB Experience Independent non-executive director since December 2009. Extensive experience in improving the lives of Aboriginal people. Magistrate of the Children’s Court of Western Australia for over 20 years. Chair of the Sister Kate’s Children 1934 to 1953 Aboriginal Corporation since 2001. Sits on a variety of Boards and Trusts around Australia in relation to Aboriginal people and communities. G Calvert AO Director Qualifications MBA, BSW, BA Experience Independent non-executive director since February 2012. Extensive leadership in the human services sector, working across government and non-government, primarily in improving the lives of children and young people. Commissioner for Children and Young People, NSW 1999-2009. Special responsibilities Chair of the Practice Committee. Member of the Risk Management Committee. Member of the Research and Public Policy Committee. G Innes AM Director - Appointed 23 May Qualifications 2014 AM LLB Experience Independent and non-executive director since May 2014. Lawyer, mediator and director. Human Rights Practitioner for 30 years in NSW, Western Australia and nationally. Australia’s Disability Discrimination Commissioner from 2005 – 2014. During that time served as Australia’s Human Rights Commissioner for three and a half years and as Race Discrimination Commissioner for two years. Special responsibilities Member of the Practice Committee. Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. 2. Operating results and review of operations for the year Operating results The surplus of the Consolidated Group amounted to $ 7,766,021 (2013: $ 6,070,353). Review of operations A review of operations of the consolidated group during the financial year shows a 11% increase in revenue from a continued expansion of services. Expenses for the year increased by 11%, mainly due to employee and other operational expenses as head count and associated activity were increased to meet the service delivery needs of the increased activity. The controlled entity in New Zealand contributed $1,283,773 to revenue of the group. 3. Other items Significant changes in state of affairs There have been no significant changes in the state of affairs of entities in the Consolidated Group during the year. Events after the reporting date Life Without Barriers has entered into a commercial arrangement with Volkswagon Finance Australia for the supply of motor vehicles under a finance lease arrangement. The value of the facility approved is $14,000,000. Except for the above, no other matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the Consolidated Group, the results of those operations, or the state of affairs of the Consolidated Group in future financial years. Future developments The Consolidated Group expects to continue geographical expansion of operations throughout Australia. Environmental issues The Consolidated Group’s operations are not regulated by any significant environmental regulations under a law of the Commonwealth or of a state or territory of Australia. Meetings of directors During the financial year, 22 meetings of directors (including committees of directors) were held. Attendances by each director during the year were as follows: Directors’ Meetings Finance & Audit Risk Management Remuneration Reconciliation Sub-Committee Number eligible to attend Number attended Number eligible to attend Number attended Number eligible to attend Number attended Number eligible to attend Number attended Number eligible to attend Number attended T Lawler 5 4 5 5 - - 1 1 - - A Deegan 5 5 - - 4 4 1 1 - - R Ferris 5 4 - - - - 1 1 3 3 J Lowe 5 5 - - - - 1 1 - - T McCosker 5 5 5 5 4 4 - - 3 3 P Murphy OAM 5 5 - - - - - - - - S Gollan 5 4 - - - - - - - - S Gordon AM 5 3 - - - - - - 3 3 G Calvert AO 5 4 - - 4 3 - - - - G Innes AM 1 1 - - - - - - - - Research & Public Policy Sub- Committee LWB NZ Trust Meetings Number eligible to attend Number attended Number eligible to attend Number attended T Lawler - - 3 3 A Deegan - - 3 2 R Ferris 1 1 3 1 J Lowe 1 - 3 3 T McCosker - - - - P Murphy OAM - - - - S Gollan - - - - S Gordon AM - - - - G Calvert AO 1 1 - - K Mason - - 3 3 O Cassidy - - 3 3 J Crowe - - 3 3 G Innes AM - - - - Company secretary The following person held the position of Company secretary at the end of the financial year: D Lynch, who is also the Chief Financial Officer of the parent entity, held the position of Secretary until 22 November 2013. K Davis, who was also the Director of Organisational Governance, held the position of secretary from 22 November 2013 to 28 March 2014. D Lynch has held the position of Secretary since 29 March 2014, following the resignation of K Davis. Indemnification and insurance of officers and auditors During the year the consolidated group paid a premium to insure the directors and trustees of all entities in the consolidated group. The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the directors in their capacity as directors of the entity and any other payments arising from liabilities incurred by the directors in connection with such proceedings. This does not include such liabilities that arise from conduct involving a wilful breach of duty by the directors or the improper use by the directors of their position or of any information to gain advantage for themselves or someone else to cause detriment to the entity. Auditor’s independence declaration The lead auditor’s independence declaration in accordance with section 307C of the Corporations Act 2001, for the year ended 30 June 2014 has been received and can be found on page 7 of the financial report. Signed in accordance with a resolution of the Board of Directors: Director: ................................................................................................................................................ Director: ................................................................................................................................................ Dated 26 September 2014