Bethany Kindergarten Services Ltd.

Annual Report 2017

Introduction Following a period of significant consultation and planning between Bethany Community Support Inc., the Geelong Kindergarten Association Ltd., Kindergarten Parent Advisory Groups and other stakeholders, Bethany Kindergarten Services Ltd. commenced operations as part of the Bethany group of services on 1 July 2017. A new constitution was adopted at the Geelong Kindergarten Association (GKA) Annual General Meeting on May 31 2017 to formalise the transition to Bethany Kindergarten Services (BKS) structured as a subsidiary company of Bethany Community Support Inc. (BCS). The inaugural BKS Board of Management was formed including provision of two Board Directors who are Presidents of Kindergarten Parent Advisory Groups (PAG’s) and all Kindergarten PAG’s became Associate Members of BKS. Following this process, an exciting new brand was launched and this was aided by a communication strategy to inform key stakeholders of the changes. An integrated structure was implemented with Grant Boyd appointed as CEO of BKS, and Anneliese Knell appointed as the Executive Manager of BKS. An integrated Corporate Services structure has been progressively developed to strengthen and support the provision of corporate services across both BKS and BCS. During 2017 Bethany finalised a new Strategic Plan for the 2017 to 2020 period which bought BKS into scope and alignment.

A new vision was established supported by four strategic aims:

A good start in life

Safe supportive relationships

Gender equality

Community participation During the year the BKS Executive Leadership Team initiated a process to review our approach to service planning and delivery. Following consultation with other Early Years Management Organisations (EYMO), consideration of the Federal and State policy context and the broader Bethany strategy, the areas of focus and opportunity for the future were defined. The areas in focus were aligned to the Department of Education and Training (DET) Victoria, Early Years Management Framework Outcomes and this assisted in setting the key priority areas for 2017 and beyond. In 2017 DET continued to oversee EYMO’s compliance with the implementation of the Early Years Management Framework and Guidelines. BKS progressed significant work during 2017 which found the organisation well placed to demonstrate compliance against the requirements of the framework and guidelines leading into the deadline for full compliance by June 2018. A key achievement in 2017 was the collaborative development of a revised Partnership Agreement outlining the interface and partnership between BKS and individual PAG’s. Partnership work more broadly, remained a priority during 2017, with PAG’s, local government, specialist organisations, DET and other EYMO’s.

Key achievements Our key achievements for 2017 are summarised below. This information is structured around the outcome areas defined in the Early Years Management Framework. Sustainable and Responsive Services

An integrated Corporate Services Structure for BCS and BKS was developed

We increased the number of Kindergarten Services Managers to better support Kindergartens and Educators

All Bethany kindergartens are rated as ‘meeting’ or ‘exceeding’ quality area 6: Partnerships with Families and Communities

The written resources, partnership agreement and training packages for PAG’s were reviewed and redeveloped

Further interface development was undertaken with key stakeholders including; Gateways Support Services, the City of Greater Geelong (CoGG), DET and other EYMO’s

We participated in the DET Rural Governance Project

Access and Participation

Our Inclusion Support Program provided additional support to several children during 2017

Implementation of the ‘No Jab No Play’ requirements

We continued to advocate for families and responded to requests for additional support

The number of Early Start enrolments increased from 2016 to 2017

Co-location of a Bethany Family Support Worker at a Kindergarten, to provide direct support to vulnerable families

Quality and Innovation

Brought support directly to families at selected kindergartens from the Bay 93.9 Bethany Giving Tree Appeal

Continued focus on quality and compliance with 9 Kindergartens undergoing the DET Assessment and Rating Process with all being assesessed

as ‘meeting’ or ‘exceeding’ the National Quality Standards

Each Kindergarten reviewed and developed a Quality Improvement Plan for 2017

BKS hosted a School Readiness Forum Highly Skilled Collaborative Workforce We implemented a whole of agency and coordinated approach to professional development and learning for our staff. This included:

Quarterly sessions for Kindergarten Leaders

a new secure staff page accessed via the website

Refocusing the Beginning Day termly Professional Development available to all staff

The establishment of network social learning circles

The launch of a Staff Facebook page

Weekly practice reflections

Provision of funded first aid training

Termly bulletins and professional reading

On-site coaching and mentoring focused on the approved learning frameworks

Strong Partnerships

Revised the PAG Reference Group

Participated in the COGG Facility Planning Working Groups for Highton, Hendy Street and Drysdale

Worked in partnership with the local area planner – CoGG.

Implemented joint advertising and coordinated enrolment processes with local EYMO’s

Working in partnership with DET

Furthered partnership work with Gateways in responding to the needs of children with a disability or additional needs.

Financial results and strategy The 2017 financial results for Bethany

Kindergarten Services Ltd. (formerly the

Geelong Kindergarten Association Ltd.) shows

a loss of $408,116 for the year ended 31

December 2017. Revenue increased 6% to a 7

year high of $6.2M, however this was more

than offset by an 8.6% increase in

expenditure.

The key cost drivers were an 11% increase in

staff costs, including increase in the staffing

relief costs to cover sick leave and personal

leave, and one off costs related to the

establishment of BKS including legal and

project expenses.

During 2018 a review of finance systems will be conducted including analysis of the financial performance and position. Looking forward we are actively working towards lowering and eliminating the operating loss and returning to a sustainable position by 2020. This will be achieved by:

reviewing the operating model for the

kindergartens for implementation in 2019

consolidating suppliers to achieve

economies of scale and review of

overhead and operating costs

leveraging efficiencies of the integrated

corporate services structure with BCS

enhanced marketing, promotion and

enrolment processes

Conclusion I would like to acknowledge and thank the Bethany Kindergarten Services staff for their continued commitment and dedication to providing quality early childhood programs to children from across our region. I would also like to thank the volunteer Parent Advisory Group members who support us in achieving our mission to develop every child’s potential. On behalf of the Board, I am pleased to present the 2017 Annual Report of Bethany Kindergarten Services Ltd.

Lachlan McColl Board Chair Bethany Kindergarten Services

2017 List of Kindergartens (Associate Members)

Allanvale Preschool Centre

Beacon Point Preschool

Bell Park Kindergarten

Bell Post Hill Kindergarten

Bellevue Preschool Centre

Breakwater Preschool Centre

Drysdale Preschool Centre

Fyans Park Kindergarten

Grovedale Kindergarten

Herne Hill K-6 Early Learning Centre

Highton Preschool Centre

Kirralee Kindergarten

Lara Kindergarten

Leopold Kindergarten

Normanby Street Preschool Centre

Ocean Grove & District Preschool

Portarlington Preschool

Rix Street Kindergarten

William Hovell Preschool

William Parker Memorial Kindergarten

Woodlands Preschool Centre

Bethany Kindergarten Services Ltd.

Director’s Report 2017

The Directors present their report on the Company for the year ended 31 December 2017.

Governance

The Board of Directors is responsible for

corporate governance and assumes legal

responsibility for the Bethany Kindergarten

Services Ltd. The members of the Board of

Directors are required to attend scheduled

meetings throughout the financial year.

Composition of the Board

The Board shall be comprised of not less than

six and not more than 11 Directors, unless

otherwise determined in accordance with the

Constitution. There shall be a maximum of

nine elected Directors; and two Appointed

Directors appointed in accordance with Article

16.3 of the Constitution.

In accordance with the Constitution the Board

appoints a Chief Executive Officer with such

powers and responsibilities as the Board

determines.

Objectives and Strategy

The objectives of BKS are to provide high

quality early childhood education programs to

kindergarten age children.

The strategy to achieve this includes a focus

on:

program sustainability and responsiveness

access and participation for children with

additional needs

quality and innovation

strong partnerships with key stakeholders

developing a highly skilled collaborative

workforce.

Principal Activities

The principal activities of the Association

during the financial year were to provide early

childhood educational programs to

kindergarten age children.

No significant changes in the nature of the

principal activities occurred during the

financial year.

Dividends

No dividends have been paid or are proposed

to be paid by the Company. Distributions to

members are prohibited under the provisions

of the Constitution.

Review of operations

The net Operating Deficit for the 2017 year

was $408,116

Significant changes in the on the state of

affairs

On May 31 2017 a new constitution was adopted by former Geelong Kindergarten Association Ltd. to form Bethany Kindergarten Services Ltd. (BKS) a subsidiary company of Bethany Community Support Inc. (BCS). Environmental regulation

The Directors are of the opinion that the

Company complied with all relevant

environmental legislation so far as it concerns

the operations of the Company.

Directors

The following persons were Directors of the Company during the financial year.

Directors of the Geelong Kindergarten

Association up until 31 May 2017.

Ms Chris Faulkner

Appointed September 2014, MPH, Bs

Chair of the Board of Directors

Director of the Risk and Compliance Sub

Committee

Mr Lachlan McColl, BCom, CA, FFin, MAppFin

Appointed May 2012

Deputy Chair of the Board of Directors

Chair of the Finance Sub Committee

Mr David McDonald, BCom, CA

Appointed September 2013

Director of the Finance Sub Committee

Mr Ben Broadhead, LLB, AICM

Appointed October 2013

Chair of the Risk and Compliance Sub

Committee

Ms Tara Paatsch, BA, LLB

Appointed May 2016

Ms Fiona Garrett

Appointed May 2014

Ms Gwyneth Morrison, BA

Appointed May 2016

Mr Adam Williams

Appointed May 2016

Anneliese Knell, BA, Grad Dip Psych

Appointed October 2016

Managing Director

Directors of Bethany Kindergarten Services

commencing from May 31 2017, unless

otherwise stated.

Mr Lachlan McColl, BCom, CA, FFin, MAppFin

Chair of the Board of Directors

Mr Grant Boyd, BA(Ed), G.D.Spec.Ed.,

G.D.Child Adol.Psych., GAICD.

Chief Executive Officer

Mr Jon Mamonski, BCom., BBusMark.

Deputy Chair of the Board of Directors

Ms Tara Paatsch, BA, LLB

Mr Geoff Caddy, BEChem (Hons)

Mr Fred Clarke, Dip.Teach.

Ms Courtney Vodopic, BA, GCertCrim

Commenced September 2017

Ms Catherine Duffield, BEd

Commenced September 2017

Directors and Auditors indemnification

The Company has not, during or since the

financial year, in respect of any person who is

or has been an officer or auditor of the

Company or a related body corporate:

a) indemnified or made any relevant agreement for indemnifying against a liability incurred as an officer, including costs and expenses in successfully defending legal proceedings; or

b) paid or agreed to pay a premium in respect of a contract insuring against a liability incurred as an officer for the costs or expenses to defend legal proceedings.

BKS Directors are insured by the Victorian Managed Insurance Association Fund (VMIA).

Director’s benefits

No Director has received or become entitled

to receive, during or since the financial year, a

benefit because of a contract made by the

association with a Director, a firm of which a

Director is a member or an entity in which a

Director has a substantial financial interest.

Meetings

Director

Board meetings

Number of meetings entitled to attend

Number of meetings attended

Geelong Kindergarten Association

Adam Williams 5 1

Anneliese Knell 5 5

Ben Broadhead 5 2

Chris Faulkner 5 5

David McDonald 5 5

Fiona Garrett 5 2

Gwyneth Morrison 5 3

Lachlan McColl 3 3

Tara Paatsch 5 5

Director

Board meetings

Number of meetings entitled to attend

Number of meetings attended

Bethany Kindergarten Services

Catherine Duffield 3 3

Courtney Vodopic 3 3

Frederick Clarke 5 4

Geoff Caddy 5 5

Grant Boyd 5 5

Jon Mamonski 5 4

Lachlan McColl 5 3

Tara Paatsch 5 5

AUDITORS’ INDEPENDENCE DECLARATION

TO THE MEMBERS OF BETHANY KINDERGARTEN SERVICES LIMITED

As auditor of Bethany Kindergarten Services Limited for the year ended 31 December 2017, I declare that, to the best of my knowledge and belief, there have been: (a) No contraventions of the auditor independence requirements of the Australian

Charities and Not‐for‐profits Commission Act 2012 in relation to the audit; and

(b) No contraventions of any applicable code of professional conduct in relation to the audit.

Stephen Kirtley Director

Dated this 25th day of May, 2018

Davidsons Assurance Services Pty Ltd 101 West Fyans Street Geelong, Victoria 3220

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Typewritten Text

Bethany Kindergarten Services Limited ACN 071 122 524

Directors Declaration The Directors of the Company declare that:

1. The Financial Statements and notes for the period ended 31 December 2017 are in accordance with the Australian Charities and Not-For-Profits Commission Act 2012; and (a) give a true and fair view of the financial position and performance of the company;

and

(b) comply with Australian Accounting Standards and the Australian Charities and Not-for-Profits Commission Regulation 2013.

2. In the Directors' opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This Declaration is made in accordance with a Resolution of the Board of Directors, made pursuant to Subsection 60.15 (2) of the Australian Charities and Not-for-profits Commission Regulations 2013. Lachlan McColl Director / Chairperson Grant Boyd Director / Chief Executive Officer

Dated this 24th day of May 2018

   

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF BETHANY KINDERGARTEN SERVICES LIMITED

Opinion

We have audited the financial report of Bethany Kindergarten Services (“the company”) which comprises the balance sheet as at 31 December 2017, and the income statement, statement of changes in equity and cash flow statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration.

In our opinion, the accompanying financial report presents fairly, in all material respects, the financial position of Bethany Kindergarten Services as at 31 December 2017 and its financial performance for the year then ended in accordance with the accounting policies described in Note 1 to the financial statements, and the requirements of the Australian Charities and Not-for-profits Act 2012.

Basis for Opinion

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

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

Other Information

Those charged with governance are responsible for the other information. The other information comprises the information included in the Directors’ Report for the year ended 31 December 2017, but does not include the financial report and our auditor's report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Board for the Financial Report

The board of directors are responsible for the preparation and fair presentation of the financial report in accordance with the financial reporting requirements of the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act) and for such internal control as the committee determines is necessary to enable the preparation and fair presentation of a financial report that is free from material misstatement, whether due to fraud or error.

   

In preparing the financial report, the board is responsible for assessing the entities ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the board either intends to liquidate the association or to cease operations, or have no realistic alternative but to do so.

The board is responsible for overseeing the entities financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Report

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

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/Home.aspx. This description forms part of our auditor's report.

Stephen Kirtley Director

Dated this 25th day of May, 2018

Davidsons Assurance Services Pty Ltd 101 West Fyans Street Geelong, Victoria 3220