Annual Report
2014/15
Principal Office Victoria
Principal Office Queensland
267 – 269 High Street
Preston 3072
T: (03) 8650 7000
F: (03) 8650 7077
E: [email protected]
www.interactaustralia.com.au
2 Coghlan Court
Maroochydore Queensland 4558
T: (07) 5456 9500
F: (07) 5445 1153
E: [email protected]
www.interactaustralia.com.au
Organisation Directory
(as at 30 June 2014)
Organisation
Interact Australia
ACN 072 232 083
ABN 47 072 232 083
Service Areas
Community Services
Employment and Training Services
Social Policy and Community Planning
Directors
Mr Bruce Argyle (Chair)
Mr Terry Bramham
Ms Julie Busch
Mr Keith Grant
Senior Management
Mr Andrew James
Chief Executive Officer
Company Status
Interact Australia is a public company
limited by guarantee. The organisation has
Public Benevolent Institution status and is
endorsed as a Deductible Gift Recipient.
From the Chair
Interact Australia, established in 1991, now moving into
its 25th year of operation, continues to operate as
an innovative, responsive and leading not for profit
organisation. With a range of programs and services in
the community sector, Interact employs over 150 staff in
offices in Victoria and Queensland.
Interact works in partnership with individuals and
communities to build capacity and promote wellbeing
and social inclusion. In so doing we continue to strive to
enhance the quality and to continue to expand the range
of our services.
It has been a year of significant change for Interact with
the loss of some training programs, the closure of the
RTO and the sale of properties in Balwyn, Queensland
and LaTrobe Street. The decision to proceed with
property divestments of non service delivery assets
was taken to secure the future sustainability of the
organisation and to refocus on core business.
A thorough review and analysis of the Interact motor
vehicle fleet resulted in the decision to enter into a
partnership with Fleet Partners to manage our vehicles
at a lower cost and to again allow us to concentrate on
essential service delivery.
The year has seen changes at a governance level too with
the expanded role of the newly titled Governance and
Risk Committee, chaired by Director Terry Bramham
and the establishment of the new People and Culture
Committee, headed by Director Julie Busch. These
changes have significantly increased our capacity to
ensure that related key Board functions are managed
efficiently and effectively. The Finance Committee,
led by Director Keith Grant, has continued to play a
key role in overseeing the return of Interact to a viable
organisation in the future. An audit and gaps analysis of
Director qualifications and experience affirmed the skills
breadth and depth across the Board.
Perfect attendance by Directors highlights the levels of
commitment to Interact and the Board also introduced
three year terms with a nine year maximum term to
ensure healthy change.
Further changes are in the pipeline with a new website
to be launched in August and the relocation of our
corporate offices to Preston later in 2015 which
will link our central functions more closely with on
the ground service delivery. At the same time the
organisation is working diligently to ensure it is well
prepared for the huge changes that will take place
with the implementation of the national disability
insurance scheme (NDIA) and its client centred
focus. In the meantime our services to expand in key
growth corridors and we are fortunate to have a very
experienced team of staff, ably led by Andrew James as
CEO.
Interact continues to be an active partner in the
Stepping Up consortium which continues to provide
collaborative cutting edge services in some challenging
areas.
It has been a very demanding year with increased
workloads being carried by all. I would like to take this
opportunity to recognise the wonderful work being
undertaken by our staff on a day by day basis and to
thank my fellow directors for their commitment to good
governance and leadership.
Bruce Argyle
Chairperson
01
Chief Executive’s Report
Welcome to the Interact Australia (ltd) Annual Report
for 2015.
Once again, a tumultuous year of ongoing change
at Interact. This was my second full year with the
organisation after joining in 2013 and we have
continued to work diligently in our drive to return the
company to a long term sustainable business. Building
on our incredible journey of 2014, here are some of the
major reforms and accomplishments completed during
the year;
•
•
•
•
•
•
02
Finalised the sale of our Marrakesh Apartment business in Surfers Paradise;
Continued to restructure our businesses and close the underperforming Croydon site;
Sold our Balwyn property on a Leaseback for 12 months with an exit of that program scheduled for August 2016;
Entered a new Lease of our Fairfield site with DHHS for additional 5 years until 2019;
Relocated our Hoppers Crossing program to meet ongoing growth requirements through the North West. This site has been growing faster than any other provider in the West;
Relocated our Preston Employment office to a
larger site to cater for increased demand and growth, in addition to in future housing our Corporate Head Office from late 2015;
• Closed multiple Employment sites in Latrobe Valley
and Ballarat after CoAct (Job Futures) were unsuccessful in their JSA tenders with DEEWA;
• Successfully restructured our DES business throughout Melbourne in response to the loss
of JSA contracts;
• Successfully completed a restructure of the Queensland and Victorian Community Services programs;
• Entered a partnership with New England University to provide for development opportunities for our staff and awarding of scholarships;
• Received approval from the South Australian
government to become a provider of Disability Services;
• Successfully integrated a new Payroll system across the group;
• Provided technology upgrades including the use of new Smartphone’s for frontline staff;
• Continued to receive excellent Audit results across both our Employment and Community Services Divisions;
Financially whilst we have delivered another loss for
the year, we have significantly closed the trading gap in
the last few years to the point where we are expecting
virtually a breakeven budget position for 2015 – 2016.
This is a significant achievement and will place
the organisation in a more sustainable position
moving forward.
Our Community Services Division continues to
experience growth in Queensland and throughout the
North Eastern suburbs of Melbourne, representing
the faith we have in our people, our programs and our
exceptional Brand reputation for delivering innovative
programs.
Whilst the organisation suffered from the loss of our
Employment JSA contracts, due to CoAct (Job Futures
Ltd) being unsuccessful in its tender with DEEWR,
we have restructured our remaining DES contracts
which continue to perform in a challenging
Employment environment.
We are on the cusp of tumultuous industry changes
with the implementation of the NDIS government
reforms imminent. We believe that we are well placed
to transition through this landscape due to the effort
of our people in being proactive towards our planning
and change.
Our consortium business, Stepping Up, an award
winning collaboration between four fantastic Agencies,
Odyssey House, Taskforce, Youth Projects and
ourselves, continues to deliver innovative and cutting
edge programs in the Alcohol and other Drugs space.
We are proud to be part of this incredible program,
with great staff and leaders.
During the year, I was very fortunate to be involved
with the Edmund Rice Foundation and completed a
Leadership Immersion Program in the slums of Nairobi,
in Kenya during March. An incredible, emotional
journey of discovery, visiting and working in the local
schools and the Mary Rice disability centre. These
programs are fully patronised by children from the most
impoverished areas in the world and they provide much
needed hope for those they serve. Further information
can be found on our website, including a photo and
video presentation of my insights.
I wished to express my sincere appreciation and
gratitude to the Board and Senior Management for their
continued support and their belief in me as their CEO
and the significant reforms that have been required over
the last few years. It has been an enormous challenge to
restore the organisation to health and we are doing well.
Their leadership has been instrumental in the improved
position across our organisation. I look forward to the
next 12 months, where we will continue to consolidate
our position for the future.
Andrew James
Chief Executive Officer
03
About Interact
Interact is committed to providing the highest quality services to our clients and a
safe, healthy and supportive workplace for our employees.
This commitment is made possible through our dedicated staff, consistent services,
quality assurance systems, continued protection of the environment and its resources,
and ongoing investments that support the work we do.
We work in partnership with individuals and communities to provide opportunities
for meaningful community participation and enhanced quality of life.
Interact is proud to be a member of the communities in which we operate.
At Interact we value:
• service excellence
• building productive relationships with our clients, partners and each other
• always seeking better ways to perform our work
• productive and accountable teams that deliver results
• recognition of performance and the celebration of success
• a business approach to all that we do
Interact works in partnership with the Government, Corporate and Not-for-Profit
sectors to create opportunities and choice for individuals and communities.
04
Our vision is:
Inclusive, accessible and healthy communities.
Our mission is:
Interact Australia works to promote social inclusion, health
and well being, prioritising people with the highest needs and
supporting people to achieve their full potential.
Purpose Statement
Enhance lives through participation, opportunity and choice.
We work alongside people to achieve social inclusion and
equality.
Values
• Respects...
• Inspires...
• Creates...
• Achieves...
“....with me”.
Strategic Objectives
Seven key Strategic Objectives have been identified as
reflecting our goals and aspirations for Interact Australia. These
Objectives are designed to capitalise on our successes to date
and respond to the opportunities and challenges of the future.
The key Objectives are expanded upon here in further detail;
Our Strategic Objectives are:
• Interact will continue to work towards a long term
sustainable financial position through excellent
management of our scarce resources. Move towards
a Service Organisation with a nimble, lean, disciplined
business model, with appropriate liquidity levels to support
our organisational requirements. Manage tightly our Budget
process to ensure trading results are in a sustainable surplus.
Ensure Management have the tools, support and expertise
to be accountable and appropriately oversee their fiscal
responsibilities;
• Interact will transition its current service delivery support
models towards individualised, person centred and self
directed programs. Look to expand its range of services
(eg. Social Enterprises, Indigenous Employment Programs) to
improve participation and social inclusion;
• Develop an appropriate marketing presence, or Service
Proposition (Unique Value Proposition – UVP) to market
that identifies and leverages our point of difference. That
builds upon our uniqueness and willingness to provide a
better service than our competitors. Need to include Brand
recognition and Social Media capability that shows innovation.
Measure, track and report (internally & externally) participant
outcomes to evidence our preparedness to meet and deliver
participant outcomes;
• Be NDIS ready. Build, develop and integrate appropriate
systems, disciplines and supports that allow our workforce
to deliver our programs and can track individualised
funding packages. This needs to include corporate and
frontline tools that make it easy for our people to deliver the
necessary supports. Our corporate organisational systems
need to be integrated across the business to maximise ease of
service delivery and operational excellence;
• Interact will develop and pursue a People and Staff
culture that is reflective of our Values and Purpose
Statement. Right people, Right roles. We will be a
disciplined business that is Accountable for what we do
and how we do it. We need to continue innovation in an
exciting and inspiring workplace that reflects positively on the
experience of our participants and their families/carers. We
will support and encourage our people to achieve professional
and personal goals in an organisation that rewards high
performance. We need to take our people on a journey to
the edge of their full potential, with the provision of suitable
development opportunities;
• Interact will work in partnership with its key stakeholders
to ensure we maintain an outstanding, high quality
provision of community services. These will include
Carers, Families, Community Groups, Government Agencies,
Corporate and Not for Profits. Continue to drive existing
Consortium alliances and develop new opportunities as they
present. Ensure maximum engagement from all levels of
stakeholders with whom we “Interact”;
• Ensure good Corporate Governance across organisation
and Board. Efficient and inspirational Leadership through
management of appropriate committee’s and forums that
ensure a faultless and transparent governance approach.
Ensure an integrated cross functional business that is
collaborative and supportive;
• Seek revenue growth opportunities through new
contracts and emerging markets. Also continue to pursue
scale opportunities through acquisition, merger or absorption
as they present;
05
Corporate & Commercial Services
During the 2015 financial year, the organisation continued its
drive to be a lean, nimble and sustainable ongoing business.
Presently, the organisation is debt free and in a good financial
position. Liquidity levels are being well maintained, with a
healthy cash balance of circa $1.5m. Our Current Ratio, a
measure of liquidity, is well in excess of that required to meet
our day to day liabilities. Working capital is strong.
We have continued to restructure our balance sheet during
the year by selling longer term fixed assets and converting
these to cash which was utilised to assist our trading position
and restructuring costs. In addition, we either closed or sold
businesses that have not been performing or do not fit within
our core business model.
Profit & Loss Statement
As the organisation evolves into a more financially sound
position, we will need to focus on future investment into
new markets and business growth. Some capital will also be
required for NDIS readiness, but we are well placed to fund
this requirement.
We have worked diligently under the leadership of our CEO to
significantly reduced our losses over the last few years and are
quite confident of meeting a virtual breakeven position for the
2016 financial year.
I wanted to convey appreciation to the Board and Corporate
Team for their excellent work and ongoing support.
A financial summary for the Year to 30 June 2015 is provided in
the table below:
2015
2014
$’000
$’000
• From Employment & Training Services
2,318
2,087
• From Community Services
7,454
7,649
0
1,489
Income
• From Apartment Management Businesses (since sold)
• From Investments and Interest
• Net Gain/(Loss) on disposal of property and other non-current assets
Total Income
44
12
393
570
10,209
11,807
Less Expenses
• Employment Costs
8,047
9,199
• Other Trading Expenditure
2,468
4,222
5
141
134
145
10,654
13,707
(445)
(1,900)
Total Assets
2,192
3,965
Total Liabilities
1,484
2,811
708
1,154
• Interest and Other Finance Costs
• Depreciation and Amortisation expense
Total Expenses
Net Group (Deficit)
Balance Sheet Summary as at 30 June 2015
Net Equity
06
Community Services
We have a range
of services and
programs for
everyday life
07
Community Services work in partnership with people who need support to maximise
their health, wellbeing and opportunities for community participation and social
inclusion. Our trained and experienced staff support a variety of community
programs that provide opportunities for people to develop skills and interests,
increase their social networks and maximise the choice and control they have
over their own lives. We work with people with disabilities, people with Acquired
Brain Injury (including TAC clients), people with mental health issues, offenders
and ex-offenders, young people, older people and people who are transitioning
from one phase of life to another.
Service Model
Our model of service delivery is both person-centred and
self-directed. We believe that in order to participate and
contribute as equal citizens people must have choice and
control over the planning, funding and support they need to
go about their daily lives.
Self-directed means that the individual is in charge of their
planning, funding and support and wherever possible, they
identify, design and oversee the support and resources they
require.
Person-centred means starting with the person, and where
appropriate, their significant others. We take into account their
individual circumstances and offer integrated planning and
service coordination.
Interact ensures that supports and resources are provided
based on people’s needs, goals, lifestyle choices and
aspirations.
Respite
Community
Based
Activities
Arts
Programs
Community/
Personal
Care
Program
Recreation
and
Leisure
Individual /
Community
Volunteer
Programs
Individual
Support
Planning
(ISP)
Circles
of
Support
Behaviour
Programs
Community
Access/ Day
Program
08
Employment
and
Training
Wellbeing
Programs
Community Services
Number of participants 244
Number of support staff 138
Support hours
172426
With support services based throughout Victoria and
Queensland, Interact Australia continues to improve the quality
of services through our practice framework which is being
implemented throughout the organisation. Our support model
provides employees with clear guidance and tools to ensure
they incorporate evidence based best practice approaches to
achieve positive outcomes for individuals and their families.
This year has seen another year of consolidation while
maintaining a focus on our core business. Interact Australia
will continue to establish new roles, systems and processes
to ensure that we are well positioned to undertake growth
opportunities in emerging markets.
There remains strong demand for Interact Australia’s services
through our commitment to person centred practice. In Victoria,
Interact Australia has experienced growth in individualised self
directed supports in the West (Hoppers Crossing, Melton) and
the North and East regions (Whittlesea). Queensland disability
support services also continue to grow throughout South East
Queensland (Brisbane, Sunshine Coast and the Gold Coast).
Support options
Personalised Support
Interact Australia offers a wide range of disability support
services to adults, children, young people and their families
to assist in achieving their goals. Our values surrounding
community inclusion and positive stakeholder management
are apparent through the existing relationships we hold with
various governmental departments, community organisations
and services across the broader community.
The organisations service model is oriented towards
service provision that is collaborative in nature not only with
participants and families, but also other service providers,
health professionals, government departments and any other
formal/informal supports.
Areas of support may include:
• Daily living activities
• Connecting to social and community groups that
are of interest
• Undertaking further education
• Exploring employment, work experience and
volunteering opportunities
• Building positive and meaningful relationships in
the community
• Post school transition support
• Future planning
• Holiday camps
Community Hub
Interact Australia provides a group based day program
to adults living in Victoria from a purpose built site in
Fairfield (Victoria).
We offer a range of programs that promote community and
social inclusion, partnerships and participation with a strong
focus on maintaining and enhancing individuals’ quality of life
and personal wellbeing.
Interact Arts
Interact provides an exciting range of creative opportunities for
both younger and older adults with a disability to develop their
skills as Arts practitioners.
Interact adopts an inclusive approach designed to enhance
the lives of people who have a disability or are experiencing
social exclusion to develop their artistic abilities and explore
opportunities for self expression. The activities also foster the
development of fine motor skills, communication skills, social
and life skills as participants build their confidence and self
esteem. Interact emphasises engagement in collaborative
projects with other arts and community organisations.
Our artists are encouraged and supported to participate in
public cultural events in their community, showcasing their
artwork and performance productions.
Creative Activities
Participants of the Fine Arts program create, exhibit and sell
their drawings, paintings, sculptures, and photographs.
Areas of opportunity to participate include;
• Multimedia – Produce short films and develop animation.
• Music – Learn an instrument, perform music and record
a CD.
• Performances – Learn and create pieces including drama,
puppetry and dance.
• Ceramics – Create pottery, mosaics and work with clay
and sculpture.
• Communication – Learn media and communication skills
through the safe use of social media and technology.
• Advocacy – Actively participate in advocacy meetings.
Collaborative projects:
Nambour Men’s Shed (Queensland)
Fairfield Community Garden (Victoria)
09
Employment Services
Interact’s Employment Division
has been delivering services
to unemployed people with a
Disability through the provision
of specialised employment services
assisting with economic and social
inclusion over the past 21 Years.
10
Interact’s Employment Division has been delivering tailored employment & training services to
those most disadvantaged across the Northern Suburbs of Melbourne for 21 years. As a member of
CoAct (Job Futures) we are continuing to strengthen our commitment to ensuring that those most
in need in our communities, are gaining opportunities and services that will enable them to effect
change within their lives. Currently we deliver 2 DES (Disability Employment Services) across our
Epping, Heidelberg, Preston & Eltham sites.
Our Programs
2015 has been a year of significant change for our
Employment Division. With the end of the JSA program,
we ceased operation across La Trobe Valley & Ballarat and
are now focused on Disability Services in Metro Melbourne
(Northern Suburbs). We have also seen the rebranding of
the Job Futures Network into the new CoAct brand.
Many of these people also suffer from a more traditional
medical condition with increases in the occurrence of Insulin
Dependant Diabetes, Epilepsy, Stomach Cancer, Kidney
Disease and Ischemic Heart Disease. We actively work with
our clients and prospective employers to minimise the impact
that employment may have on exasperating their conditions.
Cultural Diversity
Job Services Australia (JSA)
30th June 2015 saw the JSA program making way for
the newly created Job Active program (JA). Through our
partnership with CoAct we applied to deliver the new JA
program across our existing regional locations, unfortunately
we were unsuccessful in securing these new tenders. As a
result we closed our Operations in Ballarat, Morwell, Warragul
and Wonthaggi. For over 20 years we have been operational in
Ballarat and 10–15 years in La Trobe Valley.
Culturally, while the majority of our clients are born in Australia
(12% Australian born are first generation), we have an increase
in clients coming from Middle Eastern & African Countries,
many of which are dealing with Post Traumatic Stress Disorder
along with language and cultural barriers. We are seeing an
increase in referrals of clients coming from Iraq, Lebanon,
Slovenia, Bosnia, Egypt & Syria while there has been a decline
in clients coming from the UK, Italy, Greece and South Africa.
Employment & Industry
While we are saddened that we are unable to continue our
services in Regional Victoria, we are proud that we have been
able to work closely with these communities for such extended
period of time. Our thanks go out to those organisations
that supported both Interact and our clients through out our
journey.
Disability Employment Services (DES) Plenty
Interact Employment & Training in partnership with CoAct
(JobFutures) manages both Generalist Disability and NAPL
(Neurological, ABI, Psychological and Learning Disability)
Employment Services contracts across the Northern
Metropolitan suburbs of Melbourne. 2015 has seen significant
growth at all our sites which has seen us increase our Eltham
site to 3 days a week with our part time Preston site becoming
a fulltime service. Both our Epping and Heidelberg sites have
also had a significant increase in referrals.
Disability Cohort
Although every client has a Primary Disability, the majority have
a number of them that need to be managed and addressed in
order to secure sustainable employment. 49% of clients that
walk through our door have a diagnosed mental illness as their
primary disability, with a significant increase of clients suffering
Schizophrenia, Bi-Polar, Autism and Personality Disorders. In
order to provide a more holistic service, in 2015 Interact and
Open Minds Psychological Services created a partnership
which sees psychological services being imbedded at our
Epping, Heidelberg and Preston sites. This is proving to be a
highly successful program with clients more likely to undertake
much needed counselling in a relaxed and known environment.
Working with some key Employers, we have been successful
in securing sustainable employment for clients, a high
percentage of which remain in employment 52 weeks after
the initial placement. It is vital to the work we do to source
employers who are compassionate and understand the needs
of our clients. Magic Hand Car Wash is one such employer –
Joe, Gus & Mark have so far, employed 8 of our clients, 7 of
which are still working there today and 1 has been promoted
to a Team Leader Role. Joe, Gus & Mark, while understanding
that our clients have a disability, prefer to focus on what each
individual can do. The team at Magic Hand Car Wash are to be
congratulated on their commitment to giving people a go no
matter what their circumstances might be. We look forward to
creating more opportunities for people with disabilities with the
Magic Hand Car Wash Management team.
While the Hospitality & Retail industries continue to employ
people with a disability, we have seen a substantial increase
from 2% to 10% of clients who have gained employment within
the Disability & Community Services Industry. The majority of
these placements have been as Disability Support Workers or
Personal Care Attendants. There has been a fall in the amount
of opportunities within the Warehousing, Administration and in
particular Manufacturing Industries. Traditionally we have relied
on these industries for outcomes for our clients, with these
types of roles diminishing, we are re-training clients in the skill
shortage areas of Disability, Security and Assett Maintenance
industries.
11
Primary Disability
ENDOCRINE &
RESPIRATORY
OTHER
4%
3%
CANCER
3%
IMMUNE &
GASTROLOGICAL
3%
CARDIOVASCULAR
5%
NEUROLOGICAL
11%
MENTAL HEALTH
49%
MUSCULOSKELETAL
22%
12
Placement Industries
EDUCATION
4%
BEAUTY
2%
CAR DETAILING
7%
HOSPITALITY
14%
ASSETT MAINTENANCE
7%
RETAIL
11%
SECURITY / IT
9%
ADMINISTRATION
7%
CHILD CARE
2%
CONSTRUCTION
7%
HORTICULTURAL
2%
MANUFACTURING
5%
DISABILITY
10%
WAREHOUSING
14%
13
Our Collaborative Projects
Interact is committed to establishing and maintaining a network of
stakeholders from all sectors for the delivery of mutually beneficial
programs and projects.
Stepping Up Consortium
Stepping Up Highlights 2015
Interact is partnered with Taskforce, Odyssey House and
Youth Projects, in an award winning Not for Profit Consortium
that provides advanced Alcohol and Other Drug Programs
across Melbourne.
As always 2015 was an exciting year at Stepping Up
with our Alcohol and Other Drug programs receiving
new contracts until 2018 and Partners in Recovery to
2019. We were also able to establish a new intensive
day treatment program in Geelong for Ice and other
substance users. Altogether this has allowed us to
provide over 2,336 AOD treatment episodes, and
service around 70 clients with severe and persistent
mental illness in 2015 meeting all our targets with the
Department of Health and Human Services.
The Consortium is managed by the 4 CEO’s of each
agency and has a General Manager who runs the day to
day operations.
Established in 2008 the Stepping Up Consortium exists as a
vehicle to advance the vision and mission of its members, and
to make a bigger difference as a consortium than we can as
individual agencies. Stepping Up delivers services to people
with complex needs at the intersection of addiction, disability,
mental health, unemployment and justice sectors.
As a consortium Stepping Up has had a renewed
focus on strategic planning with a strategic review
conducted by an MBA intern, and Theory of change
workshop with Think Impact. Through this process we
have been able to appoint a new Innovation & Business
Development Manager.
We conducted staff and consumer surveys which
indicate that our programs have been well received
during a difficult time for the sectors.
You can find a copy of the consumer survey on our
website at:
www.stepping-up.org.au/alcohol-treatment.htm
Stepping Up was also very excited to fully fund the
launch of two new overdose prevention videos available
online at:
www.penington.org.au/overdose-preventionresources/
14
15
Get Involved
There are a number of ways
that you can get involved with
Interact Australia and support
our innovative work.
Visit our website for
further information:
www.interactaustralia.com.au
16
Partnership
Inclusion & Participation
Building Capacity
Dignity & Respect
Choice
Partnership
Inclusion & Participation
Building Capacity
Dignity & Respect
Choice
www.interactaustralia.com.au