Novita Annual Report 2006 (PDF - Large file - 2Mb)

AnnualReport2006connecting kids with their worlds

ourvisionBy 2015, Novita will be a recognised and celebrated worldleader in the research, development and provision ofinnovative children’s services.ourpurposeconnectingkids withtheirworlds04060810131920Our History1939 - 2006Highlights2005 - 2006CorporateGovernanceOrganisational reportPresidentOrganisational reportChief ExecutiveOrganisationalChartTherapyServices

ourstrategic directions1. Opening our doors to new clients, new challengesand new solutions2. Listening, learning and achieving3. Fostering creativity and productivity leading tosustainability4. Leading our industry through partnership and sharing5. Connecting kids with their worldsPatronVice PatronSolicitorsHer Excellency Marjorie Jackson-Nelson AC, CVO,MBE, Governor of South AustraliaThe Right Honourable The Lord Mayor of AdelaideMr Michael HarbisonWallmans Lawyers173 Wakefield Street, Adelaide SA 5000Minter Ellison1 King William Street, Adelaide SA 5000Annual General MeetingThe 2006 Annual General Meeting of NovitaChildren’s Services Incorporated will takeplace at 2pm on Tuesday 21 Novemberat Regency Park Centre, 171 Days Road,Regency Park.BankersBankSA97 King William Street, Adelaide SA 5000AuditorsKPMG151 Pirie Street, Adelaide SA 500028344248557778Family SupportServicesNovitaTechMarketingCorporateServicesFinancial Statementsand notesFinancialSummaryMembersand Benefactors

0NovitaChildren’s Services is a recognised and celebratedworld leader in the provision of therapy, equipment and familysupport services to more than 1000 South Australian childrenliving with physical disabilities or acquired brain injury.As Novita continues to build on its reputation as one of SouthAustralia’s premier children’s charities, the organisation drawson its rich history to help it move into the future with a renewedsense of purpose.1939 - 1969NovitaHistory1939 The Crippled Children’s Association of South Australia(CCA) was incorporated, and was initially supported by theSouth Australian Government with a grant of £2,000 perannum. Somerton Home was established for children withpoliomyelitis, more commonly known as polio.1946 A school for children with cerebral palsy wasestablished at the Adelaide Children’s Hospital, along with acerebral palsy clinic under the auspices of CCA.1951 Somerton Home began to provide services to childrenwith disabilities other than polio, for example, neuromusculardiseases.1952 Ashford House was purchased with State Governmentassistance and used as a school and therapy centre forchildren with cerebral palsy.1957 The introduction of the Salk vaccine saw the end of thepolio epidemic in South Australia.1970 – 19891970 A special committee was formed to look at the futureof the organisation and, in particular, to search for new andlarger premises.

01971 Building of the Regency Park Centrefor Physically Handicapped Childrencommenced.1976 Children were transferred fromSomerton Home and Ashford HouseSchool to the organisation’s premises atRegency Park. Regency Park RehabilitationEngineering was established.1988 A range of residential options wasdeveloped for children, including the use offoster families and community homes.1989 CCA celebrated its Golden JubileeYear. At that time, the Association employed329 staff, providing services to 196 daystudents and 516 children attendingoutpatient-style clinics as well as supporting118 families in their homes, 158 clients inemployment and training programs, and 24people in independent living arrangements.1990 - 19971992 The residential facility at RegencyPark Centre was closed, with all childrensupported at home.1993 A regional structure for children’stherapy services was developed. Serviceswere exchanged with the Spastic Centre ofSouth Australia, resulting in CCA providingtherapy for all children with physicaldisabilities in South Australia.1995 The CCA Options Coordinationservice commenced, providing supportservices – including respite care and homehelp – to CCA clients and their families.1997 CCA entered into partnership withthe Women’s and Children’s Hospital for theprovision of medical paediatric rehabilitationservices.1998 - 20042001 CCA implemented a new Executivestructure and Strategic Planning framework,paving the way for continued success in thefuture.2002 Demand for CCA’s servicescontinued to grow. As advocates for morethan 1000 clients and their families, CCAincreasingly found itself working withGovernment to raise awareness of theneeds of children and young people livingwith disabilities. The redevelopment ofRegency Park Centre commenced.2003 CCA worked in partnership with theSouth Australian Department of HumanServices to re-auspice its Adult TherapyService (Communication and TherapyServices) to the Independent Living Centre.Work on the redevelopment of RegencyPark Centre neared completion.2004 Members of CCA votedoverwhelmingly to change the Association’sname to Novita Children’s Services,reflecting a more contemporary viewof disability. The redevelopment of theRegency Park Centre was completed.2005 - 2006Novita determines that all staff andvolunteers must undertake a NationalPolice Clearance, demonstrating Novita’sunwavering commitment to providingoutstanding children’s services in a safeand protected environment.Novita expands its services through theAustralian Government-funded InclusionSupport Program, which will help up to400 children with disabilities, indigenouschildren and children from culturally andlinguistically diverse backgrounds to accessservices like child care, out of school hourscare and vacation care.The final touches were made to Novita’sdynamic new Strategic Plan, ready for itsofficial launch in the early stages of 2006/07.

0Organisation• The Novita Board welcomed Elizabeth Robinson to the role of President.Ms Robinson has been a member of the Board for three years andreplaced outgoing President, Jane Hyde in November 2005.• Novita continued to strengthen its brand recognition and carry on thehard work and reputation of the Crippled Children’s Association.• To demonstrate Novita’s ongoing commitment to child safety andprotection, the organisation has adopted a child protection policy, withall staff and volunteers now required to hold a current National PoliceClearance as part of their ongoing employment or contribution.Highlights2005-2006• Novita was again successful in meeting all the requirements to maintainour AS/NZS ISO 9001:2000 quality assurance certification.• Staff numbers increased during 2005/06 due to new positions beingcreated through organisational growth.Therapy Services• The new Inclusion Support Program was established, with Novita nowsupporting a wider range of South Australian children than ever before.• The highly successful Camp Yackety Yack was held for children usingAugmentative and Alternative Communication (AAC). The camp allowedkids and their families to meet new friends, practise their communicationskills and connect with other families in a safe and social setting.• Funding of $300,000 was provided to Novita by the South AustralianGovernment’s Office for Disability and Client Services to improve thelinks between health care services and children and families living with adisability.• Sharing the Fun, a joint Novita and YMCA activity program, wassuccessful in attracting funding for the next three years from theMacquarie Bank Foundation. Held at Novita’s Regency Park Centre, theprogram provides fitness and gym skills to primary school aged childrenin a safe and supportive environment.• Novita received a $1.5 million South Australian Government grantto clear its equipment waiting list. The grant, part of an $11.5 millionGovernment investment in disability services in this state, allowed Novitato provide more than 150 children with wheelchairs, communicationsdevices, home modifications and other specialist equipment.• Novita established a vital new Splints Program and updated its SingleSwitch Access Software library, thanks to generous funding receivedfrom Variety, the Children’s Charity.NovitaTech• NovitaTech led the way in a bid for a National Cooperative ResearchCentre in Technology for Independent Living.• NovitaTech Rehabilitation Engineer Toan Nguyen was named theAustralian New Zealand Association for the Advancement of Science

0(South Australian Division) 2005 Unsung ScienceHero, then went on to star on ABC TV’s NewInventors’ program.• NovitaTech appointed its first Divisional BusinessManager.• NovitaTech’s Research and Development team,in partnership with Novita’s Clinical ResearchDepartment, jointly presented the Novita ResearchDay as part of National Cerebral Palsy AwarenessWeek 2005.• NovitaTech Rehabilitation Engineer, David Hobbs,was awarded a 2005 ABC Australian Academy ofScience Media Fellowship.Family Support Services• Work continued with colleagues in the adultservice sector to ensure seamless transitions fromFamily Support Services to the appropriate adultOptions Coordination agency. Older Novita clientswere invited to participate in information forumsand training sessions focusing on independentliving and social skills.• The South Australian Government’s Office forDisability and Client Services provided a once-offgrant to help develop the Parent-to-Parent supportprogram, which will allow parents to network andoffer each other mutual support through groupsettings, the Internet and on a one-to-one basis.• For the third successive year, Family SupportServices has worked with Guides SA to runthe Edna Ayers Camp for girls with less severedisabilities.• Family Support Services convened NewBeginnings: Growing up with an Acquired BrainInjury, a two-day conference that featuredoverseas, interstate and local presenters and wasattended by more than 150 people.Marketing• Novita’s Convoy for Kids celebrated a new venue,new route and new date in 2006. Stars fromChannel 7’s Home and Away were among thethousands who joined in the fun and helped raise$25,000 for Novita’s families.• Novita’s flagship publication, Novita News,received a makeover and is now recognisedas a key tool for communicating with Novitasupporters. Each edition celebrates the courageof clients, the dedication of staff and volunteersand the generosity of the community and Novita’scorporate partners.• The 2006 Down Every Street Appeal raised anincredible $45,000 for Novita’s children. Auxiliariesand volunteer collectors across the state heldfundraising events and ‘rattled the tins’, whiledonation boxes were also located in Coles/BiLosupermarkets and BankSA branches. Radiostation Mix 102.3 showed their support with an onaircampaign and street crew collections duringthe appeal.• The Sports Challenge Foundation reached animpressive $1.5 million fundraising milestone,thanks to the success of their annual golf day,Legends of Football Showdown Dinner andexhibition football match.• Novita was again one of three charities tobenefit from funds raised at the 2005 Carolsby Candlelight. Novita also played a key role inorganising the event and its associated golf day.• Channel 7 Adelaide news presenter andpassionate Novita supporter John Riddell becamean official team member, signing up as Novita’snewest Celebrity Ambassador.Corporate Services• Data transmission across Novita was improved,with the establishment of a wireless data linkbetween Regency Park Centre and all five regionaloffices.• An increased number of computer terminalswas installed in regional offices to facilitate moreefficient management of client data to meet theSouth Australian and Australian Governmentreporting requirements.• Novita’s ongoing commitment to staff wasrecognised at a national level, with Novita namedfinalist in the 2005 Equal Opportunity for Womenin the Workplace Agency Awards and the 2005Australian Human Resource Awards.• 2005/06 was a groundbreaking year forOccupational Health, Safety and Welfare(OHS&W) activity at Novita, with theimplementation of a Hazard Register and therationalisation of the OHS&W ManagementFramework to improve efficiency and consultationmethods.

0CorporateGovernanceNovita BoardOfficeBearersElizabeth Robinson (nee Campbell) BA LLBSolicitorPresident November 2005 – PresentMember Finance & Audit CommitteeMember Executive Remuneration Committee3 years of serviceI am a parent of a Novita client. In a society with manycompeting needs, it has never been more important forNovita to ensure that the children who are our clients andtheir families are not marginalised. I believe that my work andlife experience assists the organisation in delivering servicesthat will benefit clients and families. There should be equity inaccess to services for all clients.Jane Hyde BA (Lib) MAICDLibrary and Information OfficerPresident July – November 2005Member Finance & Audit Committee13 years of serviceOne of my three children has severe and multiple disabilities.I believe that my experience and insights assist the Board inmaking decisions to the benefit of the children we serve andtheir families.Mark Van Leuven BEng (Mining) MBA FAusIMM (CP)Principal Mining EngineerVice President Novermber 2005 - PresentMember Finance & Audit Committee7 years of serviceMy daughter is a client of Novita and has received servicesfor the past 10 years. I am a mining engineer by profession,with commercial and management experience. With thisbackground, I believe I continue to augment the skills ofthe Board of Novita, as well as providing a client and familyperspective.

ElectedMembers0Rosslyn BrownMember Finance & Audit Committee19 years of serviceAs a parent of a former Novita client, I have alwaysgreatly appreciated the support and caring therapyprovided to our son. I want to support clients ofNovita to ensure the organisation delivers servicesthat meet the needs of our clients and their families.Deborah James PhD, BAppSc (SpPath), MA,MBA, CPSP, MSPASenior Lecturer in Speech Pathology,Flinders UniversityBoard Representative, Channel 7 Children’sResearch FoundationVice President July - Novermber 2005Member Finance & Audit Committee10 years of serviceA great delight for me was the invitation to join theBoard. I trust that my experience of growing up witha sibling with a disability, along with my professionalskills as a speech pathologist in capacities asclinician, manager, teacher and researcher, assist inthe governance of Novita into the future.Andrew Downing FIEAust CPEng (Biomed)Professor of Biomedical Engineering,Flinders University11 years of serviceI have made a long-term commitment to supportingthe goals and activities of Novita. I joined theBoard of Novita because I believed my skills andexperience as a chartered professional engineerwith expertise in assistive technology, an educator,and a leader and manager, enable me to makeimportant contributions to Novita through the settingof clear directions and policies and through soundplanning and management practices.Kenneth Foggo FCPA FCISRetiredMember Finance & Audit Committee32 years of serviceI joined the Novita Board at the invitation of thePresident at the time. I believe I am able to assist,particularly in the area of financial management.Dennis Earl FCPA FCIS JPConsultantChair Finance & Audit CommitteeChair Executive Remuneration Committee21 years of serviceI was Managing Director of Channel 7 Adelaide untilmy retirement in 1997. Since that time I have beeninvolved in part-time consultancy work and activitiesinvolving the community. I am currently a BoardMember of the Channel 7 Children’s ResearchFoundation Inc.William (Bill) Fowler LLBInsurance Manager / Company Secretary2 years of serviceAs a parent of a Novita client, I am particularlyinterested in continuing to improve the services toclients and securing better government funding.Organisations such as Novita play a vital role in oursociety, and I am keen to ensure a greater degree ofpublic awareness and recognition for the role playedby Novita from both public and private enterprise.NameElizabeth Robinson(President November 2005 - present)Jane Hyde(President July - November 2005)Mark Van Leuven(Vice President)Board attendanceThere were 12 Ordinary Board Meetings and one General Meeting during the year. Attendance was recorded as follows:Number of OrdinaryMeetings attendedGeneral MeetingattendanceNameNumber of OrdinaryMeetings attendedGeneral Meetingattendance11 1 Dennis Earl 11 19 1 Deborah James 10 110 1 Kenneth Foggo 8 0Rosslyn Brown 8 1 William (Bill) Fowler 7 0Andrew Downing 9 1

10OrganisationalReportPresidentReport from the PresidentI am pleased to present the 67th Annual Report of NovitaChildren’s Services for the year ending 30 June 2006.I am proud to be associated with Novita, an organisationthat continues to lead the way in the provision of servicesto children with disabilities in South Australia and beyond.Novita’s strength continues to be drawn from the dedicatedand committed staff, all of whom strive to provide a servicethat reflects the needs of our children and their families.There is no doubt that service provision to a child with adisability and their families has become more complex. In asociety where there is ever increasing competition for limitedfunds, the need to advocate for our clients and their familieshas never been more important. As I reflect on the past year,it becomes clear that the most significant event has been thedevelopment of Novita’s new Strategic Plan, which will guidethe organisation for the next five years.The Strategic Plan has resulted from extensive consultationand input by a wide range of staff and stakeholders ofthe organisation. It is not the voice of one, but of many.

11Paramount consideration has been givento achieving what is in the best interestsof Novita’s clients and their families, whilerecognising the need for the organisationto be in a position to financially maintainthe services it provides. In determiningthe way forward, the organisation haslooked inwardly and has also identifiedand assessed the external influences ofthe broader social environment upon thesustainability of our services.with disabilities) living in the north west ofthe State, inclusive of the Flinders Rangesand the Yorke Peninsula. We welcomethis new partnership with the AustralianGovernment.The South Australian Government in Mayof this year announced major reforms tothe provision of disability services withinSouth Australia. We look forward to workingwith the newly formed Disability ServicesSA in ensuring the needs of children withThe outcome has been a Strategic Planthat reflects so well an understanding ofthe environment of childhood disability.It is a plan that, if implemented well, willnot only redefine Novita in the disabilitysector, but will also help produce betterstrategic outcomes and most importantly,will ensure children with disabilities arenot marginalised in the broader socialenvironment.I acknowledge the significant financialcontribution by both the Australian andSouth Australian Governments to ourorganisation, reflecting a true commitmentto children with disabilities whileacknowledging the key services providedby Novita.In April of this year, Novita commencedproviding Inclusion Support services toSouth Australian children (including childrendisabilities and their families are recognisedand equitably met.Novita is an organisation approachingits 68th year and is proudly supportedby South Australians. The recent I Swearby 891 fundraising campaign, run inpartnership with radio station 891 ABCAdelaide, demonstrated so well justhow important Novita is to the SouthAustralian community and beyond.During the campaign, many membersof the community spoke openly of theirconnection with Novita, and how theorganisation and disability had touchedtheir lives.Novita as an organisation is indeedfortunate to have many loyal volunteers,supporters, donors and sponsors whoare driven with the same need to providesupport to children with disabilities. It is^The President’sAchievement Awardrecognises a seniorstudent who has madegreat progress in his orher rehabilitation.The 2005 winner wasRhianne Simcock (picturedabove, centre, with her familyand 2005 Novita PresidentJane Hyde, far left), a year7 student at Mt BarkerPrimary School. Rhiannehas lipomeningocele, atype of spina bifida. Shehas endured repeatedsurgery throughout her life- most recently on her legs,to enable her to continuewalking independently.Rhianne has done amazinglywell with her rehabilitationand her physiotherapist iscontinually delighted by herdetermination and motivation.

12^The Carol DibbenEncouragementAwardis made in memoryof Carol Dibben, aformer client andlong-term employeeof the organisation. Itrecognises a seniorstudent who has workeddiligently to achieve hisor her personal goals.The 2005 winner was 13 yearold Ryan Bright (picturedabove, centre, with his familyand 2005 Novita PresidentJane Hyde, far left) whoattends St Columbia SeniorCollege. He is non-verbaland for the past year hasbeen using a MiniMercspeech generating device,which allows him to engagein long conversations withhis family and friends. Ryanhas taken real ownership ofthe device and now does alot of his own programmingand trouble shooting. Thanksto his commitment to gettingthe most from his MiniMerc,Ryan has been able to enjoysome great conversationswith his family, as well asteachers and friends atschool.their commitment that contributes to thesustainability of this service, provides asense of community within Novita andpromotes acceptance of disability withinthe wider community. They are invaluable tothis organisation and I sincerely thank eachof them. I also acknowledge the donationthat was received from the Estate of the lateMr and Mrs Edwards last financial year – acontribution that has been so significant forthis organisation.To my fellow Board members, Iacknowledge your contribution. In avoluntary capacity you have given andcontinue to generously give of your timeand expertise to the organisation. Yourcommitment and courage in makingdecisions that are centred on what is inthe best interests of the children and theirfamilies, has ensured that appropriatestrategic directions are set to enable thisorganisation to provide services to childrenwith disabilities into the future.I acknowledge my predecessor, Mrs JaneHyde, and her outstanding leadership andcommitment to the organisation. Mrs Hydeis an exceptional advocate for childrenwith disabilities and their families. I thankyou for your significant contribution to theorganisation, which continues to this day inyour capacity as a Board member.inspiring leadership. Novita is committedto remaining strong and viable so as toensure that there is a standard for whatservices should be provided to children withdisabilities in South Australia.Many challenges lie ahead for Novita.The organisation must be able to adapt tochange and to be progressive in order tofully address the needs of our clients andtheir families. Novita’s strength, its staffand all that support its work will enable theorganisation to meet those challenges inthe immediate future and beyond.We as an organisation are so verycommitted to ensuring children withdisabilities are connected with their worlds.Elizabeth RobinsonPresidentFinally, I thank Glenn Rappensberg, ourChief Executive, for his decisive and

13OrganisationalReportChief ExecutiveReport from the Chief ExecutiveThis year, Novita has continued to deliver its life-changingservices to more than 1000 inspiring South Australian childrenand their families living with physical disabilities or acquiredbrain injury. Our activities over the past 12 months have beenexciting and engaging for our supporters, challenging for theorganisation and, most importantly, beneficial to the childrenand rewarding for everyone.It has been a year full of accomplishment. While we have seensignificant change right across the organisation, from openingour doors to an entirely new client group, to staff changes andthe completion of a new strategic plan, we have also reachedsome fantastic milestones and made significant inroads intosome exciting major projects.The bottom lineLike all not-for-profit organisations across Australia, Novitafaced significant funding challenges throughout the year.While the needs of our children increased, the economybegan to slow and competition for the fundraising dollarremained fierce. Overall, Novita reported a deficit of $295,524

14for 2005/06, however this must be evaluatedwith reference to the exceptional $2.1 milliondonation received last financial year fromthe estate of Roy and Marjorie Edwards.Fundraising has always been vital toNovita as it plays a key role in ‘bridging thegap’ between Government funding andNovita’s ongoing budget requirements.Recognition of the increasing difficultyin attracting fundraising revenue, alongOver the past year, Novita has enjoyeda surge in media coverage and publicawareness, and was one of only threeSouth Australian charities chosen to bepart of the official opening of Adelaide’sbrand new airport in October 2005. Novita’sinteractive display offered a fantasticopportunity to raise awareness of Novita,and disability issues generally, to more than150,000 South Australians who toured thenew facilities.^Honorary LifeMembershipis awarded to individualswho have givenoutstanding services tothe organisation.Dave McNally (picturedabove right with NovitaChief Executive, GlennRappensberg and 2005Novita President Jane Hyde)for his long-term commitmentto Novita’s Sports ChallengeGolf Day and his years asa volunteer at the RegencyPark Pool.with increased expenditure on a range ofservices to our children, led to a review ofNovita’s fundraising activities to ensure theirrelevance, appeal and operating efficiency.The new role of Manager, Developmentwithin the Marketing team and a number ofnew fundraising strategies are dedicated todeveloping existing business relationships,sourcing funds for immediate needs andsecuring ongoing income for the future.The result for the current year alsohighlights the importance of Novita’s$19.8 million investment portfolio, whichprovides a reliable dividend and interestrevenue stream to fund the growing shortfallbetween government funding and clientservice expenditure.Building our reputationAlmost two years on from our namechange, Novita’s reputation has continuedto build both locally and across the nation.Novita this year continued its work withlong-time media partner Channel 7Adelaide. This resulted in a brand newpartnership with Channel 7 news presenterand personality John Riddell, who joinedthe team as Novita’s celebrity ambassador.Already an active member of Novita’sSports Challenge Foundation, in 2005/06John donated his time to host the NovitaMelbourne Cup Lunch, played a keyrole in the Sports Challenge ShowdownDinner, was the celebrity face of the 2006Down Every Street Appeal and waved thechequered flag to kick off Novita’s 2006Convoy for Kids.Ability First AustraliaIn a further boost to the organisation’sgrowing national profile, Novita has joineda group of leading Australian disabilityorganisations to become foundingmembers of Ability First Australia (AFA), anational body ‘dedicated to building a betterworld for Australians living with a disability’.Launched in October 2005, AFA members

15will work together to raise the profile of theorganisation, increase awareness of a rangeof disability issues and develop nationalstrategies to increase funding and support.The group has also joined forces withleading US charity, Easter Seals DisabilityServices - a partnership that should giveAFA members access to vast internationalnetworking, training and corporatesponsorship opportunities.Working in partnershipAustralian and South AustralianGovernmentsNovita is committed to building strongand successful Government partnerships,and in February 2006 the Minister forDisability, the Hon Jay Weatherill MPannounced a $1.5 million South AustralianGovernment grant to allow Novita to clearin a tender to provide Inclusion Supportservices to South Australian children livingin the north-west of the State, inclusiveof the Flinders Ranges and the YorkePeninsula. From April, Novita’s InclusionSupport Program began assisting childrenwith disabilities, indigenous children andchildren from culturally and linguisticallydiverse backgrounds to access serviceslike child care, out of school hours care andvacation care.Variety, the Children’s CharityVariety, the Children’s Charity has beena loyal Novita supporter for years, andthis year extended its generosity with a$135,000 donation to help set up a vitalSplints Program. Thanks to this funding,hundreds of Novita children now haveaccess to the support they need to walk,move and gain independence.its equipment waiting list. The grant, partof an $11.5 million Government investmentin disability services in this state, allowedNovita to provide more than 150 childrenwith wheelchairs, communications devices,home modifications and other specialistequipment.This year also saw the beginning of asignificant partnership between Novita andthe Australian Government’s Departmentof Families, Community Services andIndigenous Affairs. Novita was successfulOur Toy and Resource Centre has alsobenefited from Variety’s generosity,receiving more than $60,000 in funding toset up a library of Single Switch AccessSoftware. Novita’s partnership with Variety isgoing a long way towards ensuring all of ourchildren can reach their full potential.891 ABC AdelaideAfter almost 68 years of supportingchildren with disabilities, Novita occupiesa special place in the heart of manySouth Australians. The recent ABC radio^Honorary LifeMembershipCale Dalton (picturedabove centre with NovitaChief Executive, GlennRappensberg and 2005Novita President Jane Hyde)was awarded Honorary LifeMembership for service to theorganisation’s Board for morethan 14 years, and for hisongoing advocacy for peoplewith a disability.

16^Honorary LifeMembershipJohn Inge (picturedabove right with NovitaChief Executive, GlennRappensberg and 2005Novita President Jane Hyde)was awarded HonoraryLife Membership for morethan 12 years of dedicatedservice to Novita’s SportsChallenge Foundation and forhis ongoing generosity andpersonal support of Novita.I Swear by 891 campaign demonstratedthe importance of the organisation to theSouth Australian community, with morethan 1500 local businesses, sporting clubs,workplaces and families working togetherto raise more than $40,000 for Novita’schildren. I would like to personally thankboth the ABC radio network and the SouthAustralian community for their incrediblesupport throughout the campaign.Commitment to protecting ourchildrenFor several years, the Australian and SouthAustralian Governments have highlightedthe importance of adequate child protectionin all organisations dealing with children.As a leading children’s charity, Novitamanagement feel it is imperative to leadthe way in implementing preventative childprotection strategies.In line with this commitment to provideoutstanding children’s services in a safeand protected environment, Novita this yeardeveloped a new child protection policyfor its staff and volunteers. All staff andvolunteers must now hold a current NationalPolice Clearance as part of their ongoingcontribution to Novita – a move thatfurther demonstrates Novita’s unwaveringdedication to child safety and protection.Commission of Inquiry into Children inState CareIn December 2004, the Government ofSouth Australia established a Commissionof Inquiry into Children in State Care. Thiswas a timely reminder that, as a provider ofchildren’s services, Novita is responsiblefor the safety and well being of thousandsof children, and must constantly strive toadopt and maintain the most stringentpolicies and procedures to ensure ourservices are provided in a safe and secureenvironment.Novita values the work of the Inquiry andis committed to assisting the Commissioninto the new financial year, particularlyin its endeavors to engage people withdisabilities.Focus on qualityOur focus on quality service provisioncontinued in 2005/06, when we wereonce again successful in getting the ‘bigtick’ from SAI Global, the organisationresponsible for authorising Novita’s ISO9001:2000 quality assurance certification.Novita’s policies and procedures areregularly audited as part of this qualitycertification system, and in 2006 SAIGlobal conducted a surveillance audit of anumber of Novita departments. The reportrecognised our commitment to deliveringquality services and confirmed ourcompliance with the relevant InternationalQuality Standards.

17A great place to workNot only does Novita provide world-leadingservices to hundreds of South Australiankids living with disabilities, it’s also afantastic place to work!This year, our workplace policies wererecognised at a national level when wewere named finalist in the 2005 EqualOpportunity for Women in the WorkplaceAgency Awards and the prestigious 2005Australian Human Resource Awards.These nominations are an excellentreflection of Novita’s ongoing commitmentagencies to provide South Australian peopleliving with disabilities with an OptionsCoordinator, who helped arrange much oftheir day-to-day support. The Government’sreforms signal a new approach to the waythis service will be provided, and we lookforward to working with the Governmentto ensure the needs of our children remaina priority as the changes are ‘rolled out’across the state.Towards 2010 – a new Strategic PlanThroughout the financial year, workcontinued on Novita’s exciting new Strategicto staff wellbeing, job satisfaction and thecontinued training and development of ourmost essential resource – our people.State Disability sector reformIn May 2006 the Minister for Disability,the Hon Jay Weatherill MP, announcedsignificant reforms to the way disabilityservices will be provided in South Australia.One of the major changes has been theformation of Disability Services SA, a new‘one stop shop’ Government disabilityservices agency.Disability Services SA will replace threeGovernment incorporated agencies – theIntellectual Disability Services Council(IDSC), the Independent Living Centre (ILC)and Julia Farr Services (JFS). Since 1995,Novita has worked in partnership with thesePlan. The development process wasspecifically designed to ensure our staff,our supporters and, most importantly, ourclients and families could have their say inthe development of this vital document.In October 2005, through a series ofworkshops and teleconferences, Novitaparents and clients from across the stateprovided some wonderful feedback,suggestions and ideas on the first draftof Novita’s new Strategic Plan. Thesecomments were then presented tomembers of the Novita Board of Directors,and were taken into consideration in theremaining stages of the strategic planningprocess.By the end of June, Novita’s new strategicplan was nearing completion and ready forits launch early in the 2006/07 financial year.Months of feedback and expert input haveresulted in an honest, dynamic, forwardthinkingdocument that evokes a sense of^Life Membershipis awarded to individualswho have providedongoing support forNovita Children’sServices and havedonated more than $2000in cash or kind.A 2005 recipient wasAndy Seymour (picturedabove right with NovitaChief Executive, GlennRappensberg and 2005Novita President Jane Hyde).

18^Life MembershipA 2005 recipient ofLife Membership wasEmma Ortlepp (picturedabove centre with NovitaChief Executive, GlennRappensberg and 2005Novita President Jane Hyde).Other 2005 recipients (notpictured) included Dr SusanBaillie, Mr Brian Burton,Mr Maxwell Cooper andMr David Round.pride in our work, reflects our commitmentto our clients and generates excitement inour future. This document will now go onto help shape the future of the organisationinto 2010 and beyond.Connecting kids with their worldsDuring the development of our newStrategic Plan, we also discovered a brandnew purpose statement, ‘connecting kidswith their worlds’, which reinforces Novita’sfundamental role in supporting childrenliving with disabilities.Whether their ‘world’ is a schoolyard, asports field, a childcare centre or at homewith family and friends, Novita’s primarygoal is to connect South Australian kids withtheir communities to ensure they reach theirfull potential. Adopting this new purposestatement in all aspects of our work will helpto keep us focused on what matters most– the children.While our new Strategic Plan and purposestatement weren’t officially launched untilJuly, they mark a dynamic new era forthe organisation and you will see they arealready reflected in our major corporatedocuments, including this Annual Report.Looking ahead…work and commitment of our incrediblestaff, and I would like to thank all of themfor their ongoing dedication to ‘making adifference’ to thousands of young lives.To our children and their families, each dayI remain in awe of your determination, andthe achievements that follow. I am proudto be in a position to meet such inspiringSouth Australians on a daily basis, and lookforward to continuing my work to promotethe rights, safety and wellbeing of childrenand families living with disabilities.From our staff, children and their familiesto our volunteers, the Government andour community partners, we all have arole to play in Novita’s continued success.The Board of Directors and I very muchappreciate your support throughout2005/06, and we look forward to listening,learning and working with all of you in thecoming years to build on our success forthe benefit of all South Australian childrenand their families living with disabilities.Glenn RappensbergChief ExecutiveOn a personal note, it has certainly been achallenging period – but it has also beenincredibly rewarding. Much of Novita’ssuccess each year is a result of the hard

19Board of DirectorsChief ExecutiveGlenn RappensbergOrganisationalChartDirectorCorporateServicesJulian SawickiManagerHumanResourcesKathryn GallinaManagerInformation &InfrastructureServicesTrevor MasonManagerFinance &InvestmentsMichaelBelperioManagerRisk &GovernanceTristan DunnDirectorNovitaTechDr LloydWalkerBusinessManagerChris MillerManagerAssistiveTechnologyNigel DuckettManagerMobility,Seating andOrthoticsLisa DoddsGroup LeaderResearch &Development,Engineering &SupportRob GarrettSenior TestEngineerAlexSvistounovDirectorMarketingMatthewMagareyManagerFundraisingTracey TaylorManagerDevelopmentLinda McIntyreManagerCommunicationsKelly MarkosDirectorFamily SupportServicesIvan LawtonSenior OptionsCoordinatorFamily SupportServicesJane LovedaySenior OptionsCoordinatorAcquired BrainInjuryKirsten NieldSenior OptionsCoordinatorResearchAnita SmithManagerSpecialProjectsTim ZierschDirectorClientProgramsWendy Wake-DysterManagerSouthernRegionLinda WilliamsManagerNorthernRegionLouiseMcCarthyManagerNorth WesternRegionPam DonnellyActingManagerOccupationalTherapySonyaMurchlandManagerSpeechPathologyCatherineOlssonManagerEquipmentServicesDeanWhitehornActingDirectorPaediatricRehabilitationDr Ray RussoManagerSouth EasternRegionAndi JonesManagerNorth EasternRegionCathryn BlightManagerPhysiotherapyJudy SprodManagerPsychologyTim ConnellManagerToy & ResourceCentreJulie EmmersonManagerInclusionSupportCathryn BlightManagerClinical ResearchDr Parimala Raghavendra

20TherapyServicesIntroduction to Therapy ServicesNovita’s Therapy Services Division consists of five regionaloffices providing therapy, equipment and support services tochildren living with disabilities across South Australia, alongwith the Equipment Services, Toy and Resource Centre andClinical Research teams.Therapy staff work with clients, families and other agenciesto provide a flexible and responsive service that meets theneeds and goals of our clients. While significant resourcessupport children in their early years, Novita also focuses onthe needs of children in the school setting, following surgeryand medical intervention, and in preparation for the transitionto adult services.Reflecting on the past financial yearThe 2005/06 financial year provided a number ofopportunities for Novita to extend its service provision andexpertise into related areas, while also receiving appropriaterecognition and funding. Most notable was the Australian

22and practising generic health workers. AnAdvisory Group, made up of key education,health and disability sector stakeholdersand carer representatives, has beenestablished to assist with leading the projectthrough the first phase of undertaking a‘needs analysis’.Camp Yackety YackCamp Yackety Yack, a camp held especiallyfor children using Augmentative andAlternative Communication (AAC), receivedfinancial support from the South AustralianGovernment’s Community Benefit SAProgram, together with support from theCity of Port Adelaide Enfield. The camp,held in February 2006, proved to be highlysuccessful and received excellent feedbackfrom all participants – including clients,families and staff.As well as involvement by occupationaltherapists, physiotherapists, NovitaTechstaff and speech pathologists, an artsprogram, drumming workshops and thepresence of a mentor who uses a speechgenerating device provided a fantasticframework for a really enjoyable andinvigorating program.The Programs ProjectIn line with Novita’s commitment tocontinuous improvement, the TherapyServices Division commenced a reviewof Novita’s current service delivery modeland structure. This review will assistNovita to improve services to clients andensure optimum use is made of availableresources.The first phase of this project, whichincluded Parent Information/Orientationand Service Programs, has now beencompleted. As a result, a four-moduleinformation package for families new toNovita has been developed and will bepiloted with new families over the nextsix months. A comprehensive review andanalysis of the research evidence andservice delivery trends worldwide has alsobeen undertaken, and a report on thefindings with recommendations has beenproduced.The next phase of the project will require acomprehensive review of the present Novitatherapy services model and structure, andthe exploration of alternatives, with the viewto improving the services provided.Business Unit ReportsEarly Childhood ServicesAn internal review into children’s serviceshas highlighted the need for services totarget times of ‘transition’. Key transitionaltimes are from home to kindy, kindy toschool, primary to high school and fromNovita services to adult services.In the past, Novita’s Early InterventionServices have been defined as servicesprovided up until school entry. Theseservices are now known as Early ChildhoodServices, and children from birth to eightyears are included within this group. Thismeans the transition from home to kindy,then kindy to school are now managedwithin this defined service group.A special needs playgroup – the resultof the collaboration of the now formerIntellectual Disability Services Council’s(IDSC) Southern Office, Novita’s SouthernRegional Office and the PlaygroupAssociation – commenced in February2006. The Playgroup Association hasallocated a paid coordinator as part ofspecial funding obtained for a project tohelp engage ‘at risk’ families. Families fromNovita’s southern region are benefiting from

23this multi-agency collaboration.Novita’s Southern, South Eastern andNorthern Regional offices continue to focuson early intervention services, given thelarge numbers of young children with adisability located in the Barossa, Mt Barkerand Fleurieu Peninsula areas.School Aged ServicesSharing the Fun, a joint Novita and YMCAactivity program, has been successful inattracting funding for the next three yearsfrom the Macquarie Bank Foundation.Though located at Novita’s Regency ParkCentre, this program is being promotedright across the organisation’s regionalnetwork and provides fitness and gym skillsto primary aged children in an appropriatelysupportive environment.Novita physiotherapists and speechpathologists continue to collaborate with theSouth Australian Government’s Departmentof Education and Children’s Services(DECS) in curriculum development andservice delivery in the areas of Transfer andPositioning and Oral Eating and DrinkingCare Plans so as to enable school staff tosafely assist children with seating and atmeal times.Country ServicesEach of Novita’s five regional officessupports three or four country areas, withall South Australian country areas andBroken Hill visited by therapists every term.In particular, growth in demand for Novita’sServices was experienced in the expandingareas of Roxby Downs, the Riverland, MtGambier and Port Lincoln.The Novita Psychology team led theprovision of Family Workshops to two keyoutreach areas, the Riverland and PortLincoln. These events offered workshopsthat covered grief and loss, behaviourmanagement and sibling issues.Local Novita auxiliary members supportedthe workshops and additional informationsessions on Augmentative and AlternativeCommunication (AAC) were providedto families and school staff. Participantfeedback was extremely positive for bothevents. Along with Novita families, bothworkshops attracted a significant numberof families whose children were eligible toreceive services from either IDSC or AutismSA.Partnerships in ServicesMedical Paediatric RehabilitationFollowing the resignation of Dr PeterFlett from the role of Director PaediatricRehabilitation, we were very pleased towelcome Dr Ray Russo as Acting DirectorPaediatric Rehabilitation. Dr Russo hasbeen working in the Novita PaediatricRehabilitation service for a number of yearsand under his leadership, the service hascontinued to develop to ensure it remainsresponsive to the needs of our clients.Given the size of paediatric rehabilitationservices in South Australia, there arechallenges to recruit specialist staff. Withinthese constraints, we have been able toimplement a model of general paediatricclinics at each region, supported bypaediatric rehabilitation specialists. Thishas been very positively received by clients,families and staff.A Rehabilitation Orthopaedic Clinic wasestablished at the South Eastern RegionalOffice, in line with clinics offered at otherregions. Dr Andrew Tidemann, NovitaPaediatric Rehabilitation Specialist, hasbeen instrumental in negotiations with theLyell McEwen Hospital to work towardsa botulinum toxin service for clients ofNovita living in the Northern regional area.Paediatric Rehabilitation staff have beenactively engaged in research particularly

24related to the outcomes of botulinum toxinin the upper and lower limbs, and thepresentation of conference papers in theseareas.There are many challenges to develop aneffectively funded paediatric rehabilitationservice in South Australia, which extendsbeyond the community-based servicesupported by Novita. The paediatricrehabilitation medical staff continue to workin conjunction with Novita to advocatefor and contribute to the planning of aneffective statewide service that transcendshospital and the community, inclusive ofhome, recreation and school. Given Novita’sexisting role in the community we areand regional South Australia. Theprescription, provision and review of clientequipment represents a substantial rolefor therapists and a significant proportionof the time therapists have available tospend with children and their families.Adequate recurrent Government funding forequipment for Novita clients continues to bea challenge for Novita staff and clients.In February 2006, the South AustralianMinister for Disability, the Hon JayWeatherill, provided a once-off grant of $1.5million to help Novita to supply equipmentto families on our waiting list. Therapy andEquipment Services staff worked diligentlyto ensure many clients received the benefit^Novita’s Inclusion SupportProgram provides services tochild care centres supportingchildren with a disability,as well as children fromculturally or liguisticallydiverse or indigenousbackgrounds.well placed to deliver, in partnership withthe Children, Youth and Women’s HealthService, a South Australia-wide paediatricrehabilitation service.NutritionThis continues to be a service that is highlyvalued by families and is an essential partof Novita’s service profile. In addition tocontinuing the service based at Novita’sNorthern and Southern Regional Officesand the Women’s and Children’s Hospital,sessions were conducted to respond toinformation needs as identified by parents.Topics have included Nutrition Needs forGrowing Children, Fussy Eaters and TheRole of the Nutritionist.Equipment ServicesNovita provides equipment for all childrenliving with disability across metropolitanof this additional funding, and in totalmore than 150 children were provided withspecialist equipment to assist with mobilityand independence.Our ability to respond to client needs forequipment was also significantly enhancedby support from both Variety, the Children’sCharity and the Lion’s Mobility Fund. Variety,a long term supporter of Novita clients,provided more than $150,000 for children’sequipment. This funding, provided forindividual clients, supported items thatcould not be funded through other sources,including home modifications such asramps and bathroom modifications,providing safe access for children to theirown homes.The Lion’s Mobility Fund, another longtermNovita supporter, provided more than

25$43,000 to assist children with mobilitydifficulties to have access to walkers toimprove their independence and inclusionin day to day activities. This year, Lionsreached a huge milestone, raising $500,000and providing more than 190 walkers sincethe fund was established in 1997.A joint Novita/Special Education ResourceUnit working party on school equipmentprescriptions and issues related tothe Conductive Education Programwas established to enhance workingrelationships and to ensure efficientcommunication between all agencies.Toy and Resource CentreThe Toy and Resource Centre (TRC) wasvery grateful to receive further fundingof $30,000 from Variety, the Children’sCharity to update the Single Switch Accesssoftware library. These items are in heavydemand from clients who enjoy the fun andvariety a software library can provide, whilegaining valuable skills in computer use.The TRC has also continued its verypopular school holiday programs, withsupport from volunteers and families.Novita’s review of the TRC undertakenduring 2004/05 highlighted that theMobile Toy Service was underutilised.Consequently, the service to the regionaloffices has been replaced with anenhanced centralised service which canbetter respond to individual client andregional needs for toys via phone andinternet requests.In addition to services to clients, the TRChas provided invaluable support to staffundertaking literature searches associatedwith clinical research and servicedevelopment projects.Clinical ResearchNovita’s Clinical Research team continuesto be productive and innovative, furthercollaborating with external agencies atstate, national and international level,strengthening evidence-based practice.Two new collaborative projects areunderway:• Embedding a wellness approach tohealth and disability in the policies andpractices of allied health providersLed by Edith Cowan University (WA) withTherapy Focus (WA), Western AustralianBlind Association, Queensland Healthand Novita, with funding receivedthrough the Edith Cowan University-Industry Grant.• Relationship between caregiver timeand mental health and wellbeing ofmothers caring for children with chronicdisabilitiesLed by Professor Michael Sawyer,Women’s and Children’s Hospital andThe University of Adelaide, which hasreceived a National Health and MedicalResearch Council grant of $350,000over three years. Novita is an AssociateInvestigator on this valuable project.Novita is an affiliate member of HealthyDevelopment Adelaide (HDA), a newresearch cluster of the University ofAdelaide which facilitates multi-disciplinaryresearch focusing on infants, children andadolescents. This membership has resultedin some exciting new links – includingNovita’s sponsorship of a session oncerebral palsy at HDA’s research day in May2006.Novita continues to share its researchoutcomes with both families and colleaguesthrough conference presentations,publications and the Novita website. As

26part of National Cerebral Palsy AwarenessWeek in August 2005, a very successfuljoint research day was conducted withNovitaTech’s Research and Developmentteam.More than 20 presentations were alsomade at key national conferences includingthe Australasian Academy of CerebralPalsy & Developmental Medicine, EarlyChildhood Intervention Australia, AustralianPhysiotherapy Association - NationalPaediatric Group, Australian Group onSevere Communication Impairment andNational Paediatric Occupational Therapy.Research Foundation.• Interventions to facilitate participationof children with disabilities in all lifedomains: a systematic review. Thisproject has received funding from theCampbell Collaboration EducationGroup, USA.In recognition of their collaborative work,Clinical Research Department staffmembers Dr Pammi Raghavendra, SonyaMurchland and Susan Gibson have beenawarded Adjunct Lecturer Titles by theDivision of Health Sciences, University ofSouth Australia.Publications this year included:• Murchland, S & Wake-Dyster, W(in press), Resource allocation forcommunity-based therapy - Disabilityand Rehabilitation.• Van Zelst BR, Miller MD, Russo R,Murchland S and Crotty M (in press),Evidence for activity and participationrestriction in children with hemiplegiccerebral palsy: a cross-sectionalevaluation using the assessment of motorand process skills in a familiar homeenvironment - Developmental Medicineand Child Neurology.Clinical Research has received externalfunding for the following projects:• The effect of serial casting followingBotulinum Toxin A: a treatment fordynamic equinus for children withcerebral palsy. This project has receivedfunding from the Channel 7 Children’sResearch Foundation.• Assistive Technology Solutions forStudents with Physical Disabilities: ananalysis of utility, costs and studentsatisfaction. This project has receivedfunding from the Channel 7 Children’sThe support for the application of evidencebasedpractice (EBP) at Novita continuesto be a significant objective of the ClinicalResearch Department. The team hasoffered training and ‘journal club’ activitiesto help staff understand and implementEBP throughout Novita.In March 2006, Novita was fortunate to hosta two-day workshop by Dr Gillian King,Research Director, Thames Valley Children’sCenter and Director, Research Alliance forChildren with Special Needs in Canada.Dr King led a series of discussions onissues facing children with disabilities. Herfoundation work on family-centred servicesand development of A Life Needs Model inPaediatric Service Delivery is highly relevantto Novita’s work with children and families.Therapy staff newsA physiotherapy exchange programbetween Novita and the Children, Youthand Women’s Health Service (CYWHS) hasproved highly successful. The program

27allows therapists early in their career toexperience working with another children’sservice provider, and to enhance theirprofessional skills and confidence. Theprogram will be offered again in 2006-2007.A comprehensive review of theadministration needs of the regionaloffices was undertaken and resulted in arealignment of resources to create an OfficeCoordinator position in each regional office.This new role will ensure each regionaloffice system is efficient and supportedby consistent cross-regional procedures.An outcome of the new positions is thatregional managers and clinical servicedelivery staff are relieved of routineadministrative tasks to allow an increase inclinical time.During 2004/05, both the Director ClientPrograms and Manager, North WesternRegional Office had the opportunity towork in marketing roles, as Acting DirectorMarketing at Novita and with anotherdisability agency respectively. Thisprovided an occasion to better recognisethe contribution of marketing to thecommunity services sector, and to improvecollaboration between the therapy andmarketing teams into the future. Terry Lyons,Acting Director, Client Programs, providedexcellent leadership for the TherapyServices Division during this time, whichthen provided opportunities for a number ofadditional staff within the team to undertakeacting leadership roles. This highlightedthe many strengths and depth of expertisewithin Novita’s Therapy Services Division.complex communication needs, Supportingoral eating and drinking for children andStrategies to assist the inclusion of childrenwith disabilities.Dr Pammi Raghavenda, Sue Gibson andDr Ray Russo were on the organisingcommittee for the very successfulAustralasian Academy of Cerebral Palsyand Developmental Medicine (AACPDM)Conference 2006, held in Adelaide from10 – 12 March 2006. A number of Novitastaff presented papers and attended theconference.Looking ahead…The next year promises to be an excitingtime for the Therapy Division, as weembrace Novita’s new Strategic Plan andmove to completion and implementation ofthe Programs Project.Given the involvement of clients, familiesand stakeholder groups in the strategicplanning process, we look forward toimproving current services and developingnew services that will continue to meet thepresent and emerging needs of Novita’sclients.Training and DevelopmentNovita was contracted by the Lady GowrieCentre to provide a series of trainingsessions to Inclusion Support Workers.Topics included Working with children with

28FamilySupportServicesIntroduction to Family Support ServicesFamily Support Services provides clients with a range ofsupports and services identified by families as being neededto maintain their quality of life and build resilience within thefamily unit, while creating environments that allow childrenwith disabilities to participate in the communities of theirchoice.Reflecting on the past financial yearNew ReferralsFamily Support Services received 88 new referrals in the2005/06 financial year.13011090705030100Total referrals 1997 - 200696/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06

29For the third successive year, children withacquired brain injury (ABI) made up thegreatest proportion of new referrals, with29 ABI children referred compared with 27children with cerebral palsy.There appears to be a changing trend inthe age of new referrals to Family SupportServices, with the older (13-18) age groupincreasing from around a steady 25% ofreferrals from 1995-2002 to about 40% forthe past three years. The ABI clients partiallyaccount for this change in demographic.Referrals for rural clients have continued ata steady rate over the 10 years that Novita’sFamily Support Services have been inoperation, with each of the four countryregions providing about five or six newreferrals each year.Service DeliveryThis year has seen an increase in thetotal number of clients assisted by FamilySupport Services from 736 to 920, with319 clients accessing assistance from thecontinence aid scheme for children. Whilethere is limited funding for this scheme atthe present time, Family Support Servicescontinues to work with the South AustralianGovernment Office for Disability andClient Services to grow the permanentrecurrent funding available for this highlyvalued service. While the total numberof clients assisted by Family SupportServices continues to increase, the costof service delivery is also increasing at arate greater than indexed funding streams.Therefore, Family Support Services hashad to prioritise the needs of existingclients, resulting in a growing number beingreferred to ‘cost-free’ community-basedservices in favour of purchased services.Ongoing case management has beenprovided to most clients as well as groupactivities for parents, siblings (sometimeswith Novita Psychology staff) and childrenwith tracheostomies.Information forums for parents, clients andthe community have been held across thestate. Skills development programs forteenagers, and a training course for supportworkers have also been conducted.Disability Sector ReformIn May 2006, the Government of SouthAustralia announced significant reformsto the South Australian Departmentfor Families and Communities. A keycomponent of the reforms involved theformation of Disability Services SA bythe dissolution of three Governmentincorporated agencies – the IntellectualKey funded services 2000 - 2006550450350250150RespitePersonal careHost familyHousekeepingContinence aidsTotal clients funded50000/01 01/02 02/03 03/04 04/05 05/06

30Disability Services Council (IDSC),Independent Living Centre (ILC) and JuliaFarr Services (JFS). These agencies, alongwith Novita’s Family Support Servicesdivision, have worked together since 1995to provide an Options Coordination serviceto people with disabilities in South Australia.Most of Novita’s families have an OptionsCoordinator from the Family SupportServices team, who helps to arrange manyof the supports required by families livingwith a disability. The Government reformssignal a new approach to the delivery ofOptions Coordination, and we look forwardto working with the Government and otherdisability agencies as these changescontinue to be implemented during the newfinancial year.Family Support Services – 2005/06key projects and initiativesEdna Ayers CampFor the third successive year, FamilySupport Services has worked with GuidesSA to provide a camping experience forgirls with less severe disabilities. Thisprovides an important opportunity for theseyoung girls to mix socially and develop theircommunication skills, as they are oftenunable to access services usually designedfor children with more severe disabilities.This year the interest from families wasexcellent and Novita hopes to build on thissuccess in the future.Parent-to-Parent ProjectAn exciting opportunity has arisen forNovita to expand its provision of parentsupport services. The South AustralianGovernment’s Office for Disability andClient Services (ODACS) has providedNovita with a once-off grant to help developparent networks. This grant has beenprovided by the State Government as itseeks to effectively respond to feedbackreceived from parents and Novita on theimportance of support networks.The term Parent-to-Parent describes theunique support that a parent can offeranother parent as someone who knowsthe joys, demands and pressures of caringfor a child with a disability. Parents offereach other mutual support and practicalinformation through group settings, theInternet, or on a one-to-one basis.Although the project is focused on parents,Novita is also dedicated to incorporatingthe needs of other family members such assiblings and grandparents.The project is well underway with theformation of a reference committee ofNovita staff and parents. The committeeincludes four parent representatives fromacross the state whose children range inage and disability. It is great to activelyencourage parent participation in what willbe a service aimed to meet parent needs.Transition to the adult service sectorNovita continued to work with disabilityorganisations in the adult service sectorto ensure each of our clients makes aseamless transition from Family SupportServices to the appropriate adult OptionsCoordination agency. There is continuingdemand from families for information aboutservices that may be available for their childafter the age of 18, and Family SupportServices has assisted the adult disabilitysector to present several forums duringthe year which have been attended by theparents of transitioning teenagers.

31The young people themselves, who are ourclients, also receive invitations to participatein various information forums and trainingsessions. Feedback from teenage clientswho recently attended two independentliving/social skills courses has been verypositive and planning is underway toarrange similar groups in the future.Children with fragile, complex healthand tracheostomies$300,000 was allocated to Family SupportServices to assist three high-dependencychildren all with fragile, complex health to bedischarged from hospital to the community.This project was informed by the outcomesof an inter-agency health support projectthat included Novita, the CommunityAccommodation and Respite Agency(CARA), the Office for Disability and ClientServices (ODACS), and the Children’s Youthand Women’s Health Service (CYWHS).These three clients have now commencedtheir transition from living in hospital to livingin the community with their families.Over recent years ODACS has conducteddiscussions with Family Support Servicesstaff regarding the needs of children whohave tracheostomies but no other physicaldisabilities. It is recognised that this is avery small group of children, however theirsupport needs can be high, with supportbeing difficult to access.ODACS, which provides Novita with fundingfor children with disabilities and sets policyon the scope of clients who are eligible toaccess this funding, has now determinedthat these children will be included in thefuture target group for Disability Services.Novita Children’s Services is acknowledgedas the agency most experienced to workwith these families and, with the Children’sYouth and Women’s Health Service, isnow developing service options for thesechildren and their families that did not existpreviously.Children with Acquired Brain Injury(ABI)Family Support Services convened thefirst national paediatric ABI conferenceentitled New Beginnings: Growing up withan Acquired Brain Injury at Regency ParkCentre on 13 - 14 September 2005. TheConference featured overseas, interstateand local presenters and was attendedby more than 150 people. It was a greatopportunity for Novita Children’s Servicesto demonstrate its willingness to embraceservice provision for this group of children.Feedback from the conference suggeststhat we met all of our key objectivesincluding:• raising public awareness of acquiredbrain injury (ABI) in children• raising the profile of Novita Children’sServices and awareness of the servicesprovided by the organisation.The conference made an immediate impactfor one child with ABI, who now receivesSchool Support Officer hours at school afterhis teacher attended the conference and^Parent Support ProjectFront row:Ivan Lawton (DirectorFSS), Jewels Smith (ParentRepresentative) Pam Donnelly(Regional Manager NWRO)Back row:Greg Daw (ParentRepresentative), Tim Connell(Manager PsychologyServices), ElizabethBald (Project Officer),Donna Crowden (ParentRepresentative), Sue Gibson(Senior Physiotherapist),Tracey Kneebone (ParentRepresentative).

32was alerted to the benefits of classroomsupport for children with ABI.Family Support Services has recentlyappointed a Senior Coordinator to focuson further developing services for childrenwith ABI. The Senior Coordinator is workingcollaboratively with Therapy Services’Psychology Department and the Director ofFamily Support Services to further developthe Brain Injury Support Service (BISS), aservice for children with ABI in the absenceof physical disability. This is an increasingclient group, requiring a different suite ofservices from Novita’s traditional cerebralpalsy client group, and this is seen as anideal opportunity to continue to improveand develop these services.With the Brain Injury Network of SouthAustralia (BINSA) and the Children’s Youthand Women’s Health Service, Novita hasupgraded a series of fact sheets for familiesand clients who have an acquired braininjury. These will be available in A4 printedversions and downloadable from the Novitawebsite.Approval was gained by Family SupportServices for a project to follow up clientswith acquired brain injury who had reachedthe age of 18 and transferred to the adultsector. This will identify what servicesactually helped them and what servicesthey say might have been helpful, had theybeen able to access them. The project willassist Family Support Services in planningan appropriate suite of services for thisclient group into the future.Continence Aids SchemeThis scheme has been an enormoussuccess. Most recipients continue toexpress appreciation for this importantservice. 331 families have been assisted bythe continence aids scheme this year. Ofthese, 191 would not otherwise be clients ofNovita, most having a diagnosis of autismor intellectual disability. Recurrent fundingremains at $70,000. Novita received anadditional once-off $150,000 grant from theSouth Australian Government’s Office forDisability and Client Services in 2005/06,enabling the organisation to meet the needsof all 331 families.Early Contact and Monitoring TeamThe restructuring of Family SupportServices last year to create an Early Contactand Monitoring (ECAM) team has achievedits two main objectives in 2006 – to providethe same early response to country clientsas received by metropolitan clients, andto more effectively allocate case loads.This latter action has resulted in OptionsCoordinators being able to provide a morecomprehensive service to fewer clients,while the less active clients are managed byECAM.Family Support Services staff newsStaffing levels in the Family Support teamincreased marginally during 2005/06. Theappointment of a part-time Research Seniornow allows Family Support Services tocontribute to and participate in researchprograms. A part-time Continence AidsOfficer has been appointed on a contractualbasis, funded from the once-off continenceaids scheme funding. A half-time ProjectOfficer position has also been appointedto complete the Parent-to-Parent SupportProject. This position is funded as part of aonce-off State Government grant providedto Novita in 2005/06.In recognition of the skills required tosafely and effectively deliver the servicesand support requested by families, FamilySupport Services staff have accessed a

33variety of training programs during theyear including Narrative Counselling, Griefand Loss, Personality Disorders, CapacityBuilding, Suicide Awareness, OccupationalHealth and Safety, Manual Handling andspecialist sessions relating to disability(particularly acquired brain injury).Looking ahead...The future will be very exciting for the FamilySupport Services team. With the launch ofNovita’s new Strategic Plan, Family Supportstaff are looking forward to working closelywith other divisions of Novita.The Coles SA Encouragement Awardis presented to a client of Family Support Serviceswho has demonstrated a commitment to personalindependence and community activities thatencourage the integration of people living withdisabilities in a community setting.The 2005 recipient was 16 year old Jennifer Lawford. Jenniferhas recently moved from her foster family’s home to liveindependently with a friend. Jennifer enjoys the challenge ofbudgeting her money, grocery shopping and paying her bills,and while the journey of leaving home has not always beeneasy, Jennifer has successfully embraced this challenge. Sheis currently attending TAFE, has a large circle of friends, isactive in her local church and is seeking paid employment.As the recently announced Governmentdisability reforms are implemented, FamilySupport Services will be further developingits strong connections with the adult servicesector. As an integral part of the OptionsCoordination system for the past 10 years,Novita is looking forward to workingcollaboratively with the South AustralianGovernment and its recently establishedlead service agency, Disability ServicesSA, to ensure Novita continues to deliverthe best possible services to children withdisabilities and their families.

34Introduction to NovitaTechAs Novita’s technology division, NovitaTech is a leader inthe Australian assistive technology sector. Every day theNovitaTech team strives to find innovative solutions to some ofthe most challenging, technology-related problems faced bypeople of all ages living with disabilities.NovitaTechReflecting on the past financial year2005/06 was an exciting and challenging year, withNovitaTech continuing to consolidate its leadership role in theassistive technology sector. Throughout the year the divisionnegotiated with manufacturers, suppliers, governments,regulators and research bodies to find not only the besttechnologies, but also the best approaches to deliveringtechnology that enhances the lives of people with disabilities.Some 2005/06 highlights included:• NovitaTech was the lead agency in a bid for a CooperativeResearch Centre in Technology for Independent Living.• NovitaTech staff played a key role in organising theinaugural Australian Biomedical Engineering Conference• NovitaTech staff achievements were well recognised by

35both professional associations and themedia.• NovitaTech appointed its first BusinessManager.NovitaTech – 2005/06 key projectsand initiativesBid for Cooperative Research Centre inTechnology for Independent LivingThe biggest initiative NovitaTech undertookin 2005/06 was to lead a bid to establisha national Cooperative Research Centre(CRC) in Technology for IndependentLiving. The CRC program is arguablythe nation’s leading federally-funded,collaborative, applied research vehicle.The Director of NovitaTech was appointedas the Interim Chief Executive Officer of thebid process and, after partnering with theFlinders University School of Informaticsand Engineering, forged a partnershipthat included five core university partners,commitments from South Australian andAustralian Government departments plussupport from small to medium enterprisesand non-government organisationsnationally. Underpinning this group weresome novel approaches to truly engageand seek the support of end-users of thistechnology.The final bid proposed a CRC with morethan $50 million funding (with about $21million from the Australian GovernmentDepartment of Education, Science andTraining CRC program) over seven years.While the bid did not proceed to the nextstage, the CRC selection committeerecognised the importance of the workproposed and suggested that additionalsupport from industry and purchasinggroups would enhance future submissions.Regulatory Compliance – TherapeuticGoods (Medical Devices) ActThe Therapeutic Goods Administration(TGA) has been working with the assistivetechnology sector for more than two yearsas it seeks to implement the changesforeshadowed in the relevant Act (asamended in 2002). NovitaTech has playeda key role in both clarifying expectations ofthe TGA and the sector, and educating ourpeers about the implications and potentialbenefits for our sector.NovitaTech employed a Senior ClinicalEngineer from Enable Ireland’s Postureand Mobility Group from July to September2005. This person had substantialexperience in incorporating the MedicalDevice Regulations (Europe’s equivalent)into a very similar organisation toNovitaTech. The division is now registeredas a manufacturer with the TGA and newprotocols and compliant documentationwere developed and trialled during thisplacement. Training sessions have beenprovided across Novita to ensure theorganisation will be compliant with itsobligations when the new rules take effect.NovitaTech has continued to develop itstraining materials and systems and hasbeen invited to present to prosthetic andorthotic services (nationally), assistivetechnology providers generally (Victoriaand Western Australia) and increasingly tomanufacturers of equipment in Australia.NovitaTech continues to take a lead role innegotiating the introduction of the new ruleswhich have been forecast to commencefrom July 2007.Strengthening business focusNovitaTech has for many years operatedwithout government funding. As aconsequence, its operations depend onsound business practices to ensure the

36division’s capability is marketed well andthat it can deliver effectively and efficiently.During the second half of 2005, Novitaemployed a Finance and AdministrationSystems Review Officer to explore a numberof the aspects of divisional operations andrecommend improvements, as well asscope the proposed Business Managerrole. Following this review, NovitaTechrecruited a new Business Manager whocommenced in late May 2006. As a resultof this concerted effort, NovitaTech hasstreamlined a number of its administrationfunctions and is now progressivelyreviewing business unit processes andfunctions with a view to further efficiencies.The purpose of these activities is to identifyopportunities for productivity gains and toensure the division is operating in a mannerthat supports further growth includingtackling large contract opportunities bothwithin South Australia and interstate.Promoting NovitaTech to the communityWith a concerted effort throughout theyear, NovitaTech has maintained a highprofile in local, national and internationalmedia and professional events. Ouractivities in communication device andtelecommunication support have beenreported on local television and nationalradio. In both instances the approach wasa joint one, which generated significantpositive feedback and most importantly,raised the profile of this vital technology andthose who need it within our community.Members of the NovitaTech team, alongwith visiting professionals, have alsobeen invited as special guests onto localAdelaide radio stations to discuss andpromote the value of assistive technology.In December 2005, NovitaTech hosted RobMorrison from ABC Asia Pacific’s Nexusscience program. The segment filmed atNovitaTech was then broadcast throughoutAsia (initially in May 2006) to a substantialaudience, showcasing some of theinnovations and activity at NovitaTech.NovitaTech has continued to develop itsrole in the Asia-Pacific region through theestablishment of partnership agreementswith organisations in both Singaporeand Taiwan. Specifically, NovitaTech hashelped to establish an assistive technologyadvisory service in Singapore. Through thisproject, NovitaTech will work in collaborationwith strategic partners in Singapore and theUSA to develop communication solutionsfor people who speak Mandarin, themost commonly spoken language in theworld. NovitaTech will continue to exploreopportunities both in terms of servicedelivery and product development withinthis region.ConferencesNovitaTech continues to be successfulin promoting the benefits of assistivetechnology to a diverse audience atconferences and seminars. The Directorpresented as the keynote speaker at severalevents during the year, including:• International Research: the Australian/New Zealand perspective, RehabilitationEngineering & Assistive TechnologySociety of North America (RESNA), June2005• The Future of Assistive Technology,Independent Living Centre (SA) AGM,November 2005• A Research Agenda for AssistiveTechnology and The Keys to GoodAssistive Technology Use: Researchand Application, Independent LivingCentre (WA) - Assistive Technology andResearch Symposium (attended by WATreasurer and Deputy Premier and twoDirectors General), Perth, May 2006.

37Divisional staff have also presented atsymposia, conferences and conducted onsitetraining throughout Australia during theyear. In particular, NovitaTech staff playeda key role in the scientific program of theinaugural Australian Biomedical EngineeringConference, held in Adelaide duringOctober 2005. The Director worked with theconference organising committee to bringDr Geoff Fernie (Vice President - Researchat the Toronto Rehabilitation Institute) andProfessor Martin Ferguson-Pell (ASPIREChair in Disability and Technology atUniversity College London) to Adelaide,and to then undertake a national tour. Bothspeakers provided details of some of thelatest developments in assistive technologyaround the world.In November 2005, the R&D teamsuccessfully completed a further trial ofthe use of communication devices withmobile telephones. The trial, funded bythe Australian Government Department ofCommunications, Information Technologyand the Arts, was highly successful andled to further funding applications, whichgained a further $30,023 to expand theproject to trials using Telerehabilitation.In late 2005, Novita approached theAustralian Minister for Communications,Information Technology and the Artsadvocating the need for funded researchassociated with telecommunications,and the limited support given bytelecommunications providers. In responseto Novita’s advocacy, the Minister’s officeBusiness unit reportsResearch and Development (R&D)Work continued throughout the year onthe Virtual Music Instrument project, withfunding provided by the Lions Club ofCharles Sturt to purchase computer andprojection equipment to broaden the trialprocess for this innovative software.Novita has now signed a collaborativeagreement with Bloorview Kids Rehab(Canada), and research grant proposalshave been submitted to explore broaderuses of the technology. NovitaTech iscurrently assessing the value of a musictherapist as part of this program.has since offered to assist in improvinglinks with, and responsiveness from, thetelecommunications industry.In a collaborative effort across divisions,the R&D and Clinical Research teamspresented the inaugural Novita ResearchDay. The day was well attended and it isplanned to make this a biennial event.R&D has also implemented a ProjectReview Panel, building on the expertise ofthree senior professionals from industrialresearch and development to critiqueNovitatech’s processes and individualprojects. This has generally resulted in morerobust project descriptions and outcomes.^NovitaTech undertakesextensive research intoassistive technology, suchas switch-adapting mobilephones for use by people witha disability.

38Support TeamNovitaTech’s Support Team has continuedto deliver critical service support toNovita’s Therapy Division. In 2005, this wasfurther enhanced when the two divisionscame together to create the InnovativeTechnology Team (ITT), which provides acomprehensive multidisciplinary servicefor clients requiring ‘high-end’ complextechnology. This team reflects Novita’scommitment to meeting the needs of clientswith even the most complex technologyneeds, and stands as a model for achievinggood technology outcomes in this difficultarea.Foundation-funded assistive technologystudy to explore technology use in schools,along with a joint project with the Universityof South Australia in adapting computerbasedtools to determine the level ofchildhood participation by children withdisabilities.Assistive TechnologyThe Assistive Technology (AT) Departmenthas continued to enhance the NovitaTechwebsite to facilitate customer access to itsproduct range.AT staff have worked closely withinternational suppliers to enhance the^NovitaTech orthotist EmilyGraham fits an Ankle FootOrthosis (AFO) for a clientThe Support Team is often in demand fromnon-Novita clients and organisations dueto their expertise. Accordingly, the divisionis continuing to develop ‘fee for service’options to make that expertise available.Staff have also worked in partnershipwith the South Australian Government’sDepartment of Education and Children’sServices’ Special Education Resource Unitto provide assistive technology in schools,through collaborative meetings, trainingsessions and NovitaTech staff presentationson supporting students with complexcommunication needs. Staff also developeddisplays of the equipment available topeople with disabilities for events such asSpeech Pathology Week, open days andbroader community exhibitions.products available to Australian consumers.The team was able to secure two high levelcommunication devices from the PrentkeRomich Company (PRC), from ten offeredinternationally through a promotionalcampaign, which has led to closer researchties being forged with PRC and their sistercompany, Semantic Compaction Systems.The AT team secured a new partnershipwith an emerging Taiwanese supplier tooffer a range of lower-end communicationdevices specifically tailored to Australianconsumer needs. These products nowcomplete a full suite of options, includingthe finalisation of a tablet PC-basedcommunication device developedthroughout 2005.Finally, the Support Team is heavilyengaged in a Channel 7 Children’sAT also provided technology and supportfor two creative events in 2005/06 – the

39Somersault Arts Group’s Seetainer project(which was launched by the Minister forDisability, the Hon Jay Weatherill MP)and the Novita-run inaugural CampYackety Yack for children with complexcommunications needs.OrthoticsThe Orthotics Department managedto secure the services of two talentedand capable orthotists in what is a verycompetitive employment market, enablingNovita to provide the spinal clinic serviceand leave cover in orthotics to the Women’sand Childrens’ Hospital.Orthotics staff have begun deliveringclinics, including casting and orthoticassessment, at all Novita regional offices tohelp reduce the travel time and expensesincurred by our clients. Many families andtherapists have commented favourablyon this development as it offers a ‘onestop shop’. Staff are currently designing amobile workshop solution to facilitate theseclinics and allow them to visit country SouthAustralia as well.The Orthotics team continues to forge linkswith sister units in Adelaide and other cities.Recently a NovitaTech orthotist undertooka week long training session at the RoyalChildren’s Hospital in Melbourne on CustomSpinal Orthotics. This one-on-one tuitionincluded assessments, cast modifications,manufacture and fit/supply of spinalorthoses, giving invaluable insight into theprocesses used in one of the busiest andexperienced spinal orthotics departments inAustralia.Orthotics has also begun work onenhancing its research capacity. Twofunding proposals have been submitted toexternal bodies to support a joint projectwith Novita’s Therapy Division and theUniversity of South Australia to validate workundertaken in the United Kingdom, whichhas significant implications for our servicedelivery to children in need of ankle footorthoses.Mobility and SeatingThe Mobility and Seating Departmenthas undergone a range of significantchanges during the year while maintaininga considerable workload. A newManager, Mobility, Seating and Orthoticshas been appointed, as has a seatingtrainedoccupational therapist. A seniorrehabilitation engineer with specialist skillsin mobility and seating will also join theteam later in 2006.The team has identified a number of areasfor improvement and the new BusinessManager has focused on a systemsand accounting software review for theoperations. By the end of the 2005/06financial year, this had achieved almost a50% reduction in work waiting for action andthe unit can now provide much better workcontinuity to customers and prescribers.EngineeringThe Engineering Department completeda highly successful year in 2005/06due in part to its ability to undertake thesignificant demand for testing created by aQueensland Government supply tender. Inthe last few years the team has developeda range of automation and monitoringimprovements which helped to increaseproductivity without requiring additionalstaffing commitments. As a consequence,Engineering completed the financial yearsignificantly ahead of budget.The senior testing engineer attended theInternational Standards Organisation TC173meetings in May 2006, held in Austria,

40as Australia’s representative. This wasinvaluable experience and also enabled himto visit one of the equivalent laboratoriesin Europe as he passed through Vienna.NovitaTech’s expertise continues to berecognised nationally and internationally onstandards bodies associated with wheeledmobility systems. In Australia, NovitaTech’sDirector chairs the Australian StandardsCommittee responsible for wheelchairs andrelated standards.Engineering staff continue to beapproached with regard to TherapeuticGoods Act compliance as both devicesponsors and manufacturers become moreaware of their changing responsibilities inthis area. It is likely that there will be somedemand for professional workshops onthis topic as the Act takes effect within thesector.benefit to the community. Toan’s work wasfurther recognised when one of the mobilecommunication solutions he developedthrough his work at NovitaTech featured onthe ABC TV program New Inventors, andwas voted the episode winner. This placesToan as a finalist in the New Inventor’s 2006Australian Inventor of the Year Award.Senior Rehabilitation Engineer David Hobbswas awarded a 2005 ABC AustralianAcademy of Science Media Fellowship,based within the Science Unit of theABC in Ultimo, Sydney. The week-longcourse provided David with an insight andunderstanding of how journalists work andhow science and engineering is reportedwithin the media (radio, television, printand on-line). Apart from meeting and beingbriefed by a number of ABC Science’skey staff, David recorded an interview on^Toan Nguyen (right) receivinghis Unsung Science Heroaward from ANZAAS (SA)Chairperson, David Boyd.NovitaTech staff newsNovitaTech Research Engineer ToanNguyen was awarded the Australian NewZealand Association for the Advancementof Science (ANZAAS) South AustralianDivision Unsung Science Hero award inAugust 2005. ANZAAS (SA) makes thisannual award to a South Australian-basedscientist or engineer, the significance ofwhose work has not been recognised bythe public at large, but nevertheless hasbeen based on sound science and is ofwheelchair safety and science that aired on5 November 2005 on the Science Show.Throughout the year, NovitaTech staffsupervised students undertaking practicumor project work in orthotics, occupationaltherapy and biomedical/mechatronicengineering. Several of these projectsresulted in special awards from theUniversities – including one for University ofAdelaide student Alan Rowland, who wasawarded the 2005 Most Innovative ProjectPrize for his development of an ‘add-on’

41obstacle avoidance system that integratedwith an existing powered wheelchaircontroller.A group of Flinders University engineeringstudents, jointly supervised by NovitaTech,was awarded the $3,000 SAAB SystemsEngineering Excellence Award for the bestEngineering Honours Project for 2005.They developed a new PDA-based remotecontrol for home automation, which uses anew wireless means for communicating thesignal. Their compact design was intendedto be used by someone with a disability,and incorporated Universal Design andaccessibility features such as high contrasttouch screens and switch scanningcapability.In May 2006 NovitaTech employed its firstfull time Business Manager who is chargedwith enhancing NovitaTech’s businesssystems and contract capacity.Looking ahead...NovitaTech has undergone a number ofchanges in the last few years to repositionitself as both customer centred, andbusiness driven. 2006 marks the division’s30th year and we continue to be one ofAustralia’s leading centres for the provisionof assistive technology, particularly tochildren. We are now strengthening ournetworks nationally and internationally toensure we maintain our leading edge statusin line with Novita’s new Strategic Plan.NovitaTech has continued to develop notjust through the expertise of the staff it hasemployed and the foresight of Novita’sboard, but also through the generosity ofSouth Australians.

42Introduction to MarketingMarketingThe Marketing Division consists of 11 specialist staff whocoordinate Novita fundraising, volunteers, event management,graphic design, sponsorship, marketing, grant applications,auxiliaries, bingo, publications, media liasion and generalcommunications. The Marketing Division’s clients includeNovita staff, children and their families, auxiliaries, communitysupporters and corporate partners.Marketing has two key focuses – to raise money tofund the provision of children’s services and to managecommunication between Novita and its clients, families,staff, supporters, sponsors and the general public. With thisin mind, the department is divided into three separate butcomplementary units:• fundraising (focusing on event management, auxiliarysupport, the bequest program, corporate sponsorship andbingo)• development (committed to strengthening existingcorporate partnerships, sourcing funding for immediateneeds and identifying new opportunities for incomegeneration)• communications (manages Novita’s internal and externalcommunications, media liaison, publications andnewsletters).

43Reflecting on the past financial yearA key operational focus for the Marketingteam in 2005/06 has been building thebrand awareness and brand attributes ofNovita Children’s Services.It has now been more than two years sincethe organisation changed its name fromthe Crippled Children’s Association toNovita Children’s Services. Although thisname change has been very well receivedby the community, we are continuing ourwork to further build the community’sunderstanding of our organisation, ourclients and the services we provide. TheMarketing team is committed to increasingawareness of Novita across South Australia,with research showing our key fundraisingevents, new partnerships and marketingYou could certainly hear Novita comingon Sunday 28 May, when more than 500cheering children ‘took to the trucks’ andhonked their way around Adelaide. Therewere plenty of firsts at this year’s event,including a new date, a new venue at theDistinctive Homes Dome at Findon and anew route through the heart of Adelaide.Add to this the perfect weather, rides,games, sporting legends, Home and Awaystars and more than 300 trucks, and it’s nowonder a record number of children wereregistered to ride.In total, the event raised more than $25,000for Novita’s families – but most importantly,it gave hundreds of Novita’s inspirationalkids the ride of a lifetime around the streetsof Adelaide.activities are already going a long way toprogressively building brand awarenessacross the state.Marketing Division – 2005/06 keyprojects and initiativesConvoy for KidsSponsored by Coles/BiLo supermarkets,Novita’s Convoy for Kids is now the largestcharity truck convoy of its type in the world– and the 14th annual Convoy, held in May2006, was the best yet!Down Every Street AppealOver the past 50 years, Novita’s annualDown Every Street Appeal has raisedhundreds of thousands of dollars to supportSouth Aussie kids living with physicaldisabilities.The 2006 Down Every Street Easter Appealran from Friday 24 March to Thursday 13April, kicking off with a badge day thatsaw volunteer collectors positioned atkey locations across Adelaide’s centralbusiness district. Channel 7 news presenterand Novita supporter John Riddell jumped^Novita client Jared first tookpart in Convoy for Kids threeyears ago and met a veryspecial truckie, GrahamMurdock (aka ‘Poppa Murf’),who drives all the way fromthe Yorke Peninsula each yearto share the special day withJared.

44aboard as the 2006 Appeal Ambassador,leading a team of Novita staff in a lunchtime ‘collection blitz’ under Rundle Mall’sGawler Place Canopy as well as organisingseveral special news stories on Channel 7throughout the appeal.The appeal was well supported by localprint media, with several stories on Novitaclient (and face of the 2006 appeal)Samantha Inge appearing in Messengernewspapers. Donation boxes werelocated at Coles/BiLo supermarkets andBankSA branches, while radio station Mix102.3 showed their support with an onaircampaign and street crew collectionsduring the appeal. Novita’s wonderfulauxiliaries and volunteer collectors alsoworked tirelessly right across the state,holding fundraising events and ‘rattling thetins’ to raise money for Novita’s clients.In total, the 2006 appeal raised more than$45,000 for Novita’s children.Sports Challenge FoundationFor 15 years, Novita’s Sports ChallengeFoundation has worked tirelessly to raisemoney for Novita’s clients and their families.In 2006, this passionate group of sport andmedia oriented South Australians reachedan incredible $1.5 million fundraisingmilestone. Annual Sports Challenge eventslike the Crows/Port Power ShowdownDinner and Match and the Sports ChallengeGolf Day have now become must-attendevents on Adelaide’s social calendar.In 2006 these events were bigger andbetter than ever, raising a combined totalof $90,000 to provide Novita clients withmuch-needed equipment and support.Rainbow CommitteeThe events held each year by Novita’sRainbow Committee have played a vital rolein Novita’s fundraising efforts for more than16 years. In fact, this group of passionateNovita supporters has raised more than$250,000 to help Novita’s children in the lastseven years alone!In October 2005, The Rainbow Committeeheld its annual Lunch in a Spring RoseGarden. The event, which has been astaple of the Rainbow Committee since theearly 1990s, saw hundreds of generousSouth Australians gather to indulge infine wine, gourmet food and spectacularentertainment in the gardens of beautifulCarrick Hill.Carols by Candlelight 2005In December 2005, Adelaide’s ElderPark played host to the 61st Carols byCandlelight. Since the 1940s, this event hassupported three of South Australia’s leadingchildren’s charities – Novita Children’sServices, the Women’s and Children’sHospital Foundation and the Cora BarclayCentre.The 2005 line-up of performers was one ofthe best yet, headlined by singing superstarTodd McKenney (star of The Boy from Ozand Channel 7’s Dancing with the Stars),Amity Dry and Tim Campbell (who playsDan on Channel 7’s Home and Away).Other acts included Andy Seymour, TheBorderers, Chunky Custard and of course– a visit from Santa! The event providedNovita with the opportunity to promote thegreat work we do to a captive audience ofmore than 30,000 South Australians.Redevelopment of Novita NewsNovita’s corporate newsletter, Novita News,underwent a significant facelift in 2005/06.Originally produced twice a year as a four tosix page ‘appeal newsletter’, the full-colour,20 page Novita News is now producedthree times each year to coincide with majorevents and appeals.

45As Novita’s flagship externalcommunications tool, Novita Newsshowcases the very best of Novita to morethan 4000 corporate sponsors, volunteersand supporters. Each edition is packed withstories about the incredible achievements ofNovita’s staff and volunteers, along with thelatest news on Novita projects, sponsorsand supporters, upcoming fundraisingevents and plenty of information on how toget involved and show support for SouthAustralian children with disabilities.Novita News also allows the organisationto engage the community by sharing sometruly inspirational stories about Novita’smost valuable asset – our children. Everyedition now presents several feature storiesabout Novita clients, their families and theirincredible achievements.Business unit reportsFundraisingThe Fundraising Department hasundergone a number of substantialchanges over the last 12 months. InDecember 2005, we farewelled PatriciaBrougham, Events Manager, after 15years of dedicated service to Novita. Herpassion and commitment to Novita’sclients was second to none and we wishher well in her retirement. The team is nowmade up of the Manager Fundraising, anEvents Coordinator, an Events Assistant,a Community Relations Coordinator and aBingo Coordinator.Despite these many changes and a teamof new faces, Fundraising has enjoyed asuccessful year in 2005/06. Our Auxiliarygroups continued to be very active in theircommunities, our volunteers continued todemonstrate their dedication to our causeand we saw excellent growth in some of ouriconic fundraising events.Throughout the year, Novita Bingo alsocontinued to go from strength to strengthand once again generated more than$1 million in gross income. Patron numbersremained stable, despite the introductionof a non-smoking area equivalent to 50%of the total area in compliance with relevantlegislation. A small yet dedicated group ofstaff continues to provide patrons with afriendly, professional and fun environment inwhich to enjoy their Bingo experience.The creation of the new Development Unitwithin Marketing also resulted in somechanges to the focus of the Fundraisingteam. These two units will now work inpartnership to explore new opportunitiesfor ongoing funding and to further improverelationships between Novita and SouthAustralia’s business community.In an increasingly challenging economicenvironment, with factors like rising fuelprices and interest rates placing additionalpressure on the household budget, theFundraising team continues to be facedwith new and complex challenges. With anenthusiastic new team and an increasedfocus on achieving a solid return oninvestment on all activities, we are confidentthat we will continue our success in bridgingthe financial gap between Governmentfunding received and the increasing costsof supporting Novita’s children.DevelopmentThe newly established DevelopmentDepartment is dedicated to developingexisting business relationships, sourcingfunding for immediate needs and securingongoing income for the future. The creation

46of this unit in May 2006 reflects a newdirection for the Marketing team in linewith the growing trends in the not-forprofitsector. With a slowing economy andincreased competition for the charity dollar,Novita will need to stay ahead of thesetrends and proactively look for new ways ofattracting donations.With only 55% of its annual fundingrequirements met by the Government,Novita relies heavily on the loyal supportof our community partners. The dedicationand generous gifts provided by caringindividuals and organisations in thecommunity enable Novita to continue toprovide the highest level of support andcare for children living with disabilities.In 2005/06, Novita was once again fortunateenough to benefit from numerous donationsand bequests made by its wonderfulsupporters in the community. We valuethe significant contribution and investmentthat donors and businesses make to ourorganisation, and look forward to furtherdeveloping these relationships over thecoming years as we work to establish astable fundraising platform and ensure asustainable future for Novita.Support from trusts and foundations in2005/06 was outstanding, with manynew foundations contributing to theestablishment of new programs andprojects. Special mention must be madeof the generous support received from theAMP Foundation, Australian Lions Children’sMobility Fund, Australian Executor Trustees,Australian Hotels Association, Bank SAand Staff Charitable Fund, Booze BrothersStaff Charitable Fund, Cheap as Chips StaffFoundation, CMV Foundation Inasmuch,EB Charitable Trust, Independent GamingCorporation, Macquarie Bank Foundation,St George Foundation, Telstra FoundationCommunity Development Fund and Variety,the Children’s Charity.Once again, Novita’s corporate partnershave provided invaluable assistanceand support. Novita’s partnership withits long-term and valued partner, Coles/BiLo supermarkets, continues to play afundamental role in our success – with theirfinancial support allowing us to provideessential services and assistance thatwould not otherwise be possible. Ourgratitude also extends to Coles/BiLo staffand shoppers, who contribute significantlyto the partnership by taking part in eventsand making donations at the supermarketcheckout.Novita would also like to acknowledgethe considerable contributions madeby our corporate partners Coca-ColaAmatil, Goldsborough Financial Services,McCraken Homes, the Port AdelaideFootball Club, Channel 7 Adelaide, Mix102.3 and the SANFL.CommunicationsThe Communications team structure hasexperienced significant change over thepast 12 months.In July 2005, a CommunicationsCoordinator with graphic design experiencejoined the team to implement Novita’snew design standards and oversee theirimplementation across the organisation.A Communications Manager wasappointed in December, to lead the teamand coordinate all of Novita’s internaland external communications, mediaand public relations. In January 2006 wefarewelled Suzanne Adams, who hadmade a significant contribution as parttimeCommunications Consultant over thepast 18 months. This vacancy gave us theopportunity to reassess the position, and

47a Graduate Communications Officer wasappointed to assist in the production ofinternal and external publications.Early in 2006, the Communications teamundertook a review of Novita’s externalpublications, which resulted in significantcontent and design changes for Nexus andNovita News, as well as the implementationof a brand new staff e-newsletter, StarNews. These changes have been metwith a very positive response, with aNexus reader survey showing increasedsatisfaction and numerous letters andemails of commendation received fromstaff, supporters and senior members ofGovernment. Donations received fromthe Novita News have also enjoyed asubstantial increase, as has the number ofnew subscribers.The appointment of a CommunicationsManager also saw an immediate increase inNovita’s media presence. By developing astrategic media schedule and working hardto build robust media relationships, Novitaenjoyed significant and very positive mediacoverage of fundraising events and relatedissues at pivotal times throughout 2005/06.Marketing staff newsNovita’s Director of Client Programs, WendyWake-Dyster, stepped out of her usual rolein the first half of the financial year andmoved across to the position of ActingDirector of Marketing. During her time withMarketing, Wendy provided Marketing staffwith a much better understanding of, andlink to, Novita’s clients and families, as wellas the work of the Therapy Services team.Wendy’s professionalism, organisationalknowledge and outstanding leadershipcreated an excellent foundation for thenew Marketing team, and we look forwardto building on the strong links she hasestablished between Marketing andTherapy staff.Looking ahead…Over the next 12 months we plan tocontinue building on the awareness andunderstanding of Novita Children’s Servicesthroughout the community by utilisingpublicity opportunities, developing an on-aircommunications campaign and via ourevents and website.With the increasing demands on bothhousehold and corporate budgets, it isnow more important than ever that welook for new and innovative ways to fundour children’s services. Over the next yearthe Marketing team will analyse all of ourfundraising techniques to ensure that justlike the services Novita provides to itschildren, our fundraising efforts are worldclass.^Face of the 2005 Down EveryStreet Appeal, SamanthaInge, with Novita ChiefExecutive Glenn Rappensberg(centre) and NovitaAmbassador John Riddell(left).

48CorporateServicesIntroduction to Corporate ServicesThe Corporate Services Division is responsible forensuring Novita has the corporate systems, processesand mechanisms in place to support the highestlevels of achievement across its service deliveryand commercial divisions. Corporate Servicesencompasses Novita’s finance and investments, humanresource management, information and infrastructureservices, risk management, governance and qualityassurance functions.Changes to Novita’s Statutory Financial StatementsDue to the adoption of the new International FinancialReporting Standards (IFRS) for the year ended 30 June2006, the format of Novita’s Statutory Financial Statementshas changed compared with previous financial years. Thechanges to reporting requirements are summarised in theNotes to the Accounts (notes 3 and 21) within the financialreport. In particular, to comply with the IFRS, Novita hasrevalued the investment portfolio to market value as at 30June 2006, resulting in a new investment revaluation reserveaccount in the Balance Sheet.

492005/06 incomeGovernment fundingIn 2005/06, the Government of SouthAustralia continued to support Novita’sprovision of life changing services tochildren living with disabilities. This financialsupport comprised base operational funds,as well as a provisional 2.7% indexationallocation and funding for continence aidsand family support services programs.These operating funds were supplementedwith once-off grants to enable the purchaseof specialised equipment for children andthe establishment of parent networks.The Australian Government’s Homeand Community Care program (HACC)continued to assist Novita in linking clientswith their community.The South Australian Department ofEducation and Children’s Services (DECS),upon the recommendation of the MinisterialAdvisory Committee: Students withDisabilities, continued to provide valuablerecurrent funding to contribute to theprovision of early intervention and schoolbasedservices for Novita clients.In late 2005, Novita was successful inits tender to the Australian GovernmentDepartment of Families, CommunityServices and Indigenous Affairs to provideInclusion Support services to children withdisabilities and children from indigenousor culturally diverse backgrounds. Novita’sexciting new Inclusion Support Programcommenced in April 2006, with Novitaresponsible for supporting children living inthe far north west of the state, the FlindersRanges and Yorke Peninsula.NovitaTech salesSales of products and services byNovitaTech improved over the previousyear by 20.1%, and while the related costsof materials increased by 28.6%, theresulting gross margin improved by 8.9%.This is a positive result as staff recruitmentchallenges within this specialised areacontributed to a decrease in sales activitycompared with the budget.FundraisingTotal fundraising revenue declined by42.9%. However, this outcome mustbe considered in the context of anextraordinary and generous philanthropicdonation of $2.1 million received in theprevious financial year from the Estateof Roy and Marjorie Edwards. A furtherdonation is anticipated from this estate inthe 2006/07 financial year. Excluding theEdwards Estate donation, the decline inother fundraising revenue from the previousyear was marginal at 7.1%.The increasingly competitive fundraisingenvironment in which Novita operates isevident by the decline in business-relatedfundraising revenue, down $197,043 (or10.5%) compared with the previous year.A review of business-related fundraisingevents is underway with the view to animproved result in the next financial year.Non-business related fundraising, excludingthe Edwards Estate donation, declinedby only $42,510 (or 2.9%). Bequests anddonations form the principal component ofNovita’s non-business related fundraisingactivities, and these areas have becomeincreasingly competitive over the pastdecade.

50^New therapy initiativesintroduced in 2005/06included Club Yackety Yack,a social group for clients withcomplex communicationneeds.InvestmentsGross investment-related income improvedover the previous year, largely due toNovita’s continued participation in a numberof share buy-back arrangements offeredby publicly listed companies during theyear, plus continued careful and prudentmanagement of Novita’s investmentportfolio.This continued level of investment incomesignificantly contributes to Novita’s capacityto provide a wide range of valuable servicesto clients, in particular Research andDevelopment. It also demonstrates theneed for a well-balanced, professionallymanaged investment portfolio to help offsetfluctuations in external funding and createa financial foundation for long-term growthinto the future. This is particularly evidentas the annual increase in Governmentgrant funding has for sometime been lessthan the ‘real’ cost of providing services,placing continued strain upon Novita andnecessitating the development of otherincome sources to maintain and enhanceservices.Overall, Novita’s total gross revenue hasdecreased by 13%. This decrease is partlyexplained by the adoption of IFRS, whichrequires separate reporting of operationaland financial related income items, whereasin previous years, all income was reportedin one category. The other significantdifference arises from the previous year’sreceipt of $2.1 million from the EdwardsEstate, whereas the current year had nosuch donation.2005/06 expenditureTherapy ServicesIn 2005/06, Therapy Services expenditureincreased by 1.1% when compared withthe previous financial year. Due to theimplementation of the IFRS, Novita isno longer able to accrue committed butinvoiced equipment expenditure. If thecorresponding expenditure in 2004/05were treated under IFRS, the increasewould have been 5.4%. Therefore theprime reason for the increase in TherapyServices expenditure can be attributed toa combination of wages growth and anincrease in staffing to meet the current andemerging needs of Novita’s clients.NovitaTechExpenditure in the NovitaTech Divisionincreased by 8.4% due, in part, to theapplicable enterprise bargaining increasespayable to staff, as well as costs associatedwith the promotion of NovitaTech productsand professional services.Family Support ServicesFamily Support Services expenditureincreased by 4.7% during 2005/06. This

51increase was due to applicable EnterpriseAgreement costs, higher service brokeragerates and the cost of services to clientswith complex and high health needs. Theincreased cost for services brokerage isin part a direct result of price increasespassed on by external service providersseeking to redress the increase costs ofgoods and services which continue to bea challenge for Novita and many disabilityservice providers.MarketingMarketing Division expenditure decreasedfor the year by 10.5% and this iscommensurate with the decrease in generalfundraising revenue, excluding the EdwardsEstate donation, in 2004/05. With thedecline in fundraising revenue, operationalefficiencies continued to be pursued. Asnoted above, the fundraising event programis to be reviewed during 2006/07 with a viewto improved performance in the next year.The margin on business-related fundraisingfor the current year was 21.9%, representingan improvement over the previous year’smargin of 20.9%. This reflects the improvedperformance of the Bingo operation andthe implementation of cost containmentmeasures. The margin on non-businessrelated fundraising was 89.9% and,excluding the Edwards Estate donation,represents a small variance from theprevious year’s margin of 90.4%.Corporate ServicesThe Corporate Services Division hasfocused on cost containment strategies inan effort to manage the increased workloadassociated with government compliance,implementation of new accountingstandards and meeting occupational healthsafety and welfare requirements. Actualexpenditure fell by 1.0% compared with theprevious financial year.Overall financial resultIn summary, the financial result for the2005/06 financial year was a deficit of$295,524. This deficit needs to be evaluatedwith reference to the exceptional $2.1million donation received from the EdwardsEstate last financial year, the increasingcompetition for fundraising revenue plusthe increased costs associated with thedelivery of a range of services provided toour clients.The result for the current year also highlightsthe continuing need for a strong investmentportfolio, providing a reliable dividendand interest revenue stream to assisting inmeeting the growing shortfall between grantfunding and the demand for our services.Business Unit reportsRisk Management, Quality Assuranceand GovernanceThe Risk and Governance Department is arecent addition to the Corporate ServicesDivision and is responsible for facilitatingthe development of an organisational-widestrategic and systematic approach to qualityassurance, risk management, governmentrelations, legislation, legal interpretativematters and contractual documentationin support of Novita’s vision and strategicdirections.In addition, the Department has theresponsibility for the organisational

52development and implementation ofstrategies, policies and procedures thatembed the principles of continuousimprovement, risk management andgood corporate governance within theorganisation.In consultation with legal counsel, thisDepartment also conducts activities toensure compliance with legal and statutoryobligations.During the year, Novita was againsuccessful in meeting all the requirementsto maintain our quality assurancecertification for the AS/NZS ISO 9001:2000quality management standards.Information TechnologyInformation Technology (IT) underpinsthe effective operation of Novita’s serviceprovision to clients. Novita continues,wherever possible, to use the most currentIT infrastructure to secure, manage anddistribute information to Novita staff atRegency Park Centre and the regionaloffices. The IT Department’s philosophyis to build an infrastructure to assist allsections of Novita to achieve best practicevia the safe, simple, reliable and effectiveaccess to information necessary to provideand manage services to clients.During the year, the IT Departmentimplemented a program to improve datatransmission between all regional officesand Regency Park Centre which involvedthe establishment of a wireless data link.Upon the successful implementation of thenew link, an increased number of computerterminals was installed in regional officesto facilitate more efficient data recordingand input of client service statistics to meetGovernment reporting requirements.Human ResourcesDuring 2005/06, the Human Resource(HR) Department introduced a ‘partnershipmodel’ with all Novita Divisions tostreamline human resource consultancyand advice. A review of the new modelearly in 2006 identified a high level ofacceptance across the organisation.RecruitmentRecruitment of employees appropriate toNovita’s service needs continues to be asignificant challenge for the organisationbecause of the world-wide shortage ofhighly qualified and experienced paediatricprofessionals. A skill acquisition programhas equipped managers to recruiteffectively in this challenging environment.Induction ProcessesHR has further improved the induction andorientation processes for new staff. In linewith recent statewide initiatives relating tochild protection, greater emphasis is beingplaced on thoroughly preparing staff fortheir responsibilities in this area.Enterprise BargainingA full review of the Novita Children’sServices Award was conducted, resultingin the ratification and issuing of a newAward by the South Australian IndustrialRelations Commission. Negotiationsalso commenced on an EnterpriseCollective Agreement to replace theexpiring Agreement. As this processwas not concluded by 30 June 2006,discussions will continue until a suitable

53agreement is reached. It is appropriateto note that, with the passage in March2006 of the amendments to the WorkplaceRelations Act 1996, commonly known asWorkchoices, Novita sought legal advicethat confirmed Novita is now includedwithin the jurisdiction of the WorkChoicesamendments. Thus future employeeagreements will be Collective Agreements.Training and DevelopmentStaff training and development has beenenhanced by the establishment of an onlinetraining calendar and booking system.Some of the practical and innovativeprograms available to staff includedprofessional skills training, advancedadministrative practice and informationmanagement. A three-tiered LeadershipProgram commenced during the yearand it is anticipated that this will cascadethrough all levels of management acrossthe organisation in the next financial year.Implementation of the HR System (CHRIS)training module has assisted greatly in therecording of training data and will providevaluable information into the future.Organisational ReviewA number of organisational review projectswas undertaken in 2005/06 to assessoperational efficiency, including the reviewof regional administration and the FacilitiesServices (Maintenance & Gardening)Department.Staff ProfileStaff numbers increased during 2005/06with the introduction of new services. At theclose of the financial year, Novita employed275 employees, with 140 full time positions,113 part time and 24 casuals. Staff turnoverincreased from 16.6% in 2004/05 to 17.1%for this period.Professionally qualified employees makeup 61.1% of Novita’s workforce. Theirdisciplines include disability studies,engineering, accounting, businessmanagement, occupational therapy,orthotics, physiotherapy, psychology, socialwork and speech pathology.Length of ServiceYears of Service Number % of staff25+ 8 320-24 21 815-19 25 910-14 29 115-9 52 19Under 5 140 50Occupational Health Safety & Welfare(OHS&W)2005/06 has been a groundbreaking yearfor OHS&W activity at Novita. The structureof the OHS&W Management Frameworkhas undergone rationalisation to improveefficiency and consultation methods.One of the key achievements was thedevelopment and implementation of anonline hazard register. This has enabled theproactive scheduling of OHS&W actionsand programs. There has also been aresultant review of fire safety and evacuationprocedures and a hands-on audit ofhazardous substances. Much traininghas also been done with staff, includingOHS&W awareness and manual handlingfor all employees as well as specific trainingfor managers.

54Looking ahead…The future for Novita is one that will requirethe organisation to continue to embracesignificant challenges with regard tosecuring adequate government fundingas well as undertaking concerted effortsto contain costs to ensure a viable andeffective service for the children andfamilies we serve. Novita will continue toface the perennial problem of balancingincreasing demand for services withlimited growth in financial resources. TheCorporate Services Division will continueto work in partnership with other divisionsto identify cost savings and preparefinancial submissions to Australian andSouth Australian Government highlightingthe need for funds to continue to developservices for children living with disabilities.The Corporate Services Division will workon improved cost centre finance reportingand the development of a managementaccounting and product costing framework.In addition, the development of reportingsoftware within the human resourcessystem will provide further support todepartments in the control of staff-relatedcosts. Reviews of our major suppliercontracts for products and services willcontinue in the new financial year, with thepurpose of identifying efficiencies and costreductions.An important area for Corporate Servicesinto the future will be working with otherdivisions to develop new business plans,which will lead to the achievement of keyperformance indicators within Novita’s newStrategic Plan.

RevenueGovernment FundingIncome StatementFor the year ended 30 June 2006Note 2005$$200655South Australian Government Department for Families andCommunitiesGeneral Recurrent Grant 8,546,372 7,789,758Non-Recurrent Grants 984,419 1,579,926Home and Community Care 443,870 415,100Community Benefit SA 22,130 227,505Australian Government Non Government Centres Support(Ministerial Advisory Committee: Students with Disabilities)Special Education Program 997,586 877,571Australian Government Department of Families, CommunityServices and Indigenous Affairs 140,777 -Total Government Funding 11,135,153 10,889,860Other Income from Grants 68,712NovitaTech Sales 2,912,113 2,425,465Less Cost of Materials 1,761,063 1,368,9731,151,050 1,056,492Fundraising ProceedsBusiness Related ActivitiesEvents, Bingo, Lotteries etc 1,675,981 1,873,024Non-Business Related ActivitiesDonations, Appeals, Bequests etc 1,436,491 3,579,0013,112,472 5,452,025Miscellaneous Income 998,085 955,230Total Revenue 16,465,472 18,353,607ExpenditureTherapy Services 9,937,522 9,830,676NovitaTech 2,133,205 1,967,945Family Support Services 2,034,289 1,942,258Marketing and Public RelationsBusiness Related Activities 1,308,502 1,481,794Non-Business Related Activities 144,542 141,2891,453,044 1,623,083Corporate Services 2,963,729 2,991,204Loss on Sale of Non-Current Assets 25,868 15,144Total Expenditure 18,547,657 18,370,310Profit/(Loss) before Financing Income (2,082,185) (16,703)Add Financial Income 3 1,786,661 2,633,091Profit/(Loss) for the Period (295,524) 2,616,388The above income statement should be read in conjunction with the accompanying notes set out on pages 59 to 74.

56NoteStatement of Recognised Income and ExpensesFor the year ended 30 June 20062006$Realised gains transferred to Income Statement (391,822) -Impairment of equity securities available for sale (63,097) -Specific Purpose Fund Expenditure (1,174) (4,395)Change in fair value of equity securities available-for-sale 1,914,047 -Change in accounting policy - financial instruments 21 7,294,976 -Net income/(loss) recognised directly in equity 8,752,930 (4,395)Profit/(loss) for the period (295,524) 2,616,388Total recognised income and expense for the period 8,457,406 2,611,9932005$Attributable to:Equity holder 8,457,406 2,611,993Total recognised income and expense for the period 8,457,406 2,611,993The above statement of recognised income and expense should be read in conjunction with the accompanying notes set outon pages 59 to 74.

Balance SheetAs at 30 June 200657Current AssetsNote 2006$Cash 5 497,084 1,016,069Stock on Hand 7 565,285 507,846Investments 1,005,199 2,400,123Trade and other Receivables 6 810,749 774,4882005$2,878,317 4,698,526Non-Current AssetsInvestmentsDebentures and Deposits 2,465 102,300Shares in Listed Companies 21 18,511,443 8,971,764Shares in Non-Listed Companies 21 328,260 261,00018,842,168 9,335,064Land, Buildings and Leasehold Improvements 10 7,013,342 7,227,223Plant, Equipment and Vehicles 10 1,576,611 1,585,871Intangible Assets 11 27,557 26,37727,459,678 18,174,535Total Assets 30,337,995 22,873,061Deduct:Current LiabilitiesTrade and Other Payables 8 3,716,348 4,655,447Provision for Staff Entitlements 9 1,335,029 1,302,0525,051,377 5,957,499Non-Current LiabilitiesProvision for Staff Entitlements 9 273,418 359,768Total Liabilities 5,324,795 6,317,267Net Assets 25,013,200 16,555,794FundsAccumulated Funds 12 9,363,323 9,658,848Fair Value Reserve 12 8,754,104 -Capital Funds - Regency Park Centre 12 6,875,576 6,875,576Specific Purpose Funds 12 20,196 21,370Total Equity 25,013,200 16,555,794The above balance sheet should be read in conjunction with the accompanying notes set out on pages 59 to 74.

58NoteCash Flows from Operating ActivitiesStatement of Cash FlowsFor the year ended 30 June 20062006$Cash receipts in the course of operations 20,222,277 22,542,599less Cash payments in the course of operations 22,679,362 20,898,0332005$Net Cash surplus/(deficit) from operating activities 14.2 (2,457,085) 1,644,566Cash Flows from Investment ActivitiesDividends received 2,360,194 1,857,037Interest received 195,695 185,614Payments for investments (2,400,411) (6,000,442)Proceeds from sale of Investments 2,273,107 2,036,005Net cash from investment activities 2,428,585 (1,921,786)Payment for property, plant and equipment (535,802) (974,442)Proceeds from sale of property, plant and equipment 45,317 473,453Net cash used in providing property, plant and equipment (490,485) (500,989)Net increase (decrease) in cash held (518,985) (778,209)Cash at the beginning of the financial year 1,016,069 1,794,278Cash at the end of financial year 14.1 497,084 1,016,069The above statement of cash flows should be read in conjunction with the accompanying notes set out on pages 59 to 74.

Notes to the Financial StatementsFor the year ended 30 June 2006591. Statement of Significant Accounting PoliciesThe Association is domiciled in Australia.This financial report was authorised for issue by the Directors on 5 October 2006.(a)Statement of Compliance: The financial report is a general purpose financial report which hasbeen prepared in accordance with the Australian Accounting Standards (“AASB’s”), Urgent IssuesGroup Interpretations (“UIG’s”) adopted by the Australian Accounting Standards Board (“AASB”)and the Associations Incorporation Act 1985. International Financial Reporting Standards(“IFRSs”) form the basis of Australian Accounting Standards adopted by the AASB, beingAustralian equivalents to IFRS (“AIFRS”).This is the Association’s first financial report prepared in accordance with AIFRS and AASB 1First Time Adoption of AIFRS has been applied. An explanation of how the transition to AIFRS hasaffected the reported financial position, financial performance and cash flows of the Association isprovided in Note 20.(b)Basis of preparation:The financial report is presented in Australian dollars.The financial report is prepared on the historical cost basis, except available for sale investmentswhich are stated at fair value. Other non-current assets are stated at the lower of carrying amountand fair value less costs to sell.The preparation of a financial report in conformity with Australian Accounting Standards requiresmanagement to make judgements, estimates and assumptions that affect the application ofpolicies and reported amounts of assets and liabilities, income and expenses. The estimates andassociated assumptions are based on historical experience and various other factors that arebelieved to be reasonable under the circumstances, the results of which form the basis of makingthe judgements about carrying values of assets and liabilities that are not readily apparent fromother sources. Actual results may differ from these estimates. These accounting policies havebeen consistently applied by the Association.The estimates and underlying assumptions are reviewed on an ongoing basis. Revision toaccounting estimates is recognised in the period in which the estimate is revised if the revisionaffects only that period, or in the period of the revision and future periods if the revision affectsboth current and future periods.The accounting policies set out below have been applied consistently to all periods presentedin the financial report and in preparing an opening AIFRS balance sheet at 1 July 2004 for thepurpose of the transition to Australian Accounting Standards – AIFRS.(c)Taxation: The Association is exempt from paying income tax due to being a charitable institutionin terms of Section 50(5) of the Income Tax Assessment Act 1997.

Notes to the Financial StatementsFor the year ended 30 June 200660(d)Property, plant and equipment:(i)(ii)Owned Assets: Items of property, plant and equipment are stated at cost lessaccumulated depreciation (see below) and impairment losses (see accounting policy Note1).Depreciation: Depreciation is charged to the Income Statement on a straight-line basisover the estimated useful life of each part of an item of property, plant and equipment. Landis not depreciated. The estimated useful lives in the current and comparative periods are asfollows:• Buildings20-40 years• Plant, Equipment and Vehicles 3-10 years• Leasehold improvements 10 years(e)Intangible assets:(i)(ii)Computer software: Significant items of computer software are stated at cost lessaccumulated amortisation and impairment losses. Minor expenditure on computer softwareis expensed as incurred.Amortisation: Amortisation is charged to the Income Statement on a straight line basisover the estimated useful life of each item of computer software from the date it is acquiredand is ready for use. Estimated useful life are deemed to be 2-3 years. Remaining usefullives are reassessed annually. No residual value is assumed.(f)(g)(h)(i)Trade and other receivables: Trade and other receivables are stated at their cost lessimpairment losses (see accounting policy Note 1).Inventories: Inventories are stated at the lower of cost and net realisable value. Net realisablevalue is the estimated selling price in the ordinary course of business, less the estimated cost ofdisposal.Cash and cash equivalents: Cash and cash equivalents comprise cash balances and calldeposits.Impairment: The carrying amount of the Association’s assets other than inventories (seeaccounting policy Note 1) are reviewed at each balance sheet date to determine whether thereis any indication of impairment. If any such indication exists, the asset’s recoverable amount isestimated (see accounting policy Note 1).An impairment loss is recognised whenever the carrying amount of an asset or its cashgeneratingunit exceeds its recoverable amount. Impairment losses are recognised in the IncomeStatement, unless an asset has previously been revalued, in which case the impairment loss isrecognised as a reversal to the extent of that previous revaluation with any excess recognisedthrough profit or loss.

Notes to the Financial StatementsFor the year ended 30 June 200661When a decline in the fair value of an available-for-sale financial asset, being an investment asset,has been recognised directly in equity and there is objective evidence that the asset is impaired,the cumulative loss that had been recognised directly in equity is recognised in profit or loss eventhough the financial asset has not been derecognised. The amount of the cumulative loss that isrecognised in profit or loss is the difference between the acquisition cost and current fair value,less any impairment loss on the financial asset previously recognised in the profit or loss.(i)Calculation of recoverable amount: The recoverable amount of the Association’sreceivables carried at amortised cost is calculated at the present value of estimated futurecash flows, discounted at the original effective interest rate (ie, the effective interest ratecomputed at initial recognition of these financial assets). Receivables with a short durationare not discounted.The recoverable amount of other assets is the greater of their net selling price and valuein use. In the case of a non-current asset of a not-for-profit entity, “value in use” means“depreciated replacement cost” of an asset when the future economic benefits of the assetare not primarily dependent on the asset’s ability to generate net cash inflows and wherethe entity would, if deprived of the asset, replace its remaining future economic benefits.Depreciated replacement cost is defined as the current replacement cost of an assetless, where applicable, accumulated depreciation calculated on the basis of such cost toreflect the already consumed or expired future economic benefits of the asset. The currentreplacement cost of an asset is its cost measured by reference to the lowest cost at whichthe gross future economic benefits of that asset could currently be obtained in the normalcourse of business.(ii)Reversals of impairment: An impairment loss in respect of receivables carried atamortised cost is reversed if the subsequent increase in recoverable amount can be relatedobjectively to an event occurring after the impairment loss was recognised.In respect of other assets, an impairment loss is reversed if there has been a change in theestimates used to determine the recoverable amount. An impairment loss is reversed onlyto the extent that the asset’s carrying amount does not exceed the carrying amount thatwould have been determined, net of depreciation or amortisation, if no impairment loss hasbeen recognised.(j)Investments Comparative Period Policy: The Association applied the cost basis of valuation toits non-current assets, being investments and plant and equipment. If the carrying amount of theasset exceeds its recoverable amount, the asset is written down to the lower amount.The entity has elected to adopt the transitional rules contained in AASB 1, and has not restatedcomparative information for financial instruments within the scope of AASB 132 and AASB 139.(k)Investments Current Accounting Policy: Investments in equity securities are held directly,classified as being available-for-sale, and stated at fair value. Any resultant gain or loss isrecognised directly in equity, except for impairment losses.The fair value of investments held as available-for-sale is their quoted bid price at the balancesheet date.

Notes to the Financial StatementsFor the year ended 30 June 200662If the cumulative loss recognised directly in equity in relation to any investment is considered to bedue to impairment, that cumulative loss is recognised in the Income Statement. When investmentsare derecognised, as a result of sale, the cumulative gain or loss previously recognised directly inequity is transferred to the Income Statement.Investments are recognised/derecognised by the Association on the date it commits to purchase/sell the investments.(l)Employee benefits:(i) Long-term service benefits: The Association’s net obligation in respect of long-termservice benefits, other than pension plans, is the amount of future benefit that employeeshave earned in return for their service in the current and prior periods. The obligation iscalculated using the projected unit credit method and is discounted to its present value andthe fair value of any related assets is deducted. The discount rate is the yield at the balancesheet date on government bonds that have maturity dates approximating the terms of theAssociation’s obligations.(ii)Wages, salaries and annual leave: Liabilities for wages, salaries and annual leave thatare expected to be settled within 12 months of reporting date, represent present obligationsresulting from employees’ services provided to reporting date and are measured as theundiscounted amounts based on wage and salary rates that the Association expects to payas at reporting date including related on-costs.(m)(n)(o)Provisions: A provision is recognised in the balance sheet when the Association has a presentlegal or constructive obligation as a result of a past event, and it is probable that an outflow ofeconomic benefits will be required to settle the obligation. If the effect is material, provisions aredetermined by discounting the expected future cash flows at a pre-tax rate that reflects currentmarket assessments of the time value of money and, where appropriate, the risks specific to theliability.Trade and other payables: Trade and other payables are stated at cost.Revenue:(i)(ii)Charitable support: Revenue is received from fundraising events, legacies and bequestsand is brought to account on a cash received basis. When assets, such as investments orproperties, are received from a bequest or donation, an asset is recognised at fair value,with a corresponding amount of revenue, when the Association gains control of suchassets.Interest and dividend revenue: Because of the uncertain nature and timing of dividendsand interest revenue, the Association recognises this revenue when it is received. Wheredividends are franked the dividend is not recognised inclusive of imputation credits, butinstead franking credits are recognised when received from the Australian Taxation Office(ATO).

Notes to the Financial StatementsFor the year ended 30 June 200663(iii)(iv)Sale of goods: Revenue from the sale of goods is recognised in the Income Statementwhen the significant risks and rewards of ownership have been transferred to the buyer.Government Grants: Grants constituting non-reciprocal transfers received from theGovernment are recognised as income when the Association obtains control of the benefit.A non-reciprocal transfer is one in which the Association receives assets and services orhas liabilities extinguished without giving approximately equal value in exchange to theother party or parties to the transfer. Grants in which the Association is required to repayunutilised funding are treated as reciprocal transfers and income is recognised by referenceto the stage of completion of the transaction in accordance with AASB 118 “Revenue”.(p)Expenses:(i)Operating lease paymentsPayments made under operating leases are recognised in the Income Statement on astraight line basis over the term of the lease. Lease incentives received are recognised inthe Income Statement as an integral part of the total lease expense.(q)Goods and Services Tax: Revenues, expenses and assets are recognised net of the amount ofthe Goods and Services Tax (GST), except where the amount of GST incurred is not recoverablefrom the ATO. In these circumstances the GST is recognised as part of the cost of acquisition ofthe asset or as part of an item of the expense.Receivables and payables are stated with the amount of GST included. The net amount of GSTrecoverable from, or payable to, the ATO is included as a current asset or liability in the BalanceSheet.Cash flows are included in the Statement of Cash Flows on a gross basis. The GST componentsof cash flows arising from investing and financing activities which are recoverable from, or payableto, the ATO are classified as operating cash flows.

642006$Notes to the Financial StatementsFor the year ended 30 June 20062. Personnel ExpensesWages and Salaries 12,538,566 11,545,463Increase in liability for employee benefits (53,372) 38,2692005$3. Net Financing IncomeDividend Income 2,360,194 1,857,037Interest Income 195,696 185,614Net gain on disposal of available-for-sale investments (706,132) 590,440Financial Income 1,849,758 2,633,091Impairment loss on available-for-sale investments (63,097) -Net Financing Income 1,786,661 2,633,0914. Auditors RemunerationAudit Services 22,400 19,500Auditors of the Association - KPMGOther services 1,205 -Auditors of the Association - KPMG5. Cash and Cash EquivalentsBank Balance 497,084 1,016,069Balance as per statement of cash flows 497,084 1,016,0696. Trade and Other ReceivablesTrade Receivables net of impairment 791,923 749,430Sundry Receivables 3,601 9,571Prepayments 15,225 14,749810,749 773,7507. Stock on HandRaw Materials 477,143 463,382Work in Progress 88,142 44,464565,285 507,8468. Trade and Other PayablesTrade Payables and Accruals 1,827,769 2,765,793Program funding received in advance 1,888,579 1,888,9163,716,348 4,654,7109. Employee BenefitsCurrentLiability for Annual Leave 725,199 719,568Liability for Long Service Leave 609,830 582,4831,335,029 1,302,051Non-CurrentLiability for Long Service Leave 273,418 359,768Total Employee Benefits 1,608,447 1,661,819

Notes to the Financial StatementsFor the year ended 30 June 20066510. Property, Plant and EquipmentCostLand Buildings LeaseholdImprovementsPlant andEquipmentCapital WIPBalance at 1 July 2004 266,914 3,347,596 125,511 3,064,171 5,051,732 11,855,924Acquisitions - - - 919,350 44,343 963,693Transfer from WIP - 4,997,405 - 89,710 (5,087,115) -Disposals - - - (488,596) - (488,596)Balance at 30 June 2005 266,914 8,345,001 125,511 3,584,635 8,960 12,331,021TotalBalance at 1 July 2005 266,914 8,345,001 125,511 3,584,635 8,960 12,331,021Acquisitions - 5,511 2,180 516,231 3,101 527,023Transfer from WIP - - - - - -Disposals - - - (748,681) - (748,681)Balance at 30 June 2006 266,914 8,350,512 127,691 3,352,185 12,061 12,109,363Depreciation and Impairment LossesBalance at 1 July 2004 - 1,283,908 24,127 1,472,012 - 2,780,047Depreciation charge for the year - 198,761 12,367 526,752 - 737,880Disposals - - - - - -Balance at 30 June 2005 - 1,482,669 36,494 1,998,764 - 3,517,927Balance at 1 July 2005 - 1,482,669 36,494 1,998,764 - 3,517,927Depreciation charge for the year - 208,671 16,002 454,306 - 678,979Disposals - - - (677,497) - (677,497)Balance at 30 June 2006 - 1,691,340 52,496 1,775,573 - 3,519,409Carrying AmountsAt 1 July 2004 266,914 2,063,688 101,384 1,592,159 5,051,732 9,075,877At 30 June 2005 266,914 6,862,332 89,017 1,585,871 8,960 8,813,094At 1 July 2005 266,914 6,862,332 89,017 1,585,871 8,960 8,813,094At 30 June 2006 266,914 6,659,172 75,195 1,576,612 12,061 8,589,954

Notes to the Financial StatementsFor the year ended 30 June 20066611. Intangible AssetsCostComputer softwareand licensingBalance at 1 July 2004 34,340Acquisitions 10,749Disposals -Balance at 30 June 2005 45,089CostBalance at 1 July 2005 45,089Acquisitions 8,777Disposals -Balance at 30 June 2006 53,866Depreciation and Impairment LossesBalance at 1 July 2004Depreciation charge for the year 18,712Disposals -Balance at 30 June 2005 18,712Depreciation and Impairment LossesBalance at 1 July 2005 18,712Depreciation charge for the year 7,597Disposals -Balance at 30 June 2006 26,309Carrying AmountsAt 1 July 2004 20,737At 30 June 2005 26,377At 1 July 2005 26,377At 30 June 2006 27,557

Notes to the Financial StatementsFor the year ended 30 June 20066712. ReservesReconciliation of movement in reservesFair ValueReserve$SpecificPurpose Fund$AccumulatedFunds$Capital FundsRPC$Total EquityBalance at 1 July 2004 - 25,765 7,042,460 6,875,576 13,943,801Total recognised income and expense - (4,395) 2,616,388 - 2,611,993Transfer (to)/from reserve - - - - -Transfer (to)/from retained earnings - - - - -Balance at 30 June 2005 - 21,370 9,658,848 6,875,576 16,555,794$Balance at 1 July 2005 - 21,370 9,658,848 6,875,576 16,555,794Impact of change in accounting policy(see note 21) 7,294,976 - - - 7,294,976Restated opening balance 7,294,976 21,370 9,658,848 6,875,576 23,850,770Total recognised income and expense 1,459,128 (1,174) (295,524) - 1,162,430Balance at 30 June 2006 8,754,104 20,196 9,363,324 6,875,576 25,013,200Fair Value ReserveThe fair value reserve includes the cumulative net change in the fair value of available-for-sale investments until the investment isderecognised through sale. Impairment losses are transferred to the Income Statement.Specific Purpose FundThe specific purpose fund includes funds for annual awards for community members.Capital Fund Regency Park CentreThe Capital Fund Regency Park Centre (RPC) incorporates funds by way of government capital grants, building fund appeal anddonations to assist with the initial building of RPC.

Notes to the Financial StatementsFor the year ended 30 June 20066813. Financial InstrumentsInterest rate risk exposureThe Association’s exposure to interest rate risk and the effective weighted average interest rate for each class offinancial assets and financial liabilities is set out in the following table.Exposure arises predominantly from assets and liabilities bearing variable interest rates.2005 Fixed Interest Maturing in: Non-interestbearingFinancial Assets Notes 1 year or less 1-5 years Over 5 years TotalCash and cash equivalents 5 1,016,069 - - - 1,016,069Trade and other receivables 6 - - - 773,750 773,7501,016,069 773,750 1,789,819Weighted average interest rate 5.16%Financial liabilitiesTrade and other payables 8 - - - 4,654,710 4,654,710Interest free borrowings - - - - -- - - 4,654,710 4,654,710Net Financial assets/(liabilities) 1,016,069 - - (3,880,960) (2,864,891)2006 Fixed Interest Maturing in: Non-interestbearingFinancial Assets Notes 1 year or less 1-5 years Over 5 years TotalCash and cash equivalents 5 497,084 - - - 497,084Trade and other receivables 6 - - - 810,749 810,749497,084 810,749 1,307,833Weighted average interest rate 5.39%Financial liabilitiesTrade and other payables 8 - - - 3,716,348 3,716,348Interest free borrowings - - - - -3,716,348 3,716,348Net Financial assets/(liabilities) 497,084 - - (2,905,599) (2,408,515)

Notes to the Financial StatementsFor the year ended 30 June 20066914.1 Reconciliation of cashFor the purpose of the Statement of Cash Flows. cash includes cash on hand and at bank and short-termdeposits. Cash at the end of financial year as shown in the Statement of Cash Flows is reconciled to therelated items in the Balance Sheet as follows:Cash 497,084 1,016,0692006$2005$14.2 Reconciliation of Operating ActivitiesProfit/(loss) from Operating ActivitiesProfit/(loss) for the period (295,524) 2,616,388Payments from Specific Purpose Funds (1,174) (4,396)Add (Less) Non-Cash itemsAmounts set aside to Provisions (53,374) 38,270Depreciation/Amortisation 686,577 742,989Loss/(Profit) on Sale of Non-Current Assets 25,868 15,143Loss/(Profit) on Sale of Investments 769,229 (590,440)Investments received by bequest - -1,428,300 205,962Less Items classified as Investment ActivitiesDividends received (2,360,194) (1,857,037)Income from Investment Activities (195,695) (185,614)(2,555,889) (2,042,651)Net Cash used in Operating Activities beforechanges in Assets and Liabilities (1,424,287) 775,303Changes in Assets and LiabilitiesDecrease/(Increase) in Stock on Hand (57,439) (32,515)Decrease/(Increase) in Sundry Debtors (36,261) (276,895)Increase/(Decrease) in Income received in advance (337) 1,058,400Increase/(Decrease) in Creditors (612,813) (863,516)Accruals and GST (325,948) 983,789(1,032,798) 869,263Net Cash Surplus/(Deficit) from Operating Activities (2,457,085) 1,644,566

Notes to the Financial StatementsFor the year ended 30 June 20067015. Operating LeasesLeases as lesseeNon-cancellable operating lease rentals are payable as follows:Within one year 384,552 321,767One year or later and no later than five years 751,681 410,133Later than five years - -2006$20051,136,233 731,900$The Assocation leases office premises under operating leases. Leases generally provide the Association with a right of renewalat which time all terms are renegotiated. Lease payments comprise a base amount plus an incremental contingent rental.Contingent rentals are based on either movements in the Consumer Price Index or other operating criteria.16. CommitmentsFunding expenditure commitments within one year 138,680 -

Notes to the Financial StatementsFor the year ended 30 June 20067117. Related Parties - Key management personnel disclosuresThe following were key management personnel of the Association at any time during the reporting period and,unless otherwise indicated, held office for the entire period:Non-Executive DirectorsExecutive StaffR.J. Brown G Rappensberg Chief ExecutiveA.R. Downing I.R. Lawton Director, Family Support ServicesD.R. Earl T.F. Lyons Director, Client ProgramsK.G. Foggo M.G. Magarey Director, Marketing (from 16/1/06)W.M. Fowler J.F Sawicki Director, Corporate ServicesJ.M. Hyde W.A. Wake-Dyster Director, Marketing (to 31/12/05)D.G. James L.T. Walker Director, NovitaTechE.R. RobinsonM.A. Van LeuvenExecutive DirectorsNoneTransactions with key management personnelThe key management personnel compensation included in ‘personnel expenses’ (see note 2) is as follows:2006$2005$Gross Salary 436,164 319,148Salary Packaging / Motor Vehicles 158,417 120,591Superannuation 51,323 35,994Movement in Annual Leave (12) 6,140Other long term benefits 16,941 8,364662,833 490,237Comprising:DirectorsExecutives 7 67 6The non-executive directors have not received any remuneration during the year.18. Related parties - Non key management personnel disclosuresIdentity of related partiesThe Association has no related party relationship with its directors and executives (see Note 17).19. Subsequent EventsThere have been no events subsequent to balance date.20. Explanation of transition to AIFRSAs stated in significant accounting policies Note 1(a), these are the Association’s first financial statements prepared inaccordance with AIFRS.The policies set out in the significant accounting policies section of this report have been applied in preparing thefinancial statements for the year ended 30 June 2006, the comparative information presented in these financialstatements for the year ended 30 June 2005 and in the preparation of an opening AIFRS balance sheet at 1 July 2004(the Association’s date of transition).In preparing its opening AIFRS Balance Sheet, the Association has adjusted amounts reported previously in financialstatements prepared in accordance with its previous basis of accounting (“the previous GAAP”). An explanation ofhow the transition from the previous GAAP to AIFRS has affected the Association’s financial position and financialperformance is set out in the following tables and the notes that accompany the tables. There were no changes to theAssociation’s cash flow as a result of transition to AIFRS.

Notes to the Financial StatementsFor the year ended 30 June 20067220. Explanation of transition to AIFRS continuedReconciliation of equityCurrent AssetsPreviousGAAP 2004$Effect ofTransition toAIFRS2004$AIFRS 2004$PreviousGAAP 2005$Effect ofTransition toAIFRS2005$AIFRS 2005Cash 1,794,278 - 1,794,278 1,016,069 - 1,016,069Stock on Hand 475,331 - 475,331 507,846 - 507,846Investments 1,308,800 - 1,308,800 2,400,123 - 2,400,123Sundry Debtors 497,593 - 497,593 774,488 - 774,488Total Current Assets 4,076,002 - 4,076,002 4,698,526 - 4,698,526$Non-Current AssetsInvestments 152,300 - 152,300 102,300 - 102,300Debentures and Deposits 5,458,210 - 5,458,210 8,971,764 - 8,971,764Shares in Listed Companies 261,000 - 261,000 261,000 - 261,000Shares in Non-Listed Companies 5,871,510 - 5,871,510 9,335,064 - 9,335,064Land, Buildings and LeaseholdImprovements 7,483,718 - 7,483,718 7,227,223 - 7,227,223Plant, Equipment and Vehicles 1,612,896 (20,737) 1,592,159 1,612,248 (26,377) 1,585,871Intangible Assets 20,737 20,737 - 26,377 26,377Total Non-Current Assets 14,968,124 - 14,968,124 18,174,535 - 18,174,535Total Assets 19,044,126 - 19,044,126 22,783,061 - 22,873,061Current LiabilitiesIncome received in advance 830,516 - 830,516 1,888,916 - 1,888,916Provision for Staff Entitlements 1,499,865 - 1,499,865 1,302,052 - 1,302,052Creditors 2,265,519 - 2,265,519 1,402,003 - 1,402,003Sundry Creditors, Accruals and GSTLiability 380,739 - 380,739 1,364,528 - 1,364,528Total Current Liabilities 4,976,639 - 4,976,639 5,957,499 - 5,957,499Non-Current LiabilitiesProvision for Staff Entitlements 123,686 - 123,686 359,768 - 359,768Total Non-Current Liabilities 123,686 - 123,686 359,768 - 359,768Total Liabilities 5,100,325 - 5,100,325 6,317,269 - 6,317,267Net Assets 13,943,801 - 13,943,801 16,555,794 - 16,555,794EquityAccumulated Funds 7,042,460 - 7,042,460 9,658,848 - 9,658,848Investment Related Reserve - - - - - -Capital Funds - Regency Park Centre 6,875,576 - 6,875,576 6,875,576 - 6,875,576Specific Purposes Funds 25,765 - 25,765 21,370 - 21,370Total Equity 13,943,801 - 13,943,801 16,555,794 - 16,555,794

Notes to the Financial StatementsFor the year ended 30 June 20067320. Explanation of transition to AIFRS continuedReconciliation of profit for 2005RevenueGovernment FundingSouth Australian Government Departmentfor Families and CommunitiesNotePrevious GAAP$Effect oftransition toAIFRSAIFRSGeneral Recurrent Grant 7,789,758 - 7,789,758Non-Recurrent Grants 1,579,926 - 1,579,926Home and Community Care 415,100 - 415,100Community Benefit SA 227,505 - 227,505Australian Government Non GovernmentCentres Support (Ministerial AdvisoryCommittee: Students with Disabilities SA)Special Education Program 877,571 - 877,571Total Government Funding 10,889,860 - 10,889,860NovitaTech Sales 2,425,465 - 2,425,465Less Cost of Materials 1,368,973 - 1,368,973Fundraising ProceedsBusiness Related Activities1,056,492 1,056,492Events, Bingo, Lotteries etc 1,873,024 - 1,873,024Non-Business Related ActivitiesDonations, Appeals, Bequests etc 3,579,001 - 3,579,001Expenditure5,452,025 5,452,02517,398,377 - 17,398,377Therapy Services 9,830,676 - 9,830,676NovitaTech 1,967,945 - 1,967,945Family Support Services 1,942,258 - 1,942,258Marketing and Public RelationsBusiness Related Activities 1,481,794 - 1,481,794Non-Business Related Activities 141,289 - 141,289Corporate Services1,623,083 - 1,623,083Facility Services 1,252,107 - 1,252,107Administration, Information Systemsand Human Resources 1,739,097 - 1,739,097Loss on Sale of Non-Current Assets 15,144 - 15,14418,370,310 - 18,370,310Profit/(Loss) before Financing Income (971,933) - (971,933)Financial Income 3,588,321 - 3,588,321Profit/(Loss) for the Period 2,616,388 - 2,616,388

Notes to the Financial StatementsFor the year ended 30 June 20067421. Change in accounting policyReconciliation of financial instruments as if AASB 139 was applied at 1 July 2005In the current financial year the Association adopted AASB 132: Financial Instruments: Disclosureand Presentation and AASB 139: Financial Instruments: Recognition and Measurement. Thischange in accounting policy has been adopted in accordance with the transition rules contained inAASB 1, which does not require the restatement of comparative information for financial instrumentswithin the scope of AASB 132 and AASB 139.The adoption of AASB 139 has resulted in the Association recognising all available-for-saleinvestments at fair value (treatment under AGAAP was at cost). This change has been accountedfor by adjusting the opening balance of the fair value reserve at 1 July 2005 (refer Note 12).The impact on the balance sheet is set out below as an adjustment to the opening balance sheet at1 July 2005. There is no impact on the income statement of the comparative period. The transitionalprovisions will not have any effect in future reporting periods.Reconciliation of opening balances affected by AASB 132 and 139 at 1 July 2005Previous GAAPImpact of change inAIFRSaccounting policyFair value reserves - (7,294,976) (7,294,976)Investments 9,335,064 7,294,976 16,630,040

Directors’ Declaration751. In the opinion of the Directors of Novita Children’s Services Incorporated:(a)The financial statements and notes, set out on pages 59 to 74, are drawn up so as topresent fairly the results and cash flows of the Association for the financial year ended 30June 2006 and the state of affairs of the Association as at that date; and(b)at the date of this statement, there are reasonable grounds to believe that the Associationwill be able to pay its debts as and when they fall due.Since the end of the previous financial year, no officer of the Association, no firm of which anOfficer is a member and no body corporate in which an Officer has a substantial financialinterest, has received a benefit as a result of a contract between the Officer, firm or bodycorporate and the Association.The financial statements have been made out in accordance with the accounting standards anddisclosure requirements of the Australian accounting bodies, the provisions of the AssociationsIncorporation Act and the requirements of the law.Dated at Adelaide this 5th day of October 2006Signed in accordance with a resolution of the Board of DirectorsElizabeth RobinsonBOARD MEMBERDennis EarlBOARD MEMBER

76IndependentScopeAudit Reportto the Members of Novita Children’s Services IncorporatedWe have audited the financial report of Novita Children’s Services Incorporated, for the financialyear ended 30 June 2006, consisting of the income statement, statement of recognised income andexpenses, balance sheet, statement of cash flows, accompanying notes 1 to 21, and the Directors’Declaration. The Association’s Directors are responsible for the financial report. The Directors are alsoresponsible for preparing the relevant reconciling information regarding the adjustments required underAustralian Accounting Standard AASB 1 first-time Adoption of Australian equivalents to InternationalFinancial Reporting Standards. We have conducted an independent audit of the financial report in orderto express an opinion on it to the members of the Association.Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonableassurance whether the financial statements are free of material misstatement. Our procedures includeexamination, on a test basis, of evidence supporting the amounts and other disclosures in the financialreport, and the evaluation of accounting policies and significant accounting estimates. These procedureshave been undertaken to form an opinion whether, in all material respects, the financial report ispresented fairly in accordance with Accounting Standards and other mandatory professional reportingrequirements in Australia and statutory requirements so as to present a view which is consistent with ourunderstanding of the Association’s financial position, and performance as represented by the results ofits operations and its cash flows.The audit opinion expressed in this report has been formed on the above basis.Audit OpinionIn our opinion, the financial report of Novita Children’s Services Incorporated, is in accordance with:a) the Associations Incorporations Act 1985 (as amended), including:i. presenting fairly the Association’s financial position as at 30 June 2006 and of itsperformance for the financial year ended on that date; andii. complying with Australian Accounting Standards; andb) other mandatory professional reporting requirements in Australia.Dated this 6th day of October 2006KPMGPD RobertsonPARTNER

Statement of Financial PerformanceIncomeGovernment SupportFinancial SummaryFinancial Comparisons for the period 2002 to 2006Year ended 30 June2002 2003 2004 2005 2006South Australian Government 8,027 9,847 8,809 10,012 10,206Australian Government 910 922 940 878 998NovitaTech Net Sales 972 942 984 1,056 1,151Fundraising Proceeds including Bequests 3,427 3,409 2,976 5,452 3,112Proceeds from sale of Non-Current Assets 3,678 1,602 4,639 2,522 -Other 1,701 1,909 2,308 2,998 2,78518,715 18,631 20,656 22,918 18,25277Amounts shown in $000sExpenditureTherapy ServicesChildren’s Therapy Services 6,995 8,442 8,338 9,831 9,938Post-school Services 756 885 - - -NovitaTech 1,318 1,418 1,767 1,968 2,133Family Support Services 1,459 1,563 1,760 1,942 2,034Marketing 1,596 1,604 1,505 1,623 1,453Carrying Costs of Non-Current Assets Sold 2,863 1,307 4,685 1,947 -Loss on sale of Non-Current Assets - - - - 26Corporate Services 3,410 3,136 3,175 2,991 2,96418,397 18,355 21,230 20,302 18,548Operating Surplus (Deficiency) 318 276 (574) 2,616 (296)Statement of Financial PositionFundsCapital and Specific Purpose Funds 6,902 6,902 6,901 6,897 6,896Accumulated and General Funds 7,340 7,616 7,042 9,659 9,363Investment Revaluation Reserve - - - - 8,754Current Liabilities 3,777 4,554 4,977 5,957 5,051Non-Current Liabilities - 129 124 359 27418,019 19,021 19,044 22,872 30,338AssetsNon-Current Assets 11,720 13,829 14,968 18,174 27,460Current Assets 6,299 5,372 4,076 4,698 2,87818,019 19,201 19,044 22,872 30,338

78MembersandBenefactorsHonorary Life MembersHonorary Life Memberan individual who has givenoutstanding service to theorganisation.Mr B J AbfalterMrs V AllportMr L M AndersonMrs Y Amer AM OAMMrs A M BarrellMr R BarrieMiss H Blair *Dr F Boyd TurnerMr I BrooksMrs D BurfordDr D J CaudreyMr H R K CollingridgeMrs M CollinsMr C E DaltonMr W DavisMr D C Daw JPMr W A DawsonMrs H Dent *Mr I DigbyMr H J FinnisMrs J B GilpinMiss D L Gum OAMMr I HarrisMr P Hart *Mrs M HeadMr G A HoweMr J IngeMrs E M InghamSir R Jacobs *Mrs M G Jones *Miss M L LealMr K A MacdonaldMr T E Malone*Mrs A Mann *Mrs A MattersLady S McMahonMr D McNallyMoomba CharitiesMr D MooreMr B MortonMr R Mules OAMMs A OliverMr K V ParishSir D PatersonMrs B PermezelMr G PolglaseMrs M RichardsonRotary Club of AdelaideRotary Club of Mount GamberMr M L RyanMrs C J SchultzDr B R Seeger AMMrs R L SeppeltMrs J T Sheppard*Dr E B Sims AMMr C A N Slade FCADr L M SternMr A D SutherlandMrs N SwansonMiss E W TaylorMiss J M ThomsonMr H W TidmarshMrs J L WebbMr S Webb *Dr E F West*Mr F A WhiteMr B H WhittleMr M Wooley* deceasedLife GovernorsLife Governorcurrently an individual whohas donated $10,000 ormore in cash or kind.Mr L J BalchinMr D J CrathernMr R A CrawfordMr K J GrampMr A & Mrs H GwinnettMrs M L HassellMrs B E HillMrs W T KidmanMrs J M McBeanMiss J C MillerMrs M MulesMr B A Sellers AMMiss F SheidowMiss H E TuckerLife MembersLife Membercurrently an individual whohas donated $2000 or morein cash or kindMr G E AdkinsMr S & Mrs C AldridgeMr D A AndersonMr H D AndrewsDr S K BaillieMr H L BeaneyMr J F BlighMr & Mrs R G BrookingMr B E BurtonMr C CarboneMrs G A CarterMrs E L ChapmanMr M D ConryMr M CooperMr J & Mrs M Dibben

Life Members (cont.)Mr B C DixonMr I C DixonMr & Mrs B K DungeyMr T DunsfordMr L D EckermannMrs F EterovicMr E & Mrs O FassinaMr K M FletcherMiss B FrithMr R G GoedeckeMrs E H GordonMrs J GrampMs K GreenMr K P HaeuslerMr D H HillerMr C Hope MurrayDr T B HunterMr C J HurstMr R P JonesMrs D R JonesMr V R JungvirtMr S W KasehagenMr E L KeenanMrs B E LewisMrs M LinnMr F A LongmireMr J & Mrs C MaleyMiss E T MattersMr R S McGregorMr D F MoriartyMr R S MueckeMr H K NewburyDr P NorrieMr J C OlsonMrs E D OrtleppMrs E OttoMrs B J PeltonDr P G PitchonMr A F Puddy AMMrs V G PugsleyDr H M RignaneseMr D K RoundProfessor P R ScottMr T SchulenburgMr A SeymourDr D A Simpson AOMrs E P Simpson OAMMr A T & Mrs S M SmithMrs J SmithMr T L & Mrs J L SpiersMr J M StaceyMrs A StilianoMrs L K TondutMrs J E A TrottMr R S TurnerMr J N WalkerMr I & Mrs P WallMr S WayMr A & Mrs J WebbMrs J D WhiteMr M G WilliamsMr J T Wiskich2005/06 BenefactorsBenefactoran individual or organisationthat has donated more than$1000 in cash or kind duringthe year891 ABC AdelaideAdelaide Entertainment CentreAdelaide Football ClubAdelaide Hellenic Lions ClubAir Diffusion Agencies Pty LtdAMP FoundationArgo Investments LtdARN AdelaideArrowcrest Group Pty LtdAustralian Executor Trustees LtdAustralian Hotels AssociationAustralian Lions Children’s MobilityFundAustralian Major EventsAustralian Timbers Pty LtdBalchin, Mr L JBankSA & Staff Charitable FundBarnacle Bill Fish and ChipperyBHP Billiton Pty LtdBidvest Australia LtdBooze Brothers Staff Charitable FundBrock Harcourts SA Pty LtdCadbury SchweppesCaldicott, Mr R ACarbine ClubCarols By Candlelight CommitteeChannel 7 AdelaideCheap as Chips Staff FoundationCML Supermarkets (Coles & BiLo)CMV Foundation InasmuchCoca-Cola Amatil (Aust)Cooper, Mr ME B Charitable TrustEllis Insurance Brokers Pty LtdEstate of A L WhiteEstate of C R DurrantEstate of E M DamokaitisEstate of E M LevyEstate of E M McDonaldEstate of E MiersEstate of G LithgowEstate of H JohannouEstate of H S SewellEstate of J E AllenEstate of L J C PittEstate of M AuldEstate of M C BorlaceEstate of M K LokanEstate of M K N MilneEstate of M N Edwards OAMEstate of N H KrauseEstate of O & S RaymondEstate of R GreenlessEstate of R R GannEstate of S LaneEstate of S M HawkeEvans, Ms HFleming, Mr P NGlenbrook ApartmentsGoldsborough Financial Services PtyLtd79Gramp, Mr K JGrapp Pty LtdHart, Mr P GHassell, Mrs M LHighlander Hotel MotelHope Murray, Mr CIndependent Gaming Corporation LtdJarrett Services Pty LtdKooyonga Golf ClubLaffer, Miss W MLandseer, Miss P JLes Brazier Special VehiclesLife FMLions Club of Adelaide ItalianLions Hearing DogsListon, Mr BLodge Concordia Social ClubMacquarie Charitable Foundation LtdMcCarthy, Mr B & Mrs AMcCracken Homes Pty LtdMcCracken Quality ResortsMercorella Pty LtdMIX 102.3 FMMondello Farms Pty LtdMoomba Coopers Creek AuctionNew Focus ResearchOmega Picture FramesOtto, Mrs EPatrick CoonawarraPhil Hoffman TravelPort Adelaide Football ClubProfessional Golfers Assoc of SApureENVYRignanese, Dr H MRobran, Mr BRomeo’s FoodlandsRotary Club of Adelaide EDGERoyal Air Forces AssociationSammy’s on the MarinaSANFL Catering & Park ConventionCentreSellers Holdings Pty LtdSouth Australian National FootballLeague IncSouth State Food & BeverageSt George Foundation LtdStratcoSwan, Mrs M HSwim for Kids CommitteeTelstra Foundation CommunityDevelopment FundThe Flower GardenThe Late C SantinThe Smith’s SnackFood CompanyThe South Australian Brewing Co PtyLtdThe ‘That’ll be the Day’ CommitteeTony Kitchener PrintingTransport Workers UnionTucker, Miss H EUnited International PicturesU-Store-ItVariety, the Children’s CharityVili’s CakesWall, Mr I & Mrs PWallis TheatresWhite, Mrs J DZodiac Group Australia

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