2009 Annual Report - Cerebral Palsy Alliance

ContentsReport by the President and CEO...................................................... 4Highlights of 2008-2009........................................................................ 8Services at a Glance..................................................................... 14Directors’ Report........................................................................... 18Lead Auditor’s Independence Declaration.................................... 23Directors’ Declaration.................................................................... 23Declaration by Chief Executive Officer......................................... 23Independent Auditor’s Report....................................................... 26Balance Sheets............................................................................. 30Income Statements....................................................................... 31Statements of Changes in Equity.................................................. 32Cash Flow Statements.................................................................. 33Financial Notes ............................................................................ 34The Spastic CentreFor people with cerebral palsyBuilding FuturesCover photo courtesy Newspix / Virginia YoungTHE SPASTIC CENTRE OF NEW SOUTH WALESABN 45 000 062 288The 62nd Annual General Meeting of The SpasticCentre will be held at 4.00pm on Wednesday,25 November 2009 at The Spastic Centre HeadOffice Terrey Hills, 321 Mona Vale Road, TerreyHills NSW.All members are entitled to attend and are cordiallyinvited to do so.REGISTERED OFFICE321 Mona Vale RoadTerrey Hills NSW 2084PO Box 184, BrookvaleNSW 2100T (02) 9479 7200F (02) 9479 7293E scnsw@tscnsw.org.auW www.TheSpasticCentre.com.auCP HELPLINET 1300 30 29 20 E cphelpline@tscnsw.org.auBANKERSCommonwealth Bank of Australia48 Martin Place, Sydney NSW 2000AUDITORSKPMGThe KPMG Centre,10 Shelley Street, Sydney NSW 2000The Spastic Centre ● 2009 Annual Report | 1

“ I think it is very important thatpeople draw on their inner strengths toachieve their personal goals. My adviceis really strive for your goals and don’tgive up. Look at what I did and tellyourself, my goal, my life, my success.”Gavin Ryanwww.youbethedifference.com.auThe Spastic Centre ● 2009 Annual Report | 3

The service network for our ruraland regional families has received agreat boost with the purchase of theheritage-listed former East MaitlandPost Office as a base for our therapyservices in the Upper Hunter district;and on the Far North Coast, theestablishment of a new service siteat Alstonville, near Ballina, to replacethe original Coffs Harbour site. Fromthis centre, we will serve the growingpopulation in the area.In the Central West, we have boughtour rental site in Orange and areupgrading it to house our serviceexpansion.The purchases in Orange and EastMaitland have been made possiblethrough a most generous donationfrom the Sargents CharitableFoundation. The remarkable supportfrom Sargents continues to help us tostrengthen and expand Spastic Centreservices throughout rural and regionalNew South Wales.The total income for The SpasticCentre in the financial year was $66million (previous year: $64.5 million).We recorded an operating surplusof $743,000 (previous year: $2.75million). Spending on direct servicesfor children, adults and their familiesrose by $3.9 million. In 2009/2010,we anticipate that this spending willincrease again by $2.4 million, as weroll out new and expanded programsof individual and family support.Our funding from government totalled$40.9 million this year, including grantsthat recognised the value of programsthat we had piloted with proceeds fromour fundraising, including corporatedonations.We value our partnerships with thegovernment. We are proud andever-mindful of their faith that we candeliver on promises and be creativeand responsive. In particular, we thankthe Australian Federal Government’sDepartment of Families, Housing andCommunity Services and IndigenousAffairs; Department of Education,Employment and Workplace Relations,and the NSW State Government’sDepartment of Ageing, Disability andHome Care; Department of Health; andDepartment of Education and Training.We are most thankful for theoutstanding generosity of ourindividual and corporate supporters.They create the fabric of ourorganisation through their financialcontributions and volunteering. Amongthem are many who are also clientsand their families who, despite theirown needs, give generously of theirtime and resources to support others.We salute you.Our Executive Management teamand our staff members, the backboneof the organisation, give well beyondwhat is expected. We express ouradmiration and our thanks.Special thanks go also to TheHon. John Dowd AO, GoodwillAmbassador and The Hon. MargaretReid AO, our patron in the ACT fortheir wisdom and support.We extend sincere appreciation toMr Bill Bartlett and the Council ofGovernors of The Cerebral PalsyFoundation for their commitmentand tireless efforts in pursuing theFoundation’s vision.Our Board of Directors of The SpasticCentre is second to none. To eachdirector go our deepest thanks andrespect for guidance, wisdom anddedication to duty.In addition to juggling the complexwork of directorship of The SpasticCentre and the demands of their ownprofessional lives, five members of theboard completed an intensive advancededucation course with the AustralianInstitute of Company Directors.Throughout the year, directors attendeda number of briefings and interactiveforums to enhance governance practicesand to keep abreast of changingrequirements and emerging issues.We make special mention of JohnMorgan and Peter Whitfield whoretired from the board in August 2009.John served the organisation as aDirector for almost 18 years. As wellas performing his corporate duty withdistinction, he gave much of himselfby sharing his learned wisdom andhis incredible life experience so thatothers might benefit. Thank you, John!Peter Whitfield joined the board inNovember 1997. His passion for TheSpastic Centre and its members,clients and families inspired many. Hisinsight as a parent combined with hisprofessional skills ensured that his12 year contribution to the board willremain a valuable legacy.We thank Adam Johnston and JohnSintras for agreeing to becomedirectors, filling the casual vacanciescreated by John and Peter.The Spastic Centre has set its sightshigh for the year ahead. We aim tobuild on the achievements and lessonsof the past as we stride into the future.We trust that like Gavin, we can reachnew heights.Marelle Thornton, AMPresidentRob WhiteChief Executive OfficerThe Spastic Centre ● 2009 Annual Report | 5

“ When I was in Year 10, I was inspired bymy mentor to pick up my first camera. I usedto daydream in Ken Duncan's gallery and stareat his photos. I dreamt one day I would meetKen and show him my photos. Today I workfor Ken Duncan.”Jess Irwin, 21 years oldwww.youbethedifference.com.auwww.dare2bu.net.au6 | The Spastic Centre ● 2009 Annual Report

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Highlights2008-2009Our ServicesThe Hon. Bill Shorten MP,Federal Parliamentary Secretaryfor Disabilities and Children’sServices launched The EconomicImpact of Cerebral Palsy inAustralia 2007 report, which wascompleted by Access Economics.The Board of Directors hostedseveral client and family forumsthroughout the year, providingopportunities to connect with boardmembers and discuss issues aroundrespite, employment and access forpeople from Aboriginal communities.These were held at Ryde, St Ives,Orange and Liverpool.The NSW Cerebral Palsy Registergrew with 80 new registrations,bringing the total registrationsto 1,386.An initiative to address the holistichealth and wellbeing of clients andfamilies, resulted in extensive stafftraining and changes being madeto the way services are delivered.The impact on clients and familiesis being independently evaluated ina partnership with two Australianuniversities, through an AustralianResearch Council grant.The Spastic Centre hosted the highlysuccessful 2009 Boccia NationalChampionships at the SydneyAcademy of Sport in Narrabeen.Three members of the ManlyWarringah Community AccessService competed in the NewZealand Boccia Tour and wereselected to compete in the 3rdAsia and South Pacific BocciaChampionships in Hong Kong inAugust 2009.A number of regional activities wereorganised during NAIDOC weekto celebrate Aboriginal culture, todemonstrate the organisation’srespect for Aboriginal and TorresStrait Islander people, andto acknowledge them as thetraditional custodians of the land.The CP Blogs grew in popularitywith many families and clientssharing their stories and comments.www.cpblogs.com.auIn an initiative with StarlightFoundation, young people who areclients of The Spastic Centre weresupported to participate in Livewire,a youth social networking website.Members of our CommunityAccess Services were supportedto develop and engage in socialnetworking through a memberonly website.In partnership with the Fiji Schoolof Medicine, The Spastic Centrecontinued training initiatives in Fijito build local capacity in communitybased rehabilitation. The FijiSchool of Medicine commencedthe Community Disability andRehabilitation Certificate course withparticipants from across the AsiaPacific region. Australians visitingFiji helped raise funds to support theprogram at an annual golf event.A new SportFitz gym was establishedin South West Sydney to supportyoung people (aged 12-25) tobecome more active in their ownhealth and wellbeing.A four-day program, Camp Act Out,was held for teenagers with a focuson workshops in the performingand creative arts.The Leisure Links program in SouthWest Sydney formed a partnershipwith Accessible Arts and ThePowerhouse Youth Theatre torun workshops for young peopleinterested in the arts.One hundred and twenty (120)clients and their families enjoyeda cruise on the Nepean River,in an initiative designed to helpfamilies relax and connect.The service sites at EastGosford and Berkeley Vale wereamalgamated in a new site atTuggerah.Representations were made tothe PADP Parliamentary Inquiry tosupport the issue of unmet needfor equipment. The Spastic Centrealso became a member of a crossagencyforum to lobby for additionalfunding for PADP.The Hon. David Borger MP,Minister for Housing, openedLifestyle Apartments in MarkeyStreet, South Granville. This latestresidence for clients sets a newbenchmark in standards for ouraccommodation services.The new Respitality programprovided 17 families with shortbreaks in hotels.Katherine Proudfoot, speechpathologist, competed in the 2008Beijing Paralympic Games and wona silver medal in the discus throw.Residents benefited fromsignificant refurbishments toVenee Burges House.8 | The Spastic Centre ● 2009 Annual Report

Boccia Ethan Clough featured in our tax appeal Children’s Christmas partyOur VolunteersIn 2008, 18 volunteers from the INGMentoring Group completed a totalof 1,192 hours to help build the selfesteem of teenagers with a disability.In 2009, 11 ING volunteers provided550 hours to mentor young leaderswith a disability.In the Newcastle region, the IgnitionMentoring Program was establishedfor 10 teenagers with the supportof staff from the Greater NewcastleBuilding Society.Over 500 children and familymembers enjoyed a Christmasparty at Terrey Hills with supportfrom Macquarie Group Foundation,The One Centre, WestfieldParramatta, Asquith Bowling Club,Windybanks Bait Service andEdmen Recruitment.Twenty five volunteers in the JustLike You! Disability AwarenessProgram helped 1,700 primaryschool children to understand moreabout disability.The Parent to Parent project forparents of children with a disabilitycommenced in the Hunter region.This pilot program is in partnershipwith ASPECT, Firstchance and theUniversity of Newcastle. Trainingfor 12 volunteer mentors has beencompleted and the matching ofparents is underway.Over 70 students at TAFE NSWBrookvale, volunteered their timeand skills to fundraise, plan andrun the 2009 Boccia NationalChampionships in May.The students from St IgnatiusCollege, Riverview raised over$4,000 in a street collection inNorth Sydney to support Bocciaactivities.A new CP Volunteers blog waslaunched to highlight the activitiesof The Centre’s corporate andindividual volunteers.Our Partnershipsand FundraisingThe Sargents CharitableFoundation generously donated$1.5 million for new centres inBallina and the Central Coast.Since 2004, the Foundation’ssupport has totalled $4.15 million.The Spastic Centre received anon-recurrent allocation of $5million over three years through theDepartment of Ageing, Disabilityand Home Care’s (DADHC)Stronger Together initiative. Of this,$1.715 million will be used to pilotnew programs and the remainderwill be used across various regionsto address the NSW waiting list fortherapy.Over 75,000 people across NSWand the ACT gave to one of ourdirect marketing programs, raisingjust over $7 million to fund the workof the organisation.Our raffle program had its best everyear with $3.6 million being raisedthrough our six raffles across the year.Our tax appeal featured EthanClough, a bright five year old boywho has severe cerebral palsy. Theappeal, mailed to 25,000 people inMay/June, connected strongly withour supporters. Raising $585,000it more than doubled the prioryear’s tax appeal. As a result, manymore children received wheelchairsand other essential equipment.During the last 12 months, thenumber of people giving to TheSpastic Centre on a monthly basishas continued to grow strongly.Over 4,600 donors provided uswith a reliable source of income,$820,000 in total across the year.The Might And Power Gala RaceDay raised over $283,000 tosupport The Spastic Centre’srural services and equipment forchildren.Now in its 15 th year, our popularCBD Golf Escape! saw 320 loyalsupporters taking a weekendbreak to enjoy golf and raise astaggering $484,000. This includeda generous donation of a new busand four wheelchairs from Variety.The 20/twenty Challenge saw120 participants cover the coursein record time, raising just over$200,000. This included a matchingdonation from the Macquarie GroupFoundation of $100,000. All moniesraised at this event go towardsequipment for children.Col Crawford and his supporterscelebrated the 25 th anniversary ofthe Col Crawford Golf Day, raising$106,000.The Spastic Centre ● 2009 Annual Report | 9

Six year old Nicholas received his electric wheelchair from money raised through the20/twenty Challenge.“ It has given him one of the greatest gifts for any child – independence.Nicholas can now go on school excursions with his classmates, participate infamily activities on weekends and enjoy family holidays, without worrying whetherhe will be able to make the distance in his walker.” Nicholas’ parents, Suzie and Paul10 | The Spastic Centre ● 2009 Annual Report

Blackmore’s Fun Run20/twenty ChallengeOver 166 runners participated in theCity 2 Surf, raising an impressive$66,000 for The Spastic Centrewhich is our largest total ever.In the Blackmore’s Fun Run,32 runners hit the streets forThe Spastic Centre, raising animpressive $22,000.The Great Hands fundraising andawareness initiative was launchedwith the Waratahs and NSWRugby, raising our profile throughtelevision coverage and homegame promotions.The Italian Affair Committee heldits 21 st Gala Ball, donating$100,000 from the proceeds toThe Spastic Centre.Aristocrat generously donated$250,000 for the development ofthe proposed SportFitz complex. Atarget of $4 million has been set forthis project.AMP and Bluestar DM donatedover $45,000 to the SportFitzprogram at the Kick a Goal forKids dinner.Westfield generously provideda $50,000 sponsorship to pilota Relax and Recharge Respiteprogram for families living in theHunter, ACT and Far South Coast.As the major sponsor of TheCanberra Raiders, the CFMEUraises money for local charitiesthrough its ‘Points for Cash’program. The program works byproviding a donation for every pointscored by the ‘Green Machine’ atCanberra Stadium. In 2008, thisprogram raised $27,400 for TheSpastic Centre in the ACT.The Capitol Chemist Grouppresented a cheque for$14,500 to The Spastic Centreto purchase the ‘Liberator’, acommunication device for the Talkand Play program in the ACT.Support from the Eric CrawfordTrust has funded the establishmentof a Youth Worker position inthe ACT.In February 2009, The SpasticCentre launched a new logo tocreate greater visual awareness ofcerebral palsy and the work of TheSpastic Centre, while still retainingour hand icon.The Spastic Centre took an activerole in the campaign for a NationalDisability Insurance Scheme(NDIS) through the development ofthe NDIS website. The proposedscheme would provide cover toAustralians who have, or acquirea disability. The scheme wouldbe funded by taxpayers throughgeneral revenue or an extension ofthe Medicare insurance levy.ResearchThe Cerebral Palsy Foundation hasnow funded 20 research projectstotalling more than $1.7 million.The first International InnovativeResearch Grant was awardedto Dr Jacques-Olivier Coq. Thisresearch will be conducted inFrance and the USA.NSW Government funding enabledthe Cerebral Palsy Institute’srelocation to Notre Dame Universitywithin the established St Vincent’sresearch precinct in Darlinghurst.The first Chair of Cerebral Palsyhas been created. The MacquarieGroup Foundation Chair ofCerebral Palsy will be located atNotre Dame University and waspartly funded by the AustralianGovernment.The 3 rd International CerebralPalsy Conference was held inSydney in February 2009. Thiswas the largest conference ofits type in the world, attractingmore than 1,400 delegates fromAustralia and overseas.A landmark partnership wasestablished with Avant and theCerebral Palsy Foundation tofurther research projects withfunding of $2 million.The Balnaves Foundationestablished The Balnaves CerebralPalsy Research Program to identifycerebral palsy early in life throughearly diagnostic clinics which willbe set up nationally.The Spastic Centre ● 2009 Annual Report | 11

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“ Even though representing my country inwheelchair basketball is exciting, my long-term goalis to put other people first rather than myself,and be able to help young people in need.”David Moreira, 17 years oldwww.youbethedifference.com.auThe Spastic Centre ● 2009 Annual Report | 13

Servicesat a GlanceAquabilityTrained aquatic physiotherapistsdesign programs which offersupport and information tocommunity groups givingchildren, adults and their familiesconfidence to enjoy the water fortheir fitness and mobility.Staff: 1.9 FTE Sites: 1Dental ServiceThis is an oral hygiene anddental intervention service forchildren and adults who find itdifficult to access mainstreamdental services.Staff: 1 FTE + 20 volunteer dentistsSites: 1 + outreachCommunity Access ServicesPeople who have severe andmultiple disabilities access thesenon-vocational day services ina local community setting. Theservices are based on a personcentredplanning approachand emphasise communityparticipation. They offer a viableand valuable alternative toemployment.Staff: 67.2 FTE Sites: 7Sydney EmploymentDevelopment Service (SEDS)SEDS provides servicesand opportunities for peoplewith physical and/or multipledisabilities to maximise theirtraining and employment potentialwithin mainstream employmentsettings. It offers assessment,guidance, specialised training andjob placement support.Staff: 17.4 FTE Sites: 3Transition To Work ProgramThis two year program helpsschool leavers build confidence,competency and vocationalskills. It helps young people gainemployment or transition to anemployment service for ongoingjob training and support.Staff: 2.5 FTE Sites: 2Packforce- SupportedEmployment ServicePackforce provides opportunities forpeople with physical and/or multipledisabilities to maximise their trainingand employment potential within asupported environment. Packforceis committed to productivity basedwages, based on competency levels.Staff: 26.9 FTE Sites: 2LifePoints - Children, Adults andtheir FamiliesThis is a holistic approach tofamily services for children andadults who have cerebral palsyand other disabilities. It providesa range of services includinginformation, support, therapy andeducational programs to promoteinclusion of children, adults, andtheir families in their communities.Activities and programs areoffered on a group and individualbasis and are incorporated intodaily routines at home, schooland community to build skills andparticipation.Staff (for children):Metro Sydney 48.6 FTE, Hunter& Central Coast 20.9 FTE, RuralNSW 25.5 FTESites (for children):Sydney 5, Hunter, Central & MidNorth Coast 4, Rural NSW 8Staff (for adults):Metro Sydney 10.8 FTESites (for adults):Sydney 2, Hunter 1Conductive EducationThis service provides a holisticeducational approach to themanagement of cerebral palsyand is a program offered throughLifePoints.Staff: 2.58 FTE Sites: 2Respite Services - Centre basedThese services offer adults andchildren 12 years and over, arange of social and recreationalactivities during overnight andweekend stays in communitybased respite housesStaff: 24.4 FTE Sites: 4Respite Services - Older carersThis program allows olderparents, caring for adult children(over 25 years) living at home,to take a break from their caringresponsibilities. Our flexible rangeof services include in-home,centre based and recreationalsupport.Staff: 4 coordinators + a team ofdirect care staffSites: Located in SW Sydney, NESydney, Hunter and Central Westregions.Respite Services - RuralbrokerageIndividual funding packages areavailable for parents, caring fora child with a disability in theCentral West and Orana Far Westareas of rural NSW. Parents areable to purchase services andsupport for family respite andrecreational opportunities.Staff: 2 FTE Sites: 2Respite Services - Relax andRechargeIndividual funding packages are14 | The Spastic Centre ● 2009 Annual Report

Ignition MentoringPackforceConductive Educationavailable to parents caring forchildren and adults with cerebralpalsy, to purchase the service oftheir own support workers.Staff: 0.4 FTE Sites: State-wideserviceRespite Services - RespitalityThis program offers vouchers forparents to stay one to two nightsin hotel accommodation whiletheir son or daughter stays inrespite care.Staff: 0.4 FTE Sites: State-wideserviceCommunity LinksThis service offers a range of clientand family supports that start withinformation at the time of referraland connection with other familiesthrough group support and othercommunity activities.Staff: 20.8 FTE Sites: 4Leisure LinksThis service provides after hours/weekend leisure activities toteenagers and young people livingin the South West Sydney region.Staff: 1.2 FTE Sites: 1SportFitzThis program helps teenagersand young adults build skillsand confidence to managetheir fitness and wellbeing, andenables them to successfullytransition into mainstreamprograms.Staff: 2 FTE Sites: 2Ignition Mentoring ProgramThrough this mentoringprogram, teenagers are giventhe opportunity to connect withvolunteer mentors who provideencouragement, guidance,support, friendship, positivereinforcement and advice.Staff: 1 FTE + volunteersSites: 2Intensive Familiy Support OptionsThis intensive family supportprogram works with families whohave requested an out-of-homeplacement for their child with adisability or who are at risk ofrequiring placement.Staff: 18.5 FTE Sites: 6Community Living ServicesThis service offers adults withdisabilities the opportunity to liveas independently as possiblewithin the community. Appropriatepremises, resident compatibility,timely and skilled support are thekeys to the program’s success.Staff: 3 managers + team ofdirect care staff Sites: 23Technology Solutions forComputer Access, Seating &Communication (TASC)This customised service meets thetechnology, seating and mobilityneeds of people with a disability.Staff with expertise in disabilityequipment and technologyprovide evaluation and teachingservices for families, educatorsand professionals. TASC also hasa technical workshop on-site atAllambie Heights.Staff: 9.2 FTE Sites: State-wideserviceTechnabilityTechnability is the sales andmarketing division of TASC.It imports and distributesassistive technology includingcommunication devices, computeraccess products and switches. Italso provides after sales supportand training through workshopsand individualised programs.Staff: 3 FTE Sites: 1Hart Walker ProgramThe Hart Walker is a customisedorthotic walking frame designedto help and encourage childrenwith cerebral palsy to walk handsfree. A specially trained team oforthotists and physiotherapistsrun regular clinics providingassessment, fitting and trainingprograms for children.Staff: 2 FTE Sites: 1Information ServicesA range of digital initiatives andinformation services offers supportto people with cerebral palsy,families and staff. InformationServices creates, hosts andmaintains major websites including:The Spastic Centre; CerebralPalsy Institute; Cerebral PalsyFoundation and National DisabilityInsurance Scheme.The team is also responsible forthe development of a number ofweb-based initiatives for socialparticipation and information suchas CP Blogs, Doorways socialnetworking website, ParentWisePodcasts, Cerebral PalsyResearch News, and support toLivewire - an online youth socialsupport network.Staff: 5.6 FTE Sites: State-wideserviceThe Spastic Centre ● 2009 Annual Report | 15

“ Bike riding is one of my greatestachievements. I needed training wheelsuntil I was nearly 10. After they wereremoved I had lots of falls. However withpractice the strength in my legs improvedas well as my balance. I am going toride my bike from Kurnell to Kyeemagh andback, approximately 45 kilometers, to raiseas much money as I can for Ethan andother children like him.”Justin White, 18 years oldwww.youbethedifference.com.au16 | The Spastic Centre ● 2009 Annual Report

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Directors’ ReportThe Directors present their report together with the financial report of The Spastic Centre of New South Wales(“the Company”) and the consolidated entity, being the Company and its controlled entities, for the year ended30 June 2009 and the auditor’s report thereon.The Board of DirectorsThe Directors of the Company who held a position at any time during or since the end of the financial year are:CAIN BECKETT, BEc, MIntS, GAICDMr Beckett has been a member of the Board of Directors since November 2003. Mr Beckett is the Chairman of the Research Committeeand the Ethics Committee. He is also a member of the Finance and Audit Committee, the Property and Equipment Committee, theCommunity Relations, Fundraising and Marketing Committee and the Services Committee. Mr Beckett is currently employed byPerpetual Corporate Trust, is a member of the senior leadership team, and for over 11 years prior to this was a successful managementand technology consultant. Mr Beckett represents Australia in Archery and is the No.1 Australian on the current Men’s ParalympicArchery World Ranking.NEROLI BEST, MBBS, FANZCA, MAICDDr Best has been a member of the Board of Directors since June 1994. Dr Best is a member of the Services Committee, the ResearchCommittee and the Ethics Committee. Dr Best is a medical practitioner specialising in anaesthesiology and holds appointments atRoyal North Shore, Mater Misericordiae and North Shore Private Hospitals.MARK B. BRYANT, OAM, MA, FCA, MAICDMr Bryant has been a member of the Board of Directors since December 1997. Mr Bryant is Vice-President of The Spastic Centre,Chairman of the Finance and Audit Committee and a member of the Community Relations, Fundraising and Marketing Committee,and the Property and Equipment Committee. He also serves as a board appointee to the Enterprise Risk Management Committee.Mr Bryant is a Director of The Cerebral Palsy Foundation Pty Ltd. Mr Bryant has over 30 years experience in public accounting.ADAM JOHNSTON, BA/LLB, Dip. Legal PracticeMr Johnston has been a member of the Board of Directors since August 2009. Mr Johnston is a member of the Services Committee,Human Resources Committee and the Research Committee. Mr Johnston studied politics and law at Macquarie University, is anactive advocate for disability service development, and has served on numerous council and local community committees. His mostrecent professional appointment was as a Complaints Officer for the NSW Ombudsman.ROBERT (BOB) G. MILLERMr Miller has been a member of the Board of Directors since May 1999. Mr Miller is a member of the Community Relations,Fundraising and Marketing Committee, the Finance and Audit Committee, and the Property and Equipment Committee. He alsoserves as a board appointee to the Enterprise Risk Management Committee. Mr Miller is presently the Principal of Australia StreetConsulting Pty Ltd where he advises the automotive industry, advertising agencies, telecommunications companies and otherson marketing. He was previously General Manager - Marketing, Toyota Australia for 15 years. Mr Miller is an Adjunct Professorteaching postgraduate students in Macquarie University’s Faculty of Business and Economics, and the Macquarie Graduate Schoolof Management.JOHN MORGANMr Morgan was appointed to the Board of Directors in November 1991. Mr Morgan was a member of the Services Committee. MrMorgan has been employed at The Spastic Centre for the past 47 years. He has served as an advisor to the Warringah CouncilAccess Committee and on other management committees, including the Disability & Ageing Reference Group, and the PhysicalDisability Council of NSW. He has an interest in raising awareness of the effects of spinal cord compression on adults with cerebralpalsy. Mr Morgan retired as a Director of The Spastic Centre and its controlled entities on 20 August 2009.VICTOR NOSSAR, MBBS (UNSW), FRACP, FAFPHMAssociate Professor Nossar has been a member of the Board of Directors since June 2006. He is a member of the ResearchCommittee. Associate Professor Nossar is the Associate Dean of the School of Medicine, Sydney at The University of Notre DameAustralia. As a Community Paediatrician, he has more than 20 years experience in implementing community-based services inAustralia and overseas to enhance the health and development of children and young people. Associate Professor Nossar waspreviously a member of the board from December 1995 until his relocation to South Australia in December 2002.JOHN SINTRASMr Sintras has been a member of the Board of Directors since August 2009. Mr Sintras has a young daughter with cerebral palsyand he is currently a Governor on the Council of The Cerebral Palsy Foundation. Mr Sintras is a member of the Finance and AuditCommittee, and the Community Relations, Fundraising and Marketing Committee. Mr Sintras is the Chief Executive Officer of theStarcom MediaVest Group, one of Australia’s leading media communications agencies.18 | The Spastic Centre ● 2009 Annual Report

MARELLE THORNTON, AM, DipTeach, MAICDMrs Thornton has been a member of the Board of Directors since October 1983. Mrs Thornton is President of The Spastic Centre,Chairman of the Board of Directors, Chairman of the Community Relations, Fundraising and Marketing Committee, Chairman ofthe Nominations and Governance Committee, and a member of the Finance and Audit Committee, the Property and EquipmentCommittee, the Human Resources Committee and the Services Committee. Mrs Thornton is also President and Chairman of TheCerebral Palsy Foundation Pty Ltd. In December 2008, Mrs Thornton retired as a primary school teacher.ROBIN WAY, M Mgt, PhDDr Way has been a member of the Board of Directors since November 1995. Dr Way is Chairman of the Services Committee, amember of the Human Resources Committee and a board appointee to the Enterprise Risk Management Committee. Dr Way isCEO of Community Connections Australia which is a non government organisation providing a range of in-home support services tomaintain people in their homes wherever possible. She has worked extensively in the disability arena and is a member of the NSWState Committee of National Disability Services (NDS), and a member of the Centre for Australian Community Organisations andManagement (CACOM) at UTS.PETER WHITFIELD, BSc, MAICDMr Whitfield was appointed to the Board of Directors in November 1997. Mr Whitfield was the Chairman of the Property and EquipmentCommittee, and a member of the Finance and Audit Committee, the Community Relations, Fundraising and Marketing Committee,and the Human Resources Committee. Mr Whitfield initiated the introduction of the Hart Walker to Australia and was instrumental inpromoting the Hart Walker program at The Spastic Centre. Mr Whitfield holds a degree in Maths and Physics and spent eight yearsas a money-market trader. Thirteen years ago Mr Whitfield left the finance industry to pursue his own business interests. He currentlyowns a publishing company of quality children’s books. Mr Whitfield retired as a Director of The Spastic Centre and its controlledentities on 19 August 2009.BRIAN WILLIAMSON, Dip Law (SAB), M. Com (Deakin),Accredited Specialist in Employment & Industrial Law (Law Soc of NSW), MAICDMr Williamson has been a member of the Board of Directors since December 2002. Mr Williamson is the Chairman of the HumanResources Committee and is a board representative on the Enterprise Risk Management Committee. Mr Williamson is the founderand co-owner of the specialist law firm - Workplace Law - which deals with all aspects of workplace law and specialises in acting foremployers. In 1994, Mr Williamson was one of the first five solicitors in NSW to become an Accredited Specialist in Employment &Industrial Law with the Law Society of NSW.The following Directors are all in office at the date of this report:Mr C. Beckett, Dr N. Best, Mr M. B. Bryant OAM, Mr A. Johnston, Mr R. Miller, Associate Professor V. Nossar, Mr J. Sintras, Mrs M. Thornton AM, Dr R. Way, Mr B. Williamson.Company SecretaryThe Company Secretary at the end of the financial year is: Anthony Cannon, BA (Econ), FCIS, CPA, MAICD, M. Mgt, M. Bus LawMr Cannon has been employed by The Spastic Centre since 1988. In 1996 Mr Cannon was appointed Company Secretary to the board and all board committees.Mr Cannon is also the General Manager, Compliance.Board of Directors’ MeetingsThe number of directors’ meeting (including meetings of committees of directors) and number of meetings attendedby each of the directors of the Company during the financial year are:Board ofDirectors’MeetingsFinance& AuditCommitteeMeetingsHumanResourcesCommitteeMeetingsServicesCommitteeMeetings*CommunityRelations,Fundraisingand MarketingCommitteeMeetings**Property andEquipmentCommitteeMeetings ***ResearchCommitteeMeetingsEthicsCommitteeMeetings ****Nominations& GovernanceCommitteeMeetings *****Board MembersNumberNumbereligibleattendedto attendNumberNumbereligibleattendedto attendNumberNumbereligibleattendedto attendNumberNumbereligibleattendedto attendNumberNumbereligibleattendedto attendNumberNumbereligibleattendedto attendNumberNumbereligibleattendedto attendNumberNumbereligibleattendedto attendNumberNumbereligibleattendedto attendMr C. Beckett 8 8 4 4 3 1 3 3 2 2 3 2 5 4 2 2Dr N. Best 8 7 3 1 3 3 5 5Mr M. B.Bryant OAM8 7 4 4 3 3 2 2 2 2Mr R. Miller 8 6 4 2 3 2 2 0Mr J. Morgan 8 5 3 0Ass. Prof.Victor NossarMrs M. A.Thornton AM8 6 1 18 8 4 4 4 4 3 3 3 3 2 2 2 2Dr R. Way 8 5 4 2 3 2Mr P. Whitfield 8 7 4 3 4 1 3 3 2 2Mr B. Williamson 8 8 4 4* Services Committee meetings include Client / Family Forums** Community Relations, Fundraising and Marketing Committee was known (until May 2009) as the Fundraising Committee*** Property and Equipment Committee was dissolved in May 2009 and its activities subsumed within the Finance and Audit Committee**** Ethics Committee ceased to be designated as a Board Committee in May 2009***** Nominations and Governance Committee commenced operating from May 2009Associate Professor Nossar was appointed to the Research Committee in November 2008The Spastic Centre ● 2009 Annual Report | 19

Directors’ Report (continued)Review of Board CommitteesThe Chairs of the standing boardcommittees met in April 2009 toreview the format of the variouscommittees in order to considerwhether the committee structure andits reporting could be enhanced inorder to streamline the business ofthe board.It was subsequently agreed by theboard that the following changes interms of the committee structure andits reporting would be implemented:• The business of the Property andEquipment Committee would besubsumed within the widerresponsibilities of the Finance andAudit Committee. The Finance andAudit Committee would continue tobe chaired by Mr Bryant, OAM.• The Ethics Committee, whichincludes external representatives inaccordance with the NHMRC modelof governance, would cease to bedesignated as a committee of theboard. All research projectsapproved by the Ethics Committeewill continue to be brought to theboard for approval. The committeewould continue to be chaired by MrBeckett.• The scope of the FundraisingCommittee would be expanded toinclude matters involvingcommunity relations andmarketing, and that the name ofthe committee would be changedto reflect its new responsibilities.The committee would continue tobe chaired by Mrs Thornton, AM.• A new board committee, theNominations and GovernanceCommittee, would be formedto assist the board in fulfilling itscorporate governanceresponsibilities for mattersof succession planning andappointments to the boardand senior management, boardperformance and committeemembership. The committee wouldbe chaired by Mrs Thornton, AM.• The number of board memberson the Enterprise Risk ManagementCommittee would be increased fromone to four with the addition of DrWay, Mr Bryant, OAM and Mr Millerwho will join Mr Williamson on thecommittee.• Each committee would consider, asa standing item on agenda, mattersof risk management appropriateto the terms of reference for eachcommittee.The committees will continue to meetthroughout the year as the businessof each committee necessitates.Board CommitteesThe agendas for committee meetingsare prepared in conjunction with theChairs of the relevant committees.Papers and submissions aredistributed to committee members inadvance and each committee is freeto invite members of managementor others to attend meetings, or takeexternal advice, when consideredappropriate.The purpose and function of theseboard committees are describedbelow.Finance and Audit CommitteeThe Finance and Audit Committeeenhances the credibility, objectivityand accountability of The SpasticCentre by assisting the board indischarging its responsibilities inrelation to financial management,monitoring and controlling risk,internal control systems and reportingfinancial information.The committee also provides a forumfor communication between theboard, senior financial managementand the external auditors.In May 2009, the responsibilities ofthe Finance and Audit Committeewere expanded to include matters ofproperty and equipment previouslyconsidered by the Property andEquipment Committee.Human Resources CommitteeThe Human Resources Committeeadvises and makes recommendationsto the board on the appointment andremuneration of senior management.The committee also advisesmanagement in the development,implementation and review of policiesin the human resources and industrialrelations areas, including anyreferences from the board in respectof human resources managementand industrial relations.Services CommitteeThe Services Committee reviews,advises and makes recommendationsto the board on the nature and scopeof service practice and delivery withinThe Spastic Centre.The committee also consults widelywith stakeholders through regularClient / Family Forums about effectiveservice delivery so that issues ofduty of care, legal liability and servicequality are brought to the board’sattention.Community Relations,Fundraising and MarketingCommitteeThe Community Relations,Fundraising and MarketingCommittee considers mattersrelated to the image and profileof the organisation - its causeand its clients, community andcorporate partnerships/programs,and opportunities for increasingfunds from both existing and newfundraising ventures.The committee also advises andmakes recommendations on thefinancial viability, ethics and legalaspects of existing and proposed20 | The Spastic Centre ● 2009 Annual Report

fundraising and marketing programs.Until May 2009, the CommunityRelations, Fundraising and MarketingCommittee was known as theFundraising Committee.Property and EquipmentCommitteeThe Property and EquipmentCommittee oversees the effectivemanagement of the use, andpotential use of the land, buildingsand equipment which The SpasticCentre controls.The committee evaluates advice aboutland, buildings or items of equipmentused by The Spastic Centre.The committee was dissolved in May2009 and its activities subsumedwithin the Finance and AuditCommittee.Research CommitteeThe Research Committee considersall submissions regarding researchin terms of the effective use oforganisational resources, applicabilityto people with cerebral palsy andthe alignment to priorities within itsresearch agenda.Approved research projects arereferred to the Ethics Committee forconsideration and ethical approval.All recommendations of the EthicsCommittee in respect of researchproposals are made to the board.Ethics CommitteeThe Ethics Committee ensuresfull and appropriate considerationis given to any potential risks,harms and benefits associated withparticipation in a research study. Itmay propose changes to the studythat will manage/minimise risksand improve the understanding ofpotential harms and benefits sothat participants are able to provideinformed consent.In May 2009, the Ethics Committeeceased to be designated as acommittee of the board.Nominations and GovernanceCommitteeFollowing the commissioning bythe board for KPMG to undertake areview of its corporate structure, inMarch 2009 the board accepted arecommendation for the formation ofa governance committee.The Nominations and GovernanceCommittee assists the board in fulfillingits governance responsibilities formatters of succession planning andappointments to the board and seniormanagement, formulating directors’induction programs, assessingboard and director performance andreviewing and assessing committeemembership.GovernanceThe Company and its controlledentities operate as companies limitedby guarantee with the exceptionof Cerebral Palsy Foundation PtyLtd which is a proprietary limitedcompany. The Company is governedby directors who are elected by themembers in a general meeting.Any member of the Company canstand for election to the board, ifcorrectly nominated.The Articles of Association limit thenumber of directors to a minimum offive and a maximum of 10. Half of thedirectors retire each year.Resolution requirements for generalmeetings are in accordance with theCorporations Act 2001.Director EducationThe Company has a formal processto educate new directors aboutthe nature of the business, currentissues, the corporate strategy andthe expectations of the Companyconcerning performance of directors.Directors also have the opportunityto visit our organisation’s facilitiesand meet with management togain a better understanding of theiroperations. Directors are givenaccess to continuing educationopportunities to update and enhancetheir skills and knowledge.Principal ActivitiesThe principal activities of theCompany and its controlled entitiesare to provide access to a range ofservices and facilities to children andadults with cerebral palsy and theirfamilies in NSW and the ACT and,where applicable, to people with otherdisabilities who can benefit from theservices offered.There were no significant changesin the nature of the activities of theconsolidated entity during the year.Operating and Financial ReviewThe operating surplus of theconsolidated entity for the financialyear was $743,000 (2007-2008:$2,758,000).The Company is exempt fromincome tax.State of AffairsIn the opinion of the directors, therewere no significant changes in thestate of affairs of the consolidatedentity that occurred during thefinancial year under review that arenot otherwise disclosed in this reportor the financial statements.Environmental RegulationsThe consolidated entity’s operationsare not subject to any significantenvironmental regulations undereither Commonwealth or statelegislation. The board believes thatthe consolidated entity has adequatesystems in place for the managementof its environmental requirements.The Spastic Centre ● 2009 Annual Report | 21

Directors’ Report (continued)Events Subsequent toBalance DateThere has not arisen in the intervalbetween the end of the financial yearand the date of this report any item,transaction or event of a material andunusual nature likely, in the opinionof the directors of the Company, toaffect significantly the operations ofthe consolidated entity, the resultsof those operations, or the state ofaffairs of the consolidated entity, infuture financial years.DividendsThe Company and its controlledentities are prohibited by theirConstitutions from paying dividends.Likely DevelopmentsThe Directors do not believe itlikely that there will be any materialchanges in the operations of theconsolidated entity for the next12 months.Authority to FundraiseThe Spastic Centre of New SouthWales has been granted authorityto raise funds in NSW underthe provisions of the CharitableFundraising Act 1991.The Spastic Centre has also beengranted authority to raise funds inthe ACT under the provisions of theCharitable Collections Act 2003.Tax Deductibility of DonationsThe Spastic Centre and its controlledentities are deductible gift recipientsas defined in the Income TaxAssessment Act. Donations of$2.00 or more are tax deductible inAustralia.Directors’ BenefitsThe remuneration of directors isdisclosed in Note 21 in the FinancialStatements. One Director, Mr J.Morgan, received remunerationin his capacity as an employee ofthe Company. Since the end of theprevious financial year, no otherdirector received or became entitledto receive remuneration.The board members of The SpasticCentre provide their time andexpertise on an entirely voluntarybasis and receive no fees, salaries orbenefits for the work they undertakeon behalf of the board.Indemnification and Insurance ofDirectors and OfficersSince the end of the previousfinancial year, the Company hasnot indemnified or made a relevantagreement for indemnifying againsta liability of any person who is orhas been an officer or auditor of theCompany.Since the end of the previousfinancial year, the Company has paidpremiums in respect of directors’ andofficers’ liability and legal expenses’insurance contracts. Such insurancecontracts insure against certainliability (subject to specific exclusions)for persons who are or have beendirectors or executive officers of theCompany.The directors have not includeddetails of the nature of the liabilitiescovered nor the amount of thepremium paid in respect of thedirectors’ and officers’ liability andlegal expenses’ insurance contracts,as such disclosure is prohibited underthe terms of the contract.Rounding of amountsThe Company is an entity to whichASIC Class Order 98/100 appliesand, accordingly, amounts in thefinancial statements and Directors’Report have been rounded to thenearest thousand dollars, unlessotherwise stated.Lead Auditor’s IndependenceDeclarationThe Lead Auditor’s IndependenceDeclaration is set out on page 23 andforms part of the Directors’ Reportfor the financial year ended 30 June2009.MembersAs at 30 June 2009 there were 431members (2008: 479 members) ofthe Company.The Directors’ Report was authorisedfor issue by the directors dated atSydney this 16 September 2009.M. A. Thornton, AMDirectorM. B. Bryant, OAMDirector22 | The Spastic Centre ● 2009 Annual Report

Lead Auditor’s Independence Declarationunder section 307C of the Corporations Act 2001To: the directors of The Spastic Centre of New South WalesI declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 30 June 2009 there have been:(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and(ii) no contraventions of any applicable code of professional conduct in relation to the audit.KPMGSydney, 16 September 2009Kathy Ostin,PartnerDirectors’ Declarationfor the year ended 30 June 20091 In the opinion of the directors of The Spastic Centre of New South Wales (the Company):(a) the financial statements and notes that are set out on pages 30 to 49 are in accordance with the Corporations Act 2001, including:(i) giving a true and fair view of the Company’s and the consolidated entity’s financial position as at 30 June 2009 and of theirperformance for the financial year ended on that date; and(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the CorporationsRegulations 2001; and(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.2 There are reasonable grounds to believe that the Company and the group entities identified in Note 28 will be able to meet anyobligations or liabilities to which they are or may become subject to by virtue of the Deed of Cross Guarantee between the Companyand those group entities pursuant to ASIC Class Order 98/1418.Signed in accordance with a resolution of the directors:M. A. Thornton, AM M. B. Bryant, OAMDirectorDirectorTerrey HillsTerrey Hills16 September 2009 16 September 2009Declaration by Chief Executive Officerin respect of fundraising appealsI, Rob White, Chief Executive Officer of The Spastic Centre of New South Wales, declare in my opinion:(a) the financial report gives a true and fair view of all income and expenditure of The Spastic Centre of New South Wales with respect tofundraising appeal activities for the financial year ended 30 June 2009;(b) the income statement gives a true and fair view of the state of affairs with respect to fundraising appeal activities as at 30 June 2009;(c) the provisions of the Charitable Fundraising (NSW) Act 1991 and Regulations and the conditions attached to the authority have beencomplied with for the financial year ended 30 June 2009; and(d) the internal controls exercised by The Spastic Centre of New South Wales are appropriate and effective in accounting for all incomereceived and applied from any fundraising appeals.Rob WhiteChief Executive OfficerTerrey Hills16 September 2009The Spastic Centre ● 2009 Annual Report | 23

“This year I got involved with one of TheSpastic Centre’s programs called IgnitionMentoring. The ski trip was my first big tripwithout Mum & Dad. When I first got in thesit-ski, the feeling was amazing. It wasn’t likeanything I had felt before. It wasn’t likebeing in a wheelchair or a car. It was in aleague of its own.The mentoring program has massively improvedmy confidence. I feel I have stepped it up anotch and I'm now more of a young adult.”Jacob Cross, 15 years oldwww.youbethedifference.com.au24 | The Spastic Centre ● 2009 Annual Report

The Spastic Centre ● 2009 Annual Report | 25

Independent Auditor’s Reportto the members of The Spastic Centre of New South WalesWe have audited the accompanyingfinancial report of The Spastic Centreof New South Wales (‘the Company’)for the financial year ended 30 June2009, which comprises the balancesheets as at 30 June 2009 and theincome statements, statements ofchanges in equity and cash flowstatements for the year then ended,a summary of significant accountingpolicies, other explanatory notes 1 to31 and the directors’ declaration ofthe Consolidated Entity comprisingthe Company and the entities itcontrolled at the year’s end or fromtime to time during the financial year.Directors’ responsibility for thefinancial reportThe directors of the Company areresponsible for the preparationand fair presentation of thefinancial report in accordancewith Australian AccountingStandards (including the AustralianAccounting Interpretations)and the Corporations Act 2001.This responsibility also includesestablishing and maintaininginternal control relevant to thepreparation and fair presentation ofthe financial report that is free frommaterial misstatement, whetherdue to fraud or error; selecting andapplying appropriate accountingpolicies; and making accountingestimates that are reasonable inthe circumstances.Auditor’s responsibilityOur responsibility is to expressan opinion on the financial reportbased on our audit. We conductedour audit in accordance withAustralian Auditing Standards.These Auditing Standards requirethat we comply with relevantethical requirements relating toaudit engagements and planand perform the audit to obtainreasonable assurance whether thefinancial report is free from materialmisstatement.An audit involves performingprocedures to obtain auditevidence about the amounts anddisclosures in the financial report.The procedures selected dependon the auditor’s judgement,including the assessment of therisks of material misstatement ofthe financial report, whether dueto fraud or error. In making thoserisk assessments, the auditorconsiders internal control relevantto the entity’s preparation andfair presentation of the financialreport in order to design auditprocedures that are appropriatein the circumstances, but not forthe purpose of expressing anopinion on the effectiveness ofthe entity’s internal control. Anaudit also includes evaluatingthe appropriateness ofaccounting policies used and thereasonableness of accountingestimates made by the directors,as well as evaluating the overallpresentation of the financial report.We performed the proceduresto assess whether in all materialrespects the financial reportpresents fairly, in accordancewith the Corporations Act 2001and Australian AccountingStandards (including the AustralianAccounting Interpretations), aview which is consistent with ourunderstanding of the Company’sand the Consolidated Entity’sfinancial position and of theirperformance.In addition, our audit reporthas also been prepared for themembers of the Company inaccordance with Section 24(2) ofthe Charitable Fundraising (NSW)Act 1991. Accordingly we haveperformed additional work beyondthat which is performed in ourcapacity as auditors pursuant tothe Corporations Act 2001. Theseadditional procedures includedobtaining an understanding ofthe internal control structure forfundraising appeal activities andexamination, on a test basis, ofevidence supporting compliancewith the accounting and associatedrecord keeping requirementsfor fundraising appeal activitiespursuant to the CharitableFundraising (NSW) Act 1991 andRegulations.It should be noted that theaccounting records and datarelied upon for reporting onfundraising appeal activities arenot continuously audited and donot necessarily reflect after theevent accounting adjustmentsand the normal year end financialadjustments for such mattersas accruals, prepayments,provisioning and valuationsnecessary for year end financialreport preparation.We believe that the audit evidencewe have obtained is sufficient andappropriate to provide a basis forour audit opinion.26 | The Spastic Centre ● 2009 Annual Report

IndependenceIn conducting our audit, we havecomplied with the independencerequirements of the CorporationsAct 2001.Auditor’s opinion pursuant to theCorporations Act 2001In our opinion, the financial reportof The Spastic Centre of NewSouth Wales is in accordancewith the Corporations Act 2001,including:i. giving a true and fair view of theCompany’s and the ConsolidatedEntity’s financial position as at30 June 2009 and of theirperformance for the year endedon that date; andii. complying with AustralianAccounting Standards(including the AustralianAccounting Interpretations)and the CorporationsRegulations 2001.Charitable Fundraising (NSW)Act 1991 and Regulations;c) money received as a resultof fundraising appeal activitiesconducted during the periodfrom 1 July 2008 to 30 June2009 has been properlyaccounted for and applied inaccordance with the CharitableFundraising (NSW) Act 1991and Regulations; andd) there are reasonable groundsto believe that The SpasticCentre of New South Waleswill be able to pay its debts asand when they fall due.KPMGAuditor’s opinion pursuantto the Charitable Fundraising(NSW) Act 1991In our opinion:a) the financial report gives a trueand fair view of the financialresult of fundraising appealactivities for the financial yearended 30 June 2009;b) the financial report has beenproperly drawn up, and theassociated records have beenproperly kept for the periodfrom 1 July 2008 to 30 June2009, in accordance with theKathy OstinPartnerSydney16 September 2009The Spastic Centre ● 2009 Annual Report | 27

28 | The Spastic Centre ● 2009 Annual Report

“ I f i r s t r e a l i s e d I l o v e d k i c k i n g b a l l sw h e n I w a s f o u r a n d t o o k m y f i r s ts t e p s i n m y H a r t W a l k e r . P r e t t y s o o nI w a s k i c k i n g b a l l s i n t o a g o a l s e tu p i n o u r h o u s e . M u m a p p r o a c h e d o u rl o c a l s o c c e r c l u b , H o r n s b y R S L Y o u t hS o c c e r C l u b , a n d a s k e d i f I c o u l dj o i n . I h a v e b e e n p l a y i n g w i t h t h e mf o r t h r e e y e a r s .G e t t i n g o u t o f m y w h e e l c h a i r h a s h e l p e do t h e r k i d s i n o u r a r e a w i t h s p e c i a ln e e d s k n o w t h a t t h e y c a n a l s o j o i n i nl o c a l t e a m s p o r t s a n d a c t i v i t i e s . I t i st h e b e s t f e e l i n g e v e r ! ”Alex Graham, 9 years oldwww.youbethedifference.com.au(photo courtesy David Hahn/Woman’s Day)The Spastic Centre ● 2009 Annual Report | 29

Balance Sheetsas at 30 June 2009NOTE CONSOLIDATED THE COMPANY2009 2008 2009 2008$’000 $’000 $’000 $’000CURRENT ASSETSCash and cash equivalents 8 18,226 12,927 12,760 12,820Trade and other receivables 9 3,819 3,175 4,193 3,555Inventories 10 419 412 419 412TOTAL CURRENT ASSETS 22,464 16,514 17,372 16,787NON-CURRENT ASSETSOther investments 11 13,385 15,309 6,022 7,108Property, plant and equipment 12 13,274 11,623 13,274 11,623Intangible assets 13 318 315 318 315TOTAL NON-CURRENT ASSETS 26,977 27,247 19,614 19,046TOTAL ASSETS 49,441 43,761 36,986 35,833CURRENT LIABILITIESTrade and other payables 14 10,537 6,910 14,330 14,092Employee benefits 15 5,325 4,506 1,958 1,781TOTAL CURRENT LIABILITIES 15,862 11,416 16,288 15,873NON-CURRENT LIABILITIESEmployee benefits 16 771 814 328 376TOTAL NON-CURRENT LIABILITIES 771 814 328 376TOTAL LIABILITIES 16,633 12,230 16,616 16,249NET ASSETS 32,808 31,531 20,370 19,584EQUITYGeneral funds 32,894 32,151 20,408 19,822Asset revaluation reserve 17 (86) (620) (38) (238)TOTAL EQUITY 32,808 31,531 20,370 19,584The balance sheets are to be read in conjunction with the notes to the financial statements set out on pages 34 to 49.30 | The Spastic Centre ● 2009 Annual Report

Income Statementsfor the year ended 30 June 2009NOTE CONSOLIDATED THE COMPANY2009 2008 2009 2008$’000 $’000 $’000 $’000Revenue from government funding 5 40,921 41,167 40,921 41,167Revenue from fundraising and bequests 16,771 14,797 15,538 14,797Revenue from rendering of services 3,872 3,616 3,872 3,616Revenue from sale of goods 624 678 624 678Other income - - 808 451Insurance claim received - fire 30 1,748 1,793 1,748 1,793Financial income - interest 702 1,077 590 951Financial income - distributions from trusts anddividends1,162 1,177 536 567Rental income 65 155 65 155Gain on sale of property, plant and equipment 134 128 134 128Total revenue and other income 65,999 64,588 64,836 64,303Accommodation expenses 15,470 14,325 15,470 14,325Individual and family support expenses 18,440 16,173 18,440 16,173Employment services expenses 5,311 5,314 5,311 5,314Community access service expenses 5,163 4,641 5,163 4,641Fundraising expenses 4,046 3,789 4,046 3,789Community education and information 2,929 2,744 2,929 2,744Technical services expenses 1,543 1,639 1,543 1,639Cost of goods sold 448 383 448 383Realised loss on sale of other investments 1,469 1,118 659 560Impairment loss on other investments 1,431 2,339 627 1,172Financial expenses 7 6 7 6 7Administration expenses 7,875 7,499 7,805 7,431Donation to The Cerebral Palsy Foundation 7 - - 678 5,816Fire expenses 30 1,125 1,534 1,125 1,534Impairment loss on property, plant and equipment 30 - 325 - 325Total expenses 7 65,256 61,830 64,250 65,853Operating surplus/(deficit) for the year beforeincome tax743 2,758 586 (1,550)Income tax expense 2(m) - - - -Operating surplus/(deficit) for the year afterincome tax743 2,758 586 (1,550)The income statements are to be read in conjunction with the notes to the financial statements set out on pages 34 to 49.The Spastic Centre ● 2009 Annual Report | 31

Statements of Changes in Equityfor the year ended 30 June 2009CONSOLIDATEDTHE COMPANYGeneral Asset Total General Asset TotalFunds Revaluation Equity Funds Revaluation EquityReserveReserve$’000 $’000 $’000 $’000 $’000 $’000Balance at 1 July 2007 29,393 1,377 30,770 21,372 628 22,000Net change in fair value of other investments - (1,997) (1,997) - (866) (866)Total income and expense recognised directly in equity - (1,997) (1,997) - (866) (866)Operating surplus/(deficit) for the year 2,758 - 2,758 (1,550) - (1,550)Total recognised income and expense 2,758 (1,997) 761 (1,550) (866) (2,416)Balance at 30 June 2008 32,151 (620) 31,531 19,822 (238) 19,584Balance at 1 July 2008 32,151 (620) 31,531 19,822 (238) 19,584Net change in fair value of other investments - 534 534 - 200 200Total income and expense recognised directly in equity - 534 534 - 200 200Operating surplus for the year 743 - 743 586 - 586Total recognised income and expense 743 534 1,277 586 200 786Balance at 30 June 2009 32,894 (86) 32,808 20,408 (38) 20,370The statements of changes in equity are to be read in conjunction with the notes to the financial statements set out on pages 34 to 49.32 | The Spastic Centre ● 2009 Annual Report

Cash Flow Statementsfor the year ended 30 June 2009NOTE CONSOLIDATED THE COMPANY2009 2008 2009 2008$’000 $’000 $’000 $’000CASH FLOWS FROM OPERATING ACTIVITIESCash receipts in the course of operations 70,503 68,739 68,663 68,739Cash payments to suppliers and employees (63,601) (63,721) (66,824) (65,298)Net cash from operating activities 26 6,902 5,018 1,839 3,441CASH FLOWS FROM INVESTING ACTIVITIESInterest received 702 1,077 590 951Distributions from trusts and dividends 1,162 1,177 536 567Acquisition of property, plant and equipment 12 (4,127) (2,475) (4,127) (2,475)Acquisition of intangible assets 13 (156) (315) (156) (315)Net purchase of other investments (442) (2,379) - (86)Proceeds from sale of property, plant and equipment 1,264 920 1,264 920Net cash used in investing activities (1,597) (1,995) (1,893) (438)CASH FLOWS FROM FINANCING ACTIVITIESFinancing costs (6) (7) (6) (7)Net cash used in financing activities (6) (7) (6) (7)Net increase/(decrease) in cash and cash equivalents 5,299 3,016 (60) 2,996Cash and cash equivalents at the beginning of thefinancial year12,927 9,911 12,820 9,824Cash and cash equivalents at the end of thefinancial year8 18,226 12,927 12,760 12,820The cash flow statements are to be read in conjunction with the notes to the financial statements set out on pages 34 to 49.The Spastic Centre ● 2009 Annual Report | 33

Financial NotesNotes to and forming part of the financial statementsfor the year ended 30 June 20091. BASIS OF PREPARATIONReporting entity1 Basis for PreparationThe Spastic Centre of New South Wales (‘the Company’) is acompany domiciled in Australia. The address of the Company’s2 Significant Accounting Policiesregistered office is 321 Mona Vale Road, Terrey Hills, NSW 2084.The consolidated financial statements of the Company for the3 Determination of Fair Valuesfinancial year ended 30 June 2009 comprise the Company and itscontrolled entities (together referred to as the ‘Consolidated Entity’).The principal activities of the consolidated entity are to provide4 Financial Risk Managementaccess to a range of services and facilities to children and adultswith cerebral palsy and their families in NSW and the ACT and,5 Government Fundingwhere applicable, to other people with disabilities who can benefitfrom the services offered. The financial report was authorised for6 Remuneration of Auditorsissue by the Board of Directors on 16 September 2009.7 Expensesa) Statement of complianceThe financial report is a general purpose financial report whichhas been prepared in accordance with Australian Accounting8 Cash and Cash EquivalentsStandards (AASBs) (including Australian interpretations) adoptedby the Australian Accounting Standards Board (AASB) and the9 Trade and Other Receivables - CurrentCorporations Act 2001. In the opinion of the directors, having regardto the not-for-profit nature of the consolidated entity’s business,the10 Inventoriesterms used in the prescribed format of the income statements arenot appropriate. The words ‘Operating Surplus/(Deficit)’ have beensubstituted for the terms ‘Net Profit/(Loss)’ in the prescribed format11 Other Investmentsof the income statements.12 Property, Plant and Equipmentb) Basis of measurementThe consolidated financial statements have been prepared on the13 Intangible Assets - Computer Softwarehistorical cost basis except for available for sale financial assetswhich are measured at fair value. The methods used to measurefair values are discussed further in note 3.14 Trade and Other Payables - Currentc) Functional and presentation currency15 Employee Benefits - CurrentThese consolidated financial statements are presented in Australiandollars, which is the Company’s and the consolidated entity’s16 Employee Benefits - Non-Currentfunctional currency. The Company is of a kind referred to in ASICClass Order 98/100 dated 10 July 1998 and in accordance with that17 Asset Revaluation Reserveclass order, all financial information presented in Australian dollarshas been rounded to the nearest thousand unless otherwise stated.18 Financing Facilitiesd) Use of estimates and judgementsThe preparation of financial statements requires management19 Operating Leasesto make judgements, estimates and assumptions that affect theapplication of accounting policies and the reported amounts of20 Contingent Liabilitiesassets, liabilities, income and expenses. Actual results may differfrom the estimates. Estimates and underlying assumptions arereviewed on an ongoing basis. Revisions to accounting estimates21 Related Party Informationare recognised in the period in which the estimate was revised andin any future periods affected.22 Members’ GuaranteeIn particular, information about significant areas of estimationuncertainty and critical judgements in applying accounting policies23 Company Detailsthat have the most significant effect on the amount recognised inthe financial statements are described in the following notes:24 Consolidated Entities● note 15 and 16 - employee benefits provisions; and● note 25 - financial instruments.25 Financial Instruments2. SIGNIFICANT ACCOUNTING POLICIES26 Reconciliation of Cash Flows from Operating Activities The accounting policies set out below have been applied consistentlyto all periods presented in these consolidated financial statements27 Fundraising Appeals Conducted During the Financial Year and by all entities comprised within the consolidated entity.28 Deed of Cross Guaranteea) New standards and interpretations issued but not effectiveRevised AASB 101 Presentation of Financial Statements(September 2007) may impact the consolidated entity for the period29 Events Subsequent to Balance Dateof initial application. It is available for early adoption at 30 June2009 but has not been applied in preparing this financial report.30 Fire and Insurance ClaimRevised AASB 101 introduces as a financial statement (formerly‘primary’ statement) the ‘statement of comprehensive income’. The31 Capital and Other Expenditure Commitmentsrevised standard does not change the recognition, measurementor disclosure of transactions and events that are required byother AASBs. The revised AASB 101 will become mandatory for

the consolidated entity’s 30 June 2010 financial statements. Theconsolidated entity has not yet determined the potential effect of therevised standard on its disclosures.b) Basis of consolidationSubsidiariesSubsidiaries are entities controlled by the Company. Control existswhen the Company has the power, directly or indirectly, to governthe financial and operating policies of an entity so as to obtainbenefits from its activities. In assessing control, potential votingrights that presently are exercisable or convertible are taken intoaccount. The financial statements of subsidiaries are included inthe consolidated financial statements from the date that controlcommences until the date that control ceases. In the Company’sfinancial statements, investments in subsidiaries are carried at cost.Transactions eliminated on consolidationIntragroup balances and any unrealised gains and losses or incomeand expenses arising from intragroup transactions are eliminated inpreparing the consolidated financial statements.c) Non-derivative financial instrumentsNon-derivative financial instruments comprise investments in listedequity securities, trade and other receivables, cash and cashequivalents and trade and other payables.Non-derivative financial instruments are recognised initially at fairvalue plus, for instruments not at fair value through profit or loss,any directly attributable transaction costs. Subsequent to initialrecognition, non-derivative financial instruments are measured asdescribed below.A financial instrument is recognised if the consolidated entitybecomes a party to the contractual provisions of the instrument.Financial assets are derecognised if the consolidated entity’scontractual rights to the cash flows from the financial assetsexpire or if the consolidated entity transfers the financial asset toanother party without retaining control or substantially all risks andrewards of the asset. Financial liabilities are derecognised if theconsolidated entity’s obligations specified in the contract expire orare discharged or cancelled.Cash and cash equivalents comprise cash balances and calldeposits. Bank overdrafts that are repayable on demand and forman integral part of the consolidated entity’s cash management areincluded as a component of cash and cash equivalents for thepurpose of the statement of cash flows.Accounting for finance income and expense is discussed in note2(h) and 2(l) respectively.Available-for-sale financial assetsThe consolidated entity’s investments in listed equity securitiesare classified as available-for-sale financial assets. Subsequentto initial recognition, they are measured at fair value and changestherein, other than impairment losses (see note 2(k)) are recognisedas a separate component of equity. When an investment isderecognised, the cumulative gain or loss in equity is transferred toprofit or loss.OtherOther non-derivative financial instruments are measured atamortised cost using the effective interest method, less anyimpairment losses.d) InventoriesInventories are valued at the lower of cost and net realisable value,with net realisable value being the estimated selling price in theordinary course of business less the estimated costs of completionand selling expenses. Cost is based on the first-in first-out principleand includes expenditure incurred in bringing them to their presentcondition and location.e) Property, plant and equipmentOwned assetsItems of property, plant and equipment are stated at cost lessaccumulated depreciation and impairment losses. Cost includesexpenditure that is directly attributable to the acquisition of theasset. Purchased software that is integral to the functionality of therelated equipment is capitalised as part of that equipment.Where parts of an item of property, plant and equipment havedifferent useful lives, they are accounted for as separate items ofproperty, plant and equipment.The value of in-kind donations is determined by independentvaluation at the time of the donation of land and on completion ofbuilding works. This independent valuation forms the deemed costof such donated assets.Gains and losses on disposal of an item of property, plant andequipment are determined by comparing the proceeds of disposalwith the carrying amount of property, plant and equipment.Subsequent costsThe cost of replacing part of an item of property, plant andequipment is recognised in the carrying amount of the item if it isprobable that the future economic benefits embodied within the partwill flow to the consolidated entity and its cost can be measuredreliably. The carrying amount of the replaced part is derecognised.The costs of the day-to-day servicing of property, plant andequipment are recognised in profit or loss as incurred.Depreciation and amortisationItems of property, plant and equipment, including buildings,leasehold improvements and motor vehicles, but excluding freeholdland, are depreciated over their estimated useful lives using thestraight line method. Assets are depreciated from the date ofacquisition.In respect of assets under construction depreciation commencesfrom the date the asset is ready for use.Depreciation rates used for each class of asset, for the current andprevious years, are as follows:2009 2008Buildings 4% 4%Crown Land Improvements 4% 4%Plant and Equipment 15-25% 15-25%Motor Vehicles 15-20% 15-20%The residual value, the useful life and the depreciation methodapplied to an asset are reassessed at the reporting date.f) Intangible assetsIntangible assets acquired by the consolidated entity are measuredat cost less accumulated amortisation and accumulated impairmentlosses.Subsequent expenditureSubsequent expenditure is capitalised only when it increases thefuture economic benefits embodied in the specific asset to whichit relates. All other expenditure is recognised in profit or loss asincurred.AmortisationAmortisation is recognised in profit or loss on a straight line basisover the estimated useful lives of the intangible assets from the datethey are available for use. The estimated useful life of computersoftware for the current and comparative periods is 3 years.g) Employee benefitsDefined contribution superannuation fundsA defined contribution plan is a post-employment benefit plan underwhich an entity pays fixed contributions into a separate entity andwill have no legal or constructive obligation to pay further amounts.Obligations for contributions to defined contribution plans arerecognised as a personnel expense in profit or loss when they aredue. Prepaid contributions are recognised as an asset to the extentthat a cash refund or a reduction in future payments is available.The Spastic Centre ● 2009 Annual Report | 35

Short-term benefitsLiabilities for employee benefits for wages, salaries, annual leave andsick leave represent present obligations resulting from employees’services provided to reporting date and are calculated at undiscountedamounts based on remuneration wage and salary rates that theconsolidated entity expects to pay as at reporting date includingrelated on-costs, such as workers’ compensation insurance andsuperannuation. Non-accumulating non-monetary benefits, such asmedical care, housing, cars and free or subsidised goods and services,are expensed based on the net marginal cost to the consolidated entityas the benefits are taken by the employees.Long-term service benefitsThe consolidated entity’s net obligation in respect of long-term servicebenefits is the amount of future benefits that employees have earned inreturn for their service in the current and prior periods. The obligation iscalculated using expected future increases in wages and salary ratesincluding related on-costs and expected settlement dates.h) Revenue and IncomeTotal revenue is recognised at the fair value of the considerationreceived net of the amount of goods and services tax.Government fundingIncome from non reciprocal grants is recognised when the consolidatedentity obtains control of the grant or the right to receive the grant; itis probable that the economic benefits comprising the grant will flowto the consolidated entity; and the amount of grant can be measuredreliably. Income from such grants is therefore recognised on receipt asthe revenue recognition criteria are met when the consolidated entityreceives those grants.Government grants which are reciprocal in nature, i.e. those grantswhich are received on the condition that specified services are deliveredor conditions are fulfilled and have to be returned if the consolidatedentity fails to meet the attached conditions, are initially recognised asdeferred revenue (liability) with revenue recognised as the services areperformed or conditions are fulfilled.Fundraising and bequestsIncome from non reciprocal donations is recognised when theconsolidated entity obtains control of the donation or the right to receivethe donation; it is probable that the economic benefits comprising thedonation will flow to the consolidated entity; and the amount of donationcan be measured reliably. Income from such donations is thereforerecognised on receipt as the revenue recognition criteria are met whenthe consolidated entity receives those donations.Donations which are reciprocal in nature (those donations which arereceived on the condition that specified services are delivered, orconditions are fulfilled and have to be returned if the consolidatedentity fails to meet the attached conditions) are initially recognised asdeferred revenue (a liability) with revenue recognised as the servicesare performed or conditions are fulfilled.Revenue from bequests of shares or other property is recognised at fairvalue, being the market value of the asset received at the date on whichthe consolidated entity becomes legally entitled to the asset.Rendering of servicesRevenue from rendering of services is recognised in the period in whichthe service is provided having regard to the stage of completion of thetransaction.Sale of goodsRevenue from the sale of goods is recognised when significant risksand rewards of ownership have been transferred to the buyer, recoveryof the consideration is probable, the associated costs and possiblereturn of goods can be estimated reliably, there is no continuingmanagement involvement, and the amount of revenue can bemeasured reliably.Financial incomeInterest income is recognised as it accrues. Dividend income isrecognised on the date the consolidated entity’s right to receivepayments is established, which in the case of equity investments isthe ex-dividend date. Financial income is separately recognised in theincome statement.Rental incomeRental income is recognised in the income statement on astraight line basis over the life of the lease.i) Volunteer workersNo monetary value has been attributed to the valuable servicesprovided by the many volunteer workers.j) Goods and services taxRevenues, expenses and assets are recognised net of theamount of goods and services tax (GST) except where theamount of GST incurred is not recoverable from the AustralianTaxation Office (ATO).In these circumstances the GST is recognised as part of thecost of acquisition of the asset or as part of an item of theexpense.Receivables and payables are stated with the amount of GSTincluded.The net amount of GST recoverable from, or payable to, theATO is included as a current asset or liability in the balancesheet.Cash flows are included in the statement of cash flows on agross basis. The GST component of cash flows arising frominvesting and financing activities which are recoverable from, orpayable to, the ATO are classified as operating cash flows.k) ImpairmentFinancial assetsA financial asset is assessed at each reporting date to determinewhether there is any objective evidence that it is impaired. Afinancial asset is considered to be impaired if objective evidenceindicates that one or more events have had a negative effect onthe estimated future cash flows of that asset.An impairment loss in respect of a financial asset measuredat amortised cost is calculated as the difference between itscarrying amount, and the present value of the estimated futurecash flows discounted at the original effective interest rate. Animpairment loss in respect of an available-for-sale financialasset is calculated by reference to its fair value.Individually significant financial assets are tested for impairmenton an individual basis. The remaining financial assets areassessed collectively in groups that share similar credit riskcharacteristics.All impairment losses are recognised in profit or loss. Anycumulative loss in respect of an available-for-sale financial assetrecognised previously in equity is transferred to profit or loss.An impairment loss is reversed if the reversal can be relatedobjectively to an event occurring after the impairment loss wasrecognised. For financial assets measured at amortised cost,the reversal is recognised in profit or loss. For available-forsalefinancial assets that are equity securities, the reversal isrecognised directly in equity.Non-financial assetsThe carrying amounts of the consolidated entity’s non-financialassets, other than inventories, are reviewed at each reportingdate to determine whether there is any indication of impairment.If any such indication exists then the asset’s recoverableamount is estimated. For intangible assets that have indefinitelives or that are not yet available for use, recoverable amount isestimated at each reporting date.An impairment loss is recognised if the carrying amount ofan asset or its cash-generating unit exceeds its recoverableamount. A cash-generating unit is the smallest identifiableasset group that generates cash flows that largely areindependent from other assets and groups. Impairment lossesare recognised in profit or loss. Impairment losses recognisedin respect of cash-generating units are allocated to reduce thecarrying amount of assets in the unit (group of units) on a prorata basis.36 | The Spastic Centre ● 2009 Annual Report

The recoverable amount of an asset or cash-generating unit isthe greater of its value in use and its fair value less costs to sell.In assessing value in use, the estimated future cash flows arediscounted to their present value using a pre-tax discount rate thatreflects current market assessments of the time value of money andthe risks specific to the asset.Impairment losses recognised in prior periods are assessed at eachreporting date for any indications that the loss has decreased or nolonger exists. An impairment loss is reversed if there has been achange in the estimates used to determine the recoverable amount.An impairment loss is reversed only to the extent that the asset’scarrying amount does not exceed the carrying amount that wouldhave been determined, net of depreciation or amortisation, if noimpairment loss had been recognised.l) ExpensesOperating lease paymentsThe consolidated entity has entered into leases of properties,motor vehicles and office equipment as disclosed in note 19.Management has determined that all the risks and rewards ofownership of these premises, vehicles and equipment remain withthe lessor and has therefore classified the leases as operatingleases. Payments made under operating leases are recognised inthe income statement on a straight line basis over the term of thelease.Financial expensesFinancial expenses represent interest relating to interest-bearingliabilities and bank overdraft fees. Financial expenses arerecognised using the effective interest rate methodm) Income TaxNo income tax is payable by the consolidated entity as Section50-5 of the Income Tax Assessment Act 1997 exempts recognisedCharitable Institutions from Income Tax. The Spastic Centre andits controlled entities are deductible gift recipients as defined in theIncome Tax Assessment Act.3. DETERMINATION OF FAIR VALUESA number of the consolidated entity’s accounting policies anddisclosures require the determination of fair value, for both financialand non-financial assets and liabilities. Fair values have beendetermined for measurement and/or disclosure purposes based onthe following methods. When applicable, further information aboutthe assumptions made in determining fair values is disclosed in thenotes specific to that asset or liability.Available-for-sale financial assetsThe fair value of available-for-sale financial assets is determined byreference to their quoted bid price at the reporting date.Non-derivative financial liabilitiesFair value, which is determined for disclosure purposes, iscalculated based on the present value of future principal andinterest cash flows, discounted at the market rate of interest at thereporting date.Trade and Other ReceivablesThe fair value of trade and other receivables is estimated as thepresent value of future cash flows, discounted at the market rate ofinterest at the reporting date.4. FINANCIAL RISK MANAGEMENTOverviewThe Company and the consolidated entity have exposure to thefollowing risks from their use of financial instruments:● credit risk● liquidity risk● market riskThis note presents information about the Company’s and theconsolidated entity’s exposure to each of the above risks, theirobjectives, policies and processes for measuring and managingrisk. Further quantitative disclosures are included throughout thisfinancial report.The Board of Directors has overall responsibility for theestablishment and oversight of the risk management framework.The board has established the Finance and Audit Committee, whichis responsible for developing and monitoring risk managementpolicies. The committee reports regularly to the board on itsactivities.Risk management policies have been established to identify andanalyse the risks faced by the Company and consolidated entity,to set appropriate risk limits and controls, and to monitor risks andadherence to limits. Risk management policies and systems arereviewed regularly to reflect changes in market conditions andthe Company’s and consolidated entity’s activities. The Companyand the consolidated entity, through their training and managementstandards and procedures, aim to develop a disciplined andconstructive control environment in which all employees understandtheir roles and obligations.Credit riskCredit risk is the risk of financial loss to the Company orconsolidated entity if a customer or counterparty to a financialinstrument fails to meet its contractual obligations, and arisesprincipally from the Company’s and consolidated entity’sreceivables from customers. For the Company, this risk also arisesfrom receivables due from subsidiaries.Exposure to credit risk is influenced mainly by individualcharacteristics of each customer and there are no significantconcentrations of credit risk. The Risk Management Committee hasestablished a policy under which each new customer is analysed forcreditworthiness before the consolidated entity’s standard paymentterms and conditions are offered. In monitoring customer credit risk,customers are grouped according to their credit characteristics.Liquidity riskLiquidity risk is the risk that the Company and the consolidatedentity will not be able to meet their financial obligations as theyfall due. The Company’s and the consolidated entity’s approachto managing liquidity is to ensure, as far as possible, that they willalways have sufficient liquidity to meet their obligations, under bothnormal and stressed conditions, without incurring unacceptablelosses or risking damage to the consolidated entity’s reputation. Theconsolidated entity ensures that it has sufficient cash on demandto meet expected operational expenses for a period of 60 days.This excludes the potential impact of extreme circumstances thatcannot reasonably be predicted. In addition, the consolidated entitymaintains the following lines of credit (refer note 18 and 20 for details).● liquidity risk $500,000 overdraft facility; and● bank guarantee facility, which has a maximum limit of $200,000.Market riskMarket risk is the risk that changes in market prices, such asinterest rates, foreign exchange rates and equity prices will affectthe Company’s or consolidated entity’s income or the value oftheir holdings of financial instruments. Both the Company andthe consolidated entity are not exposed to significant currencyand interest rate risk. The objective of market risk management isto manage and control market risk exposures within acceptableparameters, while optimising the return.Equity price riskThe primary goal of the Company’s and consolidated entity’sinvestment strategy is to maximise investment returns in order topartially meet the Company’s and consolidated entity’s unfundedexpenditure; management is assisted by external advisors inthis regard.The Spastic Centre ● 2009 Annual Report | 37

CONSOLIDATED THE COMPANY2009 2008 2009 2008$’000 $’000 $’000 $’0005. GOVERNMENT FUNDINGThe following government support is included undergovernment funding:Commonwealth GovernmentDepartment of Family and Community Services and2,808 3,190 2,808 3,190Indigenous AffairsDepartment of Employment and Workplace Relations 2,011 1,482 2,011 1,482Department of Education, Science and Training - 170 - 1704,819 4,842 4,819 4,842NSW GovernmentDepartment of Ageing, Disability and Home Care 34,991 35,295 34,991 35,295Health Department 729 637 729 637Department of Education and Training 382 393 382 39336,102 36,325 36,102 36,325Total government funding 40,921 41,167 40,921 41,167CONSOLIDATEDTHE COMPANY2009 2008 2009 2008$ $ $ $6. REMUNERATION OF AUDITORSAudit services:Auditors of the Company - KPMG AustraliaAudit of the financial report 102,200 148,500 102,200 148,500Other regulatory audit services 15,900 20,500 15,900 20,500118,100 169,000 118,100 169,000Other services:Auditors of the Company - KPMG AustraliaOther assurance services 20,000 - 20,000 -CONSOLIDATEDTHE COMPANY2009 2008 2009 2008$’000 $’000 $’000 $’0007. EXPENSESExpenses include the following items:Depreciation of property, plant and equipment 1,346 1,106 1,346 1,106Impairment/(recovery) of trade and other receivables (18) 12 (18) 12Employee benefits expense (includes payments to defined6,187 5,875 6,187 5,875contribution superannuation funds of $2,930,000 (2008:$2,711,000))Rental expense on operating leases 1,635 1,496 1,635 1,496Financial expenses - Interest and fee expense 6 7 6 7Donation to The Cerebral Palsy Foundation - - 678 5,816The Cerebral Palsy Foundation is wholly controlled by The Spastic Centre of New South Wales.

CONSOLIDATEDTHE COMPANY2009 2008 2009 2008$’000 $’000 $’000 $’0008. CASH AND CASH EQUIVALENTSCash at bank and in hand 2,522 4,964 2,329 4,857Short-term bank deposits 15,704 7,963 10,431 7,96318,226 12,927 12,760 12,8209. TRADE AND OTHER RECEIVABLES - CURRENTTrade receivables 2,378 698 2,345 698Other receivables 975 2,071 856 1,929Prepaid insurance 466 406 466 406Receivables from wholly-owned subsidiaries - - 526 5223,819 3,175 4,193 3,555Trade receivables are shown net of impairment losses of $35,000 (2008: $53,000).Other receivables in the Company include franking credits recoverable from the ATO amounting to $100,000 (2008: $121,000).10. INVENTORIESNon-manufacturing stores 419 412 419 41211. OTHER INVESTMENTSListed equity securities available-for-sale 13,385 15,309 6,022 7,108Listed equity securities available-for-sale are carried at fair value being the quoted market price at reporting date. Macquarie Private PortfolioManagement Limited invests funds on behalf of the consolidated entity in Australian shares, property trusts and investment trusts.Sensitivity analysis - equity price riskAt the reporting date, there is a significant concentration of credit risk in relation to listed securities as the majority of those securities ofthe consolidated entity and the Company are listed on the Australian Securities Exchange.An increase of one percent in the market value of available-for-sale investments held at the reporting date would have increased equityand/or decreased impairment loss in relation to available-for-sale investments by $134,000 (2008: $153,000) and $60,000 (2008:$71,000) in the consolidated entity and the Company respectively.A decrease of one percent at the reporting date would have decreased equity and/or increased impairment loss in relation to available-forsaleinvestments by the same amount.The Spastic Centre ● 2009 Annual Report | 39

CONSOLIDATED AND THE COMPANY$’000 $’000 $’000 $’000 $’000 $’000 $’000Freehold Buildings Improvements Plant and Motor Capital TotalLandto Crown Land Equipment Vehicles Works inProgress12. PROPERTY, PLANT ANDEQUIPMENTCostAt 1 July 2007 3,010 7,002 3,165 647 3,704 - 17,528Acquisitions - - - 738 1,737 - 2,475Disposals - - (1,906) (353) (1,257) - (3,516)At 30 June 2008 3,010 7,002 1,259 1,032 4,184 - 16,487At 1 July 2008 3,010 7,002 1,259 1,032 4,184 - 16,487Acquisitions 391 630 - 654 1,867 585 4,127Disposals - - - (307) (1,884) - (2,191)At 30 June 2009 3,401 7,632 1,259 1,379 4,167 585 18,423Depreciation and impairmentlossesAt 1 July 2007 - 2,125 2,532 620 880 - 6,157Depreciation charge for the year - 280 127 14 685 - 1,106Disposals - - (1,601) (333) (465) - (2,399)At 30 June 2008 - 2,405 1,058 301 1,100 - 4,864At 1 July 2008 - 2,405 1,058 301 1,100 - 4,864Depreciation charge for the year - 292 50 255 749 - 1,346Disposals - - - (230) (831) - (1,061)At 30 June 2009 - 2,697 1,108 326 1,018 - 5,149Carrying amountsAt 1 July 2007 3,010 4,877 633 27 2,824 - 11,371At 30 June 2008 3,010 4,597 201 731 3,084 - 11,623At 1 July 2008 3,010 4,597 201 731 3,084 - 11,623At 30 June 2009 3,401 4,935 151 1,053 3,149 585 13,274The head office of the Company, including its contents, was destroyed by fire on 16 December 2007. The Company is adequatelycovered by insurance.Details of the impairment loss on property, plant and equipment are provided in note 30 and these losses are included within disposalsshown above.

13. INTANGIBLE ASSETS - COMPUTER SOFTWARECostCONSOLIDATED ANDTHE COMPANY2009 2008$’000 $’000At 1 July 315 -Acquisitions 156 315At 30 June 471 315AmortisationAt 1 July - -Amortisation charge for the year 153 -At 30 June 153 -Carrying AmountAt 1 July 315 -At 30 June 318 315CONSOLIDATEDTHE COMPANY2009 2008 2009 2008$’000 $’000 $’000 $’00014. TRADE AND OTHER PAYABLES - CURRENTTrade payables 1,859 2,217 1,859 2,217Government funding received in advance 6,314 1,971 6,314 1,971Other creditors and accruals 1,485 1,557 1,400 1,468Deferred revenue 879 1,165 879 1,165Payables to wholly-owned subsidiaries - - 3,878 7,27110,537 6,910 14,330 14,092Payables to wholly-owned subsidiaries are not interest-bearing and are repayable on demand.15. EMPLOYEE BENEFITS - CURRENTSalaries and wages accrued 1,027 210 293 70Liability for long service leave 1,860 1,832 869 870Liability for annual leave 2,438 2,464 796 8415,325 4,506 1,958 1,78116. EMPLOYEE BENEFITS - NON-CURRENTLiability for long service leave 771 814 328 37617. ASSET REVALUATION RESERVEThe asset revaluation reserve records the cumulative net changes in the fair value of listed equity securities available-for-sale until theinvestment is derecognised. However, impairment losses in respect of these securities are recognised in profit or loss.18. FINANCING FACILITIESThe consolidated entity has access to the following lines of credit at balance date (all unused):Bank overdraft 500 500 500 500The bank overdraft facility is secured by a floating charge over the assets of the consolidated entity.The Spastic Centre ● 2009 Annual Report | 41

CONSOLIDATEDTHE COMPANY19. OPERATING LEASESLeases as lesseeFuture operating lease commitments not provided for in thefinancial statements and payable:2009 2008 2009 2008$’000 $’000 $’000 $’000- not later than one year 1,407 1,276 1,407 1,276- later than one year but not later than five years 1,794 1,259 1,794 1,259- later than five years 16 16 16 163,217 2,551 3,217 2,551The consolidated entity leases a number of properties, land, wheel-chair accessible motor vehicles and IT equipment. None of theseleases included contingent rentals. Details are as follows:Type Term Option to Renew Future IncrementsProperties 0 - 24 Months Yes Annually (CPI)Crown Land 50 Years Yes NoneMotor Vehicles 36 Months Yes NoneIT Equipment 36 - 60 Months Yes None20. CONTINGENT LIABILITIESThe details and estimated maximum amounts of contingent liabilities, classified according to the party from whom the contingent liabilityarises, are set out below. The directors are of the opinion that provisions are not required in respect of these matters, as it is not probablethat a future sacrifice of economic benefits will be required or the amount is not capable of reliable measurement.Commonwealth Bank of Australia - Autopay Facility - 1,088 - 1,088Barunanda Revay 52 - 52 -Permanent Trustee Australia - Spring St Chatswood 17 17 17 17Australian Postal Corporation - 40 - 40Jode Pty Ltd ATF Wetherill Park Unit Trust 32 32 32 32101 1,177 101 1,177The consolidated entity’s bank guarantee facility has a maximum limit of $200,000 (2008: $1,590,000) of which $101,000 (2008:$1,177,000) was used as at balance date.42 | The Spastic Centre ● 2009 Annual Report

21. RELATED PARTY INFORMATIONTransactions with related partiesThe ultimate parent entity provides administration services for the controlled entities, for which it is not reimbursed.During the financial year, the ultimate parent entity received grants of $86,000 (2008: $281,000) from The Cerebral Palsy Foundation,a wholly-owned entity controlled by The Spastic Centre of New South Wales, to contribute to the funding of research, work on the CPRegister and the International Development Program. The Cerebral Palsy Foundation also made grants of $722,000 (2008: $170,000) toThe Cerebral Palsy Institute, a wholly-owned subsidiary of the Company.In the current financial year, the ultimate parent entity donated $678,000 (2008: $5,816,000) to The Cerebral Palsy Foundation.Other wholly-owned controlled entities charge the Company for salaries and wages incurred and paid as part of their normal operations.THE COMPANYBalances with entities within the wholly owned group 2009 2008The aggregate amounts receivable from or payable to whollyownedcontrolled entities by the Company at balance date are:$ $Receivables 526,423 522,102Payables 3,878,889 7,270,584Directors’ compensationOne director received compensation during the year of $6,535 (2008: $6,412) in his capacity as an employee. The directors act in anhonorary capacity and received no compensation for their services as directors.CONSOLIDATED THE COMPANY2009 2008 2009 2008Key management personnel compensation $ $ $ $The key management personnel compensation is as follows:Short-term benefits 1,279,268 1,209,530 1,279,268 1,209,530Long-term benefits 16,776 24,410 16,776 24,4101,296,044 1,233,940 1,296,044 1,233,940Payments to defined contribution superannuation funds in respect of key management personnel amounted to $100,000 (2008: $96,000).These have been classified under short-term benefits.22. MEMBERS’ GUARANTEEIn accordance with the Company’s Memorandum and Articles of Association each member of the Company has a maximum liability of $20in the event of the Company being unable to meet its obligations as and when they fall due. As at 30 June 2009 there were 431 members(2008: 479).23. COMPANY DETAILSThe Spastic Centre of New South Wales and its controlled entities are incorporated and domiciled in Australia. The companies are limitedby guarantee and exempted under Section 150 (1) of the Corporations Act 2001 from using the word ‘Limited’ with the exception of TheCerebral Palsy Foundation Pty Ltd.The Spastic Centre ● 2009 Annual Report | 43

CONSOLIDATEDINTEREST HELD2009 2008% %24. CONSOLIDATED ENTITIESParticulars in relation to controlled entities all of which are incorporated in AustraliaUltimate parent entityThe Spastic Centre of New South WalesSubsidiaries subject to Cross GuaranteeThe Spastic Centre of New South Wales-Accommodation South 100 100The Spastic Centre of New South Wales-Accommodation North 100 100The Spastic Centre of New South Wales-Accommodation Hunter 100 100The Spastic Centre of New South Wales-Therapy Services 100 100The Spastic Centre of New South Wales-Community Access Service 100 100The Spastic Centre of New South Wales-Venee Burges House 100 100The Cerebral Palsy Institute 100 100The CP Institute 100 100United Cerebral Palsy Australia 100 100The Australian Cerebral Palsy Register 100 100The Australian CP Register 100 100The CP Foundation 100 100International CP Foundation 100 100CP Research Foundation 100 100Subsidiaries not subject to Cross GuaranteeThe Cerebral Palsy Foundation Pty Ltd 100 100The Cerebral Palsy Foundation Pty Ltd acts as trustee for The Cerebral Palsy Foundation.Refer to note 28 for details of Deed of Cross Guarantee.25. FINANCIAL INSTRUMENTSExposure to credit, impairment losses, liquidity risks and interest rate risks arise in the normal course of the Company and the consolidatedentity’s business.Credit riskManagement has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performedon all customers requiring credit over a certain amount. The Company and the consolidated entity do not normally require collateral inrespect of financial assets.There are no significant concentrations of credit risk as at the reporting date (2008: none).Exposure to credit riskThe carrying amount of the consolidated entity’s and the Company’s financial assets represents the maximum credit exposure.The consolidated entity’s and the Company’s maximum exposure to credit risk at the reporting date was:CONSOLIDATEDCarrying AmountTHE COMPANYCarrying Amount2009 2008 2009 2008Note $’000 $’000 $’000 $’000Cash and cash equivalents 8 18,226 12,927 12,760 12,820Trade and other receivables 9 3,819 3,175 4,193 3,555Other Investments 11 13,385 15,309 6,022 7,10835,430 31,411 22,975 23,483

25. FINANCIAL INSTRUMENTS (continued)Impairment lossesThe ageing of the consolidated entity’s and the Company’s trade receivables at the reporting date was:CONSOLIDATEDGross Impairment Gross Impairment2009 2009 2008 2008$’000 $’000 $’000 $’000Not past due 1,870 - 400 -Past due 1-60 days 295 - 195 3Past due more than 60 days 248 35 156 502,413 35 751 53THE COMPANYGross Impairment Gross Impairment2009 2009 2008 2008$’000 $’000 $’000 $’000Not past due 1,837 - 400 -Past due 1-60 days 295 - 195 3Past due more than 60 days 248 35 156 502,380 35 751 53The movement in the allowance for impairment in respect of trade receivables during the year was as follows:CONSOLIDATEDTHE COMPANY2009 2008 2009 2008$’000 $’000 $’000 $’000Balance at 1 July 53 41 53 41Impairment (recoveries)/loss recognised (18) 12 (18) 12Balance at 30 June 35 53 35 53Based on historic default rates, the directors believe that no impairment allowance is necessary in respect of receivables not past due.Liquidity riskThe contractual cash flows in respect of the trade and other payables shown in note 14 were equal to their carrying amounts for both 2009and 2008. They were all due to mature within six months.Interest rate riskAt the reporting date, cash and cash equivalents of $18,226,000 (2008: $12,927,000) in the consolidated entity and $12,760,000 (2008:$12,820,000) in the Company were the only interest-bearing variable rate financial instruments. There were no fixed-rate instruments asat the end of the current year or the prior year.During the year cash assets were deposited with recognised financial institutions. The weighted average interest rate during the year was4.69% (2007: 6.72%). There is no other material interest rate risk on assets and liabilities.Cash flow sensitivity analysis for variable rate instrumentsAn increase of one percentage in the average interest rate during the reporting period would have increased the operating surplus by$149,000 (2008: $160,000) and $126,000 (2008: $142,000) in the consolidated entity and the Company respectively. A decrease of onepercent would have decreased the operating surplus by the same amount.Net fair values of financial assets and liabilitiesThe balances of financial assets and liabilities have been stated at their net fair value.The Spastic Centre ● 2009 Annual Report | 45

26. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIESReconciliation of CashFor the purposes of the cash flows statements, cash includes cash on hand and at bank and short-term deposits at call, net of outstandingbank overdrafts. Cash does not include investments in unit trusts. Cash at the end of the financial year as shown in the cash flow statementsis the same as shown on the balance sheets.CONSOLIDATED THE COMPANYReconciliation of operating surplus from ordinaryactivities to net cash from operating activities:Note 2009 2008 2009 2008$’000 $’000 $’000 $’000Operating surplus/(deficit) 743 2,758 586 (1,550)Add/(less) items classified as investing/financing activities:Loss on sale of other investments 1,469 1,118 659 560Gain on sale of property, plant and equipment (134) (128) (134) (128)Interest received (702) (1,077) (590) (951)Distributions from trusts and dividends (1,162) (1,177) (536) (567)Interest paid 6 7 6 7Add non-cash items:Depreciation 7,12 1,346 1,106 1,346 1,106Amortisation - software 13 153 - 153 -Impairment loss of other investments 1,431 2,339 627 1,172Impairment loss on property destroyed 30 - 325 - 325Change in assets and liabilities:Trade and other receivables 9 (644) (1,114) (638) (1,426)Inventories 10 (7) 9 (7) 9Trade payables 14 (358) 1,144 (358) 1,144Government funding received in advance 14 4,343 (811) 4,343 (811)Other creditors and accruals 14 (72) 117 (68) 55Deferred revenue 14 (286) (77) (286) (77)Payables to wholly-owned subsidiaries 14 - - (3,393) 4,333Employee benefits 15,16 776 479 129 240Net cash from operating activities 6,902 5,018 1,839 3,44146 | The Spastic Centre ● 2009 Annual Report

27. FUNDRAISING APPEALS CONDUCTED DURING THE FINANCIAL YEARInformation to be furnished under the Charitable Fundraising (NSW) Act 1991Fundraising appeals conducted during the financial year included mail appeals, telephone appeals, lotteries, money box collections, andvarious other fundraising projects and receiving of indirectly solicited donations and unsolicited bequests.CONSOLIDATEDResults of fundraising appeals2009 2008$’000 $’000a) Gross proceeds from fundraising appeals 16,771 14,797Less: Direct costs of fundraising appeals 4,046 3,789Net surplus obtained from fundraising appeals 12,725 11,008b) Application of net surplus obtained from fundraising appealsDistributions (expenditure on direct services) 50,406 47,798Administration expenses 7,875 7,499Community education and information 2,929 2,744Operating surplus 743 2,75861,953 60,799c) The difference of $49,228,000 (2008: $49,791,000) between the $12,725,000 netsurplus (2008: $11,008,000) available from fundraising appeals conducted and totaldirect expenditure of $61,953,000 (2008: $60,799,000) was provided from the followingsources.Government grants and subsidies 40,921 41,167Rendering of services 3,872 3,616Sale of goods 624 678Interest received or receivable 702 1,077Insurance claim received: fire 1,748 1,793Distributions from trusts and dividends 1,162 1,177Rental income 65 155Gain on sale of property, plant and equipment 134 12849,228 49,7912009 2009 2008 2008$ ‘000 % $ ‘000 %Total cost of fundraising / 4,046 / 3,789 /gross revenue from fundraising 16,771 24 14,797 26Net surplus from fundraising / 12,725 / 11,008 /gross revenue from fundraising 16,771 76 14,797 74Total cost of services / 50,406 / 47,798 /total direct expenditure 61,210 82 58,041 82Total cost of services / 50,406 / 47,798 /total income received 65,999 76 64,588 74The Spastic Centre ● 2009 Annual Report | 47

28. DEED OF CROSS GUARANTEEPursuant to ASIC Class Order 98/1418 (as amended) dated 13 August 1998 the wholly-owned subsidiaries listed below are relievedfrom the Corporations Act 2001 requirements for preparation, audit, and lodgement of financial reports, and directors’ report.It is a condition of the Class Order that the Company and each of the subsidiaries enter into a Deed Of Cross Guarantee. The effect of theDeed is that the Company guarantees to each creditor payment in full of any debt in the event of winding up any of the subsidiaries undercertain provisions of the Corporations Act 2001. If a winding up occurs under other provisions of the Act, the Company will only be liablein the event that after six months any creditor has not been paid in full. The subsidiaries have also been given similar guarantees in theevent that the Company is wound up.On 17 June 2009, the following additional companies became parties to the cross guarantee:The CP InstituteUnited Cerebral Palsy AustraliaThe Australian Cerebral Palsy RegisterThe Australian CP RegisterThe subsidiaries subject to the Deed as at balance date are:The CP FoundationInternational CP FoundationCP Research FoundationThe Spastic Centre of New South Wales-Accommodation SouthThe Spastic Centre of New South Wales-Accommodation NorthThe Spastic Centre of New South Wales-Accommodation HunterThe Spastic Centre of New South Wales-Therapy ServicesThe Spastic Centre of New South Wales-Community Access ServiceThe Spastic Centre of New South Wales-Venee Burges HouseThe Cerebral Palsy InstituteThe CP InstituteUnited Cerebral Palsy AustraliaThe Australian Cerebral Palsy RegisterThe Australian CP RegisterThe CP FoundationInternational CP FoundationCP Research FoundationThe consolidated income statement and consolidated balance sheet, comprising the Company and subsidiaries that are party to the Deed,after eliminating all transactions between parties to the Deed of Cross Guarantee, at 30 June 2009 are set out below.2009 2008$’000 $’000(i) Summarised income statement and retained general fundsOperating surplus/(deficit) 586 (1,579)General funds at beginning of the year 19,822 21,401General funds at end of the year 20,408 19,822(ii) Balance sheetCURRENT ASSETSCash and cash equivalents 12,779 12,835Trade and other receivables 4,192 3,555Inventories 419 412TOTAL CURRENT ASSETS 17,390 16,802NON-CURRENT ASSETSOther financial assets 6,022 7,108Property, plant and equipment 13,274 11,623Intangible assets 318 315TOTAL NON-CURRENT ASSETS 19,614 19,046TOTAL ASSETS 37,004 35,84848 | The Spastic Centre ● 2009 Annual Report

28. DEED OF CROSS GUARANTEE (ii) Balance sheet (continued)2009 2008$’000 $’000CURRENT LIABILITIESTrade and other payables 10,537 10,944Employee benefits 5,326 4,506TOTAL CURRENT LIABILITIES 15,863 15,450NON-CURRENT LIABILITIESEmployee benefits 771 814TOTAL NON-CURRENT LIABILITIES 771 814TOTAL LIABILITIES 16,634 16,264NET ASSETS 20,370 19,584EQUITYGeneral funds 20,408 19,822Asset revaluation reserve (38) (238)TOTAL EQUITY 20,370 19,58429. EVENTS SUBSEQUENT TO BALANCE DATEThere has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of amaterial and unusual nature likely, in the opinion of the directors of the Company, to affect significantly the operations of the consolidatedentity, the results of those operations, or the state of affairs of the consolidated entity, in future financial years.30. FIRE AND INSURANCE CLAIMThe head office of The Spastic Centre of New South Wales, including its contents, was destroyed by fire on 16 December 2007.The Centre is adequately covered by insurance. The head office has been relocated to Terrey Hills pending rebuilding.As the insurance claim has yet to be finalised, confirmed amounts receivable from the insurers have been brought to account and havebeen classified as other receivables under note 9. It is anticipated that the insurance claim will be finalised duringthe year ending 30 June 2010.2009 2008The following amounts have been recognised in the Income Statements. $’000 $’000IncomeInsurance claim received 992 725Insurance claim receivable 756 1,068Total Insurance Claim 1,748 1,793ExpenseWritten down value of buildings destroyed - 305Impairment loss on property, plant and equipment - 20Total impairment losses - 325Fire Expenses (buildings, contents, debris removal, site security etc.) 1,125 1,534Total Insurance Expense 1,125 1,85931. CAPITAL AND OTHER EXPENDITURE COMMITMENTSThere were no material capital or other expenditure commitments at the reporting date (2008: $nil) which had been contracted for as at thatdate but not recognised as liabilities.The Spastic Centre ● 2009 Annual Report | 49

The Spastic Centre 321 Mona Vale Road, Terrey Hills, NSW 2084 • PO Box 184, Brookvale, NSW 2100T 02 9479 7200 • F 02 9479 7293 • E scnsw@tscnsw.org.au • W www.TheSpasticCentre.com.auCP Helpline T 1300 30 29 20 • E cphelpline@tscnsw.org.au50 | The Spastic Centre ● 2009 Annual Report