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Aboriginal Hostels Limited

A N N U A L R E P O R T 2 0 0 2 – 2 0 0 3

AHL Central Office

2nd Floor Bonner House West

7 Neptune Street, Woden ACT 2606

Telephone: (02) 6212 2001

Email: [email protected]

www.ahl.gov.au

The 30 pearls on the cover represent asymbol of Aboriginal Hostels Limited30th Anniversary.

Aboriginal Hostels Limited

A N N U A L R E P O R T 2 0 0 2 – 0 3

Aboriginal Hostels Limitedii

Aboriginal Hostels LimitedABN 47 008 504 587Annual Report 2002-03ISSN 0313 - 2129This work is Copyright. Apart from any use permitted under the Copyright Act 1968, no partmay be reproduced in any form without written permission from the General Manager.

ABORIGINAL HOSTELS LIMITEDPO Box 30, Woden ACT 2606Some names may be mentioned, or images portrayed of people who have died since the eventsrecorded occurred. AHL apologises for any hurt caused.

This report is also available on the Internet (http://www.ahl.gov.au) as a pdf file.Acrobat Reader is required to read it.

Annual Report 2002–03 1

The Hon. Philip Ruddock MP

Minister for Immigration and Multicultural and Indigenous Affairs

Minister Assisting the Prime Minister for Reconciliation

Parliament House

Canberra ACT 2600

Dear Minister

2002-03 Annual Report

I am proud to submit the 2002-03 Annual Report of Aboriginal Hostels Limited (AHL).

The Report includes the financial statements for the period ending 28 June 2003.

AHL currently operates 50 company hostels across Australia and funds 82 community

hostels under its Community Hostels Grants program. The company provides

approximately 3,300 beds each night, and two million meals each year to Indigenous

people in need. On an average night, more than 50 per cent of the residents of our hostels

are children.

The company improved its relationships with other government departments and agencies

in 2002-03. We have noted emerging community needs, particularly aged care and renal

dialysis residents, and have made a commitment to conduct further research into these

needs.

AHL remains uniquely positioned to adapt and meet the needs of communities. We look

forward to continuing our work with government to ensure that our services are delivered

and the company’s vision is progressively realised.

Yours sincerely

Elaine McKeon AO

Chairperson

18 September 2003

Aboriginal Hostels Limited2

Chairperson Elaine McKeon AO and the Hon. Philip Ruddock MP, Minister for Immigration andMulticultural and Indigenous Affairs at the official re-opening of the Neville Bonner Hostel inRockhampton, Qld.


Contents

Report by the Chairperson 4Report by the General Manager 6

PART ONE

Company Overview 10Company Vision and Objectives 11Company Structure 12Portfolio Budget Statement 14Balanced Scorecard 16

PART TWO

Major Activities• Outputs 20• Our Staff 26• Business Management 30

Future Challenges 38Occupancy and Bed Statistics 39

PART THREE

Regional Reports 42

PART FOUR

Corporate Governance Statement 60Directors’ Report 62Financial Statements 69

PART FIVE

Appendices• Freedom of Information 92• Hostel Categories 94• Corporate Information 95• List of Company and Community Hostels 96• Performance at a Glance 105• Staff Profiles by Region 106

Glossary 112AHL Contacts 114

3


Aboriginal Hostels Limited (AHL) celebrated its 30th anniversaryin June 2003. It was a time to reflect on past achievements andmore importantly, a time to plan for the future.

No matter how well we have done, and how much we haveachieved, we strive to improve in meeting our majorobjective of enhancing the lives and opportunities ofIndigenous people across Australia.

Our focus is to provide low-cost accommodation and mealsfor Aboriginal and Torres Strait Islander people through ournational network of hostels, both for those we operate andothers that we fund. We are continually looking for betterways of doing this. Building new hostels, redeveloping someand closing others where appropriate is an important part ofmaking sure our resources are used where they can do mostgood. It is a constant and fulfilling challenge.

Strategic Partnerships

We continue our efforts to build strategic partnerships withkey government departments and agencies at Commonwealth,State and Territory levels, with the private sector, and withcommunity organisations. In particular, we have worked withthe Western Australian and Queensland Governments tobuild and operate new hostels to assist homeless clients,Indigenous youth, the aged, and those with education andhealth issues.

We have developed an excellent relationship with theCommonwealth Department of Health and Ageing.

Occupancy

2002-03 was the first full year of our new tariff policy with arevised system of payment in advance for accommodation,which represents a concerted effort to reduce tariff debt.During the adjustment period in which clients becameaccustomed to the new policy, overall occupancy of beds fellby two percent to 69 per cent compared to the 71 per cent

Chairperson’s Report

the previous year. We are confident thepolicy is receiving widespread acceptance,as demonstrated by the upward trend inoccupancy towards the end of the year.

Company Affairs

The first stages of the Corporate Plan2002-07 have been implemented includingthe introduction of Service LevelAgreements under our new purchaserprovider arrangements. We regard thisdevelopment as an important contributionto continual improvements in thecompany's administration and governance.

It is pleasing to record that 80 per cent ofstaff are Indigenous, as are eight membersof the Board of Directors and the GeneralManager, an achievement reached bycontinuous implementation of strategiesidentified in our Workplace Diversity Plan.

I have appreciated the support of theMinister for Immigration and Multiculturaland Indigenous Affairs, the Hon PhilipRuddock MP. I must also acknowledge themajor contributions made by members ofthe Board, especially Helen Liddle, who hasnow retired. I welcome her replacement, Dr Margaret Valadian, who is making avaluable contribution to the Board.

My sincere thanks, also, to the staff of Aboriginal Hostels Limited for theirdedication and service to our clients duringthe year.

Future Direction

The challenges are many and varied. Of critical importance is continuing toexplore new ways of reducing the cost ofproviding our services while maintainingour good service standards. Essentially, the company must rise to the challenge ofbeing able to withstand comparisons to anysimilar industry.

We will work towards the continueddevelopment of our strategic partnershipsto ensure that we are in a position tofurther enhance the lives and opportunitiesof our clients.

At a corporate level, the company willfurther develop the Statement of CorporateIntent with the Commonwealth which setsout the basis on which AHL will operateand the company structure.

In terms of our core functions, we will beexamining how we fund facilities under theCommunity Hostels Grants programwhether to initiate a simplified subsidy perresident payment or continue with thepresent detailed budget line items.

We will continue to explore new ways ofreducing the cost of providing our servicesand we will locate hostels where they aremost needed.

We will continue to focus on the needs ofour clients.

ELAINE MCKEON AO

Chairperson



It was again a successful year for Aboriginal Hostels Limitedas we continued to improve the services that are provided tothe many thousands of Australia’s Indigenous people.

Each night we made available approximately 3,300 hostelbeds for our clients through our network of 50 companyoperated hostels and 82 services operated by communityorganisations. In addition, more than three million mealswere provided.

In order to maintain this extensive accommodation across thecountry, AHL must ensure it has systems, procedures andresources in place to meet the daily needs of our operations.

Performance of Regions

A key factor in AHL's strong performance is the continuallyhigh standard of support provided by our regional staff toeach hostel service. They face many challenges during theyear, most notably managing the needs of clients. Occupancy remained high, although slightly down on theprevious year because of the introduction of a new tariffsystem. Budgetary performance at all work sites was very good.

An important development during the year was theimplementation of Service Level Agreements with each hostelsigned as a provider of hostel accommodation.

In 2002 the Minister for Immigration and Multicultural andIndigenous Affairs, the Hon Philip Ruddock MP opened ournew hostel for transients in Mackay, Queensland and theredeveloped Neville Bonner Hostel in Rockhampton,Queensland.

We appointed two new Regional Managers - Michael Mullinsin Darwin and Greg Hazel in Sydney.

Additional Services

There are several projects underway. We have developedplans to build a new secondary student hostel in Kununurra

General Manager’s Report

in partnership with the Western AustralianGovernment. We are working towards thecontinued expansion of aged care serviceswith the development of a new 30 bedhigh care nursing home in Perth. We haveestablished a new hostel for renal dialysis inBroome and we are in the process ofbuilding a new hostel in Tamworth, NewSouth Wales.

The Council of Australian Governments(COAG) agreed to trial working togetherwith Indigenous communities using awhole of government approach. The WeipaMulti-Purpose Facility (WMPF) proposal isthe first of the 10 COAG selected regionswhere the whole of government approachis being trialed. In stage one of the project,Commonwealth and State Governmentshave committed $300,000 each to convertfour houses into a suitable hostel facilityfor secondary students. The WMPF hasfuture plans to accommodate up to 115secondary education students over the nextfive years and develop a major training hubfor the region. AHL will operate theWestern Cape Secondary Hostel when thedevelopment works are completed in 2004.

Certified Agreement

We have commenced our third CertifiedAgreement with staff. We started theprocess by establishing a committeerepresenting all regions. The Agreementwill be a valuable opportunity tostrategically position the company for the future.

In addition, a new purchaser/providerarrangement was implemented, wherecentral office function makes up thepurchaser arm of AHL business and allhostels and Regional Offices make up theprovider arm.

Internal Systems

There has been continued upgrading ofinformation technology systems includingthe wide area network, a new payrollsystem and a new records managementsystem.

Staffing

We continued to focus on training duringthe year with a number of courses beingrun throughout the country includingFood Safety and Handling; OccupationalHealth and Safety; and Leadership. Wefocused on staff development to ensurethat staff needs and aspirations wereidentified and met by formal trainingprograms and on-the-job options. In thecoming year we will focus on staffretention in specific employmentcategories/levels within AHL.

I thank all staff for their continued hardwork and dedicated service they have givento AHL and our clients.

Keith Clarke

General Manager



Year 12 graduates Karla King and GemmaFerguson at the AHL Student Awards Night 2002in Sydney, NSW.


P A R T O N E


Aboriginal Hostels Limited was founded in 1973 as acompany wholly owned by the Commonwealth Government.The Board comprises of nine Directors. The central office is located in Canberra, with offices in all mainland states and territories.

The company provides low-cost, temporary accommodationand meals for Aboriginal and Torres Strait Islander peoplethrough a national network of 132 hostels. Over 3,300 bedsare provided across the country each night and more thantwo million meals are served each year.

In addition, AHL supports Government programs in health,education, employment, training and aged care.

AHL is funded by the Commonwealth Government. Thecompany also collects tariff from residents to supplementincome and help cover the cost of providing hostel services.

Aboriginal Hostels Limited is one of the largest employers ofAboriginal and Torres Strait Islander people in Australia. On 28 June 2003 the company had 519 employees of whom80 per cent were Indigenous Australians.

Hostels are either operated by Aboriginal Hostels Limited orby organisations funded by the company's CommunityHostel Grants program. Accommodation is offered in thefollowing categories:

• Transient• Medical Transient (including renal dialysis)• Aged Care• Homeless (including youth)• Secondary Education• Primary Education• Tertiary Education and Training• Substance Use Rehabilitation• Prison Release and Diversion

Company Overview


Company Vision and Objectives

Vision

Aboriginal Hostels Limited aims to achieve excellence in the delivery of hostel accommodation that satisfies theneeds of Aboriginal and Torres StraitIslander people.

Objectives

Our objectives form the basis of the 2002-07 Corporate Plan. The companyconstantly evaluates its progress to ensurethat appropriate temporaryaccommodation is provided that assistsAboriginal and Torres Strait Islander peopleimprove their standard of living andachieve health, educational andemployment related goals.

Key Outcomes

1. MEET THE NEEDS OF OUR CLIENTS

Key Strategies:• Provide affordable temporary

accommodation in areas of greatestneed

• Increase awareness of our services• Provide hostel services of a high

standard in an appropriate environment• Maintain a high standard of design and

accommodation at company hostels• Provide adequate mechanisms for

complaints and appeals

2. ACHIEVE A COOPERATIVE ANDHIGHLY PRODUCTIVE WORKINGENVIRONMENT

Key Strategies:• Employ people who have the

appropriate skills and experience neededto do their jobs effectively

• Target recruitment of Aboriginal andTorres Strait Islander people

• Provide staff with skills and knowledgerequired to do their jobs

• Promote a culture in which peopleperform highly and accept responsibilityfor their actions

• Commitment to providing high qualityworking conditions and ensuring staffare consulted on organisational changeand each new certified agreement.

3. MAINTAIN BUSINESSMANAGEMENT AT A HIGH STANDARD

Key Strategies:• Provide hostel accommodation in a cost

effective manner• Provide appropriate plans and policies

to assist business management• Adopt corporate governance practices

that are based on separation ofpurchaser and provider roles and abalanced scorecard that ensures:- effective assessment of performancethrough service level agreements- effective mechanisms for financialmanagement


Company Structure

BOARD OF DIRECTORS

The Hon. Philip Ruddock MP

Minister for Immigrationand Multicultural and

Indigenous Affairs

Elaine McKeon AO Shirley Bennell

Kevin Coombs OAM Kelvin Costello

Shirley Peisley AM Dr Colin Dillon APM

John Hartigan Helen McLaughlin

Dr Margaret Valadian AO MBE

Keith Clarke

General Manager

AUDIT COMMITTEE


Russell Lane

Assistant GeneralManager - Operations

Paul Goggin

ManagerAccommodation Services

John Higgins

ManagerInternal Audit

Elmer Wiegold

ManagerFinance & Property

Margaret Moore

ManagerHuman Resources

Dr Kamlesh Sharma

Assistant GeneralManager & Company

Secretary

REGIONALMANAGERS

REGION 1

Western AustraliaBrett Hill

REGION 2

Northern AustraliaMichael Mullins

REGION 3

Northern QueenslandMichael Jackomos

REGION 4

Southern QueenslandDavid Collins

REGION 5

New South Wales andAustralian Capital Territory

Greg Hazel

REGION 6

Victoria and TasmaniaAllan Liddle

REGION 7

South AustraliaBrian Warrior

REGION 8

Central AustraliaJean AhChee

COMPANY ANDCOMMUNITY

HOSTELS


In terms of the 2002-03 Portfolio BudgetStatements, the company has agreed to,and achieved, the following outcome andperformance.

Outcome

Provide temporary accommodation thatassists Aboriginal and Torres Strait Islanderpeople to achieve personal goals to obtaindignity and equity in the Australiancommunity

OUTPUT GROUP 1

Provide temporary accommodation servicesto Aboriginal and Torres Strait Islanderpeople.

OUTPUT 1.1 COMPANY-OPERATEDHOSTELS

Overall achievement:Projected average occupancy level of 70 percent in company operated hostels.

The 2002-03 actual average occupancylevel for company operated hostels is 69per cent (71 per cent in 2001-02).

Performance Indicators:Projected quality: 75 per cent of residentssurveyed satisfied.

Actual: 82 per cent of residents surveyedwere satisfied.

Projected quantity: 1400 beds per night.Actual: 1,517 beds per night.

Projected expenditure: $36,023,000.Actual: $34,486,000.

OUTPUT 1.2 COMMUNITY-OPERATEDHOSTELS

Overall achievement:Projected average occupancy level of 70 percent in community hostels.

The 2002-03 actual average occupancy forcommunity operated hostels is 73 per cent(78 per cent in 2001-02).

Performance Indicators:Projected quality: 75 per cent of residentssurveyed satisfied.

Actual: 83 per cent of residents surveyedsatisfied.

Projected quantity: 1900 beds per night.Actual: 1,754 beds per night.

Projected expenditure: $8,520,000.Actual: $8,605,000.

Portfolio Budget Statements


Outcome

To provide temporary accommodation that assists Aboriginal and Torres Strait Islanderpeople to achieve personal goals and obtain dignity and equity in the Australiancommunity.

(1) (2) (2-1)

Budget Actual Variation Budget

expenses

2002-03 2002-03 2003-04

$'000 $'000 $'000 $'000

#Administered Expenses(including third party outputs) Nil Nil - NilTotal Administered Expenses Nil Nil - Nil

Price of Departmental OutputsOutput Group 1 - Temporary accommodationthat assists Aboriginal & Torres Strait Islander people

Output 1.1 - Company-operated hostels 36,023 34,486 (1,537) 33,004Output 1.2 - Community-operated hostels 8,520 8,605 85 8,300Subtotal Output Group 1 44,543 43,091 (1,452) 41,304

Revenue from Government (Appropriation)for Departmental Outputs 36,023 36,023 - 31,374*Revenue from other sources 8,520 11,389 2,881 9,930Total for Outcome 44,543 47,412 2,881 41,304

2002-03 2002-03 2003-04

##Staff Numbers 405 519 405

# Aboriginal Hostels Limited has no administered expenses.

* Increase in funding from other sources: Increase in capital user charge receipts and tariffincome.

## Average staff levels based on full-time positions.


The Balanced Scorecard is a new instrument for AHL to measure and report on overallperformance in 2002-03. The Scorecard reports against three Key Outcomes, outlined inthe 2002-07 Corporate Plan. The Key Outcomes cover financial, customer, learning andinternal business perspectives. AHL introduced Service Level Agreements (SLA’s) for thefirst time during 2002-03 for service providers. The SLA’s performance outcomes providethe basis for the balanced scorecard. The company will seek to further develop and refineperformance reporting and indicators during 2003-04.

Balanced Scorecard

Key Outcomes Meet the needs of our clients Achieve a cooperative and Maintain business management

highly productive working at a high standard

environment

Provide affordable Employ people who have the Provide hostel temporary accommodation appropriate skills and accommodation in a cost in areas of greatest need; experience needed to do effective manner;

their jobs effectively;

Increase awareness of our Target recruitment of Provide appropriate plans services; Aboriginal and Torres Strait and policies to assist

Islander people; business management;

Provide hostel services of a Provide staff with skills and Adopt corporate governance high standard in an knowledge required to do practices that are based on appropriate environment; their jobs; separation of purchaser and

provider roles and a balanced scorecard that ensures:• effective assessment of performance through service level agreements;• effective mechanisms for financial management

Maintain a high standard of Promote a culture in which design and accommodation people perform highly and at company hostels; accept responsibility for their

actions;

Provide adequate Commitment to providing mechanisms for complaints high quality working and appeals conditions and ensuring staff

are consulted on organisational change and each new certified agreement

Key

Stra

tegi

es


Key Outcomes Meet the needs of our clients Achieve a cooperative and Maintain business management

highly productive working at a high standard

environment

82% of residents surveyed 80% of employees are Average resident occupancysatisfied (target 75%). Indigenous (target 80%). of 69% (target over 70%).Surveys were conducted at This has been consistently A good outcome - AHL all services evaluated in achieved for more than measures actual beds 2002-03. ten years. occupied not rooms.

Development of new, 72% of all staff attended Average subsidy per residentpurpose built medical training courses (target bed per week of $273transient hostels commenced 52%). A good result but not (compared to $269 in in regions WA and Qld, a consistent balance across 2001-02). A good outcome a student hostel extended the company. given increase in overall in region NT. operating costs.

Design process commenced Broad based staff Overall debt reduced by for new 30 bed high care consultative committee 48% to less than $400,000. nursing home for Noongar formed for negotiation of Elders in Perth. new Certified Agreement to

ensure full consultation occurs.

Hostel assessment strategy New improved staff New Corporate Plan (2002-implemented to ensure performance assessment 07) implemented.consistent hostel operating packaged developed for standards are maintained. implementation in 2003-04.

AHL construction standards Priority given to OH&S - Commenced rollout of newupdated to reflect industry 50 of the 54 worksites accounting information code requirements including visited for training and risk system and records fire regulations. assessment. management system.

Partnerships established with Service Level AgreementsWA, Qld and NT introduced for all servicegovernments for future providers - regions, companyhostel developments. and community hostels.

Fraud Control Plan implemented.

Key

Out

com

es


AHL’s 30th Anniversary commemorative poster featuring 30 year old Australian sprinter PatrickJohnson holding 30 pearls.


P A R T T W O


Corporate Plan Key Outcome 1: Meet the needs of our clients.

The Commonwealth Government of Australia funds AHL byproviding the shortfall between tariffs collected fromresidents and actual operating costs. Maintaining existinghostels and building new facilities must be managed withinthis funding.

During 2002-03 each hostel was signed up as a provider ofhostel accommodation with their performance assessedagainst an agreed set of indicators.

In order to assist hostels meet these targets, AHL:• Works in close partnership with local community

organisations to provide support for residents.• Employs suitably qualified and experienced Aboriginal

and Torres Strait Islander hostel staff.• Provides an environment that meets the needs of families

and individuals.• Researches emerging needs to identify gaps in the market

place and consults with local communities.

In addition, a Statement of Corporate Intent is beingnegotiated between the Commonwealth Government andAHL that provides a corporate governance framework inwhich the company operates.

To support AHL's operations the company has strongcorporate policies and practices some of which are includedin the following documents:• Corporate Plan• Customer Service Charter• Charter of Rights and Responsibilities for hostel clients• Certified Agreement• Workplace Diversity Plan• Corporate Values Statement• Standard of Conduct Policy• Health and Safety Policy• Fraud Control Plan

Major Activities - Outputs


Output 1.1 - Company Hostels

In 2002-03 each night the company-operated hostels provided over 1500 bedsacross Australia through 50 hostels.

The national average occupancy level was69 per cent, a decrease of two per cent over2001-02. Contributing factors includednew strategies introduced to achieve bettertariff collection and debt management.AHL bases occupancy on beds occupiedrather than rooms occupied.

AHL has been reviewing company hostelswith a history of low occupancy to assesstheir viability and future. The closure ofthe Shirley Smith Hostel in Sydney inFebruary 2003 was a result of one review.The company is reviewing other hostels inNorthern Queensland, New South Walesand South Australia.

AGED CARE

AHL is the provisional Approved Providerfor 30 high care places for the proposedNoongar (Aboriginal) Elders Home inPerth, Western Australia. However, AHLwas unsuccessful in applying for capitalgrant funding in the 2002 Department ofHealth and Ageing's Approvals Round.AHL has subsequently committed up to $1million toward the project and will reapplyfor capital funds in the 2003 approvalsround. Negotiations have commenced withthe Western Australia Department ofIndigenous Affairs to obtain up to threehectares of land in Caversham for thisproposal. This land and the surrounding

area is of particular significance to theAboriginal community as it containstraditional meeting places. The home is notexpected to become operational for at leasttwo years.

The Hetti Perkins Home for the Aged inAlice Springs experienced problems early inthe financial year as a result of managementchanges. However, these difficulties wereovercome and the home is performing well,consistently achieving over 90 per centoccupancy while maintaining high qualityservice provision. This year, staff workedtowards the second round of accreditation,which focused on delivering services tomeet residents requirements. Considerablework was put into discussing needs withresidents and developing a system wherebyresidents can make decisions about theircare and environment on an ongoing basis.

The Aged Care Standards andAccreditation Agency scheduled an auditvisit for July 2003 to determine theservices' compliance with accreditationstandards and the period for ongoingaccreditation. It is expected that HettiPerkins Home for the Aged will beawarded the maximum three yearaccreditation period.

HOSTEL OPERATIONS MANUAL ANDHOUSEPARENTS MANUAL

The two manuals are currently beingreviewed and updated. The revised manualswill be comprehensive and will be used as a


practical guide for all company HostelManagers and Houseparents.

HOMELESS

The Isabella Plains Hostel in Canberra,Australian Capital Territory (ACT)operated as a homeless youth hostel withthe assistance of the ACT Governmentthrough the Department of Urban Servicesand the Department of Corrective Services.The hostel was established to provide anaccommodation service for youth in crisis.The hostel successfully completed a trialperiod in 2001-02.

SECONDARY EDUCATION

A Houseparents Workshop was conductedin July 2002. Houseparents from bothcompany and community operatedsecondary education hostels, gathered inCanberra to discuss issues relevant to theeducation, care and development of

secondary students. The workshop madesignificant contributions to the review ofthe company's Houseparents manual. AHL continues to give funding support tothe National Association for Rural StudentAccommodation (NARSA). NARSA hasarranged for accredited training on duty ofcare for Houseparents to be made availablethroughout Australia. NARSA isdeveloping guidelines for Houseparents indealing with Indigenous students.

The Council of Australian Governments(COAG) agreed to trial working togetherwith Indigenous communities using awhole of government approach. The WeipaMulti-Purpose Facility (WMPF) proposalto establish a major training hub for theregion is the first of the 10 regions wherethe whole of government approach is beingtrialed in Northern Queensland. The keystakeholders in the WMPF are theMapoon, Napranum and Aurukun

Company Hostels by Category


communities. Part of this development isto address the accommodation needs ofsecondary education students in theWestern Cape region. Stage one of themulti-purpose facility is the redevelopmentof the current hostel to accommodate up to32 students. Commonwealth and StateGovernments have committed $300,000each to convert four houses into a suitablehostel facility. The WMPF has future plansto accommodate up to 115 students overthe next five years. AHL will operate theWestern Cape Secondary Hostel as acompany hostel when the developmentworks are completed in 2004.

TRANSIENT

The Mackay Hostel in Queenslandcompleted its first year of operations withbed occupancy improving, but still belowthe company's target of over 70 per cent. Itis not unusual for a new hostel to takesome time to become established andconsiderable improvement in performanceis expected over the next 12 months.

MEDICAL TRANSIENT

AHL commenced a partnership with theWestern Australia Department of Housingand Works in December 2002 for a newmedical transient (renal dialysis) 18 bedhostel in Broome, Western Australia. The Department of Housing and Workshas purchased and refurbished a motel foruse by renal dialysis patients. In agreementwith the Department of Housing andWorks and the Broome RegionalAboriginal Medical Service, AHL willoperate the hostel. It is scheduled to openin September 2003 and represents a goodexample of what partnerships with stategovernments can achieve.

Output 1.2 - Community Hostels

The Community Hostel Grants (CHG)program provides funding to communityorganisations to operate their own hostels.The program provides assistance toorganisations addressing a wide range ofaccommodation needs, in particular agedcare, substance use rehabilitation andsecondary education.

Each night in 2002-03 the company fundedcommunity hostels to provide 1754 bedsacross Australia through the CHG programat an occupancy rate of 73 per cent.

AGED CARE

The Commonwealth Department ofHealth and Ageing (DHA) providedfunding to AHL for aged care services thisyear totalling $1.610 million. This enabledAHL to provide assistance to Indigenousaged care services for operating deficits,operational support, training and minorcapital items. AHL has seen an increase in

Colin Cora, Shania Cora and Barry Jard at the official re-opening of the Neville Bonner Hostel in Rockhampton, Qld.


requests for grant funding for training andconsultancy services to assist organisationsmaintain the Accreditation Standards thatmust be adhered to by all residential agedcare services.

Further, AHL provided recurrent fundingfor 14 aged care services. Four other agedcare services were provided with specialpurpose one-off grants.

Four new services were approved forrecurrent grant funding during the year.They were Yaandina Frail Aged Hostel, a seven bed facility in Roebourne, WesternAustralia; Yarrabah Aged Persons Hostel, a 15 bed facility in Yarrabah, Queensland;Kuba Natha Aged Persons Hostel, a 15 bedfacility on Mornington Island, Queensland;and Hopevale Aged Care Hostel, a 15 bedhostel in Hopevale, Queensland.

TRANSIENT

AHL has approved recurrent grant fundingfor the South West Aboriginal MedicalService (SWAMS) to operate an eight-bedhostel in Bunbury, Western Australia.The hostel, known as the Healing House,will provide a supportive environment forIndigenous males with domestic violenceissues to access formal healing programsand assist them back into their family unit.

The project is a joint venture with theWestern Australian Department ofHousing and Works and is expected tocommence operation in January 2004.

SECONDARY EDUCATION

Three new secondary education hostelswere added to the program in 2002-03.They were Port Lincoln AboriginalCommunity Council (PLACC), a 10 bedhostel in Port Lincoln, South Australia;Worawa College, a 50 bed hostel in

Community Hostel Grants Program Hostels by Category


Healesville, Victoria; and the WangettiEducation Centre, an 80 bed hostel atClifton Beach, Queensland.

CAPS Coolgardie in Western Australia was de-funded in December 2002 due to concerns over the standard and safety of accommodation for its secondarystudent clients. The organisation isplanning to develop new hostelaccommodation for students.

TERTIARY EDUCATION AND TRAINING

AHL provided recurrent funding for threetertiary education and training hostels in 2002-03. The Wunan Hostel was added to the program in 2002-03, a 14 bed hostel in Kununurra, WesternAustralia for TAFE students.

HOMELESS

Homeless hostels make up a smallcomponent of the CHG program, assistinghomeless women, men or youth. During 2002-03 AHL funded six homelesshostels. An additional two services wereapproved for recurrent funding in 2002-03;they are Tangentyere House, a 15 bedhostel in Alice Springs, and Monash Hostel,a six bed hostel in Canberra, ACT.However, both are not expected to becomeoperational until November 2003.

SUBSTANCE USE REHABILITATION

AHL funds 28 substance use rehabilitationhostels which makes up almost one-third of the hostels funded under the CHGprogram. The Daly River/Five Mile Campceased operations during the year due tothe poor condition of the building,location and shift in clientele.

Company Hostel Resident Profile by Category


Corporate Plan Key Outcome 2: Achieve a cooperative andhighly productive working environment.

Key highlights of the year in relation to staffing included:• Commencing the third Certified Agreement negotiations• 50 worksite inspections relating to Occupational Health

and Safety• Staff development including

- Houseparents Forum- Hostel Manager Training in three Regions- Regional Administration Officer Training- Leadership Development

Eight members of the Board of Directors and the GeneralManager are Indigenous. Indigenous staffing remained highat 80 per cent achieved from continuous implementation ofstrategies identified in the Workplace Diversity Plan. Thecompany will concentrate on retention issues especially in thenursing classifications.

Provide Staff With Relevant Training andDevelopment

AHL provides staff development as a mix of formal training programs and on-the-job options. All staff membershave an individual development plan through which theircurrent and future development needs can be identified,planned and managed.

The total expenditure on formal training and developmentduring 2002-03 was on average $800 per full-time employee(excluding salary and wage costs of participant attendance).This is the equivalent of about 1.98 per cent of the cost ofwages and salaries.

Training represents a performance indicator in the LearningPerspective on AHL's Balanced Scorecard and requires atarget of more than 50 per cent of staff to undertake someform of training activity. In 2002-03 a result of 72 per centwas achieved.

Major Activities - Our Staff


Promote a Culture of HighPerformance

HOSTEL MANAGER BONUS

The Hostel Manager's Performance Schemerecognises Hostel Managers whodemonstrate their management results in aquality accommodation service. In the yearunder review a performance bonus was paidto 20 per cent of the Hostel Managers.

AUSTRALIA DAY MEDALLION

The Australia Day Medallion forachievement is an award made annually toan individual AHL employee in eachregion to recognise:• Excellence in management• Excellence in client service• Innovation• Initiative• An outstanding contribution, and/or• Corporate citizenship

CERTIFIED AGREEMENT COMMITTEE

The AHL Certified Agreement 2000-03expires on 29 October 2003. A newAgreement gives the company theopportunity to review and update itsconditions of employment. Preparation fornegotiations started in early 2003,including elections for staff representativesfrom each region. Negotiations with theCertified Agreement ConsultativeCommittee and management hascommenced with the aim of reaching anew Agreement prior to the expiry of thecurrent Agreement.

Number of Staff Attending Training Courses 2002 - 03


STUDYBANK

AHL encourages staff to consider theircareer goals and how they can beincorporated into their work expectations. The studybank scheme offers theframework to enable approved employees topursue study options on areas of need toAHL and the Australian Public Service.AHL provided assistance to seven employeesto undertake relevant courses of study. Oneemployee was awarded a Doctor of BusinessAdministration, while another received aMaster of Indigenous Social Policy.

Commitment to Providing HighQuality Working Conditions

HEALTH AND SAFETY

AHL is continually improving the safety ofwork environments through workplaceinitiatives and injury prevention andmanagement. The national OccupationalHealth and Safety (OH&S) officer visited50 of the 54 worksites to provide trainingfor managers and OH&S sub-committees

and to conduct an assessment of risks andpotential hazards at each site. Theseassessments will be examined and will formpart of background material that will beused to develop a National OccupationalHealth and Safety Strategy during 2003-04.

DIVERSITY

A training module explaining how toprevent and deal with unlawful harassment,bullying and inappropriate workplacebehaviour was conducted for HostelManagers, Houseparents andadministrative staff in the NorthernTerritory, Queensland and New SouthWales. The program will be delivered inVictoria, South Australia and WesternAustralia in 2003-04.

The number of females in executive levelpositions has increased from four to six this year.

DISABILITY STRATEGY

The Commonwealth Disability Strategygroups the roles of Government agenciesinto five broad categories - policy advisor,regulator, purchaser, provider andemployer. A draft plan was prepared for theDisability Strategy Committee detailingperformance indicators and measures inrelation to the three roles along with thearea responsible for ensuring they are met.

Regional Managers Brett Hill (Western Australia) and AllanLiddle (Victoria and Tasmania) attending a training course inNew South Wales.


Staff Classification Table

Level Total F M FT PT O N I NI

Agency Head 1 0 1 1 0 1 0 1 0SES 1 2 0 2 2 0 2 0 1 1Exec 2 4 1 3 4 0 4 0 1 3Exec 1 16 6 10 16 0 15 1 11 5APS6 10 5 5 10 0 9 1 8 2APS5 23 14 9 20 3 19 4 15 8APS4 18 13 5 18 0 15 3 12 6APS3 86 55 31 81 5 74 12 82 4APS2 59 38 21 48 11 38 21 53 6APS1 296 188 108 201 95 164 132 229 67Trainee 4 4 0 3 1 0 4 4 0

Total 519 324 195 404 115 341 178 417 102

LEGEND

F = Female M = Male FT = Full-time PT = Part-timeO = Ongoing N = Non-Ongoing I = Indigenous NI = Non-Indigenous

Future Challenges

There are a number of areas that presentsignificant challenges over the next 12months. These include:• Remuneration Strategy

- Australian Workplace Agreements- Performance Management- Reward and Recognition- Classification Structure

• Workforce Planning• National Induction Program


Corporate Plan Key Outcome 3: Maintain business managementat a high standard.

Purchaser/Provider Arrangements

AHL has implemented a purchaser/provider model. Thisstructure was adopted to improve the achievement of theGovernment's objective of transparency and accountability.

The Corporate Plan 2002-07 reflects corporate governancepractices that are based on purchaser/provider roles withinthe company. AHL's Central Office is the purchaser ofaccommodation services and Regional Offices throughcompany and community operated hostels provide theaccommodation services.

AHL implemented Service Level Agreements (SLA) betweenthe purchaser and provider functional areas for the first timein 2002-03. The purpose of the SLA's is to agree on a set ofconditions for the period of the agreement and to achieve theagreed target levels of performance.

There are four key outcomes:• Financial Perspective• Customer Perspective• Learning Perspective• Internal Business Processes Perspective

The balanced scorecard technique has been applied todetermine the degree of achievement of key outcomes. The scorecard indicators will be further developed during2003-04.

Implementation of the purchaser/provider model has continuedwith Regional and Divisional managers submitting reports ina new format to reflect the model's reporting requirements.

Debtor Management

As the result of a review of debtor management in 2001,AHL implemented a new debtor policy in January 2002.

Major Activities - Business Management


This policy was designed to reduceindividual debt levels and stipulated thatresidents must pay tariff in advance. This policy was implemented as a newstrategy to address debtor management andreduce debt in company hostel operations.

The 2002-03 year saw the first fulloperating year under this policy, and resultswere significant. The most visible resultwas in the aged component where departedtrade debt was reduced from $399,999 in2001-02 to nil in 2002-03. Overall, debtorshave reduced by 50 per cent, down from$759,000 in 2001-02 to $375,868 in2002-03. All of the company’s operatingregions recorded a decrease in debtors. Three quarters of the regions recordeddebtor decrease in excess of 25 per cent,

with one quarter having outstanding resultsrecording decreases in excess of 100 per cent.

TARIFF RATES

AHL's tariff structure is complex bynecessity as it takes into account the cost ofproviding services, and a range of socialand economic factors affecting a client'sability to pay according to income.

Tariff categories are:• unemployed rates - people in receipt of

a pension or benefit;• employed rates;• education/training rates; and• several special category rates.

The accommodation rates for unemployedresidents are tied to the level of pension orbenefit payable by Centrelink. Tariff is set

Company Hostel Debtor Level


at about 60 per cent of income, includingprovision for rent assistance. Tariff rates for employed residents are higher and set at 25 per cent of the average full timeweekly wage.

The company's tariffs are reviewed on aquarterly basis. All tariffs are charged onthe basis of providing a full service, whichincludes a bed in a shared room and threemeals a day.

Hostel Research and Evaluation

As part of our efforts to ensure wemaintain services that are relevant toclients, AHL undertakes research intochanging needs and circumstances. In addition, over a three-year period itevaluates and reviews all company andcommunity hostels.

The research and evaluation are designedto assess the effectiveness and efficiency ofAHL meeting the accommodation needs ofIndigenous communities. The researchteam assess and monitor the changingneeds of those communities to identifywhere modifications are needed.

They examine the company's serviceoutcomes against government priorities andcrucially gauges the satisfaction of clients.

Research into the accommodation needs ofsecondary education students in Mapoonand Aurukun, Queensland began in May2003 and was scheduled for completion inAugust 2003. This research is in line withthe company's commitment to anagreement with the Council of AustralianGovernments (COAG) to trial workingwith Australia’s Indigenous communities inthe region using a whole-of-governmentapproach. The aim is to provide moreflexible programs and services based onpriorities agreed with communities througha partnership of shared responsibility.

High Level of ResidentSatisfaction

During evaluations, residents at all hostelsare interviewed on a confidential basis tomeasure the level of satisfaction withservices provided. This is a valuablemanagement tool and can identify areaswhere services can be adjusted in additionto areas where no change is required.

The results show that: • 83 per cent of respondents expressed

satisfaction with overall services; • 84 per cent expressed satisfaction with

room comfort; • 82 per cent were satisfied with food; • 90 per cent were satisfied with staff

service; • 76 expressed satisfaction with tariffs;

and • 82 per cent were satisfied with the

cultural environment.

The Mulgunya Hostel in Adelaide, South Australia.


EVALUATIONS AND SIGNIFICANTREVIEWS

Northern Australia (Nhulunbuy)An evaluation of services in Nhulunbuyconfirmed the ongoing need for transientaccommodation. There is also a growingneed for medical transient and substanceuse rehabilitation accommodation and thecompany's Regional Office staff willcontinue to monitor these trends.

Northern Queensland (Mt Isa)An evaluation of accommodation servicesin Mt Isa began in May 2003 and thefindings were submitted for considerationto the June 2003 Board of Directorsmeeting. The Board endorsed theevaluation recommendation to continueoperating the Kabalulumana Hostel for afurther twelve months while strategies areimplemented to address low occupancy.

New South Wales (Sydney)The Sydney evaluation identifiedpotentially beneficial opportunities withState Government agencies and non-government organisations to facilitatebetter outcomes for the accommodation ofhomeless and medical transient Indigenous

people. Changes in demand resulted in theclosure of one transient hostel and anotherwas placed under a six-month review.

New South Wales and AustralianCapital Territory (Canberra)An evaluation of the Isabella Plans Hostelin Canberra commenced in June 2003 and was scheduled to be finalised in August 2003.

Victoria and Tasmania (Melbourne,Ballarat)An evaluation that was finalised in the latter half of 2002 of both companyand CHG hostel accommodationconfirmed there is a continuing need forthe existing services.

South Australia (Adelaide, PortAugusta)An evaluation of accommodation servicesin Adelaide and Port Augusta began onFebruary 2003 and was scheduled forfinalisation in August 2003.

Central Australia (Alice Springs,Tennant Creek)An evaluation completed in 2002demonstrated a continuing need for allexisting services and confirmed that allhostels were operating well.

Substance Use Rehabilitation PolicyReviewA Memorandum of Understanding (MOU)between AHL and the Office of Aboriginaland Torres Strait Islander Health(OATSIH) is being formalised to improvethe health outcomes of Indigenous people.

The company conducted a review ofaccommodation provided for substance use

Nancy Ebataringa, resident of the Hetti Perkins Home for theAged, Alice Springs, NT.


rehabilitation hostels. The results of thereview and the establishment of the MOUwill assist continuing compliance withcurrent government policies.

Marketing

The company’s marketing strategy has beentargeted to meet the needs of the AHL’skey corporate objectives by producingquality and effective promotional andprinted material.

There has been a focus on promotinghostels at the local level by producinginformative individual hostel brochures andmarketing plans. Information on hostelservices available was distributed to thebroader community.

During the year the major marketingactivities included:

• The commemorative poster featuring30-year-old Australian sprinter PatrickJohnson and 30 pearls symbolisingAHL's 30th Anniversary.

• Promoting the official opening of theMackay Hostel, Queensland.

• Launching the new Aboriginal HostelsLimited website.

• Supporting major regional activitiessuch as NAIDOC week.

• Reviewing AHL's advertising strategy.• Designing and producing company

publications including the AnnualReport and Corporate Plan.

The company received a Silver Award inthe 2002-03 Annual Report Awards, an improvement on the previous year'sBronze Award. The significance of thisaward reflects AHL's ongoing commitmentto providing government and community

with a precise accountable report of operations.

AHL will continue to focus on increasingthe awareness of AHL temporaryaccommodation services in 2003-04.

Accounting Information System

The previous financial year (2001-02) sawthe initial implementation of a newAccounting Information System, Arrow Financials. The Arrow Financialsproject is well into the implementationphase of the system project lifecycle.During the 2002-03 financial year, major project deliverables were produced,including the Deployment and TrainingPlans, Arrow System User Manual, System Hardware and Software upgrade,General Ledger Interface with the payrollsystem, and provision of user training asdocumented in the Training Plan.

It is anticipated that the Arrowimplementation phase will be completed inthe 2003-04 financial year. Currently, thereis only one more system module that needsto be rolled out to a number of regions,after which AHL will undertake a review ofArrow Financials.

Records Management

The implementation of the new recordsmanagement system (Hummingbird)continued during the financial year. This phase of the project saw the deliveryof the System Users Manual, provision ofuser training to Central Office staff,upgrade to system hardware, and thedevelopment of AHL's BusinessClassification Scheme.


To date, the Hummingbird RecordsManagement system is fully operationaland in use in Central Office. The systemwill be rolled out to the Regional Offices in2003-04, which will complete the systemimplementation phase. AHL anticipates agood return on its investment whenimprovement in record managementefficiencies and coordination are realised.

Information Technology (IT)

In order to continuously improveoperational efficiencies, AHL upgraded itswide area network (WAN) during 2002-03. Telstra's Virtual Private Networkprovides AHL with high-speed connectionand flexibility in terms of design,modifications and maintenance of theinfrastructure. The agreement with Telstraalso involves constant monitoring of thenetwork and a network firewall.

Already, this upgrade has reduced networkdown time and improved the performanceof AHL's accounting information system(Arrow) and e-mail service.

AHL is also committed to continuallyupgrading both system hardware andsoftware. In particular, AHL has recently

replaced the computers in both RegionalOffices and Central Office and installed avideo conferencing facility in Central Office.

In addition, two new IT support providers,Teknet Pty Ltd and IT ManagementSolutions were engaged in 2002-03 after a re-tendering process for cost effective IT support.

Construction and Maintenance

The construction and maintenance staffcompleted a number of projects designedto improve and upgrade facilities.

The Fordimail Hostel in Katherine,Northern Territory, was extended toincrease the capacity of the hostel with sixadditional rooms. The construction ofTamworth Hostel for medical transients inNew South Wales was commenced and isdue for completion by 28 February 2004.

The Allawah Grove Hostel for transients inPerth, Western Australia was demolished tomake way for a new purpose built hostelthat will increase capacity. The new hostelis expected to open in March 2004.

The section’s staff played a role inachieving accreditation for the HettiPerkins Home for the Aged in AliceSprings, Northern Territory by setting up apreventative maintenance program that canbe monitored from Central Office.

Two properties were sold in Queensland,the Woongara Hostel for secondary studentsin Rockhampton and a block of vacant landin the nearby township of Duaringa.

The redevelopment site of the Allawah Grove Hostel inPerth, Western Australia.


The Shirley Smith Hostel for transients inSydney, New South Wales will be sold atan auction.

The 10 year construction maintenanceplan is now in the fourth year and iscontinually being updated to carry over 10years of planned maintenance. The mainobjective is to provide a record of themaintenance cycle and to provideinformation to forecast programmed worksand annual budgets.

The construction and maintenance sectioncontinuously reviews and updates itsConstruction Standards to reflect changesin the Construction Industry; BuildingCode of Australia, the latest fireregulations, the National Code of Practicefor the Construction Industry, and theCommonwealth ImplementationGuidelines. A new kitchen design andlayout has now been incorporated in thestandard. Along with the standards, AHL isin the process of introducing anEnvironmental Management System thatwill provide a structured approach toplanning and implementing environmentprotection measures.

In addition, there has been an update ofthe construction procedures manual on therecommendation of ATSIC's Office ofEvaluation and Audit to ensure it reflectsbest practice and delivers an accurate andup to date guide to staff.

Audit Coverage

Internal Audit is an independent appraisalactivity within AHL reviewing specificoperations as a service to management. It is a managerial control that functions bymeasuring and evaluating effectiveness ofother controls.

In 2002-03, Internal Audit reviewed 32 ofthe company's 50 hostels and six of itseight Regional Offices.

The Australian National Audit Office(ANAO) visited AHL's Sydney andMelbourne regions as part of the 2002-03financial statement audit. The results weresatisfactory and were consistent with thefindings of Internal Audit's testings inother regions.

All Regional Offices and hostels reviewedwere operating satisfactorily. The findingsof the reviews were referred to relevantmanagement for appropriate remedialaction.

AHL's Fraud Control Plan wasimplemented in 2002-03 in accordancewith the Commonwealth Fraud ControlGuidelines. In addition to the FraudControl Plan, the company produced aFraud Awareness Guide which wasdistributed to all staff and included in theinduction kit for all new staff. The FraudAwareness Guide is a quick reference guideto AHL's fraud control, fraud control

Participants at the AHL Houseparents forum held inCanberra 2002.


policy, reporting responsibilities, the codeof conduct and contact details for thereporting of fraud or suspicions offraudulent activities within the company.

AHL has highly effective fraud prevention,detection, investigation and reportingprocedures and processes in place. Annual fraud data has been collected andreported in accordance with the guidelines.

AUDIT INVESTIGATIONS

There were 15 investigations undertakenand/or coordinated by Internal Audit in2002-03 amounting to $9,666. This figureincludes an amount of $583 that waswithheld from payment (invoice scams)and $2,604 that is being actioned forrecovery. The remainder of $6,479 isconsidered non-recoverable.

FRAUD AWARENESS

The review of suspected and proven fraudagainst AHL is an ongoing process andpriority of the company. Internal Auditprovided fraud awareness training to staffduring 2002-03.


• Developing the strategic leadership management and increasing more femalerepresentation in management.

• Forming partnerships with Department of Employment and Workplace Relations andInstitutions such as TAFE for training and employment opportunities in AHL.

• Training of all kitchen staff so that AHL becomes best practice in food service standardsand compliance.

• Building on/developing our expertise in the aged care industry so that AHL can be abest practice organisation in our expanding role of residential aged care.

• Full implementation of the hostel assessment strategy to ensure consistent hosteloperating standards and procedures are maintained.

• Ensuring we bring CHG hostels in line with all standards, procedures and expectationsof AHL operated hostels.

• Expanding the sample of resident satisfaction surveys in company and communityoperated hostels.

• Further development of partnerships with other agencies in particular State andTerritory Governments, to expand hostel services to meet demand.

• Development of the Weipa Secondary Student Hostel as part of the COAG initiative,and construction of the Noongar Elders Home, 30 bed high care facility in Perth.

• Development of a National Occupational Health and Safety Strategy.

• Successful negotiation of new Certified Agreement with staff.

Future Challenges


Occupancy and Bed Statistics

Regional hostel bed occupancyOccupancy %

Region Company Community Total Company Community

Western Australia Hostels 5 18 23 69 77Beds 158 438 596

Northern Australia Hostels 8 6 14 71 57Beds 359 164 523

Northern Queensland Hostels 7 16 23 60 68Beds 273 428 701

Southern Queensland Hostels 4 13 17 67 84Beds 161 212 373

New South Wales/ Hostels 11 10 21 57 82Australian Capital Territory Beds 197 181 378

Victoria/Tasmania Hostels 4 11 15 77 73Beds 72 176 248

South Australia Hostels 6 4 10 68 79Beds 98 41 139

Central Australia Hostels 5 4 9 85 61Beds 199 114 313

TOTAL Hostels 50 82 132 69 73Beds 1517 1754 3271

Beds by hostel categoryCompany Company Community Community Total Total

Category Hostels Beds Hostels Beds Hostels Beds

Transient 27 972 9 129 36 1101Medical Transient 8 158 2 24 10 182Homeless 2 18 9 134 11 152Substance Use Rehabilitation 0 0 29 548 29 548Prison Release & Diversion 0 0 0 0 0 0Tertiary Education & Training 5 149 3 72 8 221Secondary Education 7 180 11 532 18 712Primary Education 0 0 1 30 1 30Aged Care 1 40 18 285 19 325

TOTAL 50 1517 82 1754 132 3271


Staff from the Neville Bonner Hostel in Rockhampton, Qld. (L-R from back): Alma Gowa, Lester Adams,Mary Rose Hampson, Darren Mann, Doreen Asse, Joy Kawane, James White, Maxine Munns.


P A R T T H R E E


Our focus led to the establishment of a medical hostel inBroome. The facility is owned by the State Department ofHousing and Works and will be operated by AHL as amedical transient hostel. It will provide a much neededservice to patients receiving treatment at the Broome dialysisunit. It is a joint venture in which AHL has worked closelyand cooperatively with stakeholders to achieve a positiveoutcome in the Kimberley.

The region’s staff has also worked to establish an aged carefacility in the Perth metropolitan area. The company'scommitment to this project drew support from the UnitingChurch, the State Department of Housing and Works, the Commonwealth Department of Health and Ageing andvarious service providers.

We were successful in developing strategic partnerships withkey government departments and agencies at all levels ofgovernment and with the private sector including theMinistry of Justice, Centrelink, local employment agenciesand CDEP.

Our major objectives have been to develop strategies tostabilise staffing to counter high staff turnover and increasedsalary costs.

The company has successfully appealed on two occasionsagainst local council decisions to disallow the establishmentof hostels. The first related to the redevelopment project forthe Allawah Grove Hostel and the second was the appeal overthe establishment of the new medical hostel in Broome.

In highlights for individuals, the Australia Day Medallionwas awarded to Edmond Damon, a domestic employee at theKabayji Booroo Hostel, in recognition of his work andcommitment to the company over many years. BettinaPickett, Regional Administration Officer,is a member of theState Planning Advisory Committee for Health and Aged.

Region 1 - Western Australia


Regional Manager - Brett Hill

Company Operated Hostels

There were many challenges at the TrilbyCooper Hostel in Kalgoorlie including ahigh staff turnover rate and fluctuatingoccupancy levels. Various strategies wereput in place to remedy this situation as thehostel provides a much needed service tomeet demand for transient accommodation.

The Derbal Bidjar Hostel at Maylandsmaintained high occupancy levels of almost97 per cent and demand frequentlyexceeded capacity. The Kabayji BoorooHostel at Derby consistently achieves highoccupancy rates and provides qualityservice to its clients.

Special thanks go to the staff at the DerbalBidjar Hostel for their extraordinary effortsin successfully reducing PatientAccommodation and Travel Scheme(PATS) debts within the region.

The new Broome medical hostel isscheduled to open in September 2003,meaning that patients will no longer needto travel to Perth for treatment.

Community Operated Hostels

The company funds 13 communityoperated hostels in Western Australia. They are all well managed and provide ahigh level of service to clients.

The Community Hostel Grants (CHG)program in the region performed well.Milliya Rumurra a substance userehabilitation hostel received an awardfrom the National Council on Drugs,

the National Drug Research Institute andCurtin University for "Best PracticeModel" in the Alcohol and SubstanceAbuse Program. The Lake Jasper StudentHostel also received acknowledgement for"Best Practice Model" from the StateDepartment of Community Development,the National Association for Rural StudentAccommodation and the IndigenousBoarding in Secondary Schools.

Funding was terminated for the CAPSHostel in Coolgardie at the end of the yeardue to inadequate facilities.

Future Challenges

The redevelopment of the Allawah GroveHostel is due for completion in March2004 and it will be operational well beforethe close of the financial year.

The company aims to concludenegotiations to secure land for theconstruction of a Noongar (Aboriginal)Elders home in the Perth metropolitan area.

Work will continue towards joint venturefunding to two community basedproposals: first, to the Wunun Foundationto establish a tertiary student hostel inKununurra: second, to the South WestAboriginal Medical Service to establish amen's healing house in Bunbury. Support will also be provided for theYaandina aged care facility at Roebourne.


In a busy and productive year that saw the region welcome anew Regional Manager, staff worked successfully towards theregional objectives of increasing occupancy levels, improvingthe quality of service for clients, and enhancing staff careerdevelopment and training.

In highlights for staff, Peter Rotumah, the Hostel Manager atthe Daisy Yarmirr Hostel, and Finance Officer DoreenThompson, were presented with certificates for 20 years ofservice. Sylvia Forday, the cook at the Galawu Hostel,received an Australia Day Medallion for her hard work anddedication to the company.

In August 2002, AHL's Board of Directors meeting was held in Katherine with staff holding a barbecue at theFordimail Student Hostel to meet with Directors andcommunity representatives.

The region celebrated NAIDOC week by holding twobreakfast celebrations. The first was held in Chen Park withAHL employees serving breakfast to over 200 people beforethe traditional NAIDOC march and the other was held atthe Corroboree Hostel in Katherine. Both functions werewell received.


During the year there were visitors from town areas andoutlying communities, helping to achieve an occupancy rateof 68 per cent.

Major and minor maintenance were carried out at most ofthe hostels, including an extension to the Fordimail StudentHostel, providing an extra six rooms to accommodateanother 12 students. Hostel staff at the Fordimail Hostel alsocelebrated 10 years of operation with Regional Office staff,students and their families.

Staff from various hostels and Regional Office completed aFire Wardens Course and received First Aid certificates.

Region 2 - Northern Australia


Regional Manager - Michael Mullins

The Regional Administration Officerattended an Empower Training Course inCanberra. The National OccupationalHealth & Safety Officer visited the regionin February 2003 to conduct successfulOccupational Health & Safety inspectionsand AHL's Internal Auditors conductedaudits on all hostels.


Occupancy rates in community operatedhostels reached 73 per cent to the end ofMay with the Juninga Aged Care Centremaintaining over 90 per cent throughoutthe year.

The Kalano Community Organisation inKatherine worked on developing its blockof land south of the town with theexpectation of moving operations fromRockhole in the upcoming calendar year.The region is confident that occupancyfigures will steadily increase afteroperations are relocated.

The Aged Care Standards Agency (ACSA)conducted an accreditation site audit at theJuninga Aged Care Centre. This visit wasto verify claims the organisation made inits accreditation application. The assessorsfound the Centre to be compliant againstall 44 of the expected outcomes and theservice has now been awarded themaximum accreditation period of threeyears. ACSA praised the Juninga Centreand have requested permission to use it as abest practice model for aged care. This is ahuge success. The region is extremely

proud of the Juninga Centre and FrontierServices who assist with managing thecentre.

Future Challenges

The region will continue to strive for evenbetter relationships with governmentdepartments and agencies to ensure regionalobjectives continue to be met and the highlevel of service to Indigenous people.

The region must raise its profile and raiseawareness of our services and fundingopportunities to all top end communities.We must maintain positive relationshipswith key stakeholders who can contributeto better partnerships and assist with thedelivery of better services.

There is a critical period ahead, with thepossibility of staff reform including the lossof some positions. Management is thereforeexploring strategies to operate hostels moreefficiently and effectively with fewerresources. However, there is an air ofconfidence that this objective will beachieved. The region is confident that theregional objectives and better servicedelivery will be consistently met in thefuture.


Major regional and management efforts during the yearconcentrated on increasing AHL's coverage of NorthernQueensland, which was achieved by funding CHG aged carehostels on Mornington Island (Kuba Natha Aged Care Hostel)and the Hopevale Aged Care Hostel. There was continuingfocus on occupancy levels, controlling debt, and addressingstaff stability in the face of an increase in staff turnover.

Particular attention was given to improving occupancy ratesacross both company and CHG program funded hostels.Unfortunately, while the region saw some significantimprovements in CHG occupancy, levels at some companyfacilities continued to be of concern.

In fact, due to the poor performance of the Mackay Hosteland the continuing low occupancy of the KabalulumanaHostel, the region has seen overall occupancy decrease to 60per cent for the year.

Lance Backo from the Kuiyam Hostel and Doreen Mataiaand Nazareth Ebui from the Iris Clay Hostel all achieved 20years of service with AHL during 2003, while Gwen Motlopresigned as Regional Administration Officer after more than20 years.

Company Hostels

There were some excellent individual performances, with theJoe McGinness Hostel lifting occupancy from 73 per cent theprevious year to more than 79 per cent, while the Iris ClayHostel also achieved a good result by increasing its rate byover six per cent to 72 per cent.

The Kabalulumana's Hostel occupancy, which wasdisappointingly low overall, rose from about 30 per cent inthe first six months to a second half rate of 70 per cent, arate which is expected to be maintained. The proposedopening of a new renal dialysis unit at Mt Isa Base Hospitalin August 2003 is expected to have a positive and lastingimpact on occupancy at the Kabalulumana Hostel.

Region 3 - Northern Queensland


Regional Manager - Michael Jackomos

The Jumula Dubbins and the Canon BoggoPilot hostels, both achieved over 60 percent occupancy for the year. It is anticipatedthat recent management changes at bothhostels as well as an increased emphasis onattracting tertiary students and trainees tothe Canon Boggo Pilot Hostel will result inimproved occupancy at both of theseThursday Island hostels.

In an important development, AHLapproved the re-funding of the WangettiSecondary Education Centre, commencingin July 2003.

Community Hostels

The region currently administers fundingto 16 community hostels located across tenlocations including Cairns, Mareeba,Herberton, HopeVale, Yarrabah, Mt Isa,Townsville, Palm Island, MorningtonIsland and Weipa. Hostel categories includefive aged care, three secondary education,five substance use, one women's medicaland one women's shelter.

A further challenge for the CHG programis the expected increase in the number ofaged care hostels in the next 12 months.

Future Challenges

The main challenge for the regioncontinues to be the need to improveoccupancy levels at the Mackay,Kabalulumana, Canon Boggo Pilot andJumula Dubbins Hostels.

A further challenge for the Regional Officeis the expected increase in application foraged care hostels. Currently our RegionalOffice administers five aged care hostels.

The possibility of the region taking overthe operations of the existing communitymanaged secondary education hostel atWeipa also presents some issues,particularly with existing resources.

The proposed redevelopment of the IrisClay Hostel during 2003-04 is keenlyawaited as the existing building is well pastits use by date. Following research andcommunity consultation undertaken earlyin 2003 the proposed redevelopment willoccur on the same site as the existing hostelin the Townsville central business district.

In relation to the CHG Program, the challenge will be the rapidly increasinginterest by communities and differentgroups in providing funding to secondaryeducation hostels in the Cairns region tocater for the growth in secondary studentsfrom Torres Strait and the Capecommunities.


A strong and determined regional effort this year resulted inachieving improved quality of service to our clients. This wasachieved by improving the living conditions of the hostelsand assisting the clients with their needs. Staff and residentinvolvement was crucial to continuous improvement and theregion continues to seek their views.

Further, improving the standard of buildings andaccommodation at hostels funded under the CHG programcontinued as a high priority and several meetings were heldwith funding bodies to achieve this objective. The outcomewas that funds from the capital budget were used togetherwith funds from other agencies to improve facilities andservices to the clients of these organisations. However, achallenge remains to bring all of the facilities up to therequired standard.

There was a regional focus on occupancy rates, whichreached 70 per cent overall in company operated hostels, and more than 81 per cent in community operated hostels.There was a drive to ensure that budgets were met, whichwas achieved in nearly all cases.

A major highlight was the re-opening of the Neville BonnerHostel in Rockhampton.

Joy Kawane the Hostel Manager at Neville Bonner Hostel inRockhampton, reached the milestone of 20 years of serviceand was presented with a certificate and watch on behalf ofthe company by our Minister, Philip Ruddock at the re-opening of the Neville Bonner Hostel. Both Maxine Munns,the Domestic at Neville Bonner Hostel, and Hilary Doyle,the Domestic at Jane Arnold Hostel in Brisbane, reachedtheir 10 years or service. James White, Hostel Manager, andEvol Jarro (Cook) both of Neville Bonner Hostel, retiredafter 15 years and 18 years respectively, while Hilary Doyleretired after 10 years at the Jane Arnold Hostel. Mary RoseHampson the Hostel Manager at the Jane Arnold Hostel

Region 4 - Southern Queensland


Regional Manager - David Collins

received the Australia Day Medallion forher continued commitment to AHL andour clients.

Company Hostels

AHL owns and operates four hostels in theSouthern Queensland region. They are alltransient hostels with three in Brisbane andone in Rockhampton. Funding of $88,000was allocated for major repairs andmaintenance at AHL hostels to ensuregood quality accommodation, includingthe installation of air conditioning to livingareas and bedrooms at the Elley Bennettand Jane Arnold hostels. Occupancy at allhostels averaged at a very good 70 per centfor the year. The region has focused onproviding staff with the appropriate trainingto enhance their skills with assisting theirclientele. All staff are encouraged toundertake training. Twenty five staffmembers have undertaken selected trainingin 2002-03. The training focus will be onmeeting the appropriate standards with firesafety and food safety. The Yumba hostelthis year accommodated large groups ofvisiting school students from as far away asBamaga (Northern Queensland), and tenyoung men from country areas completinga tyre fitters program. There were anaverage of ten tertiary students living at thehostel and studying for their respectivedegrees which included, engineering, law,social work and health.

Community Hostels

The region continued to work with theDepartment of Health and Ageing to assistwith the redevelopment of the GeorginaThompson Hostel in Brisbane.

Discussions continued with appropriatefunding bodies for the total renovationof the Born Free Hostel in Highgate Hill,Brisbane and Joyce Wilding Hostel, MtGravatt, Brisbane. Both hostels have beenoperating for more than 30 years, and bothare in need of urgent repair work.

Aged care hostels continued to provide anexcellent service to the community's elders,and substance use rehabilitation hostelscontinued to succeed with assisting theirclients to achieve their goals. All aged carehostels in the region have been accreditedby the Department of Health and Ageingand continue to improve their operationsas required and more importantly providequality service to their clients.

Future Challenges

The region will continue to maintain thegood working relationships withgovernment departments and thecommunity to improve accommodationfacilities and service to all clients.

The region will focus on training anddevelopment to enhance the skills ofcurrent staff. This effort will includetraining of staff at both company andcommunity operated hotels.


A major review of accommodation services highlighted anumber of areas where changes could be made to enableAHL to better meet the needs of Indigenous communities,particularly in metropolitan Sydney. This led to arationalisation of hostels, a closure of one hostel and achange in the classification of one hostel from tertiaryeducation and training to medical transient and transient.

Operational changes were also recommended for most hostels and the region will continue to develop strategies and procedures to enhance the provisions ofaccommodation services.

A significant regional focus was to liaise with variouscommunities, organisations, and government departments andagencies to raise the company profile and promote services.

Attention was given to bringing stability to staffing issues andrecruitment drives resulted in the employment of the RegionalManager, Regional Administration Officer and CommunityLiaison Officer. A second Finance Officer position wascreated and filled. In addition, there were several newHouseparents recruited at the secondary education hostels.

In a significant achievement, Cyril Hennessy from the GlenCentre received a Consumer Advocate Encouragement Awardfor outstanding contribution in providing consumerprotection information to participants of the program.

Carol Dalton achieved 10 years service with Rose MumblerVillage in Nowra, where all staff successfully completed theirCertificate 3 in Aged Care.

Staff and students at the Kirinari Sylvania Hostel Sydney,hosted a breakfast as a contribution to reconciliation and toraise corporate support for sporting facilities and equipmentin the area. The guest speakers were Linda Burney, the firstIndigenous woman in the New South Wales Parliament;television presenter Ray Martin; and Cronulla Sharksfootballer, David Peachey.

Region 5 - New South Wales & ACT


Regional Manager - Greg Hazel


With the closure of Shirley Smith Hostel inSydney the company now operates 10hostels throughout the region. These hostelsare located in Sydney, Dubbo, Newcastle,Armidale and Canberra. Overall averageoccupancy rates were modest at 56 per centwhile individual hostels ranged betweenabout 49 per cent to almost 81 per cent.Promotional flyers are being developed foreach hostel so that each may target theircommunities in a broad marketing strategyto increase occupancy. Open days are alsoplanned to encourage communityparticipation at the hostels. Most hostelshad works completed under theconstruction and maintenance program toimprove the safety and surrounds of theirenvironment.


The company assists community basedorganisations under the CHG program tooperate hostels for the purpose of providingsubstance use rehabilitation, aged care and

tertiary education and training services.These 10 hostels are located in Sydney,Hunter region, Kempsey, Lismore,Brewarrina, Moree and Nowra. Overallaverage occupancy was about 90 per centwhile individual hostels averaged between53 per cent and over 100 per cent. While there were no major issues ofconcern, the regional management teamnegotiated with stakeholders to secureongoing program funding for the Gu-Dgodah Hostel near Cessnock.

Future Challenges

The region aims to continue to provide ahigh quality accommodation servicethrough company hostels by identifyingand adapting to the changing needs ofIndigenous communities in NSW and theACT. The region will strive to provide asafe and friendly environment that allclients have comfortably called home.

To achieve these aims, the region will worktowards smart recruiting, providingpersonnel development and trainingopportunities, and actively encouraging acohesive workplace.

Staff from the Tony Mundine Hostel in Sydney with staff fromCentral Office . (L-R) Diane Collins, Joyce Wymarra, SimoneKoehler, Sarah Rose, Sitimlyanie Dunphy and IngridNasslander.


Region 6 - Victoria & Tasmania

A busy period saw the region's major efforts focus ontransient hostel accommodation. The William T OnusHostel in Northcote, the Harry Nanya Hostel in Mildura,and the Geraldine Briggs Hostel in Shepparton, contributedsignificantly by supplying short-term accommodation totransient people. Occupancy rates have been consistentlyhigh all year following strong demands for this form ofaccommodation, especially in Melbourne and Shepparton. In addition, the George Wright Hostel Fitzroy catered for theneeds of homeless men in the inner metropolitan area.

Networking with other service providers was a feature of theoperations of hostels in Victoria. The spinoff from thisactivity, was a positive impact on occupancy rates whichaveraged 77 per cent across the region and is higher thanbudgeted levels.

There was a disappointing development with the rejection bythe Launceston City Council of the company's developmentapplication to establish a medical transient hostel forapproximately 10 residents in Elphin Road, Launceston.AHL lodged an appeal to the Administrative AppealsTribunal, but this too was also unsuccessful. The propertyhas since been sold.

Considerable efforts were undertaken to ensure thatexpenditure on hostel operating costs was maintained atbudgeted levels and tariff collection met companyexpectations. These efforts were very successful and resultedin overall savings of $51,000 and the overall tariff collectionexceeded budget by 10 per cent.

Regional Office was relocated to a more central, and cost effective location in the heart of Melbourne, makingAHL more accessible to the community and to other service providers.

Company Hostels

Our four company hostels have continued to provide muchneeded accommodation services to the Victorian Indigenouscommunity.


Regional Manager - Allan Liddle

Average occupancy rates for the year havebeen close to or better than budget. The Harry Nanya Hostel in Mildura,appeared to struggle at times to maintain asatisfactory occupancy rate but this is beingaddressed with the recent appointment of anew Hostel Manager.

During the year AHL undertook majorworks programs at both the WT Onus,and Geraldine Briggs Hostels. Thesedevelopments have improved and upgradedthe standard of our accommodationservices to our hostel residents.

Community Hostels

AHL provided $160,000 to the AboriginesAdvancement League in Melbourne torefurbish and improve occupational healthand safety aspects of the Lady GladysNichols Hostel in Northcote. The fundswere used to upgrade the kitchen anddining room, in addition to improving firesafety with the installation of smokedetectors and an alarm system, andfireproofing upstairs walls and doors.

AHL also provided a capital grant to theNgwala Aboriginal Cooperative to upgradefacilities at the Women's Alcohol RecoveryHostel, "Winja Ulupna," in St Kilda. The scope of the works included a newwooden paling fence in addition to a newgate at the rear.

The Worawa Aboriginal College inHealsville, was a welcome return to ourCommunity Hostel Grant program after a two and half year absence. Fundinghad ceased in September 2000, because of breaches of funding guidelines. Several new developments have includedthe establishment of an advisorycommittee, which comprises representativesselected from various agencies in Victoria,to assist in the overall management ofWorawa College.

Future Challenges

We were disappointed with the setback inour attempt to establish a hostel inTasmania, we will continue to look foropportunities to establish a hostel for theTasmanian community.

There will also be focus on the westerndistrict of Victoria, where communitieshave made several representations to AHLto discuss hostel proposals.

In Melbourne, attention will be given toseveral enquiries and proposals about youthaccommodation to support elite sportsprograms.

The Geraldine Briggs Hostel in Shepparton, Victoria.


The region successfully strived to maintain its high standardof service to clients while keeping within tight budgetaryconstraints. In addition, the region continued to promote theCommunity Hostel Grant (CHG) program to those areaswith a large number of Indigenous people.

Management's focus was to ensure that staff members wereadequately trained in the areas of administration, peopleskills, OH&S, and information technology, so they couldcontinue to meet their responsibilities and commitments to clients.

A notable achievement was gaining approval for funding forthe Port Lincoln Aboriginal Community Council to providea 10 bed secondary hostel.

In significant staff achievements, Lorna Francis retired after18 years service as a Hostel Manager, Domestic and Cook.Coral Wilson was awarded the Australia Day Medallion forher loyalty, reliability and work performance over 10 years asa Cook at the Karinga Hostel.


An occupancy rate of almost 68 per cent was achieved which was a little below expectations, however, tariff revenuewas on target.

The region's work program resulted in significantimprovements to buildings at the Gladys Elphick andKaringa hostels in Adelaide.

A partnership has been formed between AHL and theAboriginal Services Division of the Department of HealthServices. AHL has provided a building within the LuprinaHostel property in Adelaide. This service is to providemedical clients transport support to and from theirappointments at the four major hospitals. We are currentlynegotiating our second Memorandum of Understanding.

Region 7 - South Australia


Regional Manager - Brian Warrior


The CHG hostels continued to provideexcellent service to their respective clients.Annie Koolmatrie House (Allan BellHouse) underwent a major works program,which resulted in an improved standard of service. The Annie Koolmatrie House’slow occupancy was of great concern duringthe year.

Those concerns were taken on board by theAboriginal Sobriety Group and have beenable to increase occupancy and maintain amuch higher and consistent occupancy.

The Barrie Wiegold Hostel experiencedsome administration difficulties during theyear which meant a delay in providingfinancial returns.

The region is currently appraising a CHGproposal from the Weimija AboriginalCorporation, Broken Hill. The proposalwill cater for medical clients from outlyingcommunities who need to attend theBroken Hill Hospital for appointments.

AHL has approved CHG funding to thePort Lincoln Aboriginal CommunityCouncil to operate a student hostelattending Concordia College in Adelaide.

These students will come from as far as Ceduna in the far west, Port Lincolnand Whyalla.

Future Challenges

Like other regions, there is a challengingtime ahead to maintain the high standardof service with fewer resources.

One of those challenges is to support thePort Augusta community in their quest toset up a substance use facility. AHL hasmade a commitment to provide theaccommodation component. Unfortunately,they have been unsuccessful to date insecuring rehabilitation program funding.

The region will be striving to develop morepartnerships where appropriate with otheragencies including government services.

A particular aim is to increase our CHGprogram within the region to meet thoseneeds not being met.

Pam Tilmouth, Coral Wilson and Avis Gale from the KaringaHostel, Adelaide.


Significant progress was made during the year in developing ateam ethic among staff, especially at the Ayiparinya Hostel inAlice Springs and the Wangkana-Kari Hostel in Tennant Creek.The Hostel Managers improved service delivery to clients whilecoping with changes to policy and procedures, includingimplementation of the new payroll and finance systems.

The new tariff policy contributed to decreased debt. The policy was accepted by clients with little disagreement.

Progress was made, too, in addressing concerns about thebehaviour of some students at the Wangkana-Kari Hostel, in Tennant Creek. A meeting was held with more than 30parents and guardians, school staff, ATSIC, night patrolrepresentatives and community elders. As a result, there was apositive change in the attitude and behaviour of students.

In staff news, Robyn Halls reached her 20-year milestone withAHL. Finance Officer Cheryl Peckett received the AustraliaDay Medallion for her long and dedicated service. BothWilma Bryant, the Cook at the Topsy Smith Hostel, and JanRice, of the Hetti Perkins Home for the Aged, reached the 10-year milestone.


The occupancy at the Topsy Smith Hostel in Alice Springs was affected because of "Sorry Business" as a number ofresidents died and some of their relatives moved out for amourning period.

The Ayiparinya Hostel was very busy and recorded occupancyof almost 93 per cent. However, the hostel could not cater foreveryone's needs, as it has only twin share or family cabins,and no specific accommodation for singles. The majority ofthe Sid Ross Hostel beds, also in Alice Springs, were pre-purchased by health service providers and its occupancy wasmore than 93 per cent.

The occupancy of the Wangkana-Kari Student Hostelfluctuated following the departure of long-term Houseparents.

Region 8 - Central Australia


Regional Manager - Jean AhChee

However, with the arrival of newHouseparents, the situation has stabilised.

The Hetti Perkins Home for the Aged inAlice Springs enjoyed a high occupancyrate of more than 90 per cent, confirmingthe ongoing need for this service. Staffundertook a number of initiatives toenhance the quality of service, including areview of the activities program. This led tothe inclusion of a number of new activitiesrequested by residents. The home secured anew Indigenous Director of Nursing,Margery Krauer, who coordinated thecontinuous improvement operations in thelead up to the Aged Care Standards andAccreditation Agency audit.


As part of the Indigenous Youth CrisisAccommodation Service (IYCAS), theTangentyere Council was funded to operatea service in Alice Springs. Premises are yetto be found but it is envisaged the servicewill be operational by December 2003.

The Nyangatjatjara College is based atYulara and provides secondary educationand accommodation for students fromsurrounding communities. A majorhighlight of the year was the completion ofclassrooms to replace demountables, andnew boarding facilities are expected to becompleted by the beginning of the firstsemester in 2004.

The St Marys Home in Alice Springsestablished a link with Steiner School, withplaces for eight children.

Weekend activities were revitalised andextended and included camping trips. As these activities were not funded muchcredit for their success goes to thecommitment and generosity of theHouseparents. There was an increase infamily participation in such events as theYear of the Outback, and students andtheir families took part in various activitiesin and around Alice Springs, includingtheir participation in a choir.

The Central Australian Aboriginal AlcoholPrograms Unit (CAAAPU) underwent achange of management which led to adramatic rise in financial accountability.Services were provided to cater for theIndigenous clients, such as kangaroo tailsfor meals and smoking ceremonies. An employee support scheme was initiatedand in addition to weekly staff meetings,included a feedback mechanism to ensurethat valuable information was available toall staff.

Future Challenges

A major project is to gain sufficientfunding to build new premises for theTopsy Smith Hostel, which would increasethe region's capacity to provideaccommodation for more Indigenous renal patients.

There is an ongoing challenge to increaseand stabilise the occupancy of theWangkana-Kari Hostel to ensure thatstudents are there for the right reasons.


Deanna Wilton, Domestic from the NindeeHostel, Adelaide.


P A R T F O U R


Best Practice Guide

In recognising the need for the higheststandard of corporate behaviour andaccountability, AHL Directors havesupported and adhered to the principles ofcorporate governance. The company hasfollowed the best practice guide oncorporate governance principles aspublished by the Australian National AuditOffice. The Institute of CompanyDirectors will deliver future training oncorporate governance to new Directors.

Purchaser/Provider andGovernance

During 2002-03, the company continuedwith the implementation of the purchaser-provider model and governancearrangements as recommended by thereport of the review on AHL by the AllenConsulting Group and the Ernst & Youngreport. The recommendations of thesereports were approved by the Hon. PhilipRuddock MP, Minister for Immigrationand Multicultural and Indigenous Affairsduring the 2001-02 financial year.

Performance Evaluation

An annual performance evaluation of theBoard is conducted at the August meetingof Directors each year. The performance iscarried out by filling in a self-assessmentquestionnaire that provides the mechanismfor confidential feedback to theChairperson on how Directors thought theBoard had performed. The Chairpersonalso talks to each Director on a needs basis

regarding their role as Director. The resultsfrom the questionnaire are collated anddiscussed at a subsequent full Boardmeeting by the Chairperson andappropriate action taken to improve anyshortcoming noted to further enhance theperformance of the Board.

Board Charter

A comprehensive Board Charter was put inplace during the year that describes theroles and responsibilities of Directors andbrings together all the relevant documentsand legislative requirements into a singledocument.

Constitution

The Minister for Immigration andMulticultural and Indigenous Affairs, Hon.Philip Ruddock MP, approved the changesto the company's Constitution to reflectthe revised governance arrangements withthe Commonwealth of Australia being thesole member. Please refer to Note 16 of thestatements for the details.

Statement of Corporate Intent

A Statement of Corporate Intent betweenthe company and the Commonwealth ofAustralia was finalised during the year toreplace the existing interim Deed ofAgreement.

Corporate Governance Statement


Board Membership andRemuneration

The skills, experience and expertise relevantto the position of each Director who is inoffice at the date of this annual report andtheir term of office are detailed in theDirectors' Report.

The Board of Directors is appointed by theMinister for Immigration andMulticultural and Indigenous Affairs. AllDirectors on the Board are non-executivedirectors.

The Remuneration Tribunal approves thecompany's terms and conditions ofremuneration relating to the appointmentand retirement of the Board members andof the General Manager.

The remuneration and terms of conditionsof employment for the Senior Executiveand staff are in accordance with the PublicService Act 1999 and the AHL CertifiedAgreement 2001.

Audit Committee

As at the date of this report, the companyhad an Audit Committee of the Board ofDirectors.

The role, objectives, duties andresponsibilities of the Audit Committee aredocumented in its charter which isperiodically reviewed. Membership isconfirmed every two years.The Auditcommittee is comprised of the following:

DIRECTORS:

• Ms Elaine McKeon AO• Mr Kevin Coombs OAM• Ms Helen McLaughlin• Dr Colin Dillon APM

INDEPENDENT MEMBER:

• Mr Mike Smith - General Manager -Rydges Resort, Eagle Hawk Hill,Canberra

OBSERVERS:

• Ms Rebecca Reilly - (Acting) ExecutiveDirector, Australian National AuditOffice

• Mr Rod Alfredson - ATSIC's Directorof Evaluation and Audit.

The committee's responsibilities are to dealwith such matters as:

• annual financial statements;• adequacy and effectiveness of the

systems of internal accounting controls;• company accounting and financial

reporting practices;• reviewing the adequacy of external audit

arrangements;• planning and evaluation activities; and • internal audit.

Both the internal and external auditorssubmit audit plans, progress and finalreports to the Audit Committee.


The Directors present their report on thecompany for the financial year ended 28June 2003.

Directors

The names and details of the Directors ofAboriginal Hostels Limited in office duringthe financial year and until the date of thisreport are as follows. Directors were inoffice for this entire period unlessotherwise stated.

• Ms Elaine McKeon AO Chairperson• Mr Kevin Coombs OAM• Ms Shirley Bennell• Ms Helen McLaughlin• Ms Shirley Peisley AM• Dr Colin Dillon APM• Mr Kelvin Costello• Mr John Hartigan B Com, FCPA,

FCIS, FAICD, ANZIIF• Dr Margaret Valadian AO, MBE

(appointed 12 December 2002)• Ms Helen Liddle (retired 29 October

2002)

Principal Activities

The principal activity of the companyduring 2002-03 was the operation ofproperties as hostels for Aboriginal andTorres Strait Islander people. The vision ofthe company is to achieve excellence in thedelivery of hostel accommodation thatsatisfies the needs of Aboriginal and TorresStrait Islander people. The categories ofresidents for whom hostel accommodationis provided are:

• Transient• Medical Transient• Homeless• Substance Use Rehabilitation• Secondary Education• Tertiary Education and Training• Aged Care• Primary Education• Renal Dialysis• Prison Release and Diversion

The company's provision of hostelaccommodation supports the participationby Aboriginal and Torres Strait Islanders inprograms of education, training, health,legal aid, rehabilitation and employment.

To assist in the attainment of the aims ofthe company, the Commonwealth makesfunds available to the company, subject toagreed terms and conditions, and suchfunds are appropriated by Parliament forthe company's capital and recurrentexpenditure programs.

There has been no significant change in thenature of the activities during the year.

Operating results

An operating profit of $4,321,000 for theperiod was transferred to retained profits.Also note, a Capital User Charge of$6,277,000 was paid from retained profitsto the Department of Finance andAdministration as a return for the use ofcapital.

Directors’ Report


Review of Operations

A review of the operations of the companyduring the financial year and the results ofthese operations are as follows:

PERFORMANCE INDICATORS

The Board and Management monitor thecompany's overall performance, from itsimplementation of the vision statementand strategic plan through to theperformance of the company againstoperating plans and financial budgets.

The Board, together with Management,have identified key performance indicatorsthat are used to monitor performance on aregular basis. Directors receive theperformance indicators for review prior toeach Board meeting every two monthsallowing Directors to actively monitor thecompany's performance.

PROPERTY, PLANT AND EQUIPMENT

During the year, the company decreased itsinvestment in property, plant andequipment (at net book value) by$1,102,000 (an increase of $3,898,000 in2001-02).

PROVISION FOR DEPRECIATION

An amount of $1,597,000 was providedfor depreciation during 2002-03($2,338,000 in 2001-02). On 28 June2003 the company had a credit balance inits provision for depreciation of$16,642,000 ($17,385,000 in 2001-02)which is considered adequate for the needsof the company.

COMMUNITY HOSTEL GRANTS

The company makes grants to communityorganisations to operate their own hostelsand the purchase or replacement of assets.In addition, certain properties owned bythe company have been leased tocommunity groups to operate as hostels.

Significant Changes in State ofAffairs

No significant changes in the company'sstate of affairs occurred during the financialyear.

Capital User Charge

The capital user charge arrangements haveceased from 1 July 2003. During thefinancial year, the company received$6,277,000 as capital user charge that waspaid back to the Commonwealth in fullduring June 2003.

Employees

The company employed 519 employees asat 28 June 2003 (2001-02: 513employees).

After Balance Date Events

No matters or circumstances have arisensince the end of the financial year, whichsignificantly affected or may significantlyaffect the operations of Aboriginal HostelsLimited, the results of those operations, orthe state of affairs of the company insubsequent financial years.


Future Developments

The company expects to maintain thepresent level of operations and hence thereare no likely developments in theoperations in future years.

Environmental Issues

The company's operations are subject to alltiers of Government environmentregulations and these were all adhered toduring the 2002-03 year.

Information on Directors

ELAINE MCKEON AO

Chairperson of the AHL Board ofDirectorsMrs McKeon was appointed as theChairperson of the AHL Board ofDirectors on 18 December 2000 and hasbeen an AHL Director since October1997. She is also the Chairperson of theAHL Audit Committee. Elaine is aqualified Health Worker and is currentlythe Managing Director of the KouthaAboriginal Development Corporation inCloncurry, Queensland. She is a memberof the Southern Gulf CatchmentCommittee in North West Queensland anda former member of the Regional Women'sAdvisory Council reporting to the DeputyPrime Minister and a former member ofthe Queensland Premiers Council ofWomen. In May 2000, she was appointedas a director of the Voluntary Service toAboriginal Communities Foundation. Priorto this, she served three terms as an ATSICRegional Councillor with portfolioresponsibilities for planning, training,economic development and women'sissues. She had worked for seven years as a

health worker for the Aboriginal HealthProgram within the Queensland StateHealth Department and for five years asCommunity Welfare Officer with theMitakoodi Aboriginal Corporation. Elainewas appointed an Officer of the Order ofAustralia (AO) in the Queens BirthdayHonours list in June 2000 and wasawarded the Federation Medal in April2003.

SHIRLEY BENNELL

DirectorMs Bennell has been an AHL Directorsince September 1999 and has a Master ofArts degree in Indigenous Research andDevelopment and a Bachelor of AppliedScience in Indigenous Community Healthfrom the Curtin University in WesternAustralia. She also has a Bachelor of Artsdegree with a double major in Aboriginaland Intercultural Studies and English fromthe Edith Cowan University in WesternAustralia and a Diploma in FreelanceJournalism from the Australian College ofJournalism in Sydney. Ms Bennell is theExecutive Director of the South WestAboriginal Medical Service in Bunbury.She was awarded the prestigious ChurchillFellowship Award for overseas travel during2002-03 focussing on Indigenous AgedCare provisions and barriers.

KELVIN COSTELLO

DirectorMr Costello has been an AHL Directorsince June 2001 and is currently thecoordinator of the Larrakia NationAboriginal Corporation in Darwin. Hisprevious work included twelve years withthe Department of Social Security, and a


year each with the Northern LandsCouncil, Department of Health and AgedCare and Maningrida Health Board. Hewas a committee member with the LarrakiaNation Aboriginal Corporation and anadvisory committee member with theDarwin City Council. Mr Costello is arepresentative of the North AustralianAboriginal Legal Aid Service, Danila DilbaAboriginal Medical Service, DarwinRegional CDEP Inc and Yirra BandooAboriginal Corporation.

COLIN DILLON APM

DirectorDr Dillon has been an AHL Director sinceDecember 2000 and is also a member ofthe AHL Audit Committee. He is currentlya serving Councillor on the South EastQueensland ATSIC Regional Council. Hewas previously employed as a policy advisorto Indigenous Business Australia in itsConsulting Division in Brisbane. He is aformer ATSIC Commissioner (1996-1999)and was responsible for over viewing therecommendations arising out of the RoyalCommission into Aboriginal Deaths inCustody. He has been the Chairperson ofthe Oodgeroo Indigenous Studies Unit atthe Queensland University of Technology(QUT) since 1997. He was appointed bythe Queensland Government to the QUTCouncil in 2001. Dr Dillon recentlyretired as an Inspector of Police from theQueensland Police Service after serving acareer of thirty-six years. He was the mostsenior ranking Indigenous Police Officer tobe promoted to Commissioner rank withinany policing jurisdiction in the nation. Hewas the most senior Indigenous PoliceOfficer in the nation right up until his

retirement. In the Honours and Awards on26 January 1992, he was awarded theAustralian Police Medal for distinguishedservice to the Queensland Police Service.Dr Dillon has always been a committedfighter against corruption.

HELEN MCLAUGHLIN

DirectorMs McLaughlin has been an AHL Directorsince December 2000 and is also a memberof the AHL Audit Committee. She iscurrently working as a consultant and waspreviously employed on the staff of theformer Minister for Aboriginal and TorresStrait Islander Affairs. Prior to this, she wasemployed by the Aboriginal and TorresStrait Islander Commission since 1990 andwith the Department of Aboriginal Affairssince 1974. Helen has also worked as aconsultant in the Indigenous PeoplesMandate with the United Nations inGeneva. She has a Graduate Diploma inSocial Studies from the University ofQueensland and is the author of variouspublications on the 1993 Year of theWorld's Indigenous People.

KEVIN COOMBS OAM

DirectorMr Coombs has been an AHL Directorsince March 1990 and is also a member ofthe AHL Audit Committee. He was theManager of the Koorie Health Unit inVictoria's Department of Health. He wasthe State Government's representative onthe National Health Strategy Committee.As a former Paralympian, Mr Coombs washonoured with a major road at theHomebush Bay Olympic site named in hishonour. Mr Coombs was awarded an


Order of Australia Medal in 1983 for hiscontribution to wheelchair sports and toAboriginal welfare. In March 2000, he wasnamed as an Ambassador for the NationalIndigenous Literacy and NumeracyStrategy. In 2002, he became a member ofthe Disability Access Advisory Committeefor the Commonwealth Games inMelbourne 2006 and recently has becomepart of the Koori Court at theBroadmeadows Magistrates Court as aRespected Elder.

SHIRLEY PEISLEY AM

DirectorMs Peisley has been an AHL Director sinceDecember 2000 and is currently a servingCouncillor on Patpa Warra Yunti RegionalCouncil in Adelaide. She has had anextensive career of over 40 years in theprovision of services to Aboriginalcommunities through health, welfare, legal,women's issues and arts. Currentlycoordinator of Services at the AboriginalCatholic Ministry in Adelaide, she serveson numerous other local boards andcouncils and is the Chairperson of theSouth Australian Council onReconciliation. Ms Peisley was appointed amember in the Order of Australia (AM) inthe Queens Birthday Honours list in June2000.

JOHN HARTIGAN

DirectorMr Hartigan has been an AHL Directorsince March 2002 and is currently theManaging Director and Principal of AstuteCorporate Services of Australia. MrHartigan has extensive experience withpublic company boards including more

than 10 years as a public company director.His executive experience includes executivedirector, chief operating officer and chieffinancial officer roles, and he has committeeexperience in due diligence (includingchairman of the due diligence committeefor a public company float); auditcommittee and superannuation fundcommittees. Mr Hartigan has a Bachelor ofCommerce from the University of NewSouth Wales, and is a fellow of theAustralian Institute of Company Directors;Fellow of the Australian Society of CertifiedPractising Accountants; Fellow of theChartered Secretaries of Australia; and aSenior Associate of the Australian and NewZealand Institute of Insurance and Finance.

MARGARET VALADIAN AO, MBE

DirectorDr Valadian has been an AHL Directorsince December 2002 and has extensiveexperience in working with Aboriginalcommunities across Australia for 35 years.With qualifications in Social Work andEducation, Dr Valadian has particularinterests in Aboriginal Social Developmentand in Management Education forAboriginal Councils and Communityorganisations.


Directors’ Benefits

No Director has received or become entitled to receive during or since the end of thefinancial year, a benefit as a result of the contract made by Aboriginal Hostels Limited inwhich a Director has a substantial financial interest.

This statement excludes a benefit included in the aggregate amount of remunerationreceived or due and receivable by the Directors and shown in the company's accounts.

Directors' Meetings

During the financial year, 6 Board meetings of the Directors and three audit committee ofthe Directors were held. The number of meetings attended by each Director during theyear is as follows:

DIRECTORS’ MEETING AUDIT COMMITTEE

Number Eligible Number Number Eligible Number

to attend attended to attend attended

Mrs Elaine McKeon AO 6 5 3 3

Mr Kevin Coombs OAM 5 5 3 2

Dr Colin Dillon APM 6 5 3 3

Ms Helen McLaughlin 6 6 3 3

Ms Helen Liddle 2 2 - -

Ms Shirley Bennell 5 3 - -

Ms Shirley Peisley AM 6 5 - -

Mr Kelvin Costello 6 4 - -

Mr John Hartigan 6 6 - -

Dr Margaret Valadian AO, MBE 3 3 - -


Indemnifying Officers or Auditor

The company has not, during or since theend of the financial year, in respect of anyperson who is or has been an officer of thecompany:

• indemnified or made any relevantagreement for indemnifying against aliability incurred as an officer, includingcosts and expenses in successfullydefending legal proceedings; or

• paid or agreed to pay a premium inrespect of a contract insuring a liabilityincurred as an officer for the costs orexpenses to defend legal proceedings;with the exception of the followingmatters.

During the financial year the companypaid premiums to insure each of theDirectors and Officers against the liabilitiesfor costs and expenses incurred by them indefending any legal proceedings arising outof their conduct while acting in thecapacity of Director or Officer of thecompany, other than conduct involving awilful breach of duty in relation to thecompany. The company also arranged thepersonal accident and travel insurance forDirectors for travel on official companybusiness.

The total amount of insurance premiumwas $9,152 ($6,145 in 2001-02). Thisamount is included as part of Director'sremuneration in the company's accounts.

Proceedings on behalf ofcompany

No person has applied for leave of Court tobring proceedings on behalf of thecompany or intervene in any proceedings

to which the company is a party for thepurpose of taking responsibility on behalfof the company for all or any part of thoseproceedings.

The company was not a party to any suchproceedings during the year.

Rounding of Amounts

The company is in a class specified inASIC Class Order 98/100 and accordinglyamounts in the financial report and thedirectors' report have been rounded to thenearest thousand dollars unless otherwisestated.

Signed in accordance with a resolution ofthe Board of Directors, dated 20 August2003.

Elaine McKeon AO

Chairperson - Board of DirectorsCanberra, 18 September 2003.


Financial Statements

To the members of Aboriginal HostelsLimited

Scope

I have audited the financial report ofAboriginal Hostels Limited for thefinancial year ended 28 June 2003. The financial report comprises:• Directors' Declaration;• Statements of Financial Performance,

Financial Position and Cash Flows; and• Notes to and forming part of the

Financial Statements.

The Company's directors are responsiblefor the financial report. I have conductedan independent audit of the financialreport in order to express an opinion on itto the members of the Company.

The audit has been conducted inaccordance with the Australian NationalAudit Office Auditing Standards, whichincorporate the Australian AuditingStandards, to provide reasonable assurancewhether the financial report is free ofmaterial misstatement. Audit proceduresincluded examination, on a test basis, of evidence supporting the amounts andother disclosures in the financial report andthe evaluation of accounting policies andsignificant accounting estimates. Theseprocedures have been undertaken to forman opinion whether, in all material respects,the financial report is presented fairly inaccordance with Accounting Standards andother mandatory professional reportingrequirements in Australia and statutory

requirements so as to present a view whichis consistent with my understanding of theCompany's financial position, andperformance as represented by the resultsof its operations and its cash flows.

The audit opinion expressed in this reporthas been formed on the above basis.

Audit Opinion

In my opinion, the financial report ofAboriginal Hostels Limited is inaccordance with:(a) the Corporations Act 2001, including:

(i) giving a true and fair view of theCompany's financial position as at 28June 2003 and of its performance forthe year ended on that date; and(ii) complying with AccountingStandards in Australia and theCorporations Regulations 2001; and

(b) other mandatory professional reportingrequirements in Australia.

Australian National Audit Office

Rebecca Reilly

Acting Executive DirectorFor the Auditor-GeneralCanberra18 September 2003


Directors’ Declaration

The Directors of the company declare that:

1. the financial statements and the notes of the company are in accordance with theCorporations Act 2001:

a) comply with Accounting Standards and the Corporations Regulations 2001; andb) give a true and fair view of the financial position as at 28 June 2003 and of the

performance for the year ended on that date of the company.

2. in the Directors' opinion there are reasonable grounds to believe that the company willbe able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors dated20 August 2003.

Elaine McKeon AO

Chairperson - Board of DirectorsCanberra, 18 September 2003.


Statement of Financial Performance

FOR THE YEAR ENDED 28 JUNE 2003

2003 2002

NOTE $'000 $'000

Revenues from ordinary activities 2 (a) 47,412 48,548Salaries and employee benefits 2 (b) (19,271) (19,193)Food, materials, services and sundry expenditure 4 (12,606) (11,235)Grants to Community Hostels 9 (8,605) (8,071)Disposal of assets

Assets sold (335) (74)Assets written-off (443) -

Depreciation (1,597) (2,338)Bad debts (234) (150)

Net profit from ordinary activities and attributable to the Commonwealth 4,321 7,487

Total changes in equity other than those resulting fromtransactions with owners as owners 4,321 7,487

The accompanying notes form part of these financial statements.


Statement of Financial Position

AS AT 28 JUNE 2003

2003 2002

NOTE $'000 $'000

CURRENT ASSETSCash 11 13,367 14,472Receivables 12 995 1,590Prepayments 249 - TOTAL CURRENT ASSETS 14,611 16,062

NON-CURRENT ASSETSProperty, Plant and Equipment 13 43,724 44,826TOTAL NON-CURRENT ASSETS 43,724 44,826

TOTAL ASSETS 58,335 60,888

CURRENT LIABILITIESAccounts Payable 14 486 1,011Provisions 10 1,674 1,752TOTAL CURRENT LIABILITIES 2,160 2,763

NON-CURRENT LIABILITIESProvisions 10 931 925 TOTAL NON-CURRENT LIABILITIES 931 925

TOTAL LIABILITIES 3,091 3,688

NET ASSETS 55,244 57,200

EQUITYAmount Limited by Member's Guarantee $2 16 Contributed Equity 15 54,442 54,442Retained profits 15 802 2,758TOTAL EQUITY 55,244 57,200



STATEMENT OF CASH FLOWS


2003 2002

Note $'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIESReceipts from customers 6,613 5,948Commonwealth Government Appropriations

• Government operating subsidies 32,996 34,703 • Capital user charge 6,359 6,062

Other revenue 460 182 GST recovered from taxation authority 2,199 1,948Interest received 663 693 Payments to suppliers and employees (43,266) (41,515)

Net cash flows provided by operating activities 6 6,024 8,021

CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sale of property, plant and equipment 421 421 Payments for property, plant and equipment (1,273) (6,571)

Net cash flows used in investing activities (852) (6,150)

CASH FLOWS FROM FINANCING ACTIVITIESCapital user charge paid (6,277) (7,004)

Net cash flows used in financing activities (6,277) (7,004)

Net decrease in cash held (1,105) (5,133)

Cash at beginning of year 14,472 19,605

CLOSING CASH CARRIED FORWARD 11 13,367 14,472



Notes to and Forming Part of theAccounts


NOTE 1 : STATEMENT OF SIGNIFICANTACCOUNTING POLICIES

The financial report is a general purposefinancial report that has been prepared inaccordance with Accounting Standards,Urgent Issues Group Consensus Views andother authoritative pronouncements of theAustralian Accounting Standards Boardand the Corporations Act 2001.

The financial report has been prepared onan accrual basis and is based on historicalcosts and does not take into accountchanging money values or, except wherestated, current valuations of non currentassets. Cost is based on the fair value of theconsideration given in exchange for assets.

The following is a summary of the material accounting policies adopted by the company in the preparation of thefinancial report. The accounting policieshave been consistently applied, unlessotherwise stated.

(a) TaxationThe company is exempt from all forms oftaxes except fringe benefits tax and goodsand services tax.

(b) Employee EntitlementsProvision is made for the company'sliability for employee entitlements arisingfrom services rendered by employees tobalance date. Employee entitlementsexpected to be settled within one yeartogether with entitlements arising fromwages and salaries, annual leave, sick leaveand conditions of service which will besettled after one year, have been measured

at their nominal amount. Other employeeentitlements payable later than one yearhave been measured at the present value ofthe estimated future cash outflows to bemade for those entitlements. Contributionsare made by the company to an employeesuperannuation fund and are charged asexpenses when incurred.

(i) Long Service LeaveCalculation of the Provision for LongService Leave is an accrual of entitlementsdetermined from the relevant conditions ofemployment in respect of all employeeswho have completed five or more years ofcontinuous service with the company, or,in respect of an employee who hastransferred an aggregate of five or moreyears of continuous service from anapproved organisation.

(ii) Conditions of ServiceCalculation of Conditions of Service isbased on the return economy air fare foremployees and their immediate dependentsas part of the working conditions forremote areas.

(c) InsuranceThe company has comprehensive coveragethrough independent insurers.

(d) RevenueRevenue from the sale of hostelaccommodation services is recognised uponthe delivery of the service to the customers.Interest and other sundry revenue isrecognised when it is received or due to bereceived by the company in the financial year.

(e) Property (Land, Buildings andInfrastructure), Plant and Equipment

(i) Asset Recognition ThresholdPurchases of property, plant and equipmentare recognised initially at cost in the


Statement of Financial Position, except forpurchases costing less than $500, which areexpensed in the year of acquisition (otherthan where they form part of similar itemswhich are significant in total).

(ii) RevaluationsLand and Buildings are carried at cost or atindependent valuation (where indicated)less, where applicable, any accumulateddepreciation.

The carrying amount of land and buildings isreviewed every three years by independentvaluation to ensure that it is not in excess ofthe recoverable amount from these assets. Therecoverable amount is assessed on the basis ofthe market value of the property.

(f ) Depreciation of Non-Current AssetsDepreciation on property, plant andequipment is calculated on the straight linemethod over the useful life of the assets.Depreciation starts at the beginning of thefirst cost period following date of acquisition.Depreciation rates are reviewed annually andthe last review resulted in the following ratesfor the 2002-03 financial year:• Computers from 20 per cent to 10 per cent.• Office machines and electrical equipment

from 10 per cent to 6 per cent.• Furniture and fittings from 6.25 per cent

to 5 per cent.• Buildings and leasehold improvements

from 4 per cent to 2.5 per cent.• Art and artefacts at 1 per cent

The financial effect of the revised depreciationrates is that the depreciation charge in 2002-03 is $1,597,000. Based on the previousdeprecation rates, the depreciation chargewould have been $2,506,000.

(g) LeasesLease payments for operating leases, wheresubstantially all the risks and benefits

remain with lessor, are charged as expensesin the periods in which they are incurred.

(h) CashFor the purpose of the statement of cashflows, cash includes cash on hand and atbank together with at call deposits withbanks or financial institutions.

(i) Comparative FiguresWhere required by Accounting Standardscomparative figures have been adjusted toconform with changes in presentation forthe current financial year.

(j) Rounding of AmountsThe company satisfies the requirements ofRegulation 3.6.05 of the CorporationsRegulations and accordingly, amounts in thefinancial statements and directors' report havebeen rounded to the nearest thousand dollars.This has been done in accordance withsection 311 of the Corporations Act.

(k) Accounting PeriodThe company operates on a 52/53 weekperiod ending on the Saturday closest to 30June for its reporting. The financial periodthis year was 52 weeks (2001-02: 53 weeks)and covered the period 30 June 2002 to 28June 2003. The next financial period willcomprise 52 weeks and will cover the period29 June 2003 to 26 June 2004.

(l) Debtors(i) ‘No Pay, No Stay’The ‘No pay, no stay’ policy was introducedduring the period with the objective ofreducing the level of unrecoverable debts.

(ii) Write-off of Aged DebtorsDuring the period, a significant amount ofaged debtors proved unrecoverable, andconsequently were written-off.


NOTE 2(a) : REVENUE FROM ORDINARY ACTIVITIES

2003 2002

NOTE $'000 $'000

Government Appropriations and Subsidies• Government Operating 3 32,996 34,857• Capital User Charge (CUC)

CUC 2002-03 15 6,277 6,062Other 82 -

Accommodation Charges 6,513 6,333Interest Received 663 693Rent Received 3 15 Sundry Revenue 457 167 Proceeds from Sale of Assets 421 421 TOTAL REVENUE FROM ORDINARY ACTIVITIES 47,412 48,548

NOTE 2(b) : SALARIES AND EMPLOYEE BENEFITS

2003 2002

NOTE $'000 $'000

Wages and salaries 15,740 15,702Superannuation Contributions 5 1,902 1,797Director's Remuneration 7(a) 132 99 Annual leave entitlements 1,186 1,284Conditions of Service 42 157Long Service Leave 269 154TOTAL SALARIES AND EMPLOYEE BENEFITS 19,271 19,193

NOTE 3 : GOVERNMENT OPERATING SUBSIDY

2003 2002

$'000 $'000

Commonwealth of Australia through:Department of Finance and Administration 29,746 29,767Department of Employment and Workplace Relations - 26Department of Health and Ageing

• Aged Care Subsidy 1,832 3,623• Nursing Home Subsidy 1,256 1,267

State of Victoria through:• Department of Health 162 174

TOTAL GOVERNMENT OPERATING SUBSIDY 32,996 34,857


NOTE 4 : MATERIALS, SERVICES AND SUNDRY EXPENDITURE

2003 2002

NOTE $'000 $'000

Repairs and planned maintenance 3,578 2,498 Food 1,759 1,699 Fuel and power 900 802Travel 821 694Telephone and Fax 437 398 Rent 711 688 Motor Vehicle hire and running 811 816Cleaning 351 341Rates 440 413Workers Compensation Insurance 399 545Minor equipment replacement 238 445Printing and stationery 179 131Training costs 337 223Data processing costs 49 51 Staff advertising and removal costs 174 203Postage 124 100Marketing costs 65 188Information Technology costs 343 284Auditors Remuneration 8 64 70Management consultancy fees 134 106 Other insurance costs 397 187Sundries 295 353

TOTAL MATERIALS, SERVICES AND SUNDRY EXPENDITURE 12,606 11,235


NOTE 5 : SUPERANNUATION CONTRIBUTIONS

Employees contribute to the Commonwealth Superannuation Scheme and the PublicSector Superannuation Scheme. Employer contributions to the Schemes and the EmployerSuperannuation Productivity Benefit contributions during 2002-2003 were as follows:

2003 2002

$'000 $'000

Productivity Superannuation 752 740Employer Component 1,150 1,057 TOTAL SUPERANNUATION CONTRIBUTIONS 1,902 1,797

No liability for superannuation benefits is recognised as at 28 June 2003 as the employercontributions fully extinguish the accruing liability which is assumed by theCommonwealth.

NOTE 6 : CASH FLOW INFORMATION

(a) Reconciliation of CashCash at the end of the financial year as shown in the statements of cash flows is reconciledto the related items in the statement of financial position as follows:

2003 2002

$'000 $'000

Cash on hand 13,367 14,47213,367 14,472

(b) RECONCILIATION OF CASH FLOW FROM OPERATIONS WITH PROFIT FROMORDINARY ACTIVITIES

2003 2002

$'000 $'000

Operating profit from ordinary activities 4,321 7,487 Non-cash items in profit from ordinary activities

• Depreciation 1,597 2,338 • Value of assets sold and written off 778 74 • Proceeds from sale of assets (421) (421)

Changes in Assets and Liabilities• (Increase) Decrease in receivables 526 (476)• Decrease in provision for doubtful debts (180) (45)• Decrease in payables (525) (1,174)• Increase (Decrease) in provision (72) 238

CASH FLOW FROM OPERATIONS 6,024 8,021


NOTE 7(a): DIRECTORS' REMUNERATION

Director's remuneration for part-time Directors are in accordance with the determinationof the Remuneration Tribunals Act 1973.

2003 2002

Income received or due and receivable by all Directors of the company in connection with the management of the Company. 132,355 99,622

The total remuneration figure in 2002-03 includes amounts relating to remuneration of the current Directors from prior years of $13,981 and the inclusion of these amounts in 2002-03 figures has not resulted in any movements between bands for any Directors.

The number of Directors of Aboriginal Hostels Limited whose remuneration falls within the following bands are:$0 - $9,999 2 1 $10,000 - $19,999 7 7 $20,000 - $29,999 1 1

The names of the Directors who have held office during the financial year are:Mrs. Elaine McKeon AO Ms. Helen Liddle Ms. Shirley BennellMr. Kevin Coombs OAM Mr Kelvin Costello Mr Colin Dillon APMMs. Shirley Peisley AM Mr John Hartigan Ms. Helen McLaughlinDr. Margaret Valadian AO MBE

NOTE 7(b) : EXECUTIVE REMUNERATION2003 2002

The total executive remuneration package received or due andreceivable by executive officers in connection with themanagement of the Company. 435,988 428,190

The number of executives whose remuneration package was within the following bands:$120,000 - $129,999 2 2$170,000 - $179,999 - 1$180,000 - $189,999 1 -


NOTE 8 : AUDITORS' REMUNERATION

2003 2002

Amounts received or due and receivable by auditors Australian National Audit Office for:

• auditing the financial statements for the reporting period 63,636 70,000

No other services were provided by the auditors during the reporting period.

NOTE 9 : GRANTS TO COMMUNITY HOSTELS

This amount represents grants of a capital and operating nature to approved outsideorganisations.

NOTE 10 : PROVISIONS

Increase/

2003 2002 (Decrease)

$'000 $'000 $'000

CURRENTProvision for Annual Leave 1,424 1,552 (128)Provision for Long Service Leave 250 200 50Total Current 1,674 1,752 (78)

NON-CURRENTProvision for Long Service Leave 931 925 6Total Non-Current 931 925 6

TOTAL PROVISIONS 2,605 2,677 (72)

NOTE 11 : CASH

2003 2002

$'000 $'000

Cash at Bank 13,367 14,472TOTAL CASH 13,367 14,472

Deposits are recognised at their nominal amounts and interest is credited to revenue as itaccrues. The cash at Bank of $13,367,000 represents capital and major maintenancetotalling $9,081,000 (as shown in note 17(b)) and total current liabilities of $2,160,000 asdetailed in Notes 10 and 14.


NOTE 12 : RECEIVABLES

2003 2002$'000 $'000

Trade Debtors 376 739 Less Provision for doubtful debts (100) (280)

276 459

Other Debtors 719 1,131

TOTAL RECEIVABLES 995 1,590

These receivables are recognised at the nominal amounts due less any provision for bad anddoubtful debts. Provisions are made when collection of the debt is considered to be lessrather than more likely.

NOTE 13 : PROPERTY, PLANT AND EQUIPMENT

(a) Schedule: Property, Plant and Equipment

2003 2002 Cost Accum. Net Book Cost Accum. Net Book

Valuation Deprec. Value Valuation Deprec. Value$'000 $'000 $'000 $'000 $'000 $'000

LAND & BUILDINGS

LANDAt cost 3,884 - 3,884 4,024 - 4,024Total Land 3,884 - 3,884 4,024 - 4,024

BUILDINGSAt cost 53,194 15,428 37,766 54,492 15,719 38,773Total Buildings 53,194 15,428 37,766 54,492 15,719 38,773

Total Land & Buildings 57,078 15,428 41,650 58,516 15,719 42,797

PLANT & EQUIPMENTAt cost 3,288 1,214 2,074 3,695 1,666 2,029Total Plant & Equipment 3,288 1,214 2,074 3,695 1,666 2,029

TOTAL PROPERTY, PLANT AND EQUIPMENT 60,366 16,642 43,724 62,211 17,385 44,826

Types of assets brought to account at independent valuation are described in Note 1. In addition thecompany has been appointed, under the Crown Lands Consolidation Act 1913 of New South Wales,the sole trustee of two Aboriginal Reserves on which Durangaling and Biala hostels are situated.

An independent revaluation of land and buildings was undertaken on 31 May 2003 by the AustralianValuation Office. The revaluation, which was undertaken to comply with Accounting Standard AASB1034 as part of a policy to revalue land and buildings every three years, was based on the current marketvalue of land and buildings. This valuation formed the basis for Directors valuation at 28 June 2003 thattotals $60,476,000.


NOTE 13 : PROPERTY, PLANT AND EQUIPMENT

(b) Reconciliation of (a)

2003

$’000

LAND & BUILDINGS

LANDCarrying amount at beginning 4,024Disposals (140)Total Land 3,884

BUILDINGSCarrying amount at beginning 38,773Additions 1,002Disposals (672)Depreciation Expense (1,337)Total Buildings 37,766

Total Land & Buildings 41,650

PLANT & EQUIPMENTCarrying amount at beginning 2,029Additions 431Disposals (124)Depreciation Expense (262)Total Plant & Equipment 2,074

TOTAL PROPERTY, PLANT AND EQUIPMENT 43,724


NOTE 14 : PAYABLES

2003 2002

$'000 $'000

Trade Creditors 53 515 Sundry Creditors

Accrued Salaries 433 449Sundry - 11

Capital Creditors - 36 TOTAL PAYABLES 486 1,011

Creditors and accruals are recognised at their nominal amounts, being the amounts atwhich the liabilities will be settled. Liabilities are recognised to the extent that the goods orservices have been received (and irrespective of having been invoiced). Payment is usuallymade on receipt of invoice.

NOTE 15 : EQUITYContributed Equity Retained Profits TOTAL EQUITY

2003 2002 2003 2002 2003 2002

$'000 $'000 $'000 $'000 $'000 $'000

Balance 30 June 2002 54,442 54,442 2,758 2,275 57,200 56,717Net profit - - 4,321 7,487 4,321 7,487Capital User Charge - - (6,277) (7,004) (6,277) (7,004)BALANCE 28 JUNE 2003 54,442 54,442 802 2,758 55,244 57,200

NOTE 16 : MEMBERS GUARANTEE

The company is limited by guarantee. During the financial year, the company changed itsstructure to enable the Commonwealth of Australia to become the sole member. If thecompany is wound up, the constitution states that each member is required to contribute amaximum of $2 each towards meeting any outstanding obligations of the company. At 28June 2003 the company membership was 1 (10 in 2002).


NOTE 17 : CAPITAL AND LEASING COMMITMENTS

2003 2002

$'000 $'000

(a) Operating Lease CommitmentsOutstanding unsecured commitments on unexpiredterm of leases for office space accommodation

Payable- not later than 1 year 799 663 - Later than 1 year and not later than 2 years 658 154 - Later than 2 years and not later than 5 years 605 8- Later than 5 years 58 -

2,120 825

(b) Capital Expenditure CommitmentsCapital and major maintenance expenditure

Payable- not later than 1 year 9,081 4,586 - Later than 1 year and not later than 2 years - 8,294

9,081 12,880Commitments are inclusive of GST where relevant.

NOTE 18 : RESOURCES RECEIVED AND PROVIDED FREE OF CHARGE

The company has the use of four properties at several locations made available free ofcharge with a historic cost value of $2,562,000 ($2,562,000 in 2001-02). The marketvalue of these properties, on Directors' valuation, at 28 June 2003, was $6,060,000.

At the date of this report, the company has made available five properties at severallocations to outside organisations which operate hostels for Aboriginal and Torres StraitIslander people, free of charge with a historic cost value of $2,736,000 ($2,736,000 in2001-02). The market value of these properties, on Directors' valuation, at 28 June 2003was $4,985,000.

NOTE 19 : ECONOMIC DEPENDENCY

AHL currently receives a significant portion of its funding from the Commonwealth ofAustralia. Therefore, the Company is dependent economically on government subsidy.


NOTE 20 : CONTINGENT LIABILITIES

2003 2002

$'000 $'000

Estimates of the maximum amount of contingent liabilities,that may become payable are as follows: 10 30

An organisation has initiated legal proceedings for unpaid major maintenance works thathas been withheld by AHL due to doubts about its GST registration. The estimatedcontingent liability represents the possible cost to AHL for not withholding 48.5% fromthe payments already made to the organisation.


NOTE 21 : FINANCIAL INSTRUMENTS

(a) Terms, conditions and accounting policies

Financial Instrument Notes Accounting Policies and Methods Nature of underlying instrument

(including recognition criteria and (including significant terms and

measurement basis) conditions affecting the amount, timing

and certainty of cash flows)

Financial Assets Financial assets are recognised when control over future economic benefits is established and the amount can be reliably measured.

Cash 11 Cash is recognised at its Cash is available for nominal amount. Interest is extinguishing current liabilitiescredited to revenue as it accrues. and to meet current contract

commitments.

Receivables 12 These receivables are recognised No credit terms are applicable.at the nominal amounts due less any provision for bad and doubtful debts. Provisions are made when collection of the debt is considered to be less rather than more likely.

Financial Liabilities Financial liabilities are recognised when a present obligation to another party is entered into and the amount can be reliably measured.

Trade creditors 14 Creditors and accruals are Payment is made on receipt of therecognised at their nominal invoiceamounts, being the amounts at which the liabilities will be settled. Liabilities are recognised to the extent that the goods and services have been received (and irrespective of having been invoiced).



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( c) Net Fair Values of Financial Assets and Liabilities

2002-03 2001-02

Total Aggregate Total Aggregate

carrying net fair carrying net fair

amount value amount value

Notes $000 $000 $000 $000

Financial AssetsCash 11 13,367 13,367 14,472 14,472Receivables 12 995 995 1,590 1,590Total Financial Assets 14,362 14,362 16,062 16,062

Financial Liabilities (Recognised)Payables 14 486 486 1,011 1,011Total Financial Liabilities (Recognised) 486 486 1,011 1,011

Financial Liabilities (Unrecognised)Other Guarantees - - - - Indemnities - - - - Total Financial Liabilities (Unrecognised) - - - -

Financial AssetsThe net fair values of cash and receivables approximate their carrying amounts.

Financial LiabilitiesThe net fair values of trade creditors and accruals all of which are short-term in nature areapproximated by their carrying amounts.

(d) Financial Instruments/Credit RiskThe maximum exposure to credit risk, excluding the value of any collateral or othersecurity, at balance date to recognised financial assets is the carrying amount, net of anyprovisions for doubtful debts of those assets, as disclosed in the balance sheet and notes tothe financial statements.


NOTE 22 : MAY AMES ESTATE TRUST FUND

During 1981-82, $46,980 was received by the Company from the estate of the late MayAmes to be used for the benefit of secondary school children. The funds have beeninvested by the Company in Commonwealth Trading Bank money market call accounts as follows:

2003 2002

$'000 $'000

CAPITAL ACCOUNTOpening Balance 68,000 68,000Contribution to maintain real value 1,000 -Closing Balance 69,000 68,000

OPERATING ACCOUNTOpening Balance 3,695 3,196Receipts:

Transfer of interest from Money Market Account 2,110 2,125Sub-total 5,805 5,321

Payments:To Aboriginal High School Children - 1,626

Sub-total 5,805 3,695Transfer to Capital Account Above 1,000 -Closing Balance 4,805 3,695


Staff from the Kuiyam Hostel in Cairns, Queensland. (L-R): Lance Backo, Edith Fine, ShirleyRoss, Carla O’Connor and Gina Bowie.


P A R T F I V E


Freedom of Information(FOI)Section 8 Statement

The Freedom of Information Act 1982requires each agency to publish detailedinformation about the way it is organised,its powers, the kinds of decisions made,arrangements for public involvement in thework of the company, documents held bythe company and how members of thepublic can obtain access to thesedocuments.

The body of this annual report explains thefunctions of the company and issuescurrently affecting members of the public.They are detailed under each programelement.

This statement supplements the generalinformation contained in the body of theannual report to meet the requirements ofSection 8 of the FOI Act and is correct asat 28 June 2003.

HOW TO GET INFORMATION

Anyone is entitled to apply for access todocuments under the FOI Act. In manycases however, you may not need to use theFOI Act. First, try asking the nearest officeof the company - the information youwant may be readily available. Analternative is to phone the MarketingSection on (02) 6212 2095. If you dodecide to make a formal request under theFOI Act, the company's FOI Coordinator,phone (02) 6212 2030 can assist you.

The general power to grant or refuse accessto any document is held by the company'sGeneral Manager. The General Managerhas authorised certain officers of thecompany to grant and refuse access todocuments. Generally, access is provided inthe form of copies of documents.

The company can however, provide areading area for inspecting documentsmade available under the FOI Act. Thereare no arrangements for outsideparticipation.

CATEGORIES OF DOCUMENTS

Files maintained by the company's officeson a range of topics related to thecompany's functions are held in thecompany's central registry. Otherdocuments which are common throughoutthe company are listed below.

• AHL Annual Report*• AHL Corporate Plan*• AHL Customer Service Charter*• AHL Complaints and Appeals booklet*• Interim Deed of Agreement between

the Commonwealth of Australia andAHL

• Hostel News*• Introducing Hostels Pamphlet*• Accommodation Guide *• AHL Workplace Diversity booklet*• Aboriginal and Torres Strait Islander

Recruitment & Career DevelopmentStrategy*

• AHL Certified Agreement 2001-2003• AHL Standard of Conduct Pamphlet*

Appendix 1


• AHL Health and Safety Policy Manual• AHL Operations Manual• AHL Houseparents Manual• AHL Motor Vehicle Manual• AHL Finance and Office Services

Manual• AHL Assets Manual• AHL Constructions Standard Manual• AHL Constructions and Maintenance

Procedures Manual• AHL Personnel Procedures Manual• AHL Records Management System

Manual• AHL Financial Management Systems

Manual

Correspondence on FOI matters should beaddressed to:

The General ManagerAboriginal Hostels LimitedPO Box 30 Woden ACT 2606

Documents marked with an asterisk (*) are available onrequest free of charge.


Hostel Categories

The various categories of hostels providingaccommodation for Aboriginal and TorresStrait Islander people are:

TRANSIENT (T)

Short term accommodation in towns andcities for people and families seekingpermanent housing and employment, andmeeting general business and othercommitments away from their homes.

MEDICAL TRANSIENT (MT)

Accommodation and care in towns andcities for patients and families who mustleave their home communities to accessmedical treatment.

This category includes facilities for peoplerequiring renal dialysis treatment.

AGED CARE (AC)

Accommodation for the aged to enablethem to live independent lives with dignity.

HOMELESS (H)

Accommodation to assist homeless youthand adults to live with varying degrees ofsupport within the community. 1

SECONDARY EDUCATION (SE)

Accommodation for secondary students toincrease their access to secondary educationand support them to complete high schooland achieve to their full potential.

PRIMARY EDUCATION (PE)

Accommodation for primary students whoeither have special primary education needsor do not have access to primary educationat home because of isolation. 2

TERTIARY EDUCATION AND TRAINING(TET)

To facilitate students' access to tertiaryeducation and training, by providing themwith accommodation services and facilitiesto meet their accommodation needs.

SUBSTANCE USE REHABILITATION(SUR)

Accommodation for substance userehabilitation and education programs foryouth and adults.

PRISON RELEASE AND DIVERSION(PRD)

Accommodation and services for peoplewho:

• have been released from prison andrequire supported accommodationwhile they re-establish themselves insociety; or

• have been referred by courts to noncustodial accommodation as analternative to prison or youth detentioncentres.

1 though only a few hostels are specifically designated forhomeless people, many homeless people, including youngpeople, use transient hostels.

2 company policy is not to operate primary education hos-tels or fund them through community organisations unlessthere are special circumstances.

Appendix 2


Appendix 3

Corporate information

DIRECTORS

Ms Elaine McKeon, AO ChairpersonMs Shirley BennellMr Kelvin CostelloDr Colin Dillon APMMs Helen McLaughlinMr Kevin Coombs OAMMs Shirley Peisley AMMs Helen LiddleMr John Hartigan BCom, FCPA, FCIS, FAICD,

ANZIIF

Dr Margaret Valadian AO MBE

GENERAL MANAGER

Mr Keith Clarke

ASSISTANT GENERALMANAGER/COMPANY SECRETARY

Dr Kamlesh Sharma BA (Accounting), JP, FCIS,

FPNA, Grad. Dip. CSP, MBA (Human Resources, Public

Sector, Local Government and Association Management),

DBA (Corporate Governance)

ASSISTANT GENERAL MANAGER -OPERATIONS

Mr Russell Lane BA (Administration)

REGISTERED OFFICE

Level 2, Bonner House West7 Neptune StreetWoden ACT 2606

Telephone: 02-6212 2001Facsimile: 02-6212 2022

Email: [email protected]: www.ahl.gov.au

AUDITORS

Australian National Audit Office19 National CircuitBarton ACT 2600

SOLICITORS

Australian Government Solicitor50 Blackall Street Barton ACT 2600

BANKERS

Commonwealth Bank of AustraliaLevel 11, SAP HouseCnr Akuna and Bunda StreetsCanberra ACT 2600


Western Australia - Region 1

Hostel Address Cat. Beds Operated by $Funding

BroomeMilliya Rumurra 78 Great Northern SUR 22 Milliya Aboriginal $228,573

Highway Corporation Inc.*Broometime Lodge 52 Forrest St MT 18 AHL $25,000

CarnarvonIngada Village Lot 110 Bibbawarra AC 13 Church of Christ Federation $125,133

Bore Rd Aborigines Board Inc WA

Coolgardie**CAPS 85-93 Lindsay St SE 30 Christian Aboriginal Parents $148,518

Directed Schools

DerbyKabayji Booroo 44-54 Villiers St T 48 AHL AHL Ngmang Bawoona Lot 1287 Sutherland St AC 11 Uniting Church Frontier $46,259

Services

Fitzroy CrossingGuwardi Ngadu Fitzroy Crossing AC 14 Nindilingarri Cultural Health $76,666

Group

FremantleClontarf Aboriginal 101 Stirling Hwy SE 18 Clontarf Aboriginal College $82,885 Football Academy

GeraldtonBoomerang Youth 97 Gregory St T 20 Yanay Yenma Aboriginal $159,186

Corporation Inc

GibsonWongutha East Gibson Rd SE 58 Christian Aboriginal $245,805(Girls & Boys) Parents Direct

Schools

Halls Creek+Menkawum Ngurra 440 Neighbor St AC 20 Halls Creek Peoples Church $35,229

KalgoorlieTrilby Cooper 12-14 Hannan St T 48 AHL AHL**Kurran Baku 2 Brown Ave H 25 Kurran Baku Garnbirringu $55,953

Aboriginal Corp. Inc.

Appendix 4


Western Australia - Region 1 (cont’d)


Kununurra*Wunan House 167 Coolibah Rd TET 14 Wunan Foundation Inc. $48,523

MeekatharaKaralundi Great Northern Hwy SE 60 Karalundi Aboriginal $215,040

Education Centre Inc.

NannupLake Jasper Regalia Rd H 8 Lake Jasper Project $111,622

Aboriginal Corporation Inc.

Perth***Allawah Grove 133 Great Eastern Hwy T 14 AHL AHL Derbal Bidjar 6-8 Harrow Rd MT/T 30 AHL AHL

Port HedlandBunara Maya 1 Howe St T 8 Bloodwood Tree Assoc. Inc. $162,408

Roebourne*Yaandina Frail Aged 52 Hampton St AC 7 Yaandina Family Centre $82,154

Tardun+Wandalgu Hostel Pallottine Road SE 80 Society of the Catholic $28,256

Apostolate Inc

Wannan+Kungara Kulpa Aged 1 Main St AC 16 Ngaanyatjarra Health $56,146Care Services

Wyndham7 Mile Lot 1370 Great SUR 14 Ngonwar-Aerwah $112,293

Northern Hwy Aboriginal Corporation

* New ** Ceased Funding or Closed ***Closed for Redevelopment + One Off Grant AHL = Company hostel # Aged Care Accreditation/Approvals Round

Key to Hostel CategoriesT Transient SUR Substance Use Rehabilitation SE Secondary EducationMT Medical Transient PRD Prison Release and Diversion PE Primary EducationH Homeless TET Tertiary Education & Training AC Aged Care


Northern Australia - Region 2


Daly River**Five Mile Camp Five Mile Camp SUR 28 Aboriginal and Islander $19,030

Alcohol Awareness & Family Recovery Inc.

DarwinDaisy Yarmirr 37 Glencoe Cres T 65 AHL AHL Dolly Garinyi 60 Boulter Rd SUR 30 Council for Aboriginal $118,240

Alcohol Program Services Inc. FORWAARD 33 Charles St SUR 16 Foundation of Rehabilitation $138,427

with Aboriginal Alcohol Related Difficulties

Galawu 10 Finnis St T 36 AHL AHL Juninga Centre 8630 Dick Ward Drv AC 36 Frontier Services Inc. $215,875 Nagandji Nagandji-Ba 13 Oleander St MT 18 AHL AHL Nungalinya College Dripstone Rd TET 44 Nungalinya College Inc. $118,796 Silas Roberts 21 Packard St T 56 AHL AHL

KatherineCorroboree Kirkpatrick St T 101 AHL AHL Fordimail Lot 2041 Zimmin Drv SE 32 AHL AHL Kalano Kalano Farm SUR 10 Kalano Community Assoc. Inc. $50,933 Womens Medical Knotts Crossing MT 10 AHL AHL

NhulunbuyNhulunbuy Bottlebrush Ave T 41 AHL AHL


Northern Queensland - Region 3


CairnsDija Meta 269-277 Hartley St AC 20 Aborigines & Islander $269,882

Alcohol Service Ltd. Douglas House 198 Grafton St SUR 17 Aborigines & Islander $137,563

Alcohol Service Ltd.Joe McGinness 234 Spence St SE 17 AHL AHL Kuiyam 162 Grafton St T 70 AHL AHL Mookai Rosie Bi-Bayan 105 Balaclava Rd MT 12 Aboriginal & Torres Strait $106,809

Islander CorporationWarringu T 15 Warringu Aboriginal & $96,472

Torres Strait Islander Corp.

Hartley's Creek*Wangetti Hartley's Creek SE 80 Wangetti Education $90,294

Centre Ltd.

HerbertonWoodleigh College Broadway SE 92 Uniting Church $145,123

HopevaleHopevale Aged Care Thiele St AC 15 Hopevale Aboriginal $33,542

Community Council

Mackay*Mackay Hostel 49-53 Boddington St T 30 AHL AHL

MareebaFred Leftwich Emerald Creek AC 5 Aborigines & Islander $132,560

Alcohol Service Ltd. Rose Colless Haven Emerald Creek SUR 16 Aborigines & Islander $142,181

Alcohol Service Ltd.

Mornington Island*Kuba Natha Lardil St AC 15 Mornington Shire Council $30,000

Mount IsaKabalulumana 39 Pamela St T 29 AHL AHL Kalkadoon Aboriginal Barkley Hwy SUR 50 Kalkadoon Aboriginal $175,875 Sobriety House (KASH) Sobriety House Aboriginal

Corp.

Palm IslandFerdy's Haven Coconut Grove SUR 24 Palm Island Alcohol & Drug $48,188

Rehabilitation Aboriginal Corp.


Northern Queensland - Region 3 (cont’d)


Thursday IslandCanon Boggo Pilot 145 Douglas St TET 40 AHL AHL Jumula Dubbins Victoria Parade T 45 AHL AHL

TownsvilleIris Clay 261-269 Sturt St T 42 AHL AHL Stagpole St 9 Stagpole St SUR 30 Congress Community $108,957

Development & Education Unit Ltd.

YarrabahYarrabah Rehabilitation87 Backbeach Rd SUR 12 Gindaja Substance Misuse $135,459

Aboriginal Corp. *Yarrabah Aged Care 87 Backbeach Rd AC 15 Yarrabah Aboriginal Council $43,792

WeipaWestern Cape 11 & 12 Yileen Court SE 10 Cape York Community Campus $69,720

Association Ltd.

Southern Queensland - Region 4


BrisbaneBorn Free 27 Brook St H 13 Born Free Club Limited $117,770Bowman Johnson 5 Oxford St H 22 Born Free Club Limited $163,661Elley Bennett 501 Brunswick St T 27 AHL AHLJane Arnold 155 Moray St T 30 AHL AHL Jesse Budby 27 Llewellyn St SUR 28 Queensland Aboriginal & $119,029

Torres Strait Islander Corp. for Alcohol and Drug DependenceService

Joyce Wilding Pacific Hwy T 27 One People of Australia $185,817League Ltd

Musgrave Park Baynes St H 17 Born Free Club Limited $71,665 Yumba Hostel 55 Gray Rd TET/T 54 AHL AHL

BundabergYaamba Palm Springs Rd SUR 12 Yamba Aboriginal $84,991

& Torres Strait Islander Corp. for Men


Southern Queensland - Region 4 (cont’d)


CharlevilleBidjara Wills St MT 12 Bidjara Aboriginal Housing $111,076

& Land Company Ltd

CherbourgNy-Ku-Byun Fisher St AC 23 Cherbourg Community $158,071

CouncilWunjuada Barambah Ave SUR 16 Wunjuada Aboriginal $93,893

Corporation for Alcohol & Drug Dependence

DalbyGamba Lodge 91 Nicholson St T 10 Murrumba Aboriginal $89,159

Housing Corp. Service

North Stradbroke IslandNareeba Moopi North Stradbroke AC 5 Nth Stradbroke Island $69,376 Moopi Pa Island Aboriginal & Islander

Housing Co-operative Society

RockhamptonMilbi Farm Langley Rd T 13 Milbi Inc. $87,199 Neville Bonner 5 Bridge St T 50 AHL AHL

Woorabinda+Yumba Binda 104 Carbine St AC 14 Woorabinda Aboriginal $5,817Aged Persons Council

New South Wales/Australian Capital Territory - Region 5


ArmidaleEe-Kee-Na 52 Rockvale Rd TET 14 AHL AHL

Australian Capital TerritoryIsabella Plains Hostel 11 Mollee Crst H 6 AHL AHL

BrewarrinaOrana Haven 1 Byrock St SUR 20 Orana Haven Aboriginal $78,166

Corp.


New South Wales/Australian Capital Territory - Region 5 (cont’d)


CessnockGu-Dgodah Lot 5 Talga Rd SUR 16 Ngiampe Aboriginal Corp. $213,185 Mayaroo 6A Cumberland St T 10 Black Creek Aboriginal Corp. $48,072

DubboWarrina Lot 3 Chapmans Rd SE 36 AHL AHL

KempseyBenelong's Haven 2054 Southwest Rocks SUR 50 Benelong's Haven Limited $194,718

Rd

LismoreNamitjira Haven Whites Lane SUR 14 Bundjalung Tribal Society Ltd. $37,057

MoreeRoy Thorne Hostel 180 Greenbah Rd SUR 12 Roy Thorne Substance Misuse $81,893

Rehabilitation Centre Inc.

NewcastleDurungaling Yarrokingel Place TET/T 14 AHL AHL Kirinari Myall Rd SE 14 AHL AHL

NowraRose Mumbler Lot 21 Judith Drive AC 21 Illaroo Aboriginal Corp. $262,272

SydneyBiala 38 Lyly Road SE 21 AHL AHL Chicka Dixon 90 Liverpool Rd T 12 AHL AHL Kirinari Box Rd SE 30 AHL AHL Mac Silva Centre 49ABC Wellington St H 8 Aboriginal Corporation for the $110,775

Homeless ServicesMark Ella 18 Hewlett Street T 12 Lloyd McDermott Rugby $77,086

Development Team Ngadu 321 Livingstone Rd MT 12 AHL AHL **Shirley Smith 2 Kensington Rd T 11 AHL AHL Tony Mundine 203 Catherine St TET 27 AHL AHL

WyongThe Glen 50 Church Rd SUR 18 Ngiampe Aboriginal Corp. $82,072


Victoria/Tasmania - Region 6


BairnsdaleJumbarra 124 Princes Hwy SUR 8 Gippsland & East Gippsland $79,869

Aboriginal Co-operative Meerindoo 104 Day St H 11 Gippsland & East Gippsland $43,180

Aboriginal Co-operative

BallaratRonald Cameron 1416 Sturt St T 14 Ballarat & District Aboriginal $106,809

Co-operative

Healesville*Worawa College 1 Piccaninny Road SE 50 Worawa Aboriginal College $10,919

Melbourne+ACES 5 Parkview Ave AC 25 Aboriginal Community Elders $8,518

Service Galiamble 10 Mitchell St SUR 20 Ngwala Willumbong $121,628

Aboriginal Co-operative Ltd. George Wright 66 George St H 12 AHL AHL Lady Gladys Nichols 55 Cunningham St TET/T 14 Aboriginal Advancement $287,523

League William T Onus 75 Westgarth St T 27 AHL AHL Winja Ulupna 14 Charnwood Cres SUR 7 Ngwala Willumbong $134,166

Aboriginal Co-operative Ltd.

MilduraHarry Nanya 362 Deakin Ave T 13 AHL AHL

MorwellKurnai Aboriginal Youth 16 Hourigan Rd H 10 Victorian Aboriginal Child $52,194 Crisis Support Centre Care Agency

NathaliaMaloga Home 22 Fraser St AC 10 Aboriginal Advancement $146,211

League of Victoria

SheppartonGeraldine Briggs 17-19 Wyndham St T 20 AHL AHL

ToolambaPercy Green 985 Toolamba Rd SUR 7 Ngwala Willumbong $112,350

Aboriginal Co-operative Ltd


Region 7 - South Australia


AdelaideAnnie Koolmatrie 7 Palmyra Ave SUR 7 Aboriginal Sobriety Group $59,416Cyril Lindsay 307 South Tce SUR 10 Aboriginal Sobriety Group $54,937Gladys Elphick 29 Second Ave T 12 AHL AHL Karinga 430 Payneham Rd T 12 AHL AHL Luprina 2 Clements St T 21 AHL AHL Mulgunya 55 Dew St MT 10 AHL AHL Nindee 2 Oban St T 21 AHL AHL *PLACC House 32 Third Ave SE 10 Port Lincoln Aboriginal $9,455

Community Council

Crystal BrookNARSA PO Box 111 N/R National Association for Rural $39,579

Student Accommodation

Murray BridgeBarrie Wiegold 26 Mannum Rd SUR 14 Kalparrin Association Inc. $87,238

Port AugustaLois O'Donoghue 34 Johnson St T 22 AHL AHL

Region 8 - Central Australia


Alice Springs**Aranda House Corner South Terrace H 20 Central Australian Aboriginal $2,500

& Kemp St Childcare AgencyAyiparinya Lot 3682 Larapinta Dr T 69 AHL AHL CAAAPU Lot 290 Ragonesi Rd SUR 20 Central Australian Aboriginal $129,881

Alcohol Program Unit Hetti Perkins Home 24 Warburton St AC 40 AHL AHL St Mary's Stuart Hwy PE 30 St Mary's Family Services $6,160 Sid Ross 15 Gap Rd MT 40 AHL AHL Topsy Smith 18 Renner St MT 20 AHL AHL

Tennant CreekWangkana-Kari Lot 782 Patterson St SE 30 AHL AHL

YularaNyangatjatjara College Yulara SE 44 Nyangatjatjara Aboriginal Corp. $96,908

National Total $8,605,628


Appendix 5

Performance at a glance

98-99 99-00 00-01 01-02 02-03

$,000 $,000 $,000 $,000 $,000

Government operating subsidy provided 29,059 33,957 32,637 34,857 32,996Government capital grant provided 4,800 2,230 2,262 - -Capital user charge - 5,568 6,306 6,062 6,359Tariff income 4,500 5,004 5,445 6,333 6,513Other income 1,485 1,544 1,424 1,296 1,544Total income 39,844 48,303 48,074 48,548 47,412

Payment to community hostel grants 7,228 7,418 7,511 8,071 8,605Wages and salaries payments 13,979 13,902 14,800 15,702 15,740Other company expenditure 15,248 15,679 16,494 17,288 18,746Total expenditure 36,455 36,999 38,805 41,061 43,091

Capital available 49,950 52,420 54,442 54,442 54,442Cost/valuation of assets held 46,237 51,420 56,128 62,211 60,366

98-99 99-00 00-01 01-02 02-03

Number of company hostels 45 48 48 50 50Number of community hostels 83 85 86 78 82Total hostels 128 133 134 128 132

Number of company hostel beds 1,302 1,425 1,373 1,444 1,517Number of community hostel beds 1,612 1,667 1,986 1,876 1,754Total beds 2,914 3,092 3,359 3,320 3,271

Subsidy per bed per night (total) $37.76 $44.12 $36.25 $38.48 $38.97Cost per bed per night (total) $47.37 $48.07 $43.10 $45.33 $50.87Average occupancy (company) 72% 70% 76% 71% 69%Average occupancy (community) 73% 67% 72% 78% 73%

Number of staff 426 533 498 513 519Percentage of Indigenous staff 84% 82% 82% 81% 80%Percentage of female staff 68% 63% 63% 61% 61%


The figures on the tables below represent a head count of all APS employees within AHLat 30 June 2003 and include staff on paid and unpaid leave.

LEGEND

F = Female M = Male FT = Full-time PT = Part-timeO = Ongoing N = Non-Ongoing I = Indigenous NI = Non-Indigenous

Region 1 - Western AustraliaLevel Total F M FT PT O N I NI


Total 34 19 15 25 9 20 14 27 7

Region 2 - Northern AustraliaLevel Total F M FT PT O N I NI


Total 84 51 33 69 15 59 25 70 14

Appendix 6


Region 3 - Northern QueenslandLevel Total F M FT PT O N I NI


Total 66 47 19 50 16 39 27 66 0

Region 4 - Southern QueenslandLevel Total F M FT PT O N I NI


Total 41 20 21 37 4 26 15 38 3


Region 5 - New South WalesLevel Total F M FT PT O N I NI


Total 65 45 20 43 22 45 20 56 9

Region 6 - Victoria & TasmaniaLevel Total F M FT PT O N I NI


Total 29 15 14 23 6 23 6 25 4


Region 7 - South AustraliaLevel Total F M FT PT O N I NI


Total 39 28 11 28 11 25 14 32 7

Region 8 - Central AustraliaLevel Total F M FT PT O N I NI


Total 103 67 36 74 29 55 48 62 41


Region 9 - Central Office CanberraLevel Total F M FT PT O N I NI


Total 58 32 26 55 3 49 9 41 17


ABN Australian Business Number

ACT Australian Capital Territory

AM Member in the Order of Australia

ANZIIF Senior Associate of the Australian and New Zealand Institute of Insurance and Finance.

AO Officer of the Order of Australia

APM Australian Police Medal

ASIC Australian Securities and Investment Commission

Assoc. Association

ATSIC Aboriginal and Torres Strait Islander Commission

BA Bachelor of Arts degree

BCom Bachelor of Commerce degree

CDEP Community Development Employment Program

Corp. Corporation

DBA Doctor of Business Administration

Dr Doctor

FAICD Fellow of the Institute of Company Directors

FCIS Fellow of the Institute of Chartered Secretaries

FCPA Fellow of the Australian Certified Practicing Accountants

FPNA Fellow Professional National Accountant of the National Institute of Accountants

Grad. DIP. CSP Graduate Diploma in Company Secretarial Practice

Inc Incorporated

JP Justice of the Peace

Glossary


Ltd. Limited

MBA Masters Degree in Business Administration

MBE Member of British Empire

Minister Minister for Immigration and Multicultural and Indigenous Affairs

NAIDOC National Aboriginal and Islander Day Observance Committee: an annual week of celebrating Aboriginal and Torres Strait Islander cultures and people

OAM Order of Australia Medal

SAAP Supported Accommodation Assistance Program: established by the Department of Health and Family Services in 1997 to resolve crisis, re-establish family links where appropriate, and re-establish a capacity to live independently of SAAP

SES Senior Executive Service

Step-down The Step-Down Program is for Aboriginal people who need to be close to a hospital for treatment, or who need to be safely accommodated before or after treatment. The program aims to reduce the number of people in hospital and the length or their stay.

TAFE Technical and Further Education.


Western Australia5th FloorSeptimus Roe Building256 Adelaide TerracePerth WA 6000Tel: 08 9325 6770Fax: 08 9325 6550Email: [email protected]

Northern Australia6th Floor Redco Building62 Cavenagh StreetDarwin NT 0801Tel: 08 8981 4388Fax: 08 8981 1577Email: [email protected]

Northern Queensland110 McLead StreetCarins QLD 4870Tel: 07 4051 4588Fax: 07 4051 8839Email: [email protected]

Southern Queensland14th FloorSamuel Griffith Place340 Adelaide StreetBrisbane QLD 4001Tel: 07 3221 3866Fax: 07 3221 4212Email: [email protected]

New South Wales5th Floor128 - 134 Chalmers StreetSurry Hills NSW 2010Tel: 02 9310 2777Fax: 02 9310 3044Email: [email protected]

Victoria & TasmaniaLevel 11167-169 Queen StreetMelbourne VIC 3000Tel: 03 9642 2775Fax: 03 9670 7657Email: [email protected]

South AustraliaOffice K150 Archer StreetNorth Adelaide SA 5006Tel: 08 8267 4222Fax; 08 8267 4388Email: [email protected]

Central AustraliaSuite 2 Ground FloorLindsay Place Building15 Leichhardt TerraceAlice Springs NT 0871Tel: 08 8952 6544Fax: 08 8953 0422Email: [email protected]

Central Office2nd Floor Bonner House West7 Neptune StreetWoden ACT 2606Tel: 02 6212 2001Fax: 02 6212 2099Email: [email protected]: www.ahl.gov.au

AHL Contacts

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