On behalf of the Chief Executive Officer and Board of Management, I am pleased to present a summary of Jewish Care (Victoria) Incorporated financial results for the year ended 30 June 2020. Our financial statements have been prepared in accordance with and comply with the requirements of the Australian Accounting Standards. This year has seen changes to the Australian Accounting Standards that have affected Jewish Care’s reporting requirements with the introduction of AASB16 – Leases, AASB15 – Revenue from Contracts with Customers and AASB1058 – Income of Not for Profits. We have worked closely with our external auditors, EY to ensure compliance with the new Accounting Standards.

It has been an exciting and busy year for Jewish Care, as the Hannah & Daryl Cohen Family Building was completed in March 2020, providing state-of-the-art residential aged care (Jewish Care Residences: Windsor), an active living centre, an education centre, Shule, café and community spaces. Approximately 96 elders moved into the Jewish Care Residences: Windsor from the existing Montefiore Nursing Home in April 2020.

The new Jewish Care Residences: Carnegie (residential aged care home) located in the Smorgon Family Building was completed in August 2020, providing 120 beds to support the growing community demand. It is anticipated that Elders from the current Smorgon Nursing Home will move into this premium new home in November 2020.

Both the Smorgon Family Building and the Hannah & Daryl Cohen Family Building offer a high end market offering, and both have been completed on schedule and within budget. The Hannah & Daryl Cohen Family Building and Smorgon Family Building projects would not have been possible if not for the assistance and support from our bankers, ANZ and the kind generosity of our donors through the successful Capital Appeal Campaign and other generous donations.

The construction of the Anne & Eric Smorgon Active Living Centre (adjacent to the Gary Smorgon House) was completed in July 2020 and will connect communities through a range of social and recreational activities, cultural and spiritual services and therapies, well-being and importantly independence.

It would be remiss of me not to mention the impact of COVID-19 on the business operations of Jewish Care in the current reported financial year. COVID-19 has posed immense challenges for Jewish Care, with the business having to absorb the additional cost impost of protective clothing, masks and gowns and additional spend on labour and agency resources to ensure the safety of our elders and staff through the pandemic. COVID-19 has had a significant impact on the entire aged care sector, and Jewish Care has not escaped its influence, with lower occupancy at our residential aged care homes. Services provided to the community through the Commonwealth Home Support Program and disability services have also been negatively affected by COVID-19.

We continue to obtain funding from the Commonwealth and the Victorian State Government for the essential services we provide to the community, such as aged care, disability, employment and education services, to name a few. Our Holocaust survivors in our community receive on-going support and financial assistance from Jewish Care through funding received from the Material Claims Conference in New York.

The Jewish community has generously supported and rallied around Jewish Care throughout this very difficult and unprecedented year, with continued support through Annual Appeal and general donations. We have also seen generosity from the community in supporting the establishment of a COVID-19 Helpline in addition to financial assistance to those that have been impacted by COVID-19.

Capital donations have continued to allow the ongoing investment in state-of-the-art facilities.

This support has enabled Jewish Care to continue to provide exceptional service offerings to those in need in the community, as well as fund state-of-the-art facilities to our deserving community. A summary of donation revenue is set out in the table below.

Set out below is the total revenue trend over the past years.


Some of the key financial highlights for the year were as follows:

  • Hannah & Daryl Cohen Family Building was completed in March 2020 and provides support for residential aged care, education and training spaces, cafe, salon and a Shule for the community. The Jewish Care Residences: Windsor operating from the Hannah & Daryl Cohen Family Building became operational in April 2020, providing three tiers of residential amenity. With the completion of this development Jewish Care has been able to reposition our product offering, sustainability and commitment to mission by providing at least 20% of all places at Jewish Care Residences: Windsor to those that are in need in the community.
  • The new Jewish Care Residences: Carnegie was completed in August 2020, providing 120 residential aged care beds.
  • The Anne & Eric Smorgon Active Living Centre was completed in July 2020, which will provide a diverse array of health and social offerings to support the community.
  • Jewish Care has continued to receive support from the multi-year agreements of capital contributions from the community. This year saw a record $5.4m of capital contributions, enabling the on-going investment in key development activity.
  • The community rallied behind Jewish Care with the impact of COVID-19, by providing additional donations totalling $0.8m to assist with the additional costs resulting from the pandemic.
  • COVID-19 has negatively impacted the financial performance of Jewish Care as the business has had to respond to the impact of COVID-19 across the business, as well as managing the three ‘lockdowns’ across our residential aged care homes. The business incurred significant expenditure on PPE, gowns, masks, hand sanitiser, additional labour and agency resources.
  • Our bank, ANZ has continued to support Jewish Care, with debt funding that has facilitated the completion of the two major residential aged care projects.
  • The Material Claims Conference continues to provide funding for the care and support of our Holocaust survivors during this very difficult year.
  • With COVID-19, there has been an urgent and immediate demand from the community for financial aid to support those in need, with food and financial support, as well as rental assistance.
  • Our investment funds held with JB Were have been allocated between the RAD Pool (refundable accommodation deposits) and the Capital Pool (for capital and bequests). The investment funds are managed under the watchful eye of the Jewish Care Investment Subcommittee. Providing governance and oversight of the management and utilisation of funds and ensuring all investment decisions are made in accordance with the mandated Jewish Care Investment Management Strategy.


  • Jewish Care delivered an operating deficit of $1.357million for the year ended 30 June 2020.
  • The operating deficit has been primarily driven by:
    • Lower occupancy across the residential aged care homes due to planned transitioning of elders to the new homes, resulting in lower Aged Care Funding Instrument (ACFI) revenues, basic daily care fees and accommodation revenues.
    • COVID-19 preventing new elder admissions across the residential aged care homes.
    • Additional cost impost for PPE, masks, gowns, hand sanitiser, labour and external agency to manage the COVID-19 impact across the business and the residential aged care home lockdowns.
    • Reduction in demand for programs and group activities under the Commonwealth Home Support Program due to COVID-19.
    • Significant revaluation decrement in the Jewish Care investment portfolio (driven largely from the influence of COVID-19 impact on the equities market).
    • Increase in depreciation expense from the commissioning of the new Hannah & Daryl Cohen Family Building during the year.
    • Accelerated depreciation of assets held at the Montefiore and Smorgon Nursing Homes.
    • The negative impacts noted above, have been marginally offset by the receipt of additional funding from Commonwealth Government programs to assist residential aged care providers to manage COVID-19 (additional temporary uplift in ACFI funding and one-off payment to keep senior Australians in residential aged care safe).
  • Included in the deficit is the cost of increased support, programs and COVID-19 Helpline established by Jewish Care in response to COVID-19 for those most vulnerable in our community.
  • Jewish Care continued to provide a range of diverse support services needed by our community including unfunded social justice which are provided by Jewish Care with only a marginal revenue base and which rely solely on support from the community.
2020 ($) 2019 ($)
Profit and Loss – Key Items $’000 $’000
Revenue 77,481 78,985
Operating Net Surplus / (Deficit) (1,357) 11,267
Annual Appeal 3,461 3,256
Other General Donations 938 927
Capital Appeal 5,405 5,024
Bequests 1,788 2,618
COVID-19 donations 798
Total Donations 12,390 11,825

NOTE: The Operating Surplus in FY19 included the profit on sale of the Munzer residential aged care home of $5.5m.</p)

  • It has been a very difficult year with unexpected additional spend from our response to COVID-19.
  • Salary and wages and agency spend are by far the largest item of expenditure and have been negatively impacted by our response to the pandemic in ensuring the safety of our elders and staff in the FY20 financial year.
  • The FY20 Operating Net Deficit includes the additional cost of transitioning elders from Montefiore Nursing Home to the new Jewish Care Residences: Windsor in the new Hannah & Daryl Cohen Family Building.
  • Expenditure has been well managed in an extraordinary year that has been impacted by COVID-19.


  • Set out below is a summary of the Financial Position.
2020 ($) 2019 ($)
Statment of Financial Position – Key Items $’000 $’000
Total Assets 352,453 303,683
Total Liabilities 159,065 95,383
Reserves 112,382 125,936
Accumulated Funds 81,006 82,364
Total Equity 193,388 208,300
  • There has been a significant increase in Total Assets as the three development projects (Hannah & Daryl Cohen Family Building, Smorgon Family Building and the Anne & Eric Smorgon Active Living Centre) have been completed / near completion.
  • All properties in the Jewish Care land and building portfolio were subject to either an independent valuation or desktop review at 30 June 2020. There has been a minor valuation decrement across the entire Jewish Care land and building portfolio recognised in the Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2020. The valuation decrement is consistent with the valuation decrements felt across the sector, as the carrying value of assets have been impacted by COVID-19, uncertainty in the Federal Government funding model for residential aged care and the expected completion and findings of the Royal Commission into Aged Care Quality and Safety in February 2021.
  • Jewish Care liabilities include external debt sourced from ANZ, which has seen a commensurate increase in line with the additional spend on developments. Jewish Care has begun to retire the ANZ debt towards the end of the FY20 financial year.

In conclusion, I would like to thank the members of the Jewish Care Board, Finance and Audit Subcommittee and the Executive team of Jewish Care for their ongoing commitment in supporting and enriching the lives of the Jewish community. It has been a remarkable achievement that all three developments have now been delivered within overall budgeted timeframes and budgeted spend.

I warmly congratulate the courage of the Jewish Care Board who had the foresight to produce such quality assets that the community will enjoy for future generations.

Sharon Gdanski