Victorian Floods Disaster Relief Fund Final Report March 2014 Image: Australian Red Cross logo Image: State Government of Victoria Logo Victorian Floods Disaster Relief Fund Final Report March 2014 1 Contents Messages ______________________________________________________________ 3 About the Fund _________________________________________________________ 5 Gifts __________________________________________________________________ 7 Helping People ________________________________________________________ 10 Helping People ________________________________________________________ 11 Partners ______________________________________________________________ 12 Victorian Floods Disaster Relief Fund Final Report March 2014 2 Messages Image: Ronald J Walker AC CBE Ronald J Walker AC CBE, Chairman, Victorian Floods Disaster Relief Fund The floods which devastated large parts of Victoria in January and February 2011 were some of the worst on record. Many homes were left uninhabitable, whole communities were isolated, and there was widespread damage to rural properties and farms. As I visited flood-affected areas in the weeks after the disaster, I was struck by the extent of the damage to people’s homes and the impact on their lives. In places such as Rochester and Charlton, about 80 per cent of homes were affected, and in Charlton, about 95 per cent of the town’s businesses were closed for three weeks. The housing damage was more extensive than first expected. Many houses were empty shells; stripped of wall plaster, floor coverings, cupboards and bathroom tiles. Soft furnishings and floor coverings had been removed. It was evident that many people would need considerable help to repair their households and replace destroyed contents. Since the Victorian Floods Disaster Relief Fund (VFDRF) was established by the Victorian Government and Red Cross, I’m proud to report that the Fund has made a major difference to the lives of thousands of flood-affected people throughout Victoria. Through the overwhelming generosity of large and small companies, community associations and private citizens, the Red Cross Victorian Floods Appeal 2011 was able to raise $17.96 million – including interest - to assist victims of the floods. Most of these funds were distributed to more than 2200 households from 421 towns and communities across the state through the Damage to House and Contents Gift, providing invaluable support to people at a time when they needed it most. When deciding on how best to assist people recovering from the floods, the Panel was mindful of the need to distribute the money fairly and equitably, taking into account the extent of the loss suffered while prioritising those most in need. The VFDRF was extremely grateful for a very generous donation from the German-Australian Chamber of Commerce and Industry, which enabled the Panel to develop a $1.18 million Community Facilities Gift. The Fund undertook extensive consultation with local councils and the Victorian Government when developing the list of projects to attract funding through the Community Facilities Gift, which gave the Panel confidence that high-priority infrastructure needs in each community would be met. Following these consultations, the Panel approved a list of 26 projects in the 16 worst-affected Local Government Areas to be funded through the Community Facilities Gift. All projects funded under the Community Facilities Gift are now complete and provide significant assistance to important community recreation facilities that were destroyed or damaged as a direct result of the 2011 Victorian floods. I am also pleased to advise that as at February 2014 every cent held in the VFDRF has been spent assisting individuals, families and communities affected by the 2011 Victorian floods. Finally, in commending this report to you, I want to place on the record again my sincere thanks to all those who gave so generously to the Red Cross Appeal – your support has enabled us to make a lasting contribution to the recovery efforts of thousands of flood-affected Victorian households. Victorian Floods Disaster Relief Fund Final Report March 2014 3 Image: Toni Aslett Toni Aslett, Victoria Executive Director, Australian Red Cross Recovery after an emergency as devastating as Black Saturday can be a long, tiring and complex process. Five years on, the Red Cross continue to work with families and communities affected by the 2009 Victorian bushfires, thanks to the generosity of so many. I am pleased to report that every single dollar raised by the Victorian Bushfire Appeal has been spent on the individuals, families and communities who were severely impacted during this traumatic natural disaster. The Fund has accumulated $401 million in total, including $22 million in interest. About 95 per cent – $383.3 million – has already been paid out over 46,000 payments, with the remaining $18.7 million committed but not yet distributed. The remaining funds are allocated to already approved programs and projects such as psychological services, assistance for the bereaved, housing support and community building projects in affected regions. In the last year, funding has focused on supporting those who lost their homes to rebuild or secure longterm accommodation. In addition, a number of services aimed at medium and long-term recovery that commenced in 2012 have been extended, for example, psychological support services. Several small grants programs run by the Foundation for Rural and Regional Renewal (FRRR) and Community Foundations have opened and are available to be accessed by all bushfire-affected communities. Together we have learnt invaluable lessons from our efforts following the 2009 bushfires. Red Cross works every day to share this knowledge and better prepare Australian and overseas communities to deal with future disasters. Victorian Floods Disaster Relief Fund Final Report March 2014 4 About the Fund The Red Cross Victorian Floods Appeal 2011 was established on 17 January 2011 by the Victorian Government in partnership with Australian Red Cross to help individuals, families and communities impacted by the 2011 Victorian floods. These were some of the worst floods in the state’s history; between 9-15 January 2011, between 100300mm of rain fell across two-thirds of Victoria. The rainfall initially caused flash flooding across western and central parts of the state, and subsequent major and moderate flooding spanning north, west and central Victoria. After the rains began to subside, their cumulative effect caused some of the state’s major river systems to swell, causing the flooding to spread across much of northwest Victoria. Heavy rains and thunderstorms in early February caused more flash flooding, particularly in Mildura and across metropolitan Melbourne. The flooding caused widespread damage to residential homes and community infrastructure, including public buildings and roads, and disrupted essential services such as water, electricity and telecommunications. Many regional townships were left isolated. The damage to households was extensive. Although not visible from the outside, many homes were infested with mould throughout the internal plaster on the walls and ceiling, and behind bathroom and kitchen tiles and cabinetry. Numerous houses also suffered structural damage to the foundations, plumbing and wiring. Thanks to the support of the countless people and businesses which donated to the Appeal, nearly $18 million was raised. The Victorian Government appointed an independent Panel to oversee the allocation and distribution of donated money. Ron Walker AC CBE, was appointed chair of the Panel, which also included Toni Aslett (Victoria Executive Director, Australian Red Cross), Alexandra Gartmann (Chief Executive Officer, Foundation for Rural and Regional Renewal), and Pam White (Victorian Government representative). Panel members act in a voluntary capacity. At all times the Panel has sought to put into action its intent “to support individuals, families and communities in areas affected by the 2011 Victorian floods”. Image: Pie Chart of “Flood Assistance” Data from Chart: Stage Percentage Stage 1 Housing Assistance 13% Stage 2 Housing Assistance 80% Stage 3 Community Facilities Gift 7% Its decisions were based on delivering the most equitable distribution of funds while ensuring compliance with Commonwealth charitable law requirements. Victorian Floods Disaster Relief Fund Final Report March 2014 5 The Red Cross Victorian Floods Appeal 2011 was run by Australian Red Cross. Red Cross is endorsed by the Australian Tax Office (ATO) as a Public Benevolent Institution and a Deductible Gift Recipient, which enables tax deductions for donors. As a Public Benevolent Institution it must provide “direct relief of poverty, sickness, suffering, distress, misfortune, disability or helplessness to individuals who are in demonstrable need of charity”. Upon receiving donations, Red Cross transferred them to the Victorian Floods Disaster Relief Fund through a trust account established by the Victorian Government. All costs in administering the Fund are paid by the Victorian Government, ensuring that every cent raised went towards flood-affected individuals, families and communities. The Fund has several levels of audit accountability to ensure moneys were paid and used appropriately. Independent auditors were appointed by Red Cross to audit all appeal moneys received by it and transferred to the Trust Account. Independent auditors have also been appointed by the Department of Human Services (DHS) to conduct periodic reviews of claims and assurance on the adequacy of internal control structures established in respect of the collection, disbursement and investment of the Trust’s monies; over the management of sensitive and personal information; and to provide any other advisory or assurance services necessary to support probity and transparency around Fund monies. The Victorian Auditor-General can audit the operations of the trust account as part of the annual audit of the financial statements of the DHS. The Auditor-General receives reports from the Fund’s independent Auditor. Victorian Floods Disaster Relief Fund Final Report March 2014 6 Gifts Thanks to the overwhelming generosity of those who donated to the Appeal, $17.96 million was raised to help flood-affected individuals, families and communities. In the days and weeks after the floods, members of the independent Panel visited impacted communities to talk with people and see first-hand the extent of the damage and to ascertain the areas of greatest need. It quickly became apparent that housing was the most urgent need for flood affected people. Image: Flooding at Carisbrook Damage to House and Contents Gift With this in mind, in March, 2011, the Panel developed the Damage to House and Contents Gift – a twostaged payment - to assist households to recover from the devastation. Stage 1 consisted of an immediate $1,000 payment to help households with the initial cost of repairs to flood-damaged properties. Stage 2 consisted of a further payment for those whose homes were more severely damaged and had the greatest out-of-pocket costs. Payments varied according to the extent of the damage and the costs associated with the repair and restoration of flood-damaged homes and household contents. Fund representatives embarked on a two week tour of flood-affected regions in order to assist people to complete their applications. These community consultations were staffed by members of the Fund’s Secretariat and Implementation Unit, a grants officer, and a representative from Red Cross. The sessions were widely advertised online, in print and on local radio. About 300 people attended the consultations, which were held in Charlton, Kerang, Pyramid Hill, Bridgewater, Rochester, Mildura, Creswick, Clunes, Carisbrook, Horsham and Glenorchy. Applications for the Damage to House and Contents Gift were to close on 1 July, 2011, but this was extended until 1 August, 2011, to provide households with more time to finalise their applications. Late applications were accepted until 29 August, 2011. The Damage to House and Contents Gift assisted more than 2200 households from 421 towns and communities across Victoria. The Fund paid $2.24 million in Stage 1 payments to 2206 applicants, and $14.56 million in Stage 2 payments to 1441 applicants. This assistance made a significant difference in helping flood-affected people deal with the extensive damage caused to their homes, helping to pay for the cost of repairs and the replacement of contents destroyed in the floods. When additional interest earned on the Fund became available in late 2013, the VFDRF was able to provide an extra $34,000 in support to the 24 households most affected by the floods. Community Facilities Gift In April, 2011, the Panel developed the $1.18 million Community Facilities Gift, made possible thanks to a Victorian Floods Disaster Relief Fund Final Report March 2014 7 generous donation from the German-Australian Chamber of Industry and Commerce. The intention of the donation was to provide assistance to repair or replace community recreation facilities or equipment that were destroyed or damaged as a direct result of the January and February 2011 floods. The Panel developed an equitable funds distribution model to benefit the 16 most significantly affected Local Government Areas and wrote to councils advising them of the offer and asking them to identify and scope priority projects within their local communities. Previous disaster recovery experience within Australia and oversees had shown that communities were best placed to determine initiatives that would work in their areas and that recovery is most effective when it is locally-driven. When the formal application process closed in October, 2011, more than 70 project submissions had been received. Mindful of the need to ensure compliance with Commonwealth charitable law, the VFDRF Secretariat undertook a preliminary assessment of the submitted proposals, and then advised councils which ones were likely to meet the eligibility criteria. As there were a number of existing Government funds targeted at rebuilding community infrastructure for flood-affected areas, the VFDRF worked closely with the Department of Planning and Community Development, including Regional Development Victoria, and the Department of Sustainability and Environment to minimise the risk of duplicating funding for projects and to reduce the administrative burden on Councils in their applications. Image: Donald Swimming Pool Image: Campbells Creek Bowling Club In December, 2011, the Panel signed off on funding for 26 projects in the 16 worst-affected Local Government Areas, with 16 of the projects co-funded with the Victorian Government or philanthropic agencies. All projects under the Community Facilities Gift are now complete and being used by the community. All projects under the Community Facilities Gift are now complete and being used by the community. The full list of projects is as follows: Local Government Area Project VFDRF Contribution Buloke Donald Swimming Pool $90,000 Hindmarsh Dimboola Rowing Club $21,150 Edward Eyre Heritage Walking Track $8,500 Dimboola Recreation Reserve BBQ replacement $6,500 Dimboola Sound Shell $4,500 Dimboola Rowing Club - boat launching ramp $5,000 Victorian Floods Disaster Relief Fund Final Report March 2014 8 Dimboola Netball Club $24,242 Pyramid Hill Hall $20,000 Serpentine Sports Centre $55,000 Inglewood Sports Centre $10,000 Pyrenees Beaufort Netball Courts $70,000 Yarriambiack Rupanyup Tennis Courts $83,309 Ararat Wickliffe Community Recreation Reserve $77,561 Central Goldfields Carisbrook Recreation Reserve $88,780 Corangamite Skipton Flood Memorial $65,000 Montgomery Street Park $2,500 Quambatook Hall $37,500 Mead Hall $15,000 Tragowel Hall $17,500 Hepburn Victoria Park in Clunes $45,000 Mount Alexander Campbell’s Creek Bowling Club $67,500 Northern Grampians Cato Park $67,500 Horsham St Michael’s Tennis Courts $64,500 Mildura Cardross Recreation Reserve $84,500 Campaspe Rochester Recreation Reserve $84,500 Swan Hill Woorinen Public Hall $20,000 Loddon Gannawarra Victorian Floods Disaster Relief Fund Final Report March 2014 9 Helping People The Sunraysia region of northwest Victoria was one of the hardest hit areas in the 2011 floods. Irymple resident Valerie McManus was forced to move out of her home on 5 February 2011, when floodwaters swept through the house and caused significant damage to internal structures. It was nearly six months before Ms McManus was able to return to her home. “It’s just as well that I get on with my family here and could go and live with them while the house was repaired,” she said. Image: Valerie McManus and family “The flooding was about 4-foot high in some places. The plaster had to be redone and the floor coverings ripped up. The beds needed to be replaced and the cupboards had to be rebuilt. The garden died too.” Ms McManus said the support she received from the VFDRF was instrumental to her recovery and she thanked the many donors who gave so generously to the Appeal. “I’m extremely grateful for the help from the Appeal – it was very much appreciated.” Victorian Floods Disaster Relief Fund Final Report March 2014 10 Helping People The Carisbrook Recreation Reserve Cricket Training Nets were completely inundated during the 2011 floods and incurred significant short and long-term damage. The Cricket Nets are open for community use all year round and are located in the Carisbrook Recreation Reserve, which is an open parkland area in Carisbrook. They are the only public cricket training facilities in Carisbrook and are used free-of-charge by local and visiting participants. The Cricket Nets provide an outlet for local families to play and practice cricket skills in a fully-accessible, purpose-built environment, and are also used by the Carisbrook Cricket Club - made up of local community members – during the summer months for training. As a result of the 2011 floods, the condition of the Cricket Nets deteriorated to the extent that cricket balls were penetrating the wire fencing and the concrete pitches became uneven, making it dangerous for players. Image: Carisbrook Cricket Nets The replacement of the three Cricket Nets was one of the 24 community projects to attract funding through the VFDRF’s Community Facilities Gift. With $87,500 funding, the project replaced the Cricket Nets and the wire fencing, re-concreted the pitch areas, and provided a new synthetic grass surface. The project was completed in early 2013, meaning the community was able to use the facilities during the 2103 cricket season. Victorian Floods Disaster Relief Fund Final Report March 2014 11 Partners Victorian Government The Victorian Government committed to providing administrative support for the Victorian Floods Disaster Relief Fund to ensure all donated funds go to flood-affected individuals and communities. The Department of Human Services (DHS) administers all gifts to flood-affected individuals through the Implementation Unit, and provides administrative and policy support to the Advisory Panel through the Secretariat. The Fund has also worked closely with other Victorian Government departments, including the Department of Planning and Community Development and the Department of Environment and Sustainability, both of which were consulted with in the process of determining projects to be funded through the Community Facilities Gift. Red Cross Red Cross is one of the world’s most recognisable charitable organisations with worldwide experience in disaster management. Red Cross established the Victorian Floods Disaster Relief Fund in partnership with the Victorian Government, collected funds and transferred those funds to the Trust Account established for the VFDRF. Red Cross and the Victorian Government jointly appointed members to the Advisory Panel. Red Cross continues to serve as a member of the Panel and also provides invaluable expertise on the needs of individuals and communities in the aftermath of disasters. As a charitable organisation, the involvement of Red Cross ensured that all donations to the Appeal were tax deductible. Red Cross also provides a direct interface with donors to the Appeal and continues to provide updates on the progress of the Appeal Fund. The Australian Taxation Office The Australian Taxation Office (ATO) has also provided a high level of advice to the Appeal Fund Secretariat and Advisory Panel since early 2011, to ensure all gifts for assistance meet relevant charitable tax law requirements. By assessing proposals, the ATO has helped the Fund ensure that monies have been disbursed in a way that is compliant with both taxation and charities legislation. Victorian Floods Disaster Relief Fund Final Report March 2014 12 Image: Australian Red Cross logo Image: State Government of Victoria Logo Victorian Floods Disaster Relief Fund Final Report March 2014 13