Carol Altmann – The Terrier

Oh, the tangled web. Warrnambool can be a very, very small place when it comes to who knows who, and who ends up where, how, and why.

Which is why I asked Lyndoch Living this week how it manages the potential conflicts of interest around Lyndoch board member and now Lyndoch chair, Sue Cassidy.

I asked this because Ms Cassidy, who joined the Lyndoch board in 2017, is married to David Cassidy who operates Cassign: a very successful signage company that has operated in Warrnambool since 1983.

Cassign has done a lot of signage for Lyndoch Living these past few years, including the Lyndoch bus and the new signage at the Warrnambool Medical Clinic that, last year, was bought by Lyndoch Living for $1.3 million.

Cassign also provided the installation work for the swish flat-screen TV that now sits at the drive-through entrance to Lyndoch Living.

Most recently, as I understand it, Cassign replaced old signage outside the new Swinton Wing with a sparkling new sign that, among other things, directs people to the “Lyndoch Medical Hub”.

I know more than I probably need to know about Cassign, because I have raised the issue of potential conflict of interest before, when Ms Cassidy was a Warrnambool City Councillor and voted on issues to do with racehorse training on our local beaches.

At that time, I questioned how Ms Cassidy could be part of any such discussions when Cassign sponsored horse races in Warrnambool.

In response, Mr Cassidy sent me a series of long and passionate emails setting out why – in essence – my stories were all a crock and there was no potential conflict of interest and his wife was a modern woman who ran her own business, while he ran his.

I saw it differently – and I still do. Which brings me back to Lyndoch Living.

This week I  asked Lyndoch Living (and Ms Cassidy) whether Lyndoch put out a tender for its signage work and, given Cassign has done at least some of this work to date, how it managed any perceived conflicts of interest.

The answer, as always, was no answer.

We shall have to make up our own minds.

In the meantime, you may recall that a couple of weeks ago I wrote a piece about Lyndoch looking for yet another senior executive to add to its ballooning executive team which has grown from 37 in 2017 to almost 60 in 2019.

This newly created position – Director of Research, Enterprise and Education – was worth more than $100k a year, was advertised only internally and for only around 10 days, leading me to speculate that someone was already lined up for the job.

That someone, I took a punt, was Julie Bertram, a retired director from South-West TAFE, who this year has been filling a maternity leave position in the Lyndoch executive.

Lo and behold, guess who today was announced as the winning candidate for the job? Ms Bertram.

While Ms Bertram is no doubt perfect for the role, the bigger question is why Lyndoch’s executive team seems to have an ever-increasing number of new staff in roles that, between them, must cost a fortune.

For what purpose and for what return to Lyndoch and its residents?

This latest position comes on the heels of Lyndoch recording a $1.9 million deficit – its fifth deficit in five years.

It also comes amid unconfirmed reports that Lyndoch’s at-home gardening staff will soon be dismissed because they are costing Lyndoch money.

And it comes as we start the countdown to Lyndoch’s full financial figures for 2020 being released in January through the Australian Charities and Not for Profit Commission.

I wonder if the food bill for Lyndoch will have increased from the paltry average of $13 per resident, per day, in 2019?

The silence from Lyndoch is always deafening when it comes to my questions, but rest assured that I will keep asking.

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Carol Altmann – The Terrier

Lyndoch Living last financial year recorded a $1.88 million loss – its fifth deficit in five years – and its bottom line has gone backwards by $20 million since 2015.

This, unlike what was reported in the local paper after last Tuesday’s invitation-only Annual General Meeting, is the reality behind the spin.

Here is the nub: Lyndoch is not growing, but going backwards, and we need to know why, especially as it pushes on with a $100 million masterplan funded mostly through loans.

We also need to ask why, in the face of such losses, Lyndoch continues to hire more executives on executive salaries, but more about that later.

First to the numbers, which are so easy to spin.

What Lyndoch pushed in the newspaper, and in a piece of puffery it produced for the AGM called a “Community Report”, was a measure called an “underlying profit” of $2.18m.

As has been pointed out by Deloitte, underlying profit is one measure that can be “useful” to judge financial performance, but can also be “misleading if used to mask bad news”.

And Lyndoch had some bad news.

The thing is that Lyndoch’s $2.18m “underlying profit” doesn’t take into account expenses such as interest on loans, depreciation, under-performing investments, and taxation.

These are real costs and when these costs are factored in, Lyndoch’s “profit” vanishes.

In fact these costs chewed up more than $4 million and Lyndoch ended the financial year not in surplus, but $1.88 million in the red.

This is the figure we should be looking at.

This is the  “total comprehensive income” – and it is not good news.

Even more troubling, however, is the slow and steady decline in Lyndoch’s bottom line (its net assets) over the past five years.

This has fallen by a staggering $20 million from $69m in 2015 down to $48m in 2020.

Despite Lyndoch last year buying the Warrnambool Medical Clinic, the Health Spot clinic and the May Noonan hostel in Terang for a cost of around $3.3m, its asset base has not improved, but gone backward.

As one learned accountant said to me last week, “this is a company that is diminishing, not growing”.

Again, this is not good news.

Like last year, we will have to wait until late January to see the line-by-line figures reported by Lyndoch to the Australian Charities and Not-for-Profits Commission, because these days Lyndoch provides just a simple snapshot at its AGM.

Only by seeing the line-by-line figures will we see the full picture.

Nobody asked a single question at the AGM (test: try and find the video buried on its website here), which is not surprising, given Lyndoch does not allow any outsiders to become members let alone board members.

To me, the fact Lyndoch now has a new, fast-tracked president in hairdressing salon owner Sue Cassidy, who has no experience or qualifications in health, disability or aged care, is troubling.

But the lack of any open and robust accountability around Lyndoch in real-time is frightening.

I do, however, know this: just three days after posting a $1.88m deficit, Lyndoch advertised for yet another high-paid executive to join its ever-expanding executive team.

This newly created position for a “Director of Enterprise, Research and Education” is being advertised internally only and applications close in less than two weeks, which suggests someone is already being lined up for the role.

(My tip is the Acting Director of People and Resilience, Julie Bertram, a retired director of South-West TAFE, who has been filling a maternity leave position.)

It’s a powerful role and includes acting as CEO when the CEO is on leave, which previously fell to the Director of Nursing.

Five years ago, when Lyndoch hired its new CEO Doreen Power, Lyndoch had 37 people in administration. By 2019 it had 59.

All indications are that it is now above 60.

I wonder how the nurses and personal care workers and “hands-on” staff caring for the residents across Lyndoch feel about that?

As always, I wait for the board or our local MPs to ask the hard questions on our behalf and, in the meantime, we all just keep chipping away.

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Carol Altmann – The Terrier

Does bullying and intimidation just disappear?

It’s seven months since a leaked staff survey at Lyndoch Living revealed poor staff morale and serious allegations of intimidation and bullying that went right to the very top – nothing has been heard of it since.

Was anything done within Lyndoch to address these allegations, and to lift poor staff morale?

This is another question to add to the list for tomorrow’s (27/10) Annual General Meeting, which we cannot attend as it’s by invitation-only Zoom (Lyndoch says a recording will be uploaded later to its website).

It’s a question that should concern us all.

Long-term readers will know that The Terrier has written a series of stories questioning why more than 80 staff had left the aged care home in the past two years, amid allegations of staff being targeted, bullied and devalued.

The special survey was held in response to these stories and the results leaked in March confirmed the toxic environment.

A majority of respondents raised issues of being overworked and under-valued, and claimed management favoured some staff over others.

Two-third of respondents said Lyndoch did not uphold its values, starting from the CEO down.

The survey then went on to report this bombshell:

“A small sample of around 10-15 respondents stated that the CEO’s culture of intimidation, manipulation and bullying greatly impacted their safety, health and wellbeing.

They said they witnessed her bullying others and making decisions in regard to her own self-interests and not the organisation as a whole.”

Sadly none of the allegations in the survey came as a surprise to me, as by March I had spoken to dozens of people who all told the same heartbreaking and terrible stories of being managed out, pushed out, demeaned, isolated, or cut loose.

Lyndoch’s culture, like that of the Warrnambool City Council, had gone bad.

South-west MP Roma Britnell, a former nurse, had been similarly contacted by people seeking her intervention and in March she demanded a meeting with the CEO and Lyndoch board.

Then Covid-19 hit.

And the meeting between Ms Britnell and Lyndoch never happened.

So, I have to ask again, does bullying, intimidation and low staff morale just disappear?

Of course it doesn’t.

As of today, I have never had a response from Lyndoch to requests for a comment on this staff survey, the allegations, or what actions it has taken to address the allegations, but CEO Doreen Power told the local newspaper at the time that she would “take on board” the findings.

Ms Britnell, in a statement, said she continues “to have discussions with Lyndoch Living on a range of matters”, which – I guess – is hopeful.

In the meantime, Lyndoch is about to launch another anonymous staff survey – this one is held every two years – to again take the pulse on staff wellbeing and whether everyone is heading “in the same direction”….rather than, perhaps, out the door.

“I encourage you to be completely honest,” Ms Power has written in an email to staff.

Well, yes, but what happens after the staff are honest, as they were the last time they were surveyed?

That’s what I am hungry to know, as are all those who have left Lyndoch these past five years in less than happy circumstances.

This next survey is being run by Alignment Partners, owned by a fellow named Michael Webb, who has worked in the past with Lyndoch on management-type issues.

So many surveys.

I made a promise to those who entrusted me with their stories that I would not look away until the issues and allegations were addressed and we, as the community who owns Lyndoch, could take comfort that they were being addressed.

It’s the same promise I made to Warrnambool City Council staff who filled out survey after survey for a decade and saw nothing change…until everything blew open.

We may not be able to Zoom in on the Lyndoch AGM tomorrow, but we are watching.

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Carol Altmann – The Terrier

Here’s a little surprise I discovered purely by accident – Warrnambool City Councillor Sue Cassidy is now Vice President of Lyndoch Living.

Wow, that is called shooting to the top after just three years on the board.

Ms Cassidy is second in charge on the board of the largest aged care home in Warrnambool and no doubt primed to replace President/chair Kerry Nelson when she retires.

At least two board vacancies should be coming up at next week’s Lyndoch Living AGM, although I can’t be sure, because board vacancies are no longer advertised.

But on my reckoning, Ms Cassidy is one of them and WCC colleague City Growth Manager Andrew Paton is the other.

Abbey, the Unofficial Member of Lyndoch representing the broader community, had hoped to apply.

Of course she had no hope, because to become a board member, you have to first be a member – approved by the board.

At last count, there are no members of Lyndoch Living who are not already connected to Lyndoch.

As I have written before, this is because ever since Lyndoch changed in 2018 from an association to a Company Limited by Guarantee, it runs pretty much as a closed shop.

Board members are now appointed by invitation to what is a volunteer position.

Not only did Abbey have to scale that impossible hurdle, she had to unseat either Mr Paton or Ms Cassidy and they are going nowhere fast.

Because Ms Cassidy and Mr Paton have another special job inside Lyndoch and that is as co-directors of Lyndoch Healthcare Pty Ltd.

The third director is Lyndoch CEO Doreen Power.

Lyndoch Healthcare Pty Ltd is the company that oversees the Warrnambool Medical Clinic which was bought by Lyndoch last year for $1.3 million and will be relocated to Lyndoch as part of the $100 million masterplan.

Here is question for the AGM next Tuesday: are the directors of Lyndoch Healthcare Pty Ltd paid? And if so, how much? And did the board select who became directors?

I hate to break it to Abbey, but I don’t think she is going to be elected to the board as a fresh face and neither, most likely, is anybody else.

[The Lyndoch Living AGM is next Tuesday at 4pm and will be Zoomed live by invitation only. Lyndoch has said a recording of the event will be uploaded to its website.]

Carol Altmann – The Terrier

Lyndoch Living has rejected claims that it permitted two, non-essential workers from Melbourne into its premises late last month.

Upper House South-West MP Bev McArthur questioned Lyndoch about concerns raised in late July that the two workers from Melbourne were allowed into the residential area of Swinton Wing, despite Melbourne being in lockdown.

In reply to Ms McArthur, Lyndoch Living CEO Doreen Power said that the two people were contractors and were not from Melbourne, or the other lockdown hotspot of Mitchell Shire.

Ms Power did not reveal the purpose of their visit, Ms McArthur said.

I stand by my original story that the two people involved were non-essential workers and that they had both travelled from Melbourne.

The definition of a non-essential worker for aged care at this time has been set by the state Dept of Health and Human Services*.

Ms McArthur said the community’s extra concern around aged care facilities was understandable.

“The community’s heightened concern about care standards at this time is entirely appropriate, and I was happy to raise the matter with the Lyndoch Living CEO and with the organisation’s board members,” she said.

“In my view it is inconceivable that anything but the most essential visits could be permitted at this time.”

Lyndoch Living, like other aged care homes in south-west Victoria, has had a screening process in place for all visitors and workers, including a temperature check, evidence of a flu shot, and no sign of flu-like symptoms.

Anybody who had been in Melbourne in the 14 days prior to their visit was not allowed entry.

Lyndoch Living has since moved to full lockdown as of last Monday, due to the number of Covid-19 cases in the Warrnambool community.

Readers of The Terrier have been in contact again, however, to express concern at painters being permitted into the complex to put the final touches on the $11 million Swinton Wing extension.

Ms Power last week gave an interview to Denis Napthine on 3YB, during which she said the extension was due to have residents moving in by today (August 20).

I don’t know if that deadline has since changed.

In the same interview, Ms Power said the new Swinton Wing was part of a plan to give every Lyndoch resident a view of the Hopkins River.

The top level of the extension, however, has a frosted glass balcony, which has again prompted comments and questions to this site from readers.

“I always say to people, ‘you know, I think I have got the best real estate in Warrnambool,'” Ms Power said during her 3YB interview.

I would have to dispute that.

Lyndoch Living, owned by the community, has “the best real estate in Warrnambool”, and we hope it is never for sale.