Encompass creditors to meet in February as new intakes stopped

Encompass Community Services 300 staff are due to get a clearer picture of the organisation’s finances next month when a major decision on its future is made.

Chair of the Encompass board Alyson Miller.

Encompass Community Services creditors, including its 300 staff, are due to get a clearer picture of the state of the organisation next month when a decision on its future is likely to be made.

Administrator Worrells will hold a meeting with creditors on January 24 in Geelong.

A more substantial meeting is due to be held on or around February 17, when it is likely it will be decided if the organisation is put into liquidation, if it is handed back to its directors or if another course of action decided by creditors is taken. Administrator Scott Andersen said: “We are working towards giving everyone the certainty that they want in the context of the situation whilst also doing what we can to continue to consistently provide the services the organisation has provided in the past and continues to.”

In a report to creditors, Mr Andersen said the cost of the administration process provided­ by Worrells was estimated to be more than $475,000.

Meanwhile, an Encompass manager told staff last week the organisation had paused taking new participants into its programs.

Encompass Community Service office at East Geelong. Inset: Encompass chief executive Elaine Robb, top, and board chair Alyson Miller.

But Mr Andersen said Worrells had not stopped any Encompass services, which include in-home disability care, day programs and respite services, as it looked into the organisation’s books.

The Geelong Advertiser can reveal due diligence is being completed on Encompass staff, as genU considers whether it can continue Encompass services permanently.

Mr Andersen wouldn’t comment when asked if genU would buy Encompass.

Encompass staff, usually paid on Wednesdays, are not sure if they will be paid for the week before the organisation went into administration on January 12.

Mr Andersen said Worrells would pay staff wages from January 12.

In a report to creditors, Mr Andersen said the likely estimated cost of administration was “between $475,000 and $575,000 excluding GST.”

“Creditors should note that this is an estimate only and is subject to a number of variables which may have a significant effect on the administration and that I am unable to determine until I have commenced the administration,” Mr Andersen wrote.

Mr Andersen said Worrells would “provide further details around the actual expenses” associated with the administration before the second meeting with creditors. In an email to staff on Friday night, Encompass general manager Jacinta Wells said the decision to stop new intakes came after discussion with Worrells.

“This includes new intakes for support services, new registrations for disability employment services, new resident inquiries, new support co-ordination intakes and college enrolments,” Ms Well wrote.

“Right at this point in time our main priority is to ensure our current service users are receiving the highest level of service.”

Originally published as Encompass creditors to meet in February as new intakes stopped