Family Life Limited Annual Audited Financial Report by Family Life

Family Life Limited

ANNUAL AUDITED FINANCIAL REPORT For The Year Ended 30 June 2017 197 Bluff Road, Sandringham Vic 3191 Tel: 03 8599 5433 Fax: 03 9598 8820 info@familylife.com.au www.familylife.com.au ABN: 37 712 782 209 ACN: 606 542 590

FAMILY LIFE LIMITED DIRECTORS’ REPORT

The Directors of Family Life Limited (“Family Life” or the “Company”) submit this financial report for the financial year ended 30 June 2017.

Directors The names and details of Family Life’s Directors in office during the year and until the date of the report are as follow. Directors were in office for the entire period unless stated otherwise. Name, qualifications, responsibilities and experience Mr Len Gill, Bachelor of Engineering (Civil) and a Member of the Australian Institute of Company Directors. Len is the Board Chair and Company Secretary. Len was appointed to the Family Life Board in July 2015, when Family Life converted its corporate structure to a company limited by guarantee. Len was previously a member of the Board of Southern Family Life Service Association Inc. since 2008. He is a professional Non-Executive Director with a 35 plus year career in the electricity, gas and infrastructure industries. He also provides energy and management consultancy services. He is currently Non-Executive Director of Infigen Energy Ltd, Ecogen Energy Pty Ltd and Ampetus Energy Pty Ltd. His previous roles include Chairman of Alinta Energy, Chairman of Metgasco, Non-Executive Director of WDS Limited, Non-Executive Director of Verve Energy, Managing Director and CEO of TXU Australia and Chairman of South East Australian Gas Pty Ltd. Ms Lesley Coleman, Master of Administration and Bachelor of Arts and member of Australian Institute of Company Directors and LEADR (Association of Dispute Resolvers) Lesley is the Board vice Chair. Lesley was appointed to the Family Life Board in July 2015, when Family Life converted its corporate structure to a company limited by guarantee. Lesley was previously a member of the Board of Southern Family Life Service Association Inc. since 2010. She is a highly experienced management consultant, specialising in public and community sector organisation and management review, program evaluation, strategic and business planning and mergers/amalgamations. She returned to her own consulting firm, Lewis & Coleman in 2010 after holding the position of Director of the Public Sector at a Management Consulting Practice for four years at HLB Mann Judd Consulting. Lesley is currently focusing on producing a range of soft-skills training programs for online distribution. Mr Jeff Phillips, Bachelor of Economics and a Chartered Accountant. Jeff is the Board vice Chair Jeff was appointed to the Family Life Board in July 2015, when Family Life converted its corporate structure to a company limited by guarantee. Jeff was previously a member of the Board of Southern Family Life Service Association Inc. since 2013. He is the Chief Financial Officer of Bennelong Funds Management and has 19 years of experience in financial services. He joined Bennelong in June 2012 and is responsible for the accounting, operations, company secretarial, compliance and product management functions. Jeff previously spent eight years with Aviva Investors/Portfolio Partners in senior finance and operational roles. Other previous employers include Brand Finance, Morgan Stanley (London office) and PricewaterhouseCoopers. Mr John Dickinson, Bachelor of Management Studies, Chartered Accountant and a Graduate Member of the Australian Institute of Company Directors. John is the Treasurer. John was appointed to the Family Life Board in July 2015, when Family Life converted its corporate structure to a company limited by guarantee. John was previously a member of the Board of Southern Family Life Service Association Inc. since April 2015. He has nearly 30 years of senior executive experience in industrial sectors and has a finance background. John possesses deep strategic and operational experience leading large complex businesses across multiple sites, geographies, market segments and technologies.

Directors’ Report (continued) Ms Georgina Cohen, Masters of Management, Post Graduate Diploma in Digital Communications, Bachelor of Arts. Georgina is the Company Secretary. Georgina was appointed to the Family Life Board in July 2015, when Family Life converted its corporate structure to a company limited by guarantee. Georgina was previously a member of the Board of Southern Family Life Service Association Inc. since 2014. She is an executive manager at Australia Post, where she has worked for approximately 15 years in a range of positions including operational management and systems management and development. Mr Mark Vassella, Master of Business Administration, Bachelor of Commerce and has completed Australian Institute of Company Directors course. Mark was appointed to the Family Life Board in July 2015, when Family Life converted its corporate structure to a company limited by guarantee. Mark was previously a member of the Board of Southern Family Life Service Association Inc. since 2012. He is Chief Executive, BlueScope Australia and New Zealand and has more than 30 years’ experience in the steel industry and began his career as a trainee at BHP Steel’s Newcastle Steelworks. From August 2008, Mark was President BlueScope Steel North America, responsible for BlueScope Steel’s North American assets and the integration of the IMSA group of companies acquired in February 2008. He was appointed to his current role in July 2011 and leads all major operations in Australia and New Zealand including the company’s key operations at Port Kembla (NSW) and Western Port (VIC), and in New Zealand. Mark holds a Bachelor of Commerce from the University of Newcastle, and a Master of Business Administration from the University of Queensland. He is a former Chairman and Board member of the Australian Steel Institute. Mr Grant Douglas, Master of Business Administration and Bachelor of Engineering. Grant was appointed to the Family Life Board in July 2015, when Family Life converted its corporate structure to a company limited by guarantee. Grant was previously a member of the Board of Southern Family Life Service Association Inc. since 2008. He has 30 years of management experience in a variety of industries including Management Consulting, Mining, Quarrying, Mines Rescue, Banking and Transport. His previous roles include General Manager of Cope Sensitive Freight, Director Vic/Tas for Star Track Express, Acting Managing Director of Regional & Rural Banking for ANZ Banking Group and Head of Agribusiness for ANZ Banking Group. Mr Steve Walsh, Bachelor of Law (LLB) and Bachelor of Economics (B.Ec), Law Institute Victoria (LIV) Accredited Specialist in Personal Injury Law, and Graduate Director from AICD (GAICD) Steve was appointed to the Board in November 2016 and is the Chairman of Maurice Blackburn Lawyers and a Victorian Personal Injuries Accredited Specialist. He has worked in many different areas of law in his career over the past 30+ years. He has a reputation as a distinguished lawyer with an extensive history of helping everyday people. Steve joined Maurice Blackburn in 1981 as an articled clerk and worked his way up through the firm. As Chairman of the Board, Steve has guided substantial growth at Maurice Blackburn. He is passionate about cultural diversity initiatives at Maurice Blackburn, which in recent years have included Iftar and White Ribbon events, and the development of a Religious and Spiritual Diversity guide in conjunction with the Australian Multicultural Foundation. Ms Michelle Thompson, Graduate of Australian Institute of Company Directors, Masters of Business Administration, Bachelor of Business and Dip MRA. Michelle was appointed to the Board in 2016 and is Chief Executive of Marie Stopes International – Australian Healthcare. Michelle has 25 years of healthcare leadership experience in several major health systems in Australia, UK and USA in profit and not for profit sector in primary care, community health, acute health, disability, aged care and medical research as well as Senior Executive for the Commonwealth Medicare Australia. Throughout her career she has built a reputation for innovative models of service delivery, fostering partnerships and collaboration between government, private and not for profit sector and accelerating financial and operational performance combined with improvements in cost and quality of care.

Directors’ Report (continued) Mr David Stewart, Bachelor of Education (B.Ed), Graduate Diploma Sports Science (Grad Dip Sp Science), Masters Business Leadership (MBL) David was appointed to the Board in 2016 and is the Founder & Principal of RYP International, which was established in 1981. Since then David and his team have been developing teams, communities and leaders in a wide cross section of Industries, Organisations and Communities on a global basis addressing organisational dynamics, team cultures and social issues. His approach is to build the capability, confidence and team chemistry of an organisation to drive an observable point of difference by linking Culture – Brand and Strategy. He has designed and facilitated “FROM and TO” major change processes with Major Corporates, Family Owned Organisations, Professional Sports Teams, NGO’s, Industry Associations and Government Agencies. Ms Heather Spooner, Bachelor of Laws LLB. (Retired Nov 2016) Heather was appointed to the Family Life Board in July 2015, when Family Life converted its corporate structure to a company limited by guarantee. Heather was previously a member of the Board of Southern Family Life Service Association Inc. since 2011. She is a lawyer and in 1987, she was appointed a Magistrate and more recently worked as a Coroner until her retirement in 2014. She was committed to making a contribution to her community through Family Life with a particular focus on vulnerable families and young people. She retired from the Board on 08-Nov-2016. Ms Karilyn Fazio, Master of Organisational Coaching, Bachelor of Arts and Diploma of Education. (Retired Nov 2016) Karilyn was appointed to the Family Life Board in July 2015, when Family Life converted its corporate structure to a company limited by guarantee. Karilyn was previously a member of the Board of Southern Family Life Service Association Inc. since 2008. She is an Executive Coach, specialising in leadership development with clients such as Nestle, Transurban and the University of Adelaide. She retired from the Board on 08-Nov-2016. Mr Richard Ruth, Diploma of Marketing. (Retired Nov 2016) Richard was appointed to the Family Life Board in July 2015, when Family Life converted its corporate structure to a company limited by guarantee. Richard was previously a member of the Board of Southern Family Life Service Association Inc. since 2009. He has a Diploma of Marketing from Holmes College and has over 25 years of experience in Sales and Marketing. Richard is Managing Director for M5 Networks Australia and is passionate about the community and helping to provide an environment where kids are given every possible chance to succeed. Richard has volunteered with Family Life in a mentoring capacity at the Opportunity Shop at Cheltenham. He retired from the Board on 08-Nov-2016. Mr Stephen Tickell, Diploma of Teaching, Certificate of Business. (Retired Nov 2016) Stephen was appointed to the Family Life Board in July 2015, when Family Life converted its corporate structure to a company limited by guarantee. Steve was previously a member of the Board of Southern Family Life Service Association Inc. since 2006. He is a Licensed Estate Agent and Director of the Hocking Stuart Real Estate Franchise Group, having worked in the industry for over 20 years. He plays an active role in Bayside community life and has always been passionate about creating the best possible environment for youngsters in our community. He brings a wealth of knowledge in the real estate field, having been a Director of his own real estate business for some 20 years in Bayside, and a depth of experience working in the local community organisations, in particular as a past President and Life Member of the East Sandringham Junior Football club. He retired from the Board on 08-Nov-2016.

Directors’ Report (continued)

Member’s Guarantee Family Life is a company limited by guarantee. If the Company is wound up, the Constitution states that each member is required to contribute a maximum of $100 towards meeting any outstanding obligations of the Company. The number of members at reporting date is 35.

Objectives and Principal Activities The objectives of the Company during the financial year were to provide services toward the direct relief of poverty, sickness, suffering, misfortune, destitution, helplessness, distress or disability in Victoria. The Company’s principal activities were to provide a range of support services to disadvantaged families; employment training and support programs for marginalised youth and collaborative community support initiatives to support communities that are facing hardship and difficulties. The Company’s strategies are, in response to community needs, to employ evidence-based practices to innovate for social change to reduce and prevent social problems that may affect children, young people, individual persons and families.

Significant Changes No significant changes in the Company’s objectives and the nature of the principal activities occurred during the year.

Results The deficit from normal operating activities amounted to $152,386 (2016: surplus of $35,180). The deficit from all activities amounted to $152,386 (2016: surplus of $35,180).

Dividends As a not-for-profit charitable company, the constitution of Family Life prohibits the payment of dividends or distribution of profits.

Review of Financial Condition Capital Structure:

The total equity of the Company was $4,222,839 (2016: $4,373,706), a decrease of $150,867 compared to the prior year.

Cash from operations:

The Company’s net cash inflow from operating activities during the financial year was $1,030,522 (2016: outflow of $320,778)

Liquidity:

The Company has sufficient liquid resources to fund its operating activities at the date of this report.

Review of Operations In the past 12 months, Family Life continued to provide integrated family services and relationship support services in Victoria. These services were mainly supported by Federal funding from the Attorney General’s Department and the Department of Social Services (DSS), and State funding from the Department of Health and Human Services (DHHS) and the Department of Education and Training (DET). There was no indication that these major funding agreements will have significant changes in the next 12 months at the date of this report.

Directors’ Report (continued)

Future Developments Family Life’s operating results in the next 12 months are expected to be consistent with its past performance.

Details of Directors Meetings Meetings

Board Meetings Eligible to attend

Meetings Attended

11 11 11 11 11 11 11 8 8 8 4 4 4 4

10 9 11 9 10 7 10 8 5 6 3 4 2

Len Gill (Chair & Company Secretary) Lesley Coleman (vice Chair) Jeff Phillips (vice Chair) John Dickinson (Treasurer) Georgina Cohen (Company Secretary) Mark Vassella Grant Douglas Michelle Thompson Steve Walsh David Stewart Heather Spooner (Retired Nov 2016) Richard Ruth (Retired Nov 2016) Steven Tickell (Retired Nov 2016) Karilyn Fazio (Retired Nov 2016)

Finance and Property Committee Meetings Eligible to attend 9 9 9 9 9 9 -

Meetings attended

Risk and Audit Committee Meetings Eligible to attend

Meetings attended

7 7 9 9 9 5

3 3 3 3 3 3 -

1 1 3 3 3 -

Indemnification and Insurance of Officers and Auditors Indemnification The Company has not otherwise, during or since the end of the financial year, indemnified or agreed to indemnify, an officer or an auditor of the Company against a liability incurred as an officer or auditor. The Company has agreed to indemnify the current Directors for all liabilities to another person that may arise from their position, except where the liability arises out of conduct involving a lack of good faith as Directors of the company. Insurance Premiums The Company has insurance cover as part of the contract agreement with DHHS in respect of the Directors’ and Officers’ liability insurance. Proceedings on Behalf of the Company No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all of those proceedings. The Company was not a party to any proceedings during the year.

Directors’ Report (continued) Lead Auditor's Independence Declaration The lead auditor’s independence declaration forms part of the Directors’ Report for the financial year ended 30 June 2017 and is included on page 22 of the Annual Report. Signed in accordance with a resolution of the Directors.

Chairperson: Len Gill

Treasurer: John Dickinson th

Dated this 26 day of September 2017.

FAMILY LIFE LIMITED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017

2017 $

Note Income from Operating Activities Federal Government funding State Government funding Local Government funding Non-Government grants Donations Voluntary contributions Public fundraising Social enterprises Service income Membership subscriptions Interest Other income

Expenditure from Operating Activities Depreciation of fixed assets Audit and accounting fees Bank charges Finance costs Staffing expenses Program expenses Operating expenses Property expenses

3 3

Net (Deficit)/Surplus for the Year

2016 $

3,911,099 3,279,580 79,429 325,219 140,727 22,679 41,129 1,200,202 64,323 182 77,925 94,116 9,236,610

3,975,136 2,739,008 128,666 344,933 129,362 91,490 29,773 1,089,604 148,540 70 82,253 76,446

273,794 23,290 16,070 16,330 7,273,488 419,847 216,159 1,150,018 9,388,996

282,798 27,960 13,807 25,410 6,576,202 519,628 226,746 1,127,550 8,800,101

(152,386)

35,180

1,519

894

1,519

894

(150,867)

36,074

8,835,281

Other Comprehensive Income Other comprehensive income

Total Comprehensive (Loss)/Income for the Year

The accompanying notes form part of this financial report

FAMILY LIFE LIMITED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017

Note CURRENT ASSETS Cash & Cash Equivalents Held-to-Maturity Investments Available-for-Sale Investments Receivables - Trade & Other Other Current Assets TOTAL CURRENT ASSETS

2017 $

2016 $

10a 5 5 4

1,531,670 2,262,264 31,204 95,830 120,429 4,041,397

348,050 2,545,595 29,685 46,028 137,858 3,107,216

2,905,904 2,905,904

3,105,479 3,105,479

TOTAL ASSETS

6,947,301

6,212,695

CURRENT LIABILITIES Trade & Other Payables Accrued Expenses Unearned Income Interest Bearing Loan Provision for Employee Entitlements Provision for Employee Entitlements - LSL TOTAL CURRENT LIABILITIES

305,682 335,059 943,531 12,236 440,600 298,316 2,335,424

199,544 247,272 288,967 13,715 380,539 302,138 1,432,175

318,792 70,246 389,038

373,327 33,487 406,814

TOTAL LIABILITIES

2,724,462

1,838,989

NET ASSETS

4,222,839

4,373,706

3,617,750 605,089 4,222,839

3,738,240 635,466 4,373,706

NON-CURRENT ASSETS Property, Plant and Equipment TOTAL NON-CURRENT ASSETS

NON-CURRENT LIABILITIES Interest Bearing Loan Provision for Employee Entitlements - LSL TOTAL NON-CURRENT LIABILITIES

MEMBERS’ FUNDS Accumulated Funds Reserves TOTAL MEMBERS’ FUNDS

8 9

The accompanying notes form part of this financial report 8

FAMILY LIFE LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017

Note

Balance at 1 July 2015

Accumulated Funds $ 3,782,108

Surplus for the year

Reserves $ 555,524

35,180

Total $ 4,337,632 35,180

Other comprehensive income

894

Total comprehensive income

35,180

894

36,074

79,048

Transfers from accumulated funds

79,048

Transfers to general reserves

(79,048)

Balance at 30 June 2016 Deficit for the year

Other comprehensive income

3,738,240

635,466

4,373,706

(152,386)

Total comprehensive income

(152,386)

1,519

(150,867)

(31,896)

Transfers to accumulated funds

(31,896)

Transfers from general reserves

31,896

Balance at 30 June 2017

3,617,750

605,089

The accompanying notes form part of this financial report

(79,048)

31,896 4,222,839

FAMILY LIFE LIMITED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 30 JUNE 2017

Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts Government funding Non-Government grants Fundraising and donations Social enterprises Interest received Other income

2017 $

2016 $

8,737,693 258,222 181,856 1,200,202 79,456 129,966

7,376,062 255,595 159,135 1,089,604 86,432 340,002

(9,556,873) 1,030,522

(9,627,608) (320,778)

CASH FLOWS FROM INVESTING ACTIVITIES Net transfer to investments Net proceeds from investments Payments for property, plant & equipment Net cash (used in)/provided by investing activities

283,331 (74,219) 209,112

(345,595) (17,664) (363,259)

CASH FLOWS FROM FINANCING ACTIVITIES Repayment of loan for property, plant & equipment Net cash used in financing activities

(56,014) (56,014)

(198,983) (198,983)

1,183,620 348,050 1,531,670

(883,020) 1,231,070 348,050

Payments Payments to employees and suppliers Net cash provided/(used in) by operating activities

Net increase/(decrease) in cash & cash equivalents held Cash & cash equivalents at the beginning of the financial year Cash & cash equivalents at the end of the financial year

10b

10a

The accompanying notes form part of this financial report

FAMILY LIFE LIMITED NOTES TO FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017

Note 1.

Reporting Entity

Family Life Limited (“Family Life” or the “Company”) is a company limited by guarantee and domiciled in Australia. The address of the Company’s registered office and principal place of business is 197 Bluff Road, Sandringham, Victoria 3191. The Company is a not-for-profit entity and is primarily involved in providing services toward the direct relief of poverty, sickness, suffering, misfortune, destitution, helplessness, distress or disability in Victoria. In the opinion of the Directors, the Company is not a reporting entity. This financial report of the Company has been drawn up as special purpose financial report for distribution to the members and for the purpose of fulfilling the requirements of the Australian Charities and Not-for-profits Commission Act 2012.

Note 2.

Statement of Significant Accounting Policies

Basis of preparation (a)

Statement of compliance

This special purpose financial report has been prepared in accordance with the requirements of the Australian Charities and Not-for-profits Commission Act 2012 and the recognition and measurement requirements of all applicable Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB). This financial report does not include the disclosure requirements of all AASBs except for the following minimum requirements: AASB 101 Presentation of Financial Statements AASB 107 Statement of Cash Flows AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors AASB 1054 Australian Additional Disclosures This financial report was approved by the Board of Directors on the same date as the signing of the Directors’ Declaration. (b)

Basis of preparation

This financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, and financial assets and financial liabilities for which the fair value basis of accounting has been applied. The following material accounting policies, which are consistent with the previous period, unless otherwise stated, have been adopted in the preparation of this financial report: (c) Income Tax The Company is exempt from income tax. (d) Fixed Assets Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation. The depreciable amount of all fixed assets are depreciated over the useful lives of the assets to the Company commencing from the time the asset is held ready for use. The carrying amount of fixed assets is reviewed annually by the Company’s Management to ensure it is not in excess of the recoverable amount from these assets.

FAMILY LIFE LIMITED NOTES TO FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 Note 2.

Statement of Significant Accounting Policies (continued)

As the future economic benefits of the Company’s assets are not primarily dependent on their ability to generate net cash inflows, and if deprived of the asset, the Company would replace the asset’s remaining future economic benefits, ‘value in use’ is determined as the depreciated replacement cost of the asset, rather than by using discounted future cash flows. The depreciation rates used for each class of depreciable asset are: Class of Depreciable Asset Buildings Leasehold improvement Furniture, fittings & equipment Computer & electronics Motor Vehicles

Depreciation Method Straight line Straight line Straight line Straight line Straight line

Depreciation Rate 3.5% Term of lease 10% to 33% 15% to 33% 15%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. An asset’s carrying amount is written down to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the Statement of Profit or Loss and Other Comprehensive Income. (e) Impairment of assets At each reporting date, the Company, a not-for-profit entity, reviews the carrying values of all assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. Any excess of the asset's carrying value over the recoverable amount is expensed. As the future economic benefits of the Company’s assets are not primarily dependent on their ability to generate net cash inflows, and if deprived of the asset, the Company would replace the asset’s remaining future economic benefits, ‘value in use’ is determined as the depreciated replacement cost of the asset, rather than by using discounted future cash flows. (f) Financial assets All financial assets are recognised and derecognised on trade date where the purchase or sale of a financial asset is under a contract whose terms require delivery of the financial asset within the timeframe established by the market concerned, and are initially measured at fair value, plus transaction costs, except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value. Financial assets are classified into the following specified categories: financial assets ‘at fair value through profit or loss’ (FVTPL), ‘held-to-maturity’ investments, ‘available-for-sale’ (AFS) financial assets and ‘loans and receivables’. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Held-to-maturity investments Bills of exchange and debentures with fixed or determinable payments and fixed maturity dates that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are measured at amortised cost using the effective interest method less any impairment, with revenue recognised on an effective yield basis. Loans and receivables Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Interest income

FAMILY LIFE LIMITED NOTES TO FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 Note 2.

Statement of Significant Accounting Policies (continued)

is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. Available-for-sale investments Available-for-sale investments are non-derivative financial assets that are either not capable of being classified into other categories of financial asset due to their nature or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments. They are subsequently measured at fair value with any reassessments other than impairment losses and foreign exchange gains and losses recognised in other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss. Available-for-sale financial assets are classified as non-current assets when they are not expected to be sold within 12 months after the end of the reporting period. All other available-for-sale financial assets are classified as current assets. (g) Financial instruments Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss. Determination of fair value • the fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices; • the fair value of other financial assets and financial liabilities (excluding derivative instruments) are determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions; • the fair value of derivative instruments, is calculated using quoted prices. Where such prices are not available use is made of discounted cash flow analysis using the applicable yield curve for the duration of the instruments for non-optional derivatives, and option pricing models for optional derivatives; • the fair value of financial guarantee contracts is determined using option pricing models where the main assumptions are the probability of default by the specified counterparty extrapolated from market-based credit information and the amount of loss, given the default. (h) Operating Leases Lease payments under operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred. (i) Borrowings Borrowings are recorded initially at fair value, net of transaction costs. Subsequent to initial recognition, borrowings are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the borrowing using the effective interest rate method. (j) Employee Entitlements A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave when it is probable that settlement will be required and they are capable of being measured reliably.

FAMILY LIFE LIMITED NOTES TO FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 Note 2.

Statement of Significant Accounting Policies (continued)

Liabilities recognised in respect of employee benefits expected to be settled within 12 months, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Liabilities recognised in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the company in respect of services provided by employees up to reporting date. Contributions are made by the Company to an employee superannuation fund and are charged as expenses when incurred. The Company has no legal obligation to provide benefits to employees on retirement. (k) Revenue Grant funding is brought to account as income on an accruals basis subject to satisfying certain recognition criteria embodied in service agreements. Non-refundable grants are brought to account as income at the point of receipt. Revenue from the rendering of services is recognised upon the delivery of the service to clients. Revenue from the sale of goods is recognised upon delivery of goods to customers. Membership income is recognised on an accruals basis. Marketing and fundraising revenue is recognised upon delivery of the service or goods to which it relates. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial asset. Donations are brought to account as income upon receipt unless there are reciprocal arrangements in place that require the refund of amounts received if agreed upon criteria are not met. Donations received in form of items of property, plant and equipment are recorded at their fair value at the date of transfer. Other revenue is brought to account as income on an accruals basis. All revenue is stated net of the amount of goods and services tax (GST). (l) Unearned Revenue To the extent that specific grant and donation funding remains unexpended at reporting date and is refundable to the provider, the surplus is brought to account as a liability 'Unearned income', consistent with provisions embodied in the service agreements. Membership revenue which is received before reporting date and relates to the subsequent financial year is brought to account as a liability. (m) Cash Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of two months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the Statement of Financial Position. (n) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the Statement of Financial Position are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

FAMILY LIFE LIMITED NOTES TO FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 Note 2.

Statement of Significant Accounting Policies (continued)

(o) Comparative Figures Where required, comparative figures have been adjusted to conform with changes in presentation for the current financial year. (p) Significant estimates and judgements The Board evaluates estimates and judgements incorporated into the financial report based on historical knowledge and best available current information. Estimates assure a reasonable expectation of future events and are based on current trends and economic data. Provision for doubtful debts Management’s judgement is applied in determining the provision for doubtful debts. If the estimated recoverable amount of the debtor is less than the amount of revenue recognised, the difference is recognised in the provision for doubtful debts. Long service leave Management’s judgement is applied in determining the following key assumptions used in the calculation of long service leave at reporting date: • future increases in salaries and wages; • future on cost rates; and • experience of employee departures and period of service.

(q) Adoption of new and revised accounting standards Family Life Limited has adopted all new and revised standards in the current year and none of the new standards or revised standards has materially affected any of the amounts recognised in the period. New and revised AASBs affecting amounts reported and/or disclosures in the financial statements In the current year, the Company has applied a number of amendments to AASBs and a new Interpretation issued by the Australian Accounting Standards Board (AASB) that are mandatorily effective for an accounting period that begins on or after 1 July 2016, and therefore relevant for the current year end. AASB 2014-4 ‘Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation’

The amendments to AASB 116 Property, Plant and Equipment prohibit entities from using a revenue-based depreciation method for items of property, plant and equipment. The amendments to AASB 138 Intangible Assets introduce a rebuttable presumption that revenue is not an appropriate basis for amortisation of an intangible asset. As the company already uses straight-line method for depreciation and amortisation for its property, plant and equipment, and intangible assets respectively, the application of these amendments has had no impact of the company’s financial statements.

AASB 2015-1 ‘Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012-2014 Cycle’

Amends a number of pronouncements as a result of the IASB’s 2012-2014 annual improvements cycle. The application of these amendments has had no effect on the company’s financial statements.

FAMILY LIFE LIMITED NOTES TO FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 AASB 2015-2 ‘Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101’

The amendments clarify that an entity need not provide a specific disclosure required by an AASB if the information resulting from that disclosure is not material, and give guidance on the bases of aggregating and disaggregating information for disclosure purposes. The application of these amendments has not had a material presentation impact on the financial performance or financial position of the company.

Standards and Interpretations in issue not yet adopted At the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective. Effective for annual reporting periods beginning on or after

Expected to be initially applied in the financial year ending

AASB 9 Financial Instruments

1 January 2018

30 June 2019

AASB 15 Revenue from Contracts with Customers,

1 January 2019

30 June 2020

AASB 1058 Income of Not-for-Profit Entities

1 January 2019

30 June 2020

AASB 16 Leases

1 January 2019

30 June 2020

AASB 2016-2 ‘Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107’

1 January 2017

30 June 2018

AASB 2017-2 Amendments to Australian Accounting Standards – Further Annual Improvements 20142016 Cycle

1 January 2017

30 June 2018

Standard/Interpretation

AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15, 2015-8 Amendments to Australian Accounting Standards – Effective date of AASB 15, 2016-3 Amendments to Australian Accounting Standards – Clarifications to AASB 15 AASB 2016-7 Amendments to Australian Accounting Standards – Deferral of AASB 15 for Not-for-Profit Entities and AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities

FAMILY LIFE LIMITED NOTES TO FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 2017 $ Note 3: Surplus/Deficit from Operations Includes the Following Items of Expense Staffing expenses Operating lease expenses Depreciation and amortisation of fixed assets Finance costs

2016 $

7,273,488 524,560 273,794 16,330 8,088,172

6,576,202 530,496 282,798 25,410 7,414,906

90,222 5,608

41,952 4,076

95,830

46,028

2,262,264

2,545,595

31,204

29,685

3,221,864 (674,548) 2,547,316

3,221,864 (619,892) 2,601,972

Leasehold Improvements Less accumulated depreciation

118,231 (113,889) 4,342

118,231 (61,203) 57,028

Furniture, Fittings & Equipment Less accumulated depreciation

890,714 (804,647) 86,067

883,915 (743,132) 140,783

Motor Vehicles Less accumulated depreciation

528,828 (434,849) 93,979

528,828 (401,221) 127,607

Computer & Electronics Less accumulated depreciation

524,590 (350,390) 174,200

457,170 (279,081) 178,089

Total Written Down Value

2,905,904

3,105,479

Note 4: Receivables - Trade & Other Trade debtors Interest Receivable

Note 5: Held-to-maturity Investments Current NAB Term Deposits Available-for-Sale Investments Current Australian Communities Foundation Main Fund

Note 6: Property, Plant & Equipment Land & Buildings Less accumulated depreciation

FAMILY LIFE LIMITED NOTES TO FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 Note 7: Related Parties Interest in Contracts All Directors of the Board acted in an honorary capacity. Lewis & Coleman Consulting Services Pty Ltd was contracted to carry out program evaluation and the Company paid $6,200 (net of GST) for these professional services during the year ended 30 June 2017. Lesley Coleman, Deputy Chairperson of the Board, is the Managing Director of Lewis & Coleman Consulting Services Pty Ltd. RYP International Pty Ltd was contracted to provide professional services to build project capacity and resourcing for Together We Can, a Family Life program to stop family violence in Cardinia Shire in Victoria. The contract was entered in 2015 prior to David Stewart joining Family Life as a Director. David Stewart is a Director of RYP International Pty Ltd. The contract amount is $41,091 (net of GST), and during the year ended 30 June 2016 professional services of $30,900 had been delivered and billed to Family Life. There was no service provided by David during the year ended 30 June 2017. It is expected that the remainder of the contract will be delivered in year 17/18. There were no other contracts entered into with related parties during the year ended 30 June 2017.

2017 $ Note 8: Accumulated Funds Balance at beginning of the financial year (Deficit)/Surplus for the year Transfers from/(to) Reserves: Specified Project Reserve Balance at end of the financial year

Note 9: Reserves Sustainability Reserve Balance at beginning of the financial year

2016 $

3,738,240

3,782,108

(152,386)

35,180

31,896

(79,048)

3,617,750

3,738,240

457,265 457,265

The purpose of the Sustainability Reserve is to support Family Life into the future and to ensure the agency to be able to discharge its liabilities in the event of a contingency. The Board will review this reserve in 17/18 to take into account the balance of the Accumulated Funds. Specified Program Reserve Balance at beginning of the financial year Transfer from Accumulated Funds

175,284 (31,896) 143,388

96,236 79,048 175,284

This represents funds set aside for specified service programs as required by the funding or project agreement.

FAMILY LIFE LIMITED NOTES TO FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 2017

2016

Note 9: Reserves (continued) Available-for-Sale Investments Valuation Reserve Balance at beginning of the financial year Revaluation â&#x20AC;&#x201C; at fair value

Total Reserves

2,917 1,519 4,436

2,023 894 2,917

605,089

635,466

Note 10: Reconciliation of Cash and Net Cash Flows from Operating Activities (a)

Reconciliation of Cash Cash at the end of the financial year as shown in the Statement of Cashflows is reconciled to the related items in the Statement of Financial Position as follows: Cash on Hand Cash at Bank

(b)

7,266 1,524,404 1,531,670

5,734 342,316 348,050

Reconciliation of surplus to net cash flows from operating activities (Deficit)/Surplus Depreciation (Increase)/Decrease in Trade & Other Receivables Decrease/(Increase) in Other Assets Increase/(Decrease) in Trade & Other Payables Increase/(Decrease) in Accrued Expenses Increase/(Decrease) in Unearned Income Increase/(Decrease) in Provisions for Employee Entitlements Net cash provided/(used in) by operating activities

Note 11: Interest Bearing Loan Current Non-Current

(152,386) 273,794 (49,802) 17,429 106,137 87,787 654,564

35,180 282,798 27,635 (19,776) (163,898) (190,764) (272,451)

92,999

(19,502)

1,030,522

(320,778)

12,236 318,792 331,028

13,715 373,327 387,042

The original amount of the community asset building loan from Foresters/Bank Australia was $350,000. It commenced on 3 August 2012 with a term of 20 years repayable by 2032. The interest rate at reporting date was 4.65% p.a. (2016: 4.90% p.a.). The security for the loan is the property at Tootgarook. The original amount of the Bendigo Bank Business Flexi Loan was $500,000. It commenced on 27 May 2014 with a term of 20 years repayable by 2034. The interest rate at reporting date was 4.32% p.a. (2016: 4.42% p.a.). The security for the loan is the property at Highett.

FAMILY LIFE LIMITED NOTES TO FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 Note 11: Interest Bearing Loan (continued) The purpose of these loans is to provide financial flexibility to Family Life to continue to expand services while accommodating timing variations in securing funding for our services, including, in particular, capital expenditure. 2017 $

2016 $

Note 12: Operating Lease Commitments Within twelve months Twelve months or later and no longer than five years Longer than five years

231,841 379,025 16,606

413,144 41,990 821

627,472

455,955

The entity’s operating leases predominately consist of property leases which expire no later than five years.

Note 13: Subsequent Events There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors, to affect significantly the operations of the entity, the results of those operations, or the state of affairs of the entity, in future financial years.

Note 14: Member’s Guarantee Family Life Limited is a company limited by guarantee. If the Company is wound up, the Constitution states that each member is required to contribute a maximum of $100 towards meeting any outstanding obligations of the Company. The number of members at reporting date is 35. Note 15: Economic dependency A significant portion of Family Life’s revenue is arranged through Government grants in accordance with various funding agreements. The Company is dependent on the continuing financial support of the Federal and State Governments.

FAMILY LIFE LIMITED DIRECTORS’ DECLARATION As detailed in Note 2 to the financial report, the Company is not a reporting entity because in the opinion of the Directors, there are unlikely to exist users of the financial report who are unable to command the preparation of reports tailored so as to satisfy specifically all of their information needs. Accordingly, this ‘special purpose financial report’ has been prepared to satisfy the Directors’ reporting requirements under the Australian Charities and Not-for-profits Commission Act 2012. In the opinion of the Directors: 1.

There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; and

The attached financial report and notes thereto are in accordance with the Australian Charities and Not-for-profits Commission Act 2012, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the Company.

This statement is made in accordance with a resolution of the Directors of Family Life Limited pursuant to s.60.15 of the Australian Charities and Not-for-profits Commission Act 2012 and is signed for and on behalf of the Directors by:

Chairperson ____________________________________________________________ Len Gill

Treasurer _______________________________________________________________ John Dickinson

Dated this 26 day of September, 2017.

Deloitte Touche Tohmatsu ABN 74 490 121 060 550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001 Australia DX: 111 Tel: +61 (0) 3 9671 7000 Fax: +61 (0) 3 9671 7001 www.deloitte.com.au

26 September 2017

The Board of Directors Family Life Limited 197 Bluff Road Sandringham VIC 3191

Dear Board Members Family Life Limited In accordance with Subdivision 60-C of the Australian Charities and Not-for-Profits Commission Act 2012, I am pleased to provide the following declaration of independence to the directors of Family Life Limited. As lead audit partner for the audit of the financial statements of Family Life Limited for the financial year ended 30 June 2017, I declare to the best of my knowledge and belief, there have been no contraventions of: (i)

the auditor independence requirements as set out in the Australian Charities and Not-forProfits Commission Act 2012 in relation to the audit; and

(ii)

any applicable code of professional conduct in relation to the audit.

Yours sincerely

DELOITTE TOUCHE TOHMATSU

Jane Fisher Partner Chartered Accountants

Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu Limited

Deloitte Touche Tohmatsu ABN 74 490 121 060 550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001 Australia DX: 111 Tel: +61 (0) 3 9671 7000 Fax: +61 (0) 3 9671 7001 www.deloitte.com.au

Independent Auditor’s Report to the Members of Family Life Limited Opinion We have audited the financial report, being a special purpose financial report, of Family Life Limited (the “Company”), which comprises the statement of financial position as at 30 June 2017, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the Directors’ declaration as set out on pages 7 to 21. In our opinion the accompanying financial report of the Company is in accordance with Division 60 of the Australian Charities and Not-for-profits Commission Act 2012 (the “ACNC Act”), including: (i)

giving a true and fair view of the Company’s financial position as at 30 June 2017 and of its financial performance for the year then ended; and

(ii) complying with Australian Accounting Standards to the extent described in Note 2, and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of Matter – Basis of Accounting We draw attention to Note 2 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the Director’s financial reporting responsibilities under the ACNC Act. As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter.

Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu Limited

Other Information The Directors are responsible for the other information. The other information obtained at the date of this auditor’s report comprises the Directors Report contained in the annual financial report for the year ended 30 June 2017, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not and will not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. The Directors’ Responsibilities for the Financial Report The Directors of the Comany are responsible for the preparation of the financial report that gives a true and fair view and have determined that the basis of preparation described in Note 2 to the financial report is appropriate to meet the requirements of the ACNC Act and the needs of the Members. The Directors’ responsibility also includes such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the ability of the Company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: 

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.



Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control.



Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.



Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Entity to cease to continue as a going concern.



Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

DELOITTE TOUCHE TOHMATSU

Jane Fisher Partner Chartered Accountants Melbourne, 26 September 2017