QUEENSLAND INDEPENDENT EDUCATION UNION OF EMPLOYEES FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2010
CONTENTS
Statement of Income & Expenditure
2
Balance Sheet
4
Statement of Changes in Accumulated Funds
5
Statement of Cash Flows
6
Notes to and Forming Part of the Accounts
7
Certification by Accounting Officer of Union
11
Certificate by Committee of Management
12
Independent Audit Report
13
QUEENSLAND INDEPENDENT EDUCATION UNION OF EMPLOYEES STATEMENT OF INCOME & EXPENDITURE FOR THE YEAR ENDED 31 AUGUST 2010
INCOME Subscriptions – Membership Advertising Employee Contribution – Vehicle Expenses Interest Received Marketing Agreement Profit on Disposal – Non Current Assets Rent Received Sponsorship Other Income
2010 $
2009 $
7,023,600 22,374 40,840 96,559 20,000 19,429 312,970 75,202 7,610,974
6,384,536 31,047 37,262 61,462 15,488 275,620 4,545 57,399 6,867,359
390,163 12,885 247,703 6,470 27,112 169,822 43,774 14,727 1,610 50,355 45,810 26,851 110,436 2,915 3,964 42,311
355,345 13,832 232,997 4,980 22,157 124,454 41,203 9,453 51,987 49,015 27,869 117,434 33,933 17,654 58,113
2,231,066 1,071,225 404,230 149,727 25,140 10,935
1,937,599 953,207 365,339 135,793 16,885 9,533
LESS EXPENDITURE Affiliation and Capitation Advertising Amortisation/Depreciation Audit Fees Branch Costs Building Costs Building Union Strength Bursaries and Prizes Collective Action - Financial Hardship Cleaning Commission – Subscription Collection Committee and Council Meetings Communication Expenses Conference & Anniversary Costs Donation & Sponsorship Electricity and Rates Employment Expenses: - Salaries & Wages Officers - Salaries & Wages Clerical - Superannuation - Payroll Tax - Professional Development - Work Cover - Annual Leave & Long Service: Leave Provision - Officers - Clerical Finance Costs: - Fees & Charges - Interest Fringe Benefits Tax Industrial Campaign Expenses Page 2
109,529 (10,986)
61,868 66,107
52,322 25,788 27,609 110,977
47,907 29,713 37,289 89,913
QUEENSLAND INDEPENDENT EDUCATION UNION OF EMPLOYEES STATEMENT OF INCOME & EXPENDITURE FOR THE YEAR ENDED 31 AUGUST 2010
Insurance Legal Expenses Member Information Services Postage Printing and Stationery Publication Rent – Office Equipment Regional Office Lease Expenses Repairs & Maintenance Research Research Grants Soiree Expenses Software Costs Subscriptions Travelling and Accommodation Vehicle Expenses Other Expenses
NET OPERATING SURPLUS/ (DEFICIT) FOR THE YEAR
Page 3
2010 $ 125,611 180,139 18,614 188,081 138,408 165,328 36,076 32,127 87,464 448 5,000 6,001 27,627 38,900 176,465 107,132 41,100 6,778,991
2009 $ 106,177 103,993 20,104 158,960 128,751 153,327 36,076 32,887 61,047 7,854 8,667 4,635 25,906 29,761 163,340 82,606 32,533 6,068,203
831,983
799,156
QUEENSLAND INDEPENDENT EDUCATION UNION OF EMPLOYEES BALANCE SHEET AS AT 31 AUGUST 2010 NOTES ACCUMULATED FUNDS Retained Earnings Asset Revaluation Reserve
2010 $
2009 $
3,900,425 3,825,501 7,725,926
3,068,442 3,825,501 6,893,943
313 2,515,649 18,826 180,159 2,714,947
436 1,944,216 298,398 2,243,050
Represented By: CURRENT ASSETS Cash on Hand Cash at Bank Membership Subscriptions Receivable Other Receivables
2
NON-CURRENT ASSETS Property, Plant & Equipment Other Financial Assets
3 4
7,208,792 60,000 7,268,792 9,983,739
6,583,991 60,000 6,643,991 8,887,041
9 7
200,000 131,570 338,226 456,625 514,183 46,821 1,687,425
100,000 113,029 259,973 535,515 447,769 40,174 1,496,460
7 9
113,806 456,582 570,388
72,185 424,453 496,638
TOTAL LIABILITIES
2,257,813
1,993,098
NET ASSETS
7,725,926
6,893,943
TOTAL ASSETS CURRENT LIABILITIES Bank Loans Lease Liability Sundry Creditors and Accruals Membership Subscriptions in Advance Provision For Employee Entitlements GST Payable NON-CURRENT LIABILITIES Lease Liability Bank Loans Provision For Employee Entitlements
Page 4
QUEENSLAND INDEPENDENT EDUCATION UNION OF EMPLOYEES STATEMENT OF CHANGES IN ACCUMULATED FUNDS YEAR ENDED 31 AUGUST 2010
Balance 1 September 2009 Net Operating Surplus for Year
Balance 31 August 2010
Retained Earnings $
Asset Revaluation Reserve $
Total $
3,068,442
3,825,501
6,893,943
831,983
-
831,983
3,900,425
3,825,501
7,725,926
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QUEENSLAND INDEPENDENT EDUCATION UNION OF EMPLOYEES STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2010 NOTE Cash Flows From Operating Activities Receipts – subscriptions received Other income Payments to suppliers and employees
Interest received Interest paid Net cash inflow from operating activities 6 Cash Flows From Investing Activities Payments for purchase of plant and equipment Net cash inflow/(outflow) from investing activities
2010 $
2009 $
6,925,884 614,264 (6,346,696) 1,193,452
6,432,417 413,946 (5,638,742) 1,207,621
96,559 (25,788)
61,462 (29,713)
1,264,223
1,239,370
(853,075) (853,075)
(116,869) (116,869)
Cash Flow From Financial Activities Movement of lease liability and loans
160,162
(189,263)
Net cash inflow/(outflow) from financing activities
160,162
(189,263)
Net (decrease)/increase in cash held Cash at the beginning of the financial year Cash at the end of the financial year
571,310 1,944,652 2,515,962
Page 6
933,238 1,011,414 1,944,652
QUEENSLAND INDEPENDENT EDUCATION UNION OF EMPLOYEES NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2010 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This financial report is a special purpose financial report prepared in order to satisfy the financial reporting requirements of the Industrial Relations Act (Qld) 1999. The financial report has been prepared on an accruals basis and is based on historical costs and does not take into account changing money values, or except where specifically stated, current valuations of non-current assets. The following material accounting policies, which are consistent with the previous period unless otherwise stated, have been adopted in the preparation of these financial statements. (a) Depreciation Depreciation is calculated on a declining balance basis so as to write off the full net cost of each depreciable non-current asset over its expected useful life. (b) Employee Entitlements The amounts expected to be paid to employees for their pro-rata entitlements of long service and annual leave are accrued annually at current pay rates having regard to experience of employee’s departures and period of service. (c) Cash For purposes of the statement of cash flows, cash includes deposits at call which are readily convertible to cash on hand and are used in the cash management function on a day to day basis, net of outstanding bank overdrafts. (d) Income Tax The association is exempt from income tax under section 50-15 of the Income Tax Assessment Act, 1997. (e) Leased non-current assets A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incident to ownership of leased non-current assets (finance leases), and operating leases under which the lessor effectively retains substantially all such risks and benefits. Finance leases are capitalised. A lease asset and liability are established at the present value of minimum lease payments. Lease payments are allocated between the principal component of the lease liability and the interest expense. The lease asset is amortised in a straight line basis over the term of the lease, or where it is likely that the economic entity will obtain ownership of the asset, the life of the asset. Operating lease payments are charged to the profit and loss account in the periods in which they are incurred as this represents the pattern of benefits derived from the leased assets. Page 7
QUEENSLAND INDEPENDENT EDUCATION UNION OF EMPLOYEES
1
NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2010 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (f)
Recoverable amount of non-current assets
The recoverable amount of an asset is the net amount expected to be recovered through the net cash inflows arising from its continued use and subsequent disposal. Where the carrying amount of a non-current asset is greater than its recoverable amount the asset is revalued to its recoverable amount. The expected net cash flows included in determining recoverable amounts of non-current assets are not discounted to their present values. 2.
OTHER RECEIVABLES Sundry Debtors & Prepayments Reimbursement IEUA/QNT Branch Reimbursement IEUA Federal
3.
Motor vehicles under finance lease Less: accumulated amortisation
6,180,000 695,602 1,249,768 (1,182,982) 6,942,388 438,515 (172,111) 266,404 7,208,792
6,180,000 1,240,403 (1,048,793) 6,371,610 394,124 (181,743) 212,381 6,583,991
60,000
60,000
OTHER FINANCIAL ASSETS Investment in non-listed Unit Trust – at cost
5.
2009 $ 153,674 144,724 298,398
PROPERTY, PLANT AND EQUIPMENT Land and building – at independent valuation Buildings at Cost Plant, equipment and vehicles – at cost Less: accumulated depreciation
4.
2010 $ 161,266 18,784 109 180,159
SUBSCRIPTION INCOME The subscription year ends on 31 December, 2010 whilst the financial report is prepared for the period ended 31 August, 2010. Consequently, approximately one third of the yearly subscriptions received have been carried forward to offset expenditure that will become due up to 31 December, 2010.
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QUEENSLAND INDEPENDENT EDUCATION UNION OF EMPLOYEES NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2010
6.
RECONCILIATION OF EXCESS OF INCOME OVER EXPENDITURE TO NET CASH INFLOW FROM OPERATING ACTIVITIES 2010 2009 $ $ 831,983 799,156 Excess of income over expenditure 247,703 232,997 Depreciation and amortisation (19,429) (15,488) (Profit) Loss on Disposal – Non Current Assets Change in operating assets and liabilities: 99,413 4,942 Decrease/(increase) in receivables 78,253 79,907 Increase/(decrease) in sundry creditors (72,243) 9,881 Increase/(decrease) in other operating liabilities 98,543 127,975 Increase/(decrease) in other provisions 1,264,223 1,239,370 Net cash inflow from operating activities
7.
LEASE COMMITMENTS
8.
Commitments in relation to finance leases are payable as follows: Not later than one year 131,570 Later than one year but not later than two years 113,806 245,376 RELATED PARTIES
113,029 72,185 185,214
(a) The persons holding positions as council members of the union during the year were as follows: Terry Burke Desmond McGovern Kerry Laws Christopher Chapman Andrew Stein Bryce Goldburg Bernadette Murray Paul Giles Matthew Dash Suzanne Burdon Tom Denham
Peter Butler-Wood Beverley Day Lyn Byrnes Peter Lovegrove Michael Moy John Kennedy Andrew Elphinstone Maria Campanini Aleisha Connellan Ros McLennan Denis Kettle
(b) Amounts received or due and receivable by council members in connection with the management of the union, including amounts paid to superannuation funds in connection with retirement of council members
Lorraine Hellmrich Jennifer Winn Ben Van Trier (Part Year) Jane Elliott (Part Year) Katie Lipka (Part Year) Susanne Stevenson (Part Year) Joanne Lawes (Part Year) Jocelyne Benoit (Part Year) David Frazer (Part Year)
2010 $
348,586 (c) Transactions with council members comprise payments by them of union fees on the same basis as other members of the union.
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2009 $
460,336
QUEENSLAND INDEPENDENT EDUCATION UNION OF EMPLOYEES NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2010
9.
BANK LOANS 2010 $ 200,000 200,000 200,000
Land and Buildings Current Liabilities Non Current Liabilities
2009 $ 100,000 100,000 100,000
Bank loans are secured by registered first mortgage over the organisation’s freehold property. 10
INFORMATION TO BE PROVIDED TO MEMBERS OR REGISTRAR In accordance with the requirements of the Queensland Industrial Relations Act, 1999, the attention of members is drawn to provisions of Sub-Sections (1), (2), (3), & (4) of Section 556 which reads as follows: (1)
A member of an organisation, may apply to the organisation for information that it must, under a regulation, give its members.
(2) (3)
An application may be made by the Registrar for a member. The organisation must give the member, or if the Registrar applies for a member, the Registrar, the information applied for in the way prescribed under a regulation.
(4)
11
If the information is given to the Registrar, the Registrar must give the information to the member for whom the Registrar made the application.
CAPITAL EXPENDITURE COMMITMENTS There were no capital expenditure commitments contracted for at 31 August 2010.
12
SUBSEQUENT EVENTS No matters have arisen since the 31 August 2010 that would materially effect on these financial statements.
13
CONTINGENT LIABILITIES There were no contingent liabilities at 31 August 2010.
Page 10
QUEENSLAND INDEPENDENT EDUCATION UNION OF EMPLOYEES CERTIFICATION BY ACCOUNTING OFFICER OF UNION
I, Paul Giles, being the Officer responsible for keeping the accounting records of the Queensland Independent Education Union of Employees certify that 14723 persons were financial and 741 persons were unfinancial members of the Union at the end of the financial year to which the attached accounts relate. I am of the opinion that in respect of the financial year to which this statement relates: 1
The attached accounts show a true and fair view of the financial affairs of the Union as at the end of the financial year;
2
A record has been kept of all moneys paid by, or collected from, members of the Union and all moneys paid or collected have been credited to the bank account or accounts to which those moneys are to be credited, in accordance with the rules of the Union;
3
Before any expenditure was incurred by the Union, approval of the incurring of the expenditure was obtained in accordance with the rules of the Union;
4
Any payments made from a special account for a purpose, other than the purpose for which the account was operated, was approved in accordance with the rules of the Union;
5
All loans or other financial benefits granted to persons holding office in the Union were authorised in accordance with the rules or the Union; and
6
The register of members of the Union was maintained in accordance with the Act.
PAUL GILES
, 2010
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QUEENSLAND INDEPENDENT EDUCATION UNION OF EMPLOYEES CERTIFICATE BY COMMITTEE OF MANAGEMENT
We, Paul Giles and Terence Burke, being two Members of the Committee of Management of the Queensland Independent Education Union of Employees, so state on behalf of the Committee of Management, in accordance with resolution passed by the committee of Management, that in the opinion of the Committee of Management: 1
The attached accounts of the Union show a true and fair view of the financial affairs of the Union as at the end of that financial year on 31 August, 2010;
2
The attached accounts were prepared in accordance with the Queensland Industrial Relations Act 1999;
3
The union was solvent during the whole of the financial year ended 31 August, 2010;
4
That during the financial year to which the accounts relate, meetings of the Committee of Management were, in the opinion of the Committee, held in accordance with the rules of the Union;
5
That to the knowledge of any members of the Committee there has been, during the financial year, no instance where records of the union or other documents (not being documented containing information available to a members under S.556 of the Act) or copies of those records, or other documents, or copies of the rules of the Union, have not been furnished, or made available, to members of the Union in accordance with the Act, these regulations or the rules as the case may be;
6
That in relation to the audit report and accounts for the Union’s financial year immediately preceding the financial year to which these accounts relate: (a)
The audit report and accounts were presented to an annual general meeting of the union under section 565 of the Act.
(b)
Copies of the Audit Report and Accounts were given to members of the Union under section 566 of the Act.
PAUL GILES
TERENCE BURKE , 2010
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QUEENSLAND INDEPENDENT EDUCATION UNION OF EMPLOYEES INDEPENDENT AUDIT REPORT To the members of the Queensland Independent Education Union of Employees Report on the Financial Report This special purpose financial report comprises the statement of income, balance sheet, statement of changes in accumulated funds, statement of cash flows, accompanying notes to the financial statements and the certificates of the committee of management and accounting officer for the year ended 31 August 2010. Responsibility of the Committee of Management and Accounting Officer The committee of management and accounting officer are responsible for the preparation and true and fair presentation of the financial report in accordance with the Queensland Industrial Relations Act 1999. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report. Auditors Responsibility Our responsibility is to express an opinion on the financial report to the members of the Union. Our Audit was conducted in accordance with Australian Auditing Standards in order to provide reasonable assurance whether the financial report is free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making these risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial report 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the committee, as well as evaluating the overall presentation of the financial report. The financial report has been prepared for distribution to members for the purpose of fulfilling the committee's financial reporting obligation under the Queensland Industrial Relations Act 1999. We disclaim any assumption of responsibility for any reliance on this report or on the financial report to which it relates to any person other than the members, or for any purpose other than that for which it was prepared. We believe that the audit evidence that we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements and the Queensland Industrial Relations Act 1999. Page 13
QUEENSLAND INDEPENDENT EDUCATION UNION OF EMPLOYEES INDEPENDENT AUDIT REPORT Audit Opinion We, Morris & Batzloff have inspected and audited the accounting records kept by the Queensland Independent Education Union of Employees in respect of the year ended 31 August 2010, and we certify that in our opinion: 1
(i)
(ii)
There were kept by the Union in relation to the year satisfactory accounting records, including: (a)
records of source and nature of income of the Union (including income from members);
(b)
records of the nature of and reason for and the expenditure of the Union: and
The accounts for the year were properly drawn up so as to give a true and fair view of: (a)
the financial affairs of the Union as at the end of the year; and
(b)
the income and expenditure, and surplus, of the Union for the year.
2
That information and explanations required of officers or employees of the union were provided during the course of the audit.
3
The accounts were prepared under the Queensland Industrial Relations Act 1999.
Norman J Hoare Registered Company Auditor Morris & Batzloff Chartered Accountants , 2010 96 Lytton Road, East Brisbane
Page 14