Lutheran Church of Australia Queensland District (LCAQD) - Lutheran Services
ABN: 47 29t 464804
Financial Statements
For the Year Ended 30 June 2024
tCAqD - lutheran Services
ABt'&47 291464 80C For tha Ycar Endd 30 Juoc 2024 CONTENTS
Flnenclal Statements
Statement of Proflt or Los and Other Comprehensive lncome Statement of Financial Positlon Statement of Changes in Equity Statement of Cash Flows Notes to the FinancialStatements Declaration byThose Charged with Govemance Audltor's lndependence Declaration
LCAQD - Lutheran Servlces
ADN:47 291464 80f
Strtsmcnt of 9rollt or[o$ snd Other oomprchon3lua lncomc
For ths Yeer End.d 30r0nc 2026
Revenue & otherlncoma
Cmployee beneftr sxpenss oepr€clatlon end tmor$a$ol other operrllng expenset
Finence cogts
Surplus/(De0cltl lor the Ycer
1136,78413491 (la189,8t01 (sq2ro,082l 1610.2881 2029
r9a268,21'3
0a1ol394l (31"880.564, l6{n.ro2} s $ 3 8.429.6L f,li6_ola
throDovertot rnorrt olryoltlottossordoah?r-con$.he/'lilwkwr'f,stoffibc/.rf,drn. ,t,/ff{ialmwhhlhcotr,@/rl,fp,nyft',gnotcs.
162p10,852 (116,574,674)
TCAQD - lutheran Services
ABN:47 291 464 804
Statement of Fanancial Position
Ar At 30 June 2024
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Financial Assets
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
lnvestment properties
lntangible assets
Total non-current assets
TOTAT ASSgtS
UAEtLtTtES
Current llabllltles
Trade and other payables
Financial liabilities
Other current liabilities
Short-term provisions
Total current llabllltles
Non-current llabllltles
Financial liabilities
Other long-term provisions
Other non-current liabilities
Total non-current liabilities
TOTAL TIAEITITIES
NET ASSETS Equrw
Accumulated funds IOTAL EqUIW
126,955,199 s6,256,324 376,923 180,345,569 183,588,445 309,542,565 279,892,11!
11,277,O50 287,623 223,223,326 '.4,444,973 9,369,038 444,760 206,469,278 8.618,570 249,2?2,972 224,90L646 2,999,568 t,798,771 703,936 2,958,337 s,249,t39 304.714 s,40L,275 8.512.190 233.413.836 s4,90&318 46.478.704 54,908,318 46.478.704 54,90&318 46,478,704 254,634,247
The obove stotement of finonciol position should be reod in conjunction with the occomponying notes.
TCAQD - Lutheran Serulces
ABN:47291464804
Strtcmcntof Charyes ln Equlty
For the Ycar Cndcd !t0 rune 2016
Balence at 1 July 2023
surplug aft€l lncomg tal o0ens€ for the year
Other oomprehenslve incomc for the yeor, net of tax
Total comprehenclw lncome for the year
Srlancc rt 30 Juoe 2020
orlance at t rufy 2022
Dslldt efler lncome ttx expense for the y€ar
Other comprehenstve lnome for the yesr, net of tix
Toial comprehenslw lncome for the ytsr
lhcobovesloljementolchongesh equltyshouldbc reodln coilmatonwdth aheoccompotmng rntcs,
LCAqD - Lutheran Servlces
ABN] 47 291 454 804
Statement of Cash Flows
For the Year Ended 30 June 2024
Carh from operatlng actlvltles:
Recelpts from residents, funding and others
Payments to suppllers and employees
lnterest recelvcd
lnterest pald
Net cash provlded by (used lnl operatlng actlvltlos
Cash llows from lnvestlnt activitles:
Proceeds frorn sale of property, plant and equipment
Acqulsltlon of propcrty, plant and equlpment
Funds lnvesred ln Macquarle portfollo
Wthdrawal of funds from lnvestment portfollo
Cash acqulred In a builness comblnatlon
Net cash provided by (uscd in) lnvestlng actlvltles
Cosh flows fiom llnanclng actlvllies:
Proceeds from resldents contributions
Repayment of residenB cont(ibutlons
Proceeds from ltU contrlbutlons
Repayment of ILU contributions
Repayment of leases
Proceeds from (repayment off borrowlngs
Net c.rh provlded by (used ln) lln.nclnt actlvltles
Net lncrease (decreases) ln (osh held
Cash at be8lnning of linancial year
Cr$h at end offlnanclal year
The obove stotement ol cosh tlows shoutcl be rcod ln conlunction wllh the occomponylng notes,
155,963,793 lL4SA63,232l r,111867 (577,298) s s
180,430,836 116r,302,876! 3,012,094 (489,5971 1s.650,357 11.032130 108,309 18,111,7471 1,5001000 63,218 (11,s32899) 10,808,461 r6.sbi.438i 1666.2201 60,248,81? 144,t87,0761 9,42r4O0 15,101,541) 1375,539) 3&552,323 l38,s27A2tl 11,245,183 (2,903,1161 (48s,9S4) lz16,eo6) .!9gr08l 19,793,155 7,815.707 28,940,074 l&186,617 s2,088,807 33,904190 81,028,881 s2,088,807
LCAQD - lutheran Services
A0N:4? 291 464 804
Notes to the tlnanclal Statements tor the Year Ended 30June 2024
1 Statement of Signlficant Accounting Policles (a) Gensral lnformatlon
The flnanclal (eport is a gcneral purpose financial report that has bccn prcparcd ln accordance with Australian Accounting Standatds - Slmplifled Discloiuret, Au5tralian Accounring lnterpretations and other authorltatlve pronouncements of the Australian Accounting Standatd5 Boatd, the Auslrallan Charltleg and Not for.profits Commisslon Act 2012, the Aged Care Act 1997 and as3ociated re8ulatlons as apptoprlate for not-for-profit oriented entities.
The flnanclal report coverc thc cntlty of Lutheran Church ot Austratia Queensland olitrict (tCAQDl - [uthetan Servlces, Lutheran Chutch of Australia queensland Olstrict (LCAQD) - Lutheran Services consists of reglrtered aged care facllilles, retltement villages, disabilitv, family and community services and lhe LCC 5upport Centre, all establirhed and domiciled in Auttralla,
The entity hat also assessed applicable Accountlng Standardr which have been issued or amended but not ycl effectlve, and do nol believe any of them to have a material impact if they were to be sdopted for the period endinS 30 June 2024.
(b) Basb of preparatlon Reportlng lra3ls and conventlons
The flnanclal italernentt except for the cash flow informarlon, have been prepared on an accrual basis and ate based on histori6al costs. modlfled, where applicable, by the measurement at fair value of selected non-curent agset3, financial assets and financlal liabilities. The amounls presented in the flnancial statements have been rounded to the nearest dollar.
The entlty ls a not for-protit entitv for linancial reportinS purposes,
After conslderlng all avallable cur(ent intormatlon, thoJe charged with governanca hrvc concluded thcre are reasonable grounds to believe that the enlity will be able to pay lts debts as and when they fall due and payable and preparatlon of the financlal statenrents on a going concern basls is approprlate.
(c) comparatlve flgures
When requlred by Accounting Slandards, conrparatlve llgures have been adiusted to conform to chanSes ln presenlatlon for the current llnancial year.
(d) Falr value toir valuc ls the prlcc that would be received on the sale of an asset, or paid to ttansfer a liability, ln an ordetly traniaction between market partlcipants at the measurement date, lt is bared on ihe presumptlon that the transaction takee place either ln the prlnclpal market tot lha asset or llabllltV or, ln the absence of a principal market, ln the most advantaEeous nratket, The principal or most advantagcous market must be accessible to, or by, the entity. Fair value is measured uslng the assumptions thal market participants would use when pricing the asset or tlablllty, assumlng that market partlcipants act ln thelr bert economlc lnterest, The tair value measurement of a non-flnanclal asset takes lnto account the market participani's sbility to generate economlc benefits by using the asret ar i$ hlghest and best use or by sellinS lt to another market partlclpant that would use the asset at lts hlghest and best use.
Falr value is applled to:
-The Flnanclal Assets as disclosed on the Statement of Flnanclal Porllion: thls conslsts of lnvestments in llsted securlties, cash and fixed-lntetegt sacurlties, managed by a broker. Fair values are obtained on advice of the external broker, uslng a dlrect.comparlson market approach of quoted pllces ln an aclive market. Gains and losses are accounted for throuSh profit ot losg. .tand and bulldlngs acquired ar part of thc Suslncss Comblnatlon: The entity's policy is to account for land ond buildings 8t cost, but fot land and bulldlngs acqulred through a business comblnatlon, accountlng standard MSB 3 requires that any goodwlll ot dlscount on acqulsltion be accounted for based on fair values. As such, rhe entlty obtained an external valuation of the land and bulldlnSs acqulred, The external value, used a combinatlon of income/going concern basis, and dlrect comparison. The amounts determlned by the external valuer wlll be used as 'deemed costrgolnS forward.
TCAQD - Lutheran Services
A8N3 47 291 464 804
Notes to the Flnenclal Ststcmcnts
For the Year Ended 30 June 2024
{c) lovestment propertlcs
tand and Bulldlngs have rhe functlon of investments and are regarded as conpoille arsels. ln accordance wlth appllcablc accountin8 standard, the buildinBs. including plant and equipment are depteciated. lovestments proper!y ls measured at cort, including transaction costs.
Translers to and from investment properlies to property, plant and equlpment are delermined by a change in use of owner occupatlon. The existing carrying amount of property, plant aod eguipment is used for the iubsequent accountinS cost of lnvestment propetlies on date of chanSe of use,
Any gain or loss on disposal of investment propertV (calculated as thc difference bct\vecn thc net proceeds from disposal and the corryinB amount oflhe item) is recognised as profit or loss.
(tl Prooertv. plant and eaulomcnt
Clagses of propcrty, plant and equlpment are carried at cost less, where applicable, any accumulated depreclation and impaitment losses. Where required under the telms of government funding agreemenls, purchases of capital items to the value of 55.000 have been expensed ln the period purchased. All capital itemg witlt a purchase value of less than 51,000 are immedlately expensed.
Property
All frcehold lond ls shown ot cost, Frcehold buildings are shown at cost less accumulated depreclation and impairment losses.
Plant and equlpment
Plant and equipment l9 measured on the cost basis less depreclation and lmpalrment losses,
The carrying amount of Property, ptant and equipment is reviewed annually by dlrectors to ensure lt ls not ln excess of the recoverable amount from these assets. The recoverable amounts are assessed on the baris of the expected net cash flows thot will ba rccelved from the agset's employment and subsequent dlsposal. The expected net carh flows have been dircounted to thelt present values ln delermlnlng recoverable am0unts,
The cost of llxed asiets constructed withln the entity includcs the cost of the materlal, direct labour, borrowing costs and an approptiate proportlon of fixed and variable overheads.
Subsequent costs are lncluded ln the asset's carrving amount or recognlsed as a separate asset, a5 approptiate, only when it is probable thar future economic benelib associated with the item will llow to the entity and the cost of the item can be measured reliably. All other repairs and malntenance are charged to the slatement of profit or loss and other comprehenslve lncome durlng the flnanclal perlod ln whlch they are lncurred.
oeDreclatlon
The depreciable amount of all fixed assets held at cost including buildings and capitallsed leased assets, but excludlng fieehold land, is depreciated on a straight.line basii over their useful lives to the entity commencinS from the time the asset ls held ready for use. Leasehold improvementr are depreclated over the shorter of either the unexplred period of the lease or lhe estimated useful llfe of the lmptovemenls.
The depreciatlon rates used lor each class ot depr€clable assels are:
Euildings - Beneral 2.5/o Buildings - other 5-209'0
lnvestment Properlies 2,5-25% Furniture & fittlnSs 15-20%
Plant and tqulpment 2.5-25i6 Computer Equipment 10-33% Motor vehlcles 7.5-25%
The asset's reJldual values and useful lives are revlewed, and adiusted lf appropriate, at each flnanclal year end. An asset's carrylng amount is written down lmmedlately to its recoverable amount if the a53et', cartying amount it Sreater than its estimated recoverable amount. 6ainr and logses on dlsporal a(e determlned by comparlng proceeds wlth the carrylng amount. These galns or losses are included ln the sbtement of profit or lost and other comprehensive income.
{g} Flnanclal lnstruments
Recognltlon & Measurem€nts
Financial assets and financial liabilltles are recognlsed when the entlty becomes a partv to the contractual provlslons to the instrument. For linancial assels, thi3 ls the date that the entlty commits itsalf to elther the purchase or sale ot the asset lle ttade datc accounting it adoptedl.
Financial instruments (except for trade receivables) are initially measured at falr value plus transaction costs, excepl where the insttument i5 classified "at lair value through profit or loss", ln whlch case Iransactlon costs are expensed to proflt or loss lmmedlately. whete avallable, quotcd prices in an activc market are used to determine lalr valuc. ln othcr clrcumstance5, valuation techniqucs are adopted.
Trade recelvables are inilially measured at the transaclion prlce as the lrade recelvables do not conlaln a slgnlficant linancing component.
TCAQD - Lutheran Services
ABN| 47 291 464 804
Notcs to tha Flnanclal Statements
For the Year 6nded 30 June 2024
(gf tlnanclal lnitruments (Contlnued)
Classlflcatlon and subsequent measurtment
Flnanclal llabllltles
tinanclal llabllltlcs are subsequently measured alt
- amorlised cotl; or
- falr value lhrough profit or loss.
The eniity has no nraterial financial liabililles measured at fair value throuSh profit or loss.
Flnanclal asretr
tlnanclal assets are subscquently measured at:
- amortised cost;
- fair value throuSh profit or loss; or
- falr value through other comprehensive incomq not appllcable to this entity
Measurcment ls on the basis of two primary crlterla:
- the conlractual cash flow characteri3tica ofthe tlnancial asset; and
- the buslnoss model for managlng the tlnancial assets.
A tinanclal asret that meets the followlng conditlons is subsequently mearured al amortlsed cost:
- lhe financlal asset ls managed solely to collect contraclual cash llows; and
- lhe contractual terms wlthin the fhancial asset give ,ise to cash flows that are solely payments of prlnclpal and lntercst on the princlpal amount outstandlng on specifled dates.
A flnancial asset that mccts the followlng conditlons is subsequently mealured at fair value through olher comprehenslve lnconre:
The contractual termg wlthln the financlal asset 6lve rise to carh flows that are solely payments of prlnclpal and lnterest on the princlpal amount outstondlng on spccilled datcs; ond
Thc business model tor managlng the llnanclal 0sset comprises both contractual cash flows collection and the selllng of the financial asset.
By detault, all other financlal assets that do not meet the measurement condltlons of amortlred cost and falr value lhrou8h other comprehensive lncome are subsequently measured at fair value through profit or loss, The entlty initlally desi8nates a financial lnstrunlent as measured at falr value through profit or loss lf: it cllmlnates or slgnlflcontly rcduca' a mcasurcmcnt or rccognltlon lnco0slstcncy (oftcn rcferrcd to os an '?ccounllng mlsmatch") that would otherwise a.lse from measurlng assets or llabllitles or recognlslng the galns and losses on them on difterent bases; lt ls ln accordance wlth the documented rlsk management or lnvestment strategy and lntormatlon aboul the entitylnSs ls documented approprl0tely, so the performance of the finonclal llabillty that ls part of a entiw of financial llabllltleg or tlnancial assets can be nanaged and evaluated conilstently on a falr valuc basls; and - it ls a hybrid contract that contalns an embedded derivative that slgniricantly modifleg the cash llows othetwlse tequlred by the contract. The lnltlal deslgnallon of rhe financlal lnitrurnents to measure at lair value through proflt or losr ls a one-time optlon on inltial classlficatlon and ls irrevocable unlil lhe linancial osset ls derecoSnlsed.
(h) Cash end Cash Equiualents
Cash and cosh equlvalants lnclude cash on hrnd, dcposits hetd at call wnh bankt, othcr short-tcrm hlghlv llquld invcatmcnts with oriSinal maturlties of three months or tess, and bank overdrafts. Bank overdralts are shown withln short.term borrowings ln current liabilities on the statement of tlnanclal posllion,
{ll Emolovee Benetits
Shott tem employee benclits
Llabllltler for wages and salarles, lncluding non.monetary beneflts, annual leave and long servlce leave expected to be settled wirhln 12 months ol the r€portlng date are recognlsed in cur,ent llabllitles in respect ol employees' servlces up to the reportlng date and are measured at the amounts expected to be pald vrhen the llabllitles are settled.
Othet long-lerm employee benetits
The liablllty for annual leave and long service leave not expected to be settled v/ithin 12 months of the reportinS date are recognised ln noncurrent llabllitle5, provlded lhere ls an uncondhional right to defer settlement of the llablllty. The liablllty is measured as the present value of expected future paymenls to be made ln respect of servlces provlded by employees up to the reporthg date utlnB the proJected unit ctedlt method. Consideration is glven to expected future wage and salary levels. experience of employee departures and periods of service, Expected future paymenls are discounted uslng market yields at the reporllng date on corporate bonds wlth terms to maturily and currency lhat match, as closely as possible, the estimated futu,e cash outflov/s.
[) Provlslons
Provlsions are recognlsed when tha entity has a legal or constructive obligation, ar a result ot past events, for which lt is probable that an outflow of economic benelits will result and that outflow can be rellably measured,
LCAqD - Lutheran Services
ABN3 47 291 454 804
Notes to the tlnsnclal Statements
For the Year Ended 30 June 2024
(k) Eorrowlng Costs
Sorrowlng costs are recognlsed in the statement of profit or loss and other comprehensive Income in lhe period in whlch they are incurred.
(l) lncome Tax
[utheran Church of Australia queeniland Dhtrlct {LCAQD) Lutheran Scrviccs conslsts of registcred chatitable otSanisalions and is lherefore exempt from lncome Tax unde. Sect SO.S of the lncome Tax Assessment Act 1997 except for lncome tax payable on lnterest earned in the Retlrement Village Malntenance Re3erve Funds urhlch ls recognlsed as an expense of the Retirement Village Scheme Operator where applicable.
(mf Revenue
Revenue ir recognlsed uslng, a S.rtep recognition process that ldenlilles the contract wlth the custodler, ldentifies the separate performance obligatlons, determines the tranractlon price, allocates the transactlon prlce between performance obllgatlons and recognises revenue when the performance obllB0tlons are met (either over time or at a polnt ln tlmc).
The entity generates revenue from rendering of scrviccs. Rcvenuc from tendering of tervices i9 recognired when performance obliBatlons are met under contracls with customers.
The naturc of cuStomers in the industry lt such that revenue is recogniscd ovcr tlme as services arc dellvered to cuslomers and clienls over a perlod of tinle, usually under a contract or agreemenl.
Fees obtalned fionr governnrent agencies and resldents typically include components for both care servlces and accommodatlon. h accordance rvith industry standards, facs relating to care services are considered to be revenue and Ire accounted fot uslng the approach described above'
Fees for accommodation are lncluded as "Other income". Accommodation lncome ls recognised on an accruals basis as the accommodatlon is provided to the resident.
Other lncome not ariglng under a contracl vrlth a custonrcr is recognlsed when the entity obtains conttol over a future economic inflow.
lnvestment lncome arises from funds invested wlth an extcrnal brokcr that gcnerates divldends and capilal 8ains, Dividends are recognised when declared, as advised on statements provided by the external broker, Thc broker also provides regular portfolio valuations advltin8 of any tealised or unreallsed galns on thc investments held.
Rental lncome is recognlsed in relation to properties owned bV the entity that are utilised by external parties under an operating lease arrangement. lncome is recognlsed on a st.alghtJlne basls ln accordance with the terms of the operatlnS lease, lnterest lncome is recognised wheo it is received or when the right to receive paymenl ir establiJhed.
Deferred management fee (OMFI revenue on retlrcment village assets is earned while the resldent occupies the independent living unit and ls recognised as lncome over the resldents expected lenure. The expected tenure is calculated uslng hislorlcal lrends of rollovers withln the enttty. DMf revenue is not discounted to present valug as the income ls earned by reduclng the exlsling resident loan.
All revenue is stated net of the amount of goods and servlces rax (65Tl. (nl Government Grants
When funding ls received from govcrnment, the entity determines whether it is to be accounted for under AASS 15 Revenue fiom Cootracts Wlth Customers, uslng the crlterla descrbed ln the "Revenue" note above. For funds that do meet lhe recognltion crileria of AASg 15, they are accounted tor ln the same manner as revenue from rendering of serviccs. Wherc funds recclvcd from govelnmcnt do not mcet thc critcris fot recognltlon under AASB 1S, or where they are tor the conrtructlon of capital assets. they are accounted for under AASB 1058 lncome of Not.torProfit Entitles, Thls rtandard requires an entity to recognlse a liabllity for lhe exccss of the inltial carrying amount of a flnancial asset lecelved in a tlansfer lo enable lhe entity to acquire or construct a recognisable non.flnancial asset. and then lo recognise lncome in prolit or loss when (or as) the entlty rallsfies lts obllgatlons undel the transfer. Where there is no requlrement (o constluct a non-current asset, amounts recelved are resognlsed os lncome lmmedlately upon teceipt.
(ol Trade and other payables
Accounts poyable and other payables represent the liabllltv outsrandlnS at the end ofthe tepottlng petlod for goods and setvices received by the entlty durlng the reporting period whlch remaln unpaid. The balance ls reco8nlsed as a current llabllity with the amounts notmally paid wlthin 30 days of recognition of the liability.
(p) Goods and Servlces Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred ls nol recoverable from the AuJtralian Taxation Office, ln thesc circumstonces the GST is recognised as part of the cost of acquisiiion of the a53et or as part of an item of the expense. Receiuables and payables in lhe slatemenl of linancial position are shown inclusive of GST. Cash flows are ptesenled ln lhe statement of cash flows on a gross basis, except for the GST component of lnvertlnB and financing actlvitics, which are disctoscd as opcratlnS cash flows.
LCAQD' lutheran Services
ABN:47 291 464 804
Noter lo the Flnanclal Statements tor the Year Ended 30Jun€ 2024
(ol Leascs
All contracts ore reviewcd for existence of a lease contract, Where a lcase contract exisls, lhe Trust applies AASB 16 Leases.
On lnltial recognltion of a lease contract, lease llabllitler and Rlght.of.Use ("ROU") as5ets are catculated based on the present value of future lease paymcnts, discountqd uslng, an incrcmcntal borrowing .ate, Subsequently, leage liabilltles arc amortised as repaymentt are made, ROU assets are depreciatcd over the leam of the lease.
teases that are low.value or short-lerm ln nature are expensed dlrectly to prolit or loss.
The gntlty leases retail and orllce facilities, The leases typlcally run for a period of 1.3 years, with an optlon to renew the lcase after that date. Some leases provlde for additional rent paymeots that are based on lixed increases. For certaln leases, the Entlty ls restticled from enterinS lnto any sub-lease arrangements, but ln any case has no plans to do so.
lr) Ated core Resldents Liabllltles and ltU !lcense to Reslde Entry Cont.lbullons./ Accommodatlon gonds and RADS that .epresent a llability at balance date are classilied as current liabilltles ln the Statemenl of financlal posirlon. Based on hlstorlcal trends and experience lt l5 likely that the majorlty of the liabllity recoSnlsed will not be payable within 12 months, howevcr therc is no unconditlonal rlght to dcfer seltlement of the liabllity tor more than 12 months and. lheretore, the liabillty ls recoSnlsed as current ln lts entlrety.
2 Criti(al accounllng Judgements, estlmates and asrumpllons
Thc prcparotlon of the llnanclal statements requlre3 those charged with governance to make judgernents, estimates and atrumplions that affecl the reporred amounts ln the flnanclal statemenls. Those charged with governance continually evaluate judSements and estimates ln .elation to assets, llabuitles, contlngenl liabllitles, revenue and expenses, Those charged wilh governance base these iudSements, esiimates and assumptlons on hlstorical experlence and on other various factors, includlng expectationl of future eventr, belleved to be reasonable under the clrcumsiances. The resultlng accounting iudgements and estlmates will seldom equal the relat€d aclual results. The judgements, estimates and assumptlonr that have a slgnificant risk of causing a material adjustment to the carrying amounti of asiets and liabilitles within the nsxt llnancial year are dlscussed below.
Useful llves of assets
The entlty determlnes the estlmated useful llves and related depreclatlon and amortlratlon charScs for lts ptoperty, plant and equipment and finlte life lntan6ible assets, The useful llves could change slgnlflcantly as a result of technlcal lnoovations or soms other event. The depreciation and amortlsatlon charge will lncreare where the useful llves are less than prevlously estlmated llves, or technlcally obsolete or non-slraleglc assets that have been abandoned or sold wlll bc wrltten ofl o, w,itten dorvn.
Employee benctlts provislon
As dbcusred in note 1, lhe liability for emptoyee benefits expected to be settled more than 12 monthi from the reporting date are recognised and measured at the pr€sent value o, the estlmated future cash flows to be made ln respect of all employees at the reporllnS date, ln determinlnE the present value of the liability, estimates of attrition rates and pay lncreases throuSh promotion and inflation have been taken loto account.
Rellrement vlllager,etldsnts tenurc
An estimote hae been made of the tenure ot retlrement village residents for the purpose of recognising the Deferred Management tee (DMF) revenue relatlng to resldents occupancy o{ the retlrement village units. Thls estimate has been made with re{erence to the hlstorlcal tenure perlod of residenls and industry norms.
LCAQD - lutheran Services
ABN:47 291 1164 804
Notcs to th! Flnrnclal Stalcmenti For the Ycar Ended g0rune 2024
3 Revonuc
Rcvenue ftom ContrscG with Cuslomcr
Deparlment ol Haalth Fundlng Other Government Fundlng lotol gove rnmc nt revc nue
R.sldont end cllont r8uonuo Easlc delv feet
Other r€sldsnl f.ar other clicnt fees fod rcsdeaa ond cllent rcvenue
Total ravlnua trom contracts with cuslomcrs
Othcr ln(omo
Accommodatlon lncome fiom government
Arcommodrtlon lncome fiom relldenls lntor€st lncome
lnvotlmgnt property rentel lncome
Olvldend3 ,ecelved
Othcr rhancc locome
Sundry lncoma
Galn on 'barSaln purchasc' .cqul3llloa Totoloth''lncomc
TOTAT R€V€NUE At\tD OTHER INCOM€
Dlsog grcgatlon ol revcnue
Ayceogtophlc rcgbn
All revenue b from Australla Symolotptodud lin.
All r6v0nue ls errned f.om providln8 so.vicos tclating to a8ed catc Tlm//'g ol rcvenue rrcognttloo
Trensfer.od at a polnt ln tlme Transfcrred ovcr tlme
2,191y'02 29,3r3.966
11,.193,693 &892638_ 19.3,6p0,?to _99,!gE!39$ s s1892,69s 20,520,929 2,1s6,126 29,495,683 48,17e?38 t12.697,28r r0.018.019 9,870518 1.113,857 u85,051 1,306.977 3.941529 r,709.600
1S7.a93.{65 12,t't,97t 10,961,007 3,0121094 t,581,578 825,801 5,96r,947 67t,t40 t4,774,r98 192,268.203 lSt.Aot^d6s 15t lt93-063 112.637 2el
LCAQD - Lutheran Services AgN:47 291460 804
Forthr Y..rendrd 30 runc 2024
4 Dctlclt botorc lncomo lrx lncludot the followlng splclllccrpcnrcs
l.l Deflclr torths Yerrlnrluder thc lollowlng ltcmr:
Oeprecbtlon o( lnvostment propenles
Depreclatlonot propert% plant and cqulpment
Amortlsetlon of lntanglble asrets
Gsln/(Lo9t) on dBpottl of propo,t% phnt and cqulpmont lmpalrmrnt ofgrop€rty, plant and aqulpcment Short.lerm and low vatue lease prymenls '
iemuneratlon of audllors:
Audlt of the lln.nchl report Other 3ervlce3
5 C.3h and Cr3h €qulvrlent3
ca3h ln hrnd cash at 9ank cash Hsld wlth Iroket short-lerm bank deposltr
1,012,615
tncluded ln Cash at 8.nk are certaln amounr thet er! re3tricted fo? urc due lo the capltal teplacement tund whlch it S 5,859,083 fo. F12024and54,582,231 lo. FY2023, established undersecllon 91 and 92 ofthe Retkement MllaSes Act 1999 whlch cannot be used by the entlty ln ltt otdln8rv aclMths.
STrrde snd Other Rccetu.blas
Currcnt Trade recelvables Olhcr rc<alvablcs
rorwos uuqun -obvJl
t08r9rt6a&3Nw
sluaur.talslqrurulr aql ol scutll
lrraurdlnb! put lurg Agrdora
lsoNt tl puq ploqrarj
tro, lv fiIonns
uqlrp.depprtqilrJlDw
ttq$Fqluol
Iro, lv lucudlobo pur tu.ld
uooeprrd.p pltqilJ.Dov
luildlnbt Pr! lurF Plol
Iror lv rtupto pur rernu$'ern1;trnt
uqpperdop pEtq{llll0rw
slHqurlolou, r8q[D pur sarn$U'arnxurD, lqol
Itoo lv tu.udpboJ'mduoJ llrlq.,uoloroll|ol uollctrsrdcp parqnuorov llotv
uotrqrordop palqnumrw
3l.E V.6eel..rnorqtlp ursdlltornduooFtol
0ottqte.,daP prlqnunt:V rsof, lV
8Drw.r.al..$r ol r{tlu Ftol
tu.udlnba pue lulld 'rluedord lotoJ, rr.dord ul qrorn ;nldlt tluaur$ordurl
l085t619Sl 69€'a6t'ott z&"o,'ga s vto?
B{Am09dSrvrl sor'6oott w'.za,fii-
foTdAiTEIz9l'?f,gt;
66r'196 T6EF8rs'rug't ,gz'50t? l€0sz€0", 089"G€lt 998'83dt {99drzJa zts'ost! zt6'zgGlo
zieit{gzt 5ffitr-
E6€'Z08'SZ s ez0z
008t9ss€r
It0r,'6r,65S)
639',rAi',61
3zr'8t8? TtTFlt-illlyt86"t
lz9r:9?s'tt ztfvtt6
rld( 66t'5g6'9Zr TE?-r-l"tffi w/fliafrTr0/56dr s CElrgg',EE ?l 6LvZra'9 t0s'0sr'l |'rt'ctvzt 9w298,€ !J-r5E6't-
UcAqo-hlrllet n$wlc..
A0N:47 291 461 800 Not stothr Fln.ncblSirtantnl3
7 Proptlty ?l.nt.nd gquhm.nt (Gontlnucdl
Mowmolla ln ca.ry&ti armuntt
Eahnce at tho b3glnnlnS of yo.t
Addltlons
OBgosrls
Tranrfor t om crpnrl unrks tn prognss Reda$llholhn lo h\r$tment property Oopr.clruon orpanca hptlrrnant€,l9onrca Crrrvlntlmourt at the cnd of Tclr
S.bncc ar thg be3fnht of yaer
Addltlom
Dhposlb
Tremfer from capltal yrorks h plo8r.st Rcclr$[lcstlon to lnw3tment proparly oopreclrtlon arpons. lmptlrmcnt Expe|B.t
CatrylnS amount at the cnd ofycrt
clpltdWorkh
&D3,114
ICAqD. Luthlr.n Srn lce3
ABN:47 291 46.1 800
Notcs ro ths Flnendrl Statementt
For theYearEnded 30 Junc 2024
8 lnvesimenl Propertlcl
At cost
Accurnulrtod dsproclatlon Tolal lnve3tment proDcrty
Movcmenlt in Crr.ylng Amount3
Sahoce at the beglnnlng of vea, a3 p.cvlou3h acported
Addlllons
Dbpo3alj
Tranrfer fiom Crpllal work ln PtoSroij
Recbsdncallon llo)/rom lnvBlment prop.rtles
Deprochrlon Erpenic
CarrylnS amount at the end of year
9 lntantlbh Airelt
lnlen8lble Artcls
At cost
Accomulalod Amorllratlon Tot.l lnrrnglblc r33ctj
MovcmenB ln CorrylnS Amounlt 2024
Sabnce at the beglnnlng of year Addltlons
Transler ftom plant & equlpmsnt Oliporals
Amortlsatlon Execnso Ceiryln8 amounl at thc ond of yoar
10Tnde.nd OlherPeyablct
Curenl
Un3ecurcd lbbllltlei Trade pryrbles
Other payablas
Accrued cxprnscs
8od Llcencca Compuier Softwrre s
ICAQD - Lutheran Servlces ABN:47 291 464 804
12 Other tlabllltle3
The carrying amounts of other liabilities are assumed to approximate the fair values. The impact of discounting has been determined not to be sitnificant. flihe amount includes balances for Accommodations bondr, Entry contribution and Refundable Accommodation deposits
13 Provlslont
14 Key Manatement Petsonnel Compensatlon
Any person havinS an authority & .esponsibility for planning, directing & controlling the activities, directly or indirectly included any director of the entity is considered Key Management Petsonnel. The totals of remune.ation paid to key management personnel of the association durint the year are as follows:
LCAqD - [uthEr.n Servltet
ABNr 47 291 46,1 80tl
NotGr to thc Flnrnclal Strtcmcnts For ihc Yc!] End.d 30 June 2024
15 c.pltal.nd tcrslng Commltmcnts
(.1 Lees? conmltmonr3
Non.cancellrble ope,atlns leasog cont.octed for bui not opitallscd h the llnrnclal itatsments:
P.yable - mlnlmum lerce prymcntj - not laler than 12 monihi - between 12 montht rnd 5 ycars
lbl C.plr8l Expcndlture Commllmcnts
Copltal orpendlture commltmonls contrscted lo.: Plant and equlpment purcharcs Caplral expendllure p.orecis
Payable: not bler than 12 monlhs
16 Conllngcnf llrbllltl$ rnd Contlntent A$cl3 tstlmrter oftho potentl.l flnanclal elfect of conttngent llabllllles thal may become poyablc:
(al Govcrnmcnt Crpltal G6ni3
Puriuant to the condltlom atleched to Governmcnl Capital Grents, th? entlty ls contlngently llable to repay. bared on a formula, all or pan of the grants rocclvad It rhe project to whlch the funds applhd ceeses to bo ured (or the purpose approved, or ls soH or otherwlJe dlspored ofwlthln llltoon years ofthg completlon ot the proJect.
The nraxlmurn contlnSent liablllty a3 at 30rune 2024 ls S3,783.000 (2023: nll).
(bl FundlngSurpluses
The snrltl€s wlthln the Communlty Satvlces dlvliloo of ICAQO. lutheran SeMces Co'aolidatod rocelrre fundhg tromv|rlou3 Sov.tnment eSencle3 whlch lnclude tho Departmcnl of Health, Oepailment of Gommunltles, Chlld Safety and Dlsablllty Sewlcet Queensland Health, Sunshlne coa3t Medlcatr Local, Departmcnt of €ducatlon and T.alnhg, Dep?rtnenr ofJu3tlce, Gambllng Community Senefll Fund end the Dep.rlmant of Hourlng rnd Publlc Works. A condttlon of the fundlng b that any allocated fundh8 not expended in carrylng out ihe specllled servlcoswlll bc refunded or replld by reductlon of ncxt yoacs B.ant, At 30 June 2024 the entlty had prlor year rurpluses of 5534,702 (2023: 5875,8601 carled fonvard.
ICAQO - tutha.en ScMcc!
ABN| 47 291 464 804 Notcr to thc Flnanclal Strtemcnts For the Yeor Ended 30June 2024
17 R€lated party aranractlonj
Transactlonr botween related panlcs .re on normal commerclal lerms and conditlons no moro favourable than lhose avallable to other prrltles unless olherwlse !taled.
oer.lled rablo Ihe eftectlve controllln8 body of Luthcran Church ofAuslr.lla Queensland Dkt.ict (ICAQDI Luthrran Servlces ls the lutheran Church ofAuitrolia QLO 0lSttict ILCAQO). The elfecllve controllhB body of TCAQD Ir the lutheran Church of Aurrralia (LCAI ond all tr0Nacllonr between TCAQD - Luthetan Servicas and entillei undcr ihe control of the LCA, lncludlng ICAQO and the LCA'S inlernal charitable lovestment lnstitutlon the lurheran Lavpeoples teague, are consldercd.clated prny tranJactloos, fhe follorving related party transactloor are lncluded ln the rcported rerults:
a) Rent and out8oln8s pald to LCAQo
bl Governance contrlbution pald to ICAQD
cl Sto(fsalaries & wa8e5 pald to LCAQD
At balanco data the followlng relatcd parly bal.nces are included ln the reporl€d posillon:
d) Payable fiom ICAQD tutheran Sewlcer to ICAQo 393.051
18 Evenl3 Alter the Belanco Sh!at oate At at lhe dale ofthls report therc arE no rlgnlflcant after balance iheet dare events. The tlnanclal repon wrJ outhorlscd for lr:ue on the date the Oeclaratlon by Councll wos tlSncd. Thc Councll hes lhe power to amend and re.lisue the llnanclal report.
t9 gconomlc Dopendonce
The enllty ls dependent on the contlnued uie and avallabllily of proporty owned by the Lutheran Church of Aultralio QID oirlrlcf (LCAqDl.
The enlityl ablllly to contlnue to operotc ln ilr currant c0paclty ls dependent upon re(eipt of on8olns operatlon.l funding from the fed0tal and Statc Govcrnmsnl, Thoso chorgcd with govcrdancc are contldant, baied on hlstorical lnformatlon and governmenlal pollcy, that thls fundlng support wlll conlinue lo be provlded,
20 Flnanclal Rlrk Mana8ement
The Enllty's llnan<lat lnit,uments conslst mahly ot deposils wlth banki, local money markct lnstrumentJ, short-term lnvestmenls held with a btokcr, accounlr rcccivable and payable, loans tlom otht. enlitles and learer.
The Entlty faces credit ris*. mrrket risk, lntorest rate rlik and liquldty rlsk in thc management of ils llnanclal lnstru.nents.
Credit ritk exlst3 ln relatlon to Carh and Ca!h Equivalents, and Rccclvablos. ThE entlty manages rlsl by lnvestlng wlth repetable lnrlhir1le6e, ls6qnsillnN recelvable accounts. obtainlng w.itten contracls for fees lo be rccclved ond mooltorlng atelng statlsllcs of al! debts, There are no slgnltkant concentratlonr of credlt rlslc
Liquidity rlsk ls lhe .lsk th.t d€bts wlll not be able to be pald as and erhen they fall due. The entity manages this rl3k throug,h rolllng cashflow torecasts and mlnlmleln8 external debt,
Market rlrk exlsrs ln relatlon to lnlerest rate5 and lhe perforrnance of the Australlan share market, ln whlch the ontlly hes lnvested funds thtough a broker.
Chan8es ln lnlerert rater vrould imprct lncome errnrd from resldenl accommodation deposlts and cash at bank, ai wall as loterest payable on refunded rgldent contributloos 8nd lhe loan, hovrever the lmpads arc not lik€ly lo be rlgnlll(ant to the entlty as a whole.
ChanSes h the Auslrallan sharc mrrket would impact invcrtment income. The entlty rnanag0s thls risk by lnvesting rvlth an exgerlenced broker and hovln8 in lnvortment Managemcnt Slrategy.
tCAqD - Luthoran Sc.vi(ca
A8il:47 291 464 80tl
Notrs lo thc Flnrnclrl Sbtlmentt Forthe YGer Endrd 30 rune 2024
21 €ntlry Dclrll3
The prln(lp.l places of burlne$ oflhe rntlly.rr:
Support CGntre:Lulheran Servico3.24 McDouSall Stncl, Mlllon, Q!0 4064
Aged C.rc Sewlcca lincludlnS Rctircmcnr villaScrl: Alond,a Rcsldencet - 19 Unlon Sl.eal, Nundah, QtD 40!2 coolnd. 2 coolnda Sl.eel,6yrnple, QLo 4s7o lmmanucl Gardons Retlrement Vlllage - 10 MagnGtlc Drive, Suderh, qtD 4556 Orana Lulheran Complox - MacDlarmld Street, KlnSeroy qto 4610 Salem t utheran Rert Home 280 Hume Slr€et, Tooriroombr, qu 4350
St Andrews tutheranAsed C.re 2 Sulllvan Roa4 TsllebudSen, qtD 4228
St Pauls t utheranAgod Care -Tomlhson Ror4 Ceboolturq QtD 4510 Teb0el lilthrran Homc .27 Ambroro Strpot. tildleu OtD 43,U Tavlot Mllas Boonth. ,6 Church Str?pl. 8o.rnah. OLD 4310 Trhdo. Park Rest Homc - t0taurelAt€nue, woodrldlc, qto 4114 wchroonSr Retkementvlllote - wahroonga Stnet, Slloela, QIO 4715 Zlo0 Uuthenn Home - 24 Unlon Strcet, Nundrh, QtD 1Ol2 zbn ncthemGnt Vlll.gc. t0 O'Connell Strcet, Gymple, OID 4570
Communlly Scrvlcas!
Central Queensland and Wde oay Grasevllle Cenlre, Nambour feyrtone Dlrrblllty Centre, woodrldSeTtlnlty Dltabillty support seMce, southport Brldges Reconnect, WoodrldgeGood Shepheid €mergoncy Rollef Servlccs, Brlsbane lntercept Famlly & Communfty Sewlces, Caboolturesometict Communlty Se.vlces, towood Mary & Marth!'s womcn'3 Refu8e, c/. Mllton
Tho rctl3terad otllcc of tha conrrolllnS entlly lr: tutheran Servlceg 24 McoouSrll St.eet Mflton q[D tO64
LCAqD - Lutheran Services
ABN:47 291 464 804
Declaration By Those Charged With Governance
Those Charged with Governance of Lutheran Church of Australia Queensland District (LCAAD) - Lutheran Community Care declare that:
1. The financial statements comprising the statement of profit or loss and other comprehensive income, statement of financial position, statement of cash flows, statement of changes in equity, and accompanying notes, as set out on pages 7 to 21, are in accordance with the Australian Charities and Not-for-profits Commission Act 2012, the Aged Care Act 1997 and:
a. comply with Australian Accounting Standards - Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Regulations 2013; and b. give a true and fair view of the entity's financial position as at 30 June 2024 and of its performance for the year ended on that date.
2. ln the opinion of Those Charged with Governance, there are reasonable grounds to believe that the entity will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of Those Charged with Governance.
Chair - Lutheran Serivces Council
Dr Leena Vuorinen
cEo - ces Nick Ryan
Bentleys THINKING AHEAD
'
AUDITOR'S INDEPENDENCE DECLARATION UNDER S 60.40 OF THE AUSTRALIAN CHARITIES AND NOT.FOR.PROFITS COMMISSION ACT 2OI2
TO THE DIRECTORS OF LUTHERAN CHURCH OF AUSTRALIA QUEENSLAND DISTRICT (LCAOD)LUTHERAN SERVICES
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2024 there have been:
i. no contraventions of the auditor independence requirements as set out tn lhe Australian Charities and Not-for-Profits Commission Act 2012 in relation to the audit; and ii. no contraventions of any applicable code of professional conduct in relation to the audit.
2rn/tr2t
Bentleys Brisbane (Audit) Pty Ltd
Chartered Accountants ,.-1"=-7
Stewart Douglas Director Brisbane 10 September2024
TFIINKING AI-IEAD
BBentleys
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LUTHERAN SERVICES
Opinion
We have audited the financial report of Lutheran Services, which comprises the statement of financial position as at 30 June 2024 and 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, notes comprising a summary of significant accounting policies and other explanatory information, and the declaration by Council.
ln our opinion the financial report of Lutheran Services is in accordance with Division 60 of the Australian Charities and Not-for-Profit Commission Act 2012, including:
(i) giving a true and fair view of Lutheran Services' financial position as at 30 June 2024 and of its performance for the year then ended; and
(ii) complying with Australian Accounting Standards - Simplified Disclosures and Division 60 of the Australian Charities and Not-for-Profits Commission Regulations 2022.
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 Financiat Report section of our report. We are independent of Lutheran Services in accordance with the ethical requirements of the Australian Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountanfs (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.
Responsibilities of the Council for the Financial Report
The Council for Lutheran Services is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the Australian Charities and Non-for-Profits Commission Act 2012 and for such internal control as the Council for Lutheran Services 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.
ln preparing the financial report, the responsible entity is responsible for assessing the ability of Lutheran Services 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 Lutheran Services or to cease operations, or has no realistic alternative but to do so.
The Council is responsible for overseeing Lutheran Services' financial reporting process.
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.
A\trn\a\ A nlenrber of Bentleys. a rretwork of independent advisory and accounlrng frrrns located lhrouqhout Australra. New Zealand and Chrna thal l(a(lc as Benlleys nll nlentbers of lhe Eentleys Nelwork are a(frliated only, are separate legal entrlies an(l nol rn 0arlnershrp Lrabrlly hnlile(t l)y a schenle a0Droved un(ler Professronal Slandards Legrslalron A Menlbcr of nllrnral Global - an assocratron of rndeDendenl accoUnt and consulIno firnrs
GLOBAL.
Bentleys THINKING AHEAD
)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LUTHERAN SERVICES (coNTTNUED)
Auditor's Responsibilities for the Audit of the Financial Report (Continued)
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
o ldentify 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.
o 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 Lutheran Services' internal control.
o 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 Lutheran Services' ability to continue as a going concern. lf we conclude that a material uncertainty exists, we are required to draw attention in our audito/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 Lutheran Services to cease to continue as a going concern.
o 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 those charged with governance 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. ,'t',/ n/ /' '-/.
Bentleys Brisbane (Audit) Pty Ltd
Chartered Accountants
Douglas
Director Brisbane 10 September 2024 A nlenrber of Bentleys. a network of rndependenl advrsory and accourrtrng tirnrs located lhroughout Auslrala, New Zealand and China lhat lra(le as Eenlleys All nrembers of lhe Benlleys Nelwo.k are affrliated only. are separate legal en!ltes arrd not in parlnershiD. Lrabrl'ty linlrte(l by a scheme approved un(,cr Professronal Standards Legrslation A tvlenlber ol nllrnial Global - an assoctAlron of rndeoen(!ent account and consultno ftrols ) Arl'rrr;orr /z l\r:cr;L;ttlat:t:; ) i\trrjrt,;rs
19 August 2024
Stewart Douglas Director
Bentleys Brisbane (Audit) Pty Ltd
GPO Box 740
Brisbane Qld 4001
Dear Stewart,
LUTHERAN SERVICES
Management Representation Letter – 30 June 2024
This representation letter is provided in connection with your audit of the financial report of Lutheran Services for the year ended 30 June 2024, for the purpose of you expressing an opinion as to whether the financial report is presented fairly, in all material respects in accordance with the Australian Accounting Standards – Simplified Disclosure Requirements.
We confirm, to the best of our knowledge and belief, the following representations made to you during your audit:
1. We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter, for the preparation of the financial report in accordance with Australian Accounting Standards; in particular that the financial report is fairly presented in accordance therewith.
2. Significant assumptions used by us in making accounting estimates, implicit in the financial report, are reasonable.
3. Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of Australian Accounting Standards.
4. All events subsequent to the date of the financial report and for which Australian Accounting Standards require adjustment or disclosure have been adjusted or disclosed, as appropriate.
5. We believe the effects of uncorrected misstatements aggregated by the auditor during the audit are immaterial, both individually and in the aggregate, to the financial report as a whole. There were no uncorrected misstatements identified during our audit, as noted in Appendix A.
6. We have considered the expected future financial performance and position of Lutheran Services for the next 12 months. We have no intention to cease operations and we confirm that there are reasonable grounds to believe that Lutheran Services will be able to pay its debts as and when they become due and payable. On this basis, we are satisfied that it is appropriate for the financial report to be prepared on a going concern basis.
7. Lutheran Services has complied with all aspects of contractual agreements that would have a material effect on the financial report in the event of non-compliance.
8. We have provided you with:
(a) Access to all information of which we are aware that is relevant to the preparation of the financial report such as records, documentation and other matters;
(b) Additional information that you have requested from us for the purpose of the audit; and
(c) Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence.
9. All transactions have been recorded in the accounting records and are reflected in the financial report.
10. We have disclosed to you the results of our assessment of the risk that the financial report may be materially misstated as a result of fraud.
11. We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of and that affects the entity and involves:
(a) Management;
(b) Employees who have significant roles in internal control; or
(c) Others where the fraud could have a material effect on the financial report.
12. We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial report. This includes compliance with the Australian Charities and Not-for-Profit Commission Act 2012, the Aged Care Act 1997, The Retirement Villages Act (Queensland) 1999 and the Fees and Payments Principles 2014 (No. 2).
13. We have considered the requirements of AASB136: Impairment of Assets when assessing the impairment of assets and in ensuring that no assets are stated in excess of their recoverable amount, except those for which an impairment provision was applied.
We understand that your examination was made in accordance with Australian Auditing Standards and was, therefore, designed primarily for the purpose of expressing an opinion on the financial report of the entity taken as a whole, and that your tests of the financial records and other auditing procedures were limited to those which you considered necessary for that purpose.
Yours faithfully
Name: Nick Ryan
Position: Chief Executive Officer
APPENDIX A – SUMMARY OF UNADJUSTED ITEM
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