2020-21 ANNUAL REPORT
ABOUT OCCUPATIONAL THERAPY AUSTRALIA
O
ccupational Therapy Australia (OTA) is the national professional association for occupational therapists in Australia. Our members are occupational therapists, students and those involved in the profession who work in a variety of practice areas to enable people to participate in meaningful activities. Our mission is to provide member benefits through access to local professional support and resources, and through opportunities to contribute to, and shape, professional excellence. For more information about Occupational Therapy Australia, visit www.otaus.com.au © Occupational Therapy Australia 2021
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This work is copyright. You may download, display, print and reproduce this material in unaltered form only (retaining this notice) for your personal, non-commercial use or use within your organisation. Apart from any use as permitted under the Copyright Act 1968, all other rights are reserved. Requests for further authorisation should be directed to General Manager, Membership, Marketing and Communications via email at marketing@otaus.com.au OR via post at Occupational Therapy Australia 5/340 Gore Street Fitzroy Victoria 3065
CONTENTS
CONTENTS President’s Report
4
CEO’s Report
5
Financial Report
6
Financial Summary
7
Office Bearers
8
Year in Review
9
FINANCIAL STATEMENTS Directors’ Report
15
Auditor’s Independence Declaration
20
Statement of Profit or Loss and Other Comprehensive Income
21
Statement of Financial Position
22
Statement of Changes in Equity
23
Statement of Cash Flows
24
Notes to the Financial Statements
25
Directors’ Declaration
42
Independent Audit Report
43
OTA ANNUAL REPORT 2020-21 3
PRESIDENT’S REPORT
PRESIDENT’S REPORT
I
n what has been another challenging year for all Australians due to the ongoing COVID 19 global pandemic OTA has had one of its most successful years. This has been achieved on the back of the hard work from OTA staff and volunteers and I would like to thank everyone for going above and beyond in trying conditions. An important metric relating to organisational success is membership, and not only an increase in the number of members overall, but we are pleased to report an increase in retention rates . This is an indication that members value belonging to OTA. Another important measure of success is that we are responding in a timely manner to member’s requests. Using technology and ensuring we have staff prioritising member requests, we have been able to respond effectively and efficiently throughout lockdowns and other challenges. We have also seen improved access to CPD through using technology and many members have utilised the opportunities to engage with CPD offerings both synchronously and asynchronously. The 29th Occupational Therapy Australia National Conference was highly successful, and I would like to thank the Convenor Professor Iona Novak and the Scientific Convenor Professor Stacey George and their organising and scientific committees on a very informative and thought provoking conference. Although we would have loved to be together in Cairns, making the decision early to deliver a hybrid conference was in hindsight, a good decision. On behalf of the Board I extend our thanks to our dedicated and professional Events Team for staging such as wonderful conference with so many moving parts. We also thank our sponsors and exhibitors for their support and for staying the course in uncertain times – they
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contribute hugely to making our conferences the success our members have come to expect. The range of keynote speakers gave us perspectives that we both wanted and needed to hear, challenging and stretching us. As always the Sylvia Docker Lecture provides a highlight and I congratulate Professor Lindy Clemson on her lecture this year. We also inducted two Honorary Life Members, Marilyn Pattison and Dr Angela Brendt in recognition of their contribution to the association and the profession. Congratulations to our four new OTA Research Fellows: Professor Pamela Merridith, Associate Professor Mandy Stanley, Professor Reinie Cordier and Professor Iona Novak. Occupational Therapy Australia Research Awards were also presented with the Research Team Award won by the Monash University Brain Recovery and Rehabilitation Group, led by Professor Natasha Lannin; the Clinical Researcher Award going to Dr Karen Arblaster, and the Mid Career Researcher Award recipient being Dr Tamara Tse. The Early Career Researcher Award winner was Dr Kylie Wales.
Carol McKinstry, OTA President
This sound financial basis will enable us to reinvest in our organisation, particularly to undertake projects aligned with our refreshed 2021-2023 Strategic Plan. This will further our strategic influence, support and resource occupational therapists to deliver optimal outcomes and ensure that OTA is a high performing organisation to meet the needs of our members and those who benefit from occupational therapy services. Another pleasing result was the endorsement of the our Reflect RAP by Reconciliation Australia. We have much work to do in this space, but we are on the journey to understanding.
The highly regarded Australian Occupational Therapy Journal increased its impact factor from 1.278 to 1.856. I want to congratulate and thank Professor Louise Gustafsson and the Editorial Board, and all of those who volunteer as reviewers, for this outstanding achievement. The high quality research being undertaken by Australian occupational therapists is internationally recognised both for its impact and influence.
OTA has been very active in the lobbying and advocacy area, having impact in a range of practice areas and through submissions and presentations to Royal Commissions and Joint Standing Committees. We are gaining much traction and respect and it was a privilege to represent OTA at a number of these. I want to thank all of our members who volunteered their time and expertise in participating in these very important activities. We have emphasised the impact of policy and funding schemes on those who are users of occupational therapy services, educating those with influence and enhancing the reputation of our profession.
The very healthy financial position of OTA has been achieved with close monitoring of all expenses during the financial year and changes in strategies to maximise revenue streams. I would like to thank the OTA staff and the members of the Finance Risk and Audit Committee for their very diligent work.
Finally, I want to thank everyone who have contributed to this very successful year including the OTA Board, the Divisional Councils, our CEO Samantha Hunter, OTA staff and OTA members who have volunteered in many, many ways. We look forward to a very positive and exciting future.
CEO’S REPORT
CEO’S REPORT
I
am pleased to present the 2020-2021 annual report in what has been another year of change and uncertainty for members, the communities and clients they serve, and for the Occupational Therapy Australia staff. Despite the adaptions we have all had to make to all aspects of our lives in response to the ongoing pandemic, OTA has continued to forge ahead in cementing our future as a sustainable, responsive and highly relevant allied health association. Under the stewardship of our Board of Directors a new strategy has been developed with an ambitious operational plan in place to guide us into an exciting future which embraces a strong purpose for our association, and a vision for a future where people and communities are engaged in occupations that bring meaning and purpose to their lives, fostering health, wellbeing, participation, and inclusion. Our ambition is that occupation is highly valued by our communities, and the decision makers that serve them. The actions we take in bringing our strategy to life will ripple outward to enable greater connection to the community and to extend our influence on issues that matter and ideas that shape the future. I encourage all members to see themselves as part of the team that realises this vision – our history is built on the collective and combined talents of our members, our volunteers, our professional staff and our supporters all unified in action. Reflecting on the past twelve months the association has met adversity and challenges with strength and vigour and risen to a range
of challenges in a way that has enhanced and illuminated the enormous value occupational therapy brings to the health of our population. In the face of these immensely challenging times, it is more important than ever to project a unified voice. We are honoured to speak for the profession and advocate with and for occupational therapists across our nation on both matters of national and state significance. As our membership base has continued to grow, we have been able to respond by growing our team and I am thrilled to report that all areas of our operations have benefitted from additional staffing as we grow our OTA family, with particular growth in our Professional Standards Team, Policy and Advocacy Team and our Corporate Services, Finance and Governance Team. Every new addition to our team is broadening our capability and capacity and bringing a diversity of skills, thinking and innovation to the association. Our in-house Conference and Events Team successfully delivered three national major events for our members with OT Exchange, the biennial Mental Health Forum and our National Conference all falling within the same financial year leading to stronger than average earnings from this area of activity. I thank and applaud the team’s tenacity and professionalism in their relentless pursuit of delivering stellar events with the ever changing landscape of border closures, government restrictions and technological adaptions. Throughout a turbulent year we have delivered record numbers in enquiries and
Samantha Hunter, OTA CEO
engagement from our members as different states responded in varying ways and times to COVID-19 outbreaks. We know our members have appreciated not only being kept abreast of circumstances and restrictions affecting their practices and how they operate safely as clinicians but of being kept informed of what we would routinely see and hear from our association. The normality of reading Connections or an article in our Journal, checking in on OT Today or gathering together with other members with a Special Interest Group or connecting over an area of practice through CPD or Hot Topics. To the members who tirelessly dedicate their skills and expertise through our Board of Directors, Journal Board, Divisional Councils, Reference and Working Groups, Committees and Taskforces, those who speak on our behalf at enquiries and forums and provide feedback on submissions or convene our SIGS – the association quite simply could not operate without you, and I am profoundly grateful for the work you do for your professional colleagues. To our incredible staff who have stepped into uncertainty, embraced change and held our members and each other close during these uncertain times, I am immensely proud to lead you and humbled by your service to our purpose.
OTA ANNUAL REPORT 2020-21 5
FINANCIAL REPORT
FINANCE REPORT
I
am pleased to report that OTA has, despite facing a full financial year impacted by the pandemic, recorded a record surplus. This has been achieved through a variety of mechanisms addressing all aspects of the association. These rewards are a result of the careful planning and monitoring of the budget, a commitment to a robust financial investment strategy enabling our assets to work to maximum benefit and a growth in revenue. Revenue increases can be attributed to increased membership numbers and improved member retention, an increased uptake of CPD via online learning, and our revenue was further enhanced by hosting three national events within this financial year. The financial performance results reflect $6,395,149 in revenue offset by $4,358,956 in expenses, resulting in a net surplus of $2,036,193 which represents a 144.51% increase on the previous financial year. Total assets amount to $10,931,042 of which $7,716,072 is in cash and term deposits. Total liabilities equate to $2,625,655 of which $1.87 million relate to membership and CPD income received in advance. Net asset trends (assets minus liabilities) remain positive, with a balance of $8,305,387 at the end of the reporting period, 30 June 2021.
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Paul Marsh, OTA Vice President, Finance
OUR STRONG POSITION ENABLES OTA TO CONTINUE TO GROW OUR FUTURE CAPABILITY AND CAPACITY AS WE EMBARK ON A NEW AND AMBITIOUS STRATEGY FOR THE ASSOCIATION.
Our strong position enables OTA to continue to grow our future capability and capacity as we embark on a new and ambitious strategy for the association. A major focus for the organisation is to deliver value to members, advocate for the profession and ensure the association is equipped with the resources required to ensure our continued success and sustainability. In this reporting period, membership revenue grew by 10% and overall membership numbers by 9%. OTA looks closely at key ratios, such as debt, liquidity and profitability. For successive years OTA has continued to build its financial health, with a current liquidity ratio of 3.09 signalling a strong fiscal position.
Our new strategy signals to members and stakeholders our ongoing commitment to the profession and the communities and clients we serve. Our strong record of financial accountability and management make the delivery of our new strategy possible, and the benefits for members tangible. My congratulations and thanks to the Board of Directors and fellow Finance Risk & Audit Committee members and to the Occupational Therapy Australia Finance Team led by Cynthia Noh for working collaboratively to achieve such a strong result in challenging and uncertain times.
FINANCIAL SUMMARY
FINANCIAL SUMMARY End of year operating profit of
$2,036,193 $10.93
3.09 Current Ratio
Million in Total Assets
$8.30 Million in Total Equity
$7.91 $3.02
Million in Current Assets
Million in Non-Current Assets
Membership Income Increase by
Revenue streams
$291,927
Business Development Income Increase by
$127,442 OTA ANNUAL REPORT 2020-21 7
OFFICE BEARERS
OFFICE BEARERS
Carol McKinstry President
Priscilla Ennals Vice President
Paul Marsh Vice President (Finance)
Michelle Bissett Director
Annie McCluskey Director
Leanne Healey Director
Adam Lo Director, WFOT Delegate
Joanna Murray Director
Samantha Hunter OTA CEO
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SUMMARY OF ACTIVITIES
YEAR IN REVIEW ADVOCACY & LOBBYING
16
Mentions of OTA in Australian media
35
Submissions to the Australian Parliament, the Commonwealth Government or its departments and agencies.
5 OTA scored some significant wins during the reporting period. After nearly two decades without a meaningful increase in the fees paid to occupational therapists working with veterans and their families, the Federal Budget in May 2021 included a 27 per cent increase in these fees. This was a direct result of sustained lobbying of public servants and Federal MPs by OTA and its members. The Royal Commission into Aged Care Safety and Quality recommended sweeping changes to the system which supports our seniors. Significantly, and as a result of lobbying by both the allied health sector and OTA in particular, several recommendations call for a greater allied
17
Media Releases
2
Appearance at public hearings
National Reference Groups were reconstituted during the reporting period
health presence in residential facilities and home care packages. In the 2020/21 Federal Budget, there was significant additional funding to allow those in residential aged care facilities to access mental health supports, including occupational therapy, under the Better Access initiative. But the year was dominated by the Federal Government’s drive to introduce a new eligibility screening process to the National Disability Insurance Scheme. Labelled Independent Assessments, they were based on a suite of tools that were unscientific, unethical and had the potential to do real harm. Moreover, they were to be administered by allied health
professionals often working outside scope of practice and doing little more than ticking boxes. OTA led the charge against the proposed reform, producing a submission to the Australian Parliament’s Joint Standing Committee on the NDIS. Representatives of OTA were subsequently invited to appear before the Committee. As this annual report is being prepared, the Federal Government has abandoned Independent Assessments as originally proposed. While this is a significant win for occupational therapists, their clients and their association, OTA remains clear eyed about this issue; we are ready to work constructively with government but, if necessary, we will resume the fight against bad policy.
OTA ANNUAL REPORT 2020-21 9
78
PROFESSIONAL PRACTICE Professional Practice and Development This year has been characterised by a high level of commitment and collaboration across areas of practice and sectors. Key areas of focus have changes in the disability, aged care, and mental health sectors. OTA Members have worked collaboratively with the professional practice team to provide informed evidence-based submissions in response to changes in the sector, in the Therapeutic Goods Administration (TGA) legislation, the NDIS Scheme, and the National Transport Commission. OTA has achieved some credible outcomes in these areas through the substantial amount of time and expertise OTA members have dedicated to these professional practice initiatives. We thank all members who have contributed to our professional practice initiatives over the year. We particularly thank members of our OTA National Taskforces, and members who have represented the OT profession on external committees, steering groups, reference groups and guideline development groups.
3 9%
decreased by 5%
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1,024
105
New BAMH applications
BAMH endorsed members
11%
Overall membership grew by 9% from the previous year
Membership churn
2,133 professional practice queries answered
University Courses approved for WFOT accreditation
MEMBERSHIP
5%
New MentorLink relationships
The Elspeth Pearson Trust awarded a total of $25,850 to support 5 worthy early career occupational therapists further develop their skills and expertise.
OUR TOTAL 12,307 MEMBERSHIP
Student membership grew by 11% from the previous year
Membership Retention rate
90%
Full-time 4,262 Affiliates 255 Part-time 2,013 New Graduates 1,281 Students 4,477 Honorary life members
19
SUMMARY OF ACTIVITIES
DIVISIONS
40
19
Divisional Council meetings across all states and territories
170+
attendees at Annual Divisional Meetings
state based submissions to state government, departments and agencies
CPD
REGISTRATIONS
9
2
Hot Topic
45
Workshop (Online)
793
Webinar series
414
Hot Topics
30
Webinar (Series)
Webinar (Live)
6,961
622
(Total)
Online workshops
6
Live webinars
CPD Library
5,087
OTA ANNUAL REPORT 2020-21 11
COMMUNICATIONS
Find an OT is the fastest growing section on the website, growing 17.5% in the year
Social media followers have grown on average by 16.3% over the year The OTA blog added an additional 18,010 page views for the year
LinkedIn is our fasted growing platform with a 35% increase in followers
Supporting all people to engage in activities they find meaningful
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Bunbury Garden Labyrinth: A Place for Hope, Harmony and Community Bringing Student-led Services to Rural Queensland Learning from Disaster: Teaching and Learning through the North Coast Bushfires
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Print Post Approved PP340742/00147 ISSN 1832-7605
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O T W E E K 2 0 2 0 C E L E B R AT I O N S A N D P H O TO H I G H L I GHTS bility th Disa Reflecti ren wi ons fro Child m the OT eds of nd phy Connect s of Tom ort Ne Beyo otogra ing with orrow Transp s and ugh Ph g the Rural an TER ction ortin ht thro POS OTs Off d Remo e in Ele 0 Lig Supp nc 2 w ering a te OTs in 20 g Influe tion in a Ne Hand in EEK the NT T W Exertin pa Our Comm O cu U T: ring Oc unities IFTO Explo L S U BON OTS S ERVIN G THE COMM UNI Print Post
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SUMMER 2020 | VOL 17 ISSUE 4
3 ISSUE
TY IN DIFFE R
Connections averaged 4,673 impression per edition on our digital platform
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ENT H AT S
OTA sent 76 specific COVID update communications to members
SUMMARY OF ACTIVITIES
EVENTS
215
Abstract Submissions
Delegates from
93 629
Oral Presentations
Registrations
16 Eposters
7
20
International Countries
Virtual Exhibitors
63
Abstract Submissions
Delegates from
40 271
Oral Presentations
Registrations
6 Eposters
3
6
International Countries
Virtual Exhibitors
538 278
Oral Presentations
1,071
Registrations
117 Eposters
40 Exhibitors
Abstract Submissions
Delegates from
12
International Countries
OTA ANNUAL REPORT 2020-21 13
FINANCIAL STATEMENTS ABN 27 025 075 008 For the Year Ended 30 June 2021 Prepared by SEIVA
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FINANCIAL REPORTS
Directors’ Directors' Report Occupational Therapy Australia Limited For the year ended 30 June 2021 The directors present their report on Occupational Therapy Australia Ltd ("the Company") for the financial year ended 30 June 2021. Principal activities The principal activity of Occupational Therapy Australia Ltd during the financial year was to represent the interests of its members and Occupational Therapists across the country. Ensuring that members consistently receive quality, responsive services that add significant value to their careers and support them to provide high quality services and care. The Company also aims to support, promote and represent the profession of Occupational Therapy as a key element of the allied health sector in Australia. No significant changes in the nature of the Company's activity occurred during the financial year. Short term objectives The Company's short term objectives are: • • • •
Professional development Information, communications and relationships Representation, and Practice standards.
Long term objectives The Company's long term objectives are: • • • •
Marketing, recruitment, brand and profile Research International presence, and Governance.
Key performance measures The Company measures its own performance through the use of both quantitative and qualitative benchmarks. The benchmarks are used by the directors to assess the financial sustainability of the Company and whether the Company's short-term and long-term objectives are being achieved. Members guarantee Occupational Therapy Australia Ltd is a company limited by guarantee. In the event of, and for the purpose of winding up of the Company, the amount capable of being called up from each members and any person or association who ceased to be a member in the year prior to the winding up, is limited to $20, subject to the provisions of Company's constitution. At 30 June 2021 the number of members was 11,443 (2020: 12,077) and the collective liability of members was $228,860 (2020: $241,540).
OTA ANNUAL REPORT 2020-21 15
Information on directors The names of each person who has been a director during the year and to the date of this report are: Carol McKinstry Qualifications Bachelor of Applied Science (OT) Graduate Certificate of Higher Education Master of Health Science Doctor of Philosophy Graduate of Australian Institute of Company Director (GACID) Experience Registered occupational therapist with experience in rehabilitation, senior management, clinical governance and risk management. Currently an academic as associate professor with responsibilities for teaching, research and course coordination. Special Responsibilities President Chair, Occupational Therapy Australia Occupational Therapy Australia Renumeration Committee OTA WFOT Education Program Approval Committee Assistant Editor Australian Occupational Therapy Journal Priscilla Ennals Qualifications Doctor of Philosophy Master of Occupational Therapy Bachelor of Counselling Bachelor of Applied Science (Occupational Therapy) Experience Registered occupational therapist with experience in mental health, academic teaching and research, and research management. Currently Senior Manager of Research and Evaluation for Neami National, a national community mental health provider. Special Responsibilities Vice-President Member of the Finance, Risk and Audit Committee Paul Marsh Qualifications Bachelor of Occupational Therapy (La Trobe University, Bundoora) Graduate Diploma in Ergonomics (University of Queensland, St Lucia) Experience Registered Occupational Therapist specialising in Occupational Rehabilitation. Previous Divisional Council Member (Victoria) 2014 – 2017 Special Responsibilities Vice-President Finance Member of the Remuneration Committee Chair of the Finance, Risk & Audit Committee
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Occupational Therapy Australia Limited
Page 4 of 33
Directors' Report
FINANCIAL REPORTS
Information on directors (continued) Michelle Bissett Qualifications Bachelor of Applied Science (Honours)(Occupational Therapy) Doctor of Philosophy (PhD) Graduate Certificate in Biostatistics Experience Registered occupational therapist with clinical experience in acute and aged care. Currently employed as a Senior Lecturer in Queensland. Special Responsibilities Member of the Remuneration Committee Joanna Murray Qualifications Bachelor of Occupational Therapy Master of Public Health - MBA Experience Occupational Therapist and Director of Access Therapy Services, Sisu7 and Access Health Education. Through these organisations Joanna, and her team, support people across the lifespan in the areas of ageing, disability, mental health, paediatrics, training and education. Margaret McCluskey Qualifications PhD MA DipCOT FOTARA Experience She is a leader in occupational therapy and stroke rehabilitation research, being recently inaugurated as a Fellow of the Occupational Therapy Australia Research Academy (FOTARA). She led the occupational therapy working group which helped write the 2017 national stroke guidelines. Since 2010, she has been an active board director (and treasurer) for Ben Ricketts Environmental Preserve (BREP), and in 2020 Annie joined the board of StrokeEd. Special Responsibilities Member of the Finance, Risk and Audit Committee Leanne Healey Appointed on 23 November 2020 Qualification Bachelor of Occupational Therapy Graduate Diploma of Neuro-Science Experience Leanne has over 34 years of experience as an occupational therapist. Leanne founded Everyday Independence in 1997 and today she is at the helm of a dynamic allied health organisation with over 450 team members (over 200 Occupational Therapists). In 2018, Leanne was awarded Occupational Therapist of the Year at the Australian Allied Health Professional Awards and in 2020 Leanne was awarded The Telstra Business Women’s Award for Medium and Large Business.
OTA ANNUAL REPORT 2020-21 17
Directors' Report
Information on directors (continued) Adam Lo Appointed on 23 November 2020 Qualifications Bachelor of Occupational Therapy Graduate Diploma of Mental Health Graduate Certificate of Trauma, Grief and Loss Counselling Certificate IV in Training and Assessment Experience Adam has over 18 years of experience as an occupational therapist and child and youth mental health clinician. Adam is the World Federation of Occupational Therapists Delegate for Occupational Therapy Australia. He was also a previous member of the Occupational Therapy Australia Queensland Divisional Council. Danette Hocking Resigned on 23 November 2020 Qualifications B App Sc Occupational Therapy Experience Danette has experience in the following industries: Sporting and entertainment, professional and financial services, health and education, child care, process manufacturing, NFP, FMCG, transport and logistics, warehouse and distribution, retail, local and federal government organisations Lynette Mackenzie Resigned on 23 November 2020 Qualifications Dip (COT) Bachelor Applied Science (Occupational Therapy) Bachelor Educational Studies Master Educational Studies Doctor of Philosophy (PhD) Experience Registered Occupational Therapist with experience in ageing, home modifications, general rehabilitation, and cancer survivorship. Currently appointed as an associate professor in occupational therapy at a university level, and am responsible for teaching, research and research supervision. World Federation of Occupational Therapists delegate. Fellow of the Occupational Therapy Australia Research Academy. Co-Chair of the Occupational Therapy Australia Reconciliation Action Plan development group Special Responsibilities Vice President WFOT Delegate Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
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Directors' Report
FINANCIAL REPORTS
Meetings of directors During the financial year, six meetings of directors were held. Attendance by each director during the year was as follows: Director
Directors Meeting
Finance, Risk and Audit Committee
Number eligible to attend Number attended
Number eligible to attend
Number attended
Michelle Bissett
6
5
Priscilla Ennals
6
6
4
4
Leanne Healey
4
3
Danette Hocking
2
2
Adam Lo
4
4
Lynette Mackenzie
2
2
Paul Marsh
6
4
4
4
Margaret McCluskey
6
5
4
4
Carol McKinstry
6
6
Joanna Murray
6
5
2
2
Signed in accordance with a resolution of the Board of Directors:
____________________________ Director: Carol McKinstry Sign date: 16th October 2021
____________________________ Director: Paul Marsh Sign date: 16th October 2021
OTA ANNUAL REPORT 2020-21 19
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FINANCIAL REPORTS
Statement of Profit or Loss and Other Comprehensive Income Occupational Therapy Australia Limited For the year ended 30 June 2021 2021
2020
Membership Income
3,103,459
2,811,532
Conference Income
1,073,585
1,216,969
960,658
971,830
Income
CPD Income Other Income
1,257,447
961,082
Total Income
6,395,149
5,961,413
164,975
170,137
Expenses Administration Expense CPD Expenses
282,601
482,382
Conference Costs
340,156
732,495
Consultants
115,408
73,168
99,913
167,678
2,625,933
2,743,723
30,829
29,720
Depreciation & Amortisation Employee Benefits Expense Finance Costs Grant Expense Marketing Expenses
95,951
32,060
111,418
150,543
Office Expenses
229,732
262,363
Other Expenses
225,401
142,682
Rental Expense
22,211
14,559
Travel & Accommodation Total Expenses
Net Surplus/(Deficit) for the Year Other Comprehensive Income Total Comprehensive Surplus/(Deficit) for the Year
14,428
127,131
4,358,956
5,128,641
2,036,193
832,772
-
-
2,036,193
832,772
OTA ANNUAL REPORT 2020-21 21
Statement of Financial Position Occupational Therapy Australia Limited As at 30 June 2021 NOTES
2021
2020
Cash & Cash Equivalents
4
3,108,984
4,669,744
Trade & Other Receivables
5
170,215
160,530
Other Financial Assets
6
4,607,088
1,163,254
Other Assets
7
28,101
106,369
7,914,388
6,099,897
8
-
33,309
9
2,900,121
2,877,475
10
116,533
157,647
3,016,654
3,068,431
10,931,042
9,168,328
501,976
594,163
Assets Current Assets
Total Current Assets Non-Current Assets Right-of-Use Assets Property, Plant & Equipment Intangibles Total Non-Current Assets Total Assets
Liabilities Current Liabilities Trade & Other Payables
11
Lease Liabilities
12
-
33,316
Employee Benefits
13
188,562
218,088
Contract Liabilities
14
Total Current Liabilities
1,870,071
1,985,073
2,560,609
2,830,640
Non-Current Liabilities Employee Benefits
13
Total Non-Current Liabilities Total Liabilities
Net Assets
65,046
66,198
65,046
66,198
2,625,655
2,896,838
8,305,387
6,271,490
1,710,235
1,710,235
Equity Reserves
15
Accumulated Surplus
16
3,361,949
1,328,052
Equity Transfers from Liquidated Entities
17
3,233,203
3,233,203
8,305,387
6,271,490
Total Equity
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FINANCIAL REPORTS
Statement of Changes in Equity Occupational Therapy Australia Limited For the year ended 30 June 2021 NOTES
2021
2020
Opening Balance
6,271,490
5,036,650
Net Surplus/(Deficit) for the Year
2,036,193
832,772
Statement of Changes in Equity Movement in Equity
Adjustment to Prior Year Retained Earnings
16
(2,296)
-
Reserve Movement
15
-
402,068
8,305,387
6,271,490
Total Statement of Changes in Equity
OTA ANNUAL REPORT 2020-21 23
Statement of Cash Flows Occupational Therapy Australia Limited For the year ended 30 June 2021 2021
2020
5,252,281
6,111,920
(3,285,706)
(4,991,201)
Statement of Cash Flows Cash Flows from Operating Activities Receipts from Customers Payments to Suppliers and Employees Interest Received Net Cash Provided by/(Used in) Operating Activities
247
75,961
1,966,822
1,196,680
Cash Flows from Investing Activities (55,902)
(215,167)
Net Receipts from/(Payments for) Term Deposits
Purchase of Property, Plant and Equipment
(3,443,834)
2,007,108
Net Cash Provided by/(Used in) Investing Activities
(3,499,736)
1,791,941
Cash Flows from Financing Activities Repayment of Lease Liabilities
(27,846)
(33,301)
Net cash (used by) financing activities
(27,846)
(33,301)
(1,560,760)
2,955,320
Net Increase/(Decrease) in Cash and Cash Equivalents Held Cash and Cash Equivalents at Beginning of Year
4,669,744
1,714,424
Cash and Cash Equivalents at End of Financial Year
3,108,984
4,669,744
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FINANCIAL REPORTS
Notes to the Financial Statements Statements Occupational Therapy Australia Limited For the year ended 30 June 2021 The financial report covers Occupational Therapy Australia Ltd as an individual entity. Occupational Therapy Australia Ltd is a not-for-profit company limited by guarantee, incorporated and domiciled in Australia. The functional and presentation currency of Occupational Therapy Australia Ltd is Australian dollars. The financial report was authorised for issue by the Board of Directors on 16 October 2021. Comparatives are consistent with prior periods, unless otherwise stated.
1. Basis of Preparation The financial statements are general purpose financial statements that have been prepared in accordance with the Australian Accounting Standards - Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Act 2012. The Company is a not-for-profit entity for financial reporting purposes under the Australian Accounting Standards. The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. Significant accounting policies adopted in the preparation of these financial statements are presented below and are consistent with prior reporting periods unless otherwise stated.
2. Summary of Significant Accounting Policies As we are currently undergoing a period of minimum changes for accounting standards, there have been no new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') which the entity has adopted in the current financial year. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been adopted early by the organisation. (a) Income Tax The Company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997. (b) Leases For the current year At inception of a contract, the Company assesses whether a lease exists - i.e. does the contract convey the right to control the use of an identified asset for a period of time in exchange for consideration. This involves an assessment of whether: • • •
The contract involves the use of an identified asset - this may be explicitly or implicitly identified within the agreement. If the supplier has a substantive substitution right then there is no identified asset. The Company has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period of use. The Company has the right to direct the use of the asset i.e. decision making rights in relation to changing how and for what purpose the asset is used.
Lessee accounting The non-lease components included in the lease agreement have been separated and are recognised as an expense as incurred. At the lease commencement, the Company recognises a right-of-use asset and associated lease liability for the lease term. The lease term includes extension periods where the Company believes it is reasonably certain that the option will be exercised. The right-of-use asset is measured using the cost model where cost on initial recognition comprises of the lease liability, initial direct costs, prepaid lease payments, estimated cost of removal and restoration less any lease incentives received. OTA ANNUAL REPORT 2020-21 25
Notes to the Financial Statements
2. Summary of Significant Accounting Policies (continued) (b) Leases (continued) Lessee accounting (continued) The right-of-use asset is depreciated over the lease term on a straight line basis and assessed for impairment in accordance with the impairment of assets accounting policy. The lease liability is initially measured at the present value of the remaining lease payments at the commencement of the lease. The discount rate is the rate implicit in the lease, however where this cannot be readily determined then the Company's incremental borrowing rate is used. Subsequent to initial recognition, the lease liability is measured at amortised cost using the effective interest rate method. The lease liability is remeasured whether there is a lease modification, change in estimate of the lease term or index upon which the lease payments are based (e.g. CPI) or a change in the Company's assessment of lease term. Where the lease liability is remeasured, the right-of-use asset is adjusted to reflect the remeasurement or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. Exceptions to lease accounting The Company has elected to apply the exceptions to lease accounting for both short-term leases (i.e. leases with a term of less than or equal to 12 months) and leases of low-value assets. The Company recognises the payments associated with these leases as an expense on a straight-line basis over the lease term. (c) Revenue and other income For the comparative year Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the Company and specific criteria relating to the type of revenue as noted below, has been satisfied. Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates. All revenue is stated net of the amount of goods and services tax (GST). Rendering of services Revenue in relation to rendering of services is recognised upon delivery of the service to the customers. Grant revenue Grant revenue is recognised in the statement of profit or loss and other comprehensive income when the Company obtains control of the grant, it is probable that the economic benefits gained from the grant will flow to the Company and the amount of the grant can be measured reliably. When grant revenue is received whereby the Company incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt. Where Occupational Therapy Australia Ltd receives non-reciprocal contributions of assets from the government and other parties for zero or a nominal value, these assets are recognised at fair value on the date of acquisition in the statement of financial position, with a corresponding amount of income recognised in the statement of profit or loss and other comprehensive income.
26 www.otaus.com.au
Notes to the Financial Statements
FINANCIAL REPORTS
2. Summary of Significant Accounting Policies (continued) (c) Revenue and other income (continued) Revenue from contracts with customers The core principle of AASB 15 is that revenue is recognised on a basis that reflects the transfer of promised goods or services to customers at an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. Revenue is recognised by applying a five-step model as follows: 1. Identify the contract with the customer 2. Identify the performance obligations 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations 5. Recognise revenue as and when control of the performance obligations is transferred Generally, the timing of the payment for sale of goods and rendering of services corresponds closely to the timing of satisfaction of the performance obligations, however where there is a difference, it will result in the recognition of a receivable, contract asset or contract liability. None of the revenue streams of the Company have any significant financing terms as there is less than 12months between receipt of funds and satisfaction of performance obligations. Specific revenue streams The revenue recognition policies for the principal revenue streams of the Company are: Rendering of services Revenue from provision of services (i.e. Conference income, membership fees) is recognised in the accounting period in which the services are rendered. For fixed price contracts, revenue is recognised based on the actual services provided to the end of the reporting period as a proportion of the total services to be provided as the customer receives and uses the benefit simultaneously. Membership fees and Services Revenue from provision of services is recognised in the accounting period in which the services are provided. The membership year runs from 1 July to 30 June. Memberships are payable annually and are not prorated. Revenue is recognised over time as the subscription and membership year unwinds. Statement of financial position balances relating to revenue recognition Contract assets and liabilities Where the amounts billed to customers are based on the achievement of various milestones established in the contract, the amounts recognised as revenue in a given period do not necessarily coincide with the amounts billed to or certified by the customer. When a performance obligation is satisfied by transferring a promised good or service to the customer before the customer pays consideration or the before payment is due, the Company presents the contract as a contract asset, unless the Company's rights to that amount of consideration are unconditional, in which case the Company recognises a receivable. When an amount of consideration is received from a customer prior to the entity transferring a good or service to the customer, the Company presents the contract as a contract liability.
OTA ANNUAL REPORT 2020-21 27
Notes to the Financial Statements
2. Summary of Significant Accounting Policies (continued) (c) Revenue and other income (continued) Grant revenue Government grants are recognised at fair value where there is reasonable assurance that the grant will be received and all grant conditions will be met. Grants relating to expense items are recognised as income over the periods necessary to match the grant to the costs they are compensating. Grants relating to assets are credited to deferred income at fair value and are credited to income over the expected useful life of the asset on a straight-line basis. Donations and bequests Donations and bequests are recognised as revenue when received. Interest revenue Interest is recognised using the effective interest method. (d) Goods and services tax (GST) Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of GST. Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows. (e) Cash and cash equivalents Cash and cash equivalents comprise cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value. Bank overdrafts also form part of cash equivalents for the purpose of the statement of cash flows and are presented within current liabilities on the statement of financial position. (f) Financial instruments Financial instruments are recognised initially on the date that the Company becomes party to the contractual provisions of the instrument. On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for instruments measured at fair value through profit or loss where transaction costs are expensed as incurred). Financial assets All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets. Classification On initial recognition, the Company classifies its financial assets into the following category, those measured at: •
amortised cost
28 www.otaus.com.au
Notes to the Financial Statements
FINANCIAL REPORTS
2. Summary of Significant Accounting Policies (continued) (f) Financial instruments (continued) Financial assets (continued) Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets. Amortised cost Assets measured at amortised cost are financial assets where: • •
the business model is to hold assets to collect contractual cash flows; and the contractual terms give rise on specified dates to cash flows are solely payments of principal and interest on the principal amount outstanding.
The Company's financial assets measured at amortised cost comprise trade and other receivables and cash and cash equivalents in the statement of financial position. Subsequent to initial recognition, these assets are carried at amortised cost using the effective interest rate method less provision for impairment. Interest income, foreign exchange gains or losses and impairment are recognised in profit or loss. Gain or loss on derecognition is recognised in profit or loss. Impairment of financial assets Impairment of financial asset is recognised on an expected credit loss (ECL) basis for the following assets •
financial assets measured at amortised cost
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Company's historical experience and informed credit assessment and including forward looking information. The Company uses the presumption that an asset which is more than 30 days past due has seen a significant increase in credit risk. The Company uses the presumption that a financial asset is in default when: • •
the other part is unlikely to pay its credit obligations to the Company in full, without recourse to the Company to actions such as realising security (if any is held); or the financial asset is more than 90 days past due.
Credit losses are measured as the present value of the difference between the cash flows due to the Company in accordance with the contract and the cash flows expected to be received. This is applied using a probability weighted approach. Trade receivables and contract assets Impairment of trade receivables and contract assets have been determined using the simplified approach in AASB 9 which uses an estimation of lifetime expected credit losses. The Company has determined the probability of non-payment of the receivable and contract asset and multiplied this by the amount of the expected loss arising from default.
OTA ANNUAL REPORT 2020-21 29
Notes to the Financial Statements
2. Summary of Significant Accounting Policies (continued) (f) Financial instruments (continued) Financial Assets (continued) The amount of the impairment is recorded in a separate allowance account with the loss being recognised in finance expense. Once the receivable is determined to be uncollectable then the gross carrying amount is written off against the associated allowance. Where the Company renegotiates the terms of trade receivables due from certain customers, the new expected cash flows are discounted at the original effective interest rate and any resulting difference to the carrying value is recognised in profit or loss. Other financial assets measured at amortised cost Impairment of other financial assets measured at amortised cost are determined using the expected credit loss model in AASB 9. On initial recognition of the asset, an estimate of the expected credit losses for the next 12months is recognised. Where the asset has experienced significant increase in credit risk then the lifetime losses are estimated and recognised. Financial liabilities The Company measures all financial liabilities initially at fair value less transaction costs, subsequently financial liabilities are measured at amortised cost using the effective interest rate method. The financial liabilities of the Company comprise trade and other payables. (g) Property, plant and equipment Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment. Items of property, plant and equipment acquired for nil or nominal consideration have been recorded at the acquisition date fair value. Where the cost model is used, the asset is carried at its cost less any accumulated depreciation and any impairment losses. Costs include purchase price, other directly attributable costs and the initial estimate of the costs of dismantling and restoring the asset, where applicable. Assets measured using the revaluation model are carried at fair value at the revaluation date less any subsequent accumulated depreciation and impairment losses. Periodic, but at least triennial, valuations by external independent valuers are performed. In periods when the assets are not subject to an independent valuation, the Directors conduct Directors' valuations. Revaluations are performed whenever there is a material movement in the value of an asset under the revaluation model. Land and buildings Land and buildings are measured using the revaluation model. Plant and equipment Plant and equipment are measured using the cost model. Depreciation Property, plant and equipment, excluding freehold land, is depreciated on a reducing balance basis over the asset's useful life to the Company, commencing when the asset is ready for use.
30 www.otaus.com.au
Notes to the Financial Statements
FINANCIAL REPORTS
2. Summary of Significant Accounting Policies (continued) (g) Property, plant and equipment (continued) Depreciation (continued) The depreciation rates used for each class of depreciable asset are shown below: Fixed asset class Depreciation rate Buildings 2% Plant and Equipment 40% Leased plant and equipment 8% - 20% Right of use assets 50% At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate. (h) Impairment of non-financial assets At the end of each reporting period the Company determines whether there is any indication that an asset maybe impaired. Where this indicator exists and regardless for indefinite life intangible assets and intangible assets not yet available for use, the recoverable amount of the asset is estimated. Where assets do not operate independently of other assets, the recoverable amount of the relevant cash-generating unit (CGU) is estimated. The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal and the value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit. Where the recoverable amount is less than the carrying amount, an impairment loss is recognised in profit or loss. Reversal indicators are considered in subsequent periods for all assets which have suffered an impairment loss. (i) Trade and other payables Trade and other payables represent the liabilities for goods and services received by the Company during the reporting period that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. (j) Employee benefits Short-term employee benefits Provision is made for the Company’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service, including wages and salaries. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled. The Company’s obligations for short-term employee benefits such as wages and salaries are recognised as apart of current trade and other payables in the statement of financial position.
OTA ANNUAL REPORT 2020-21 31
Notes to the Financial Statements
2. Summary of Significant Accounting Policies (continued) (j) Employee benefits (continued) Other long-term employee benefits Provision is made for employees’ long service leave and annual leave entitlements not expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. Other long-term employee benefits are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures and are discounted at rates determined by reference to market yields at the end of the reporting period on corporate bonds that have maturity dates that approximate the terms of the obligations. Upon the remeasurement of obligations for other long-term employee benefits, the net change in the obligation is recognised in profit or loss as a part of employee benefits expense. The Company’s obligations for long-term employee benefits are presented as non-current provisions in its statement of financial position, except where the Company does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the obligations are presented as current provisions. Defined contribution schemes Obligations for contributions to defined contribution superannuation plans are recognised as an employee benefit expense in profit or loss in the periods in which services are provided by employees. (k) Fair value The Company measures some of its assets at fair value. Fair value is the price the Company would receive to sell an asset in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date. As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset. The fair values of assets that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. To the extent possible, market information is extracted from either the principal market for the asset (i.e. the market with the greatest volume and level of activity for the asset) or, in the absence of such a market, the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset, after taking into account transaction costs and transport costs). For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.
3. Critical Accounting Estimates and Judgements The directors make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances. These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates. The significant estimates and judgements made have been described below.
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Notes to the Financial Statements
FINANCIAL REPORTS
3. Critical Accounting Estimates and Judgements (continued) Key judgements - Employee benefits For the purpose of measurement, AASB 119 Employee Benefits defines obligations for short-term employee benefits as obligations expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related services. As the Company expects that most employees will not use all of their annual leave entitlements in the same year in which they are earned or during the 12 month period that follows (despite an informal Company policy that requires annual leave to be used within 18 months), the Directors believe that obligations for annual leave entitlements satisfy the definition of other long-term employee benefits and, therefore, are required to be measured at the present value of the expected future payments to be made to employees. Key judgements - Impact of COVID-19 A state of emergency was declared in Victoria on 16 March 2020 due to the global coronavirus pandemic, known as COVID-19. This state of emergency has continued to stay in place via subsequent extensions until as at time of this report being issued. To contain the spread of the virus and to prioritise the health and safety of communities, various restrictions have been announced and implemented by the state government, which in turn has impacted the manner in which businesses operate, including the Company. The impact which COVID-19 has had on the Company have been disclosed in the following notes of the financial statements: Note 9 – Property, plant and equipment
2021
2020
4. Cash and Cash Equivalents Cash on Hand Cash at Bank Short-Term Deposits Elspeth Pearson Award Total Cash and Cash Equivalents
268
361
3,052,400
2,494,020
-
2,087,455
56,316
87,908
3,108,984
4,669,744
2021
2020
5. Trade and Other Receivables Trade Receivables Trade Debtors Loss Allowance Total Trade Receivables Other Receivables Total Trade and Other Receivables
153,634
16,733
(725)
(2,058)
152,909
14,675
17,306
145,855
170,215
160,530
2021
2020
(a) Impairment of Receivables Balance at Beginning of the Year Additional Impairment Loss Recognised/(Reversal) Balance at end of the year
2,058
7,847
(1,333)
(5,789)
725
2,058
OTA ANNUAL REPORT 2020-21 33
Notes to the Financial Statements
2021
2020
6. Other Financial Assets Financial Assets at Amortised Cost Term Deposit
4,607,088
1,163,254
Total Financial Assets at Amortised Cost
4,607,088
1,163,254
4,607,088
1,163,254
2021
2020
24,901
103,169
Total Other Financial Assets
7. Other assets Current Prepayment
3,200
3,200
Total Current
WA Security deposit
28,101
106,369
Total Other assets
28,101
106,369
8. Leases Company as a lessee The Company has lease agreements over a its office premises in various states. Information relating to the leases in place and associated balances and transactions are provided below. Terms and conditions of leases The Company had lease over its offices in Queensland and South Australia, which expired in June 2021. 2021
2020
Right-of-Use Assets Offices Premises Less Accumulated Depreciation Total Right-of-Use Assets
66,617
66,617
(66,617)
(33,308)
-
33,309
2021
2020
9. Property, Plant and Equipment Buildings At Independent Valuation
2,830,000
2,830,000
Total Buildings
2,830,000
2,830,000
Leasehold & Building Improvements Accumulated Depreciation
(4,887)
-
Total Leasehold & Building Improvements
(4,887)
-
Computer Equipment At Cost Accumulated Depreciation Total Computer Equipment
64,195
19,009
(20,980)
(4,779)
43,215
14,230
34 www.otaus.com.au Financial Statements
Occupational Therapy Australia Limited
Page 22 of 33
FINANCIAL REPORTS
2021
2020
9. Property, Plant and Equipment (continued) Plant and Equipment 91,827
123,243
Accumulated Depreciation
At Cost
(60,034)
(89,998)
Total Plant and Equipment
31,793
33,245
2,900,121
2,877,475
Total Property, Plant and Equipment
COVID-19 Uncertainty The uncertainty of the impact of COVID-19 has been considered and reflected in the valuation performed during the previous year by the valuers. There has been no material impact to valuation as a result of COVID-19. Independent valuers have included a statement within their valuation reports highlighting that COVID-19 has resulted in there being a significant market uncertainty, with the statement drawing attention to the fact that the onset of COVID-19 has impacted the real estate market but it does not invalidate the valuation nor imply that the valuation cannot be relied upon. In light of the above, the fair value assessment of the company's investment property portfolio as at 30 June 2021 represent a best estimate of the impacts of COVID-19, using information available as at the time of preparing the company's financial statements regarding the conditions existing at the reporting date. 2021
2020
10. Intangible Assets In-House Software Cost
205,567
205,567
Accumulated Amortisation and Impairment
(89,034)
(47,920)
Total In-House Software
116,533
157,647
116,533
157,647
2021
2020
GST Payable
184,126
146,310
Sundry Payables and Accrued Expenses
256,280
383,434
Total Intangible Assets
11. Payables Current
Trade Creditors
61,570
64,419
Total Current
501,976
594,163
Total Payables
501,976
594,163
2021
2020
12. Lease Liabilities Current Leases
-
33,316
Total Current
-
33,316
-
33,316
Total Lease Liabilities
OTA ANNUAL REPORT 2020-21 35 Financial Statements
Occupational Therapy Australia Limited
Page 23 of 33
Notes to the Financial Statements
2021
2020
166,900
197,107
13. Employee Benefits Current Annual Leave Long Service Leave Total Current
21,662
20,981
188,562
218,088
Non Current Long Service Leave
65,046
66,198
Total Non Current
65,046
66,198
253,608
284,286
Total Employee Benefits
Provision for employee benefits represents amounts accrued for annual leave, long service leave and time in lieu. The current portion for this provision includes the total amount accrued for annual leave entitlements and the amounts accrued for long service leave entitlements that have vested due to employees having completed the required period of service. Based on past experience, the Company does not expect the full amount of annual leave and long service leave balances classified as current liabilities to be settled within the next 12 months. However, these amounts must be classified as current liabilities since the Company does not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlement. The non-current portion for this provision includes amounts accrued for long service leave entitlements that have not yet vested in relation to those employees who have not yet completed the required period of service. In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based upon historical data. The measurement and recognition criteria for employee benefits have been discussed in Note 2(j).
2021
2020
14. Contract Liabilities Current Deferred Income
1,870,071
1,985,073
Total Current
1,870,071
1,985,073
1,870,071
1,985,073
2021
2020
1,350,285
1,350,285
Total Contract Liabilities
15. Reserves Asset Revaluation Reserve Reserve OT School of Victoria Clinical Award Total Reserves
359,950
359,950
1,710,235
1,710,235
(a) Asset revaluation reserve The asset revaluation reserve records fair value movements on property, plant and equipment held under the revaluation model.
36 www.otaus.com.au Financial Statements
Occupational Therapy Australia Limited
Page 24 of 33
Notes to the Financial Statements
FINANCIAL REPORTS
15. Reserves (continued) (b) Occupational Therapy School of Victoria reserve The Occupational School of Victoria reserve records the funds donated by the Occupational Therapy Trust Fund and is to be applied by Occupational Therapy Australia for the primary purpose of establishing and operating the Occupational Therapy School of Victoria Clinical Award.
2021
2020
1,328,052
495,280
(2,296)
-
16. Accumulated Surplus Accumulated Surplus Opening Balance 2021 Adjustment to Prior Year Earnings Net Surplus/(Deficit) for the Year Current Year Earnings
2,036,193
832,772
Total Net Surplus/(Deficit) for the Year
2,036,193
832,772
3,361,949
1,328,052
2021
2020
Equity Transfers from Liquidated Entities
(3,233,203)
(3,233,203)
Total Equity Transfers
(3,233,203)
(3,233,203)
2021
2020
2,036,193
832,772 167,678
Total Accumulated Surplus
17. Equity Transfers
18. Cash Flow from Operating Activities Profit/(Loss) for the Year Non-Cash Flows in Surplus/(Deficit): Depreciation and Amortisation
99,913
Loss Allowance
(1,333)
(5,789)
Total Non-Cash Flows in Surplus/(Deficit):
98,580
161,889
(Increase)/Decrease in Trade and Other Receivables
(8,352)
(59,681)
(Increase)/Decrease in Other Assets
78,268
202,221
(115,002)
(214,170)
(92,187)
138,810
Changes in Assets and Liabilities
Increase/(Decrease) in Contract Liabilities Increase/(Decrease) in Trade and Other Payables
(30,678)
134,839
Total Changes in Assets and Liabilities
Increase/(Decrease) in Employee Benefits
(167,951)
202,019
Total Cash Flow from Operating Activities
1,966,822
1,196,680
19. Financial Risk Management The Company's financial instruments consist mainly of deposits with banks, short-term investments, and accounts receivable and payable.
OTA ANNUAL REPORT 2020-21 37 Financial Statements
Occupational Therapy Australia Limited
Page 25 of 33
Notes to the Financial Statements
19. Financial Risk Management (continued) The totals for each category of financial instruments, measured in accordance with AASB 9 as detailed in the accounting policies to these financial statements, are as follows: 2021
2020
Cash and Cash Equivalents
3,108,984
4,669,744
Term Deposits
4,607,088
1,163,254
Financial assets
Trade and Other Receivables Total Financial assets
170,215
160,530
7,886,287
5,993,528
2021
2020
-
33,316
Financial Liabilities Lease Liabilities Trade and Other Payables
501,976
594,163
Total Financial Liabilities
501,976
627,479
2021
2020
11,000
12,890
20. Auditors Remuneration Auditing the Financial Statements Accounts Compilation Total Auditors Remuneration
-
2,110
11,000
15,000
21. Fair Value Measurement The company has the following assets, as set out in the table below, that are measured at fair value on a recurring basis after their initial recognition. The Company does not subsequently measure any liabilities at fair value on a recurring basis and has no other assets or liabilities that are measured at fair value on a non-recurring basis. 2021
2020
Recurring Fair Value Measurements Property, Plant and Equipment (Less Accumulated Depreciation) - Buildings
2,825,113
2,830,000
Total Recurring Fair Value Measurements
2,825,113
2,830,000
Refer to Note 9 Property, plant and equipment for the basis of valuation.
22. Key Management Personnel Compensation Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity are considered key management personnel. The names and positions of executive management are: • •
Ms Samantha Hunter (Chief Executive Officer); and Ms Nicole O'Reilly (Deputy Chief Executive Officer) from 1 July 2020 to 17 September 2020.
The Directors act in an honorary capacity and receive no compensation for their services. During the financial period, travel and out of pocket expenses incurred by the Directors in fulfilling their roles were reimbursed. 38 www.otaus.com.au
Notes to the Financial Statements
FINANCIAL REPORTS
22. Key Management Personnel Compensation (continued) The total remuneration paid to key management personnel of the Company was $281,054 for the year ended 30 June 2021 (2020: $546,140).
23. Related Parties (a) The Company's main related parties are as follows: (i) Key management personnel: Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity are considered key management personnel. For details of remuneration disclosures relating to key management personnel, refer to Note 20: Key Management Personnel Compensation. (b)Transactions with related parties Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.
24. Members' Guarantee The Company is incorporated under the Corporations Act 2001 and 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 $20 each towards meeting any outstandings and obligations of the Company. At 30 June 2021 the number of members was 11,443 (2020: 12,077).
25. Contingencies Other than the following, the Company does not have any contingencies as at 30 June 2021 and 30 June 2020. Occupational Therapy Australia Ltd has provided commercial property as security to Westpac Bank Ltd for the use of Merchant Card facilities. The Company acts as trustee of the Occupational Therapy Australia Research Foundation (the "Trust") and liabilities have been incurred on behalf of the Trust in the Company's capacity as Trustee. To the extent that the Trust is unable to meet any obligations, the trustee may be held liable. Liabilities incurred on behalf of the Trust are therefore not recognised in the financial statements when it is not probable that the Company will have to meet any of those Trust liabilities from its own resources. When it is probable that the Company will have to meet some Trust liabilities, a provision for Trust liabilities will be brought to account. In addition, the Company as trustee has a right to be indemnified out of the Trust assets for any obligation not met by the Trust.
26. Trust Information Occupational Therapy Australia Ltd acted as trustee of the Occupational Therapy Australia Research Foundation Trust ("the Trust") for the financial periods. The Trust has a 30 June year end balance date in accordance with its Trust Deed. The financial information for the Trust is presented below:
OTA ANNUAL REPORT 2020-21 39
Notes to the Financial Statements
26. Trust Information (continued) 2021
2020
Statement of Profit or Loss and Other Comprehensive Income Revenue Interest Received Investment Income Sundry Donations Received
35
485
10,429
22,363
2,495
2,358
Unrealised Gain on Revaluation of Financial Assets
27,130
(18,611)
Total Revenue
40,089
6,595
Accounting fees
4,400
2,250
Auditor's Remuneration
1,630
2,050
20
-
Expenses
Bank Charges
17,336
31,944
Investment Management Fees
DGR Grant
3,803
3,784
Legal Fees
6,600
-
Research Award
1,000
1,000
Subscriptions Total Expenses Total comprehensive surplus/(deficit)
608
-
35,397
41,028
4,692
(34,433)
2021
2020
97,067
123,949
Statement of Financial Position Assets Cash and cash equivalents Financial assets
309,062
275,306
Total Assets
406,129
399,255
Liabilities Sundry Payables
7,432
5,250
Total Liabilities
7,432
5,250
398,697
394,005
Net assets
27. Events after the end of the Reporting Period The financial report was authorised for issue on 16 October 2021 by the Board of Directors The COVID-19 pandemic has created unprecedented economic uncertainty. Actual economic events and conditions in the future may be materially different from those estimated by the Company by the reporting date. As responses by the government continue to evolve, management recognises that it is difficult to reliably estimate with any degree of certainty the potential impact of the pandemic after the reporting date on the Company, its operations, its future results and financial position. Subsequent to year end, the state of emergency in Victoria was extended until 23 September 2021. Any future changes to the Company's operations relating to COVID-19.
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Notes to the Financial Statements
FINANCIAL REPORTS
28. Company Details The registered office of and principal place of business of the Company is: Occupational Therapy Australia Ltd Unit 6, 340 Gore Street Fitzroy Victoria 3065
OTA ANNUAL REPORT 2020-21 41
Directors Declaration Occupational Therapy Australia Limited For the year ended 30 June 2021 The directors of the company declare that: 1.
The financial statements and notes, are in accordance with Division 60 of the Australian Charities and Not-for-profits Commission Act 2012 and: • •
2.
comply with Accounting Standard - Reduced Disclosure Requirements and Australian Charities and Not-for-profits Commission Regulations 2013; and give a true and fair view of the financial position as at 30 June 2021 and of the performance for the year ended on that date of the Company.
In the directors’ opinion there are reasonable grounds to believe that the company 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 the Board of Directors.
Director: Carol McKinstry Sign date: 16th October 2021
Director: Paul Marsh Sign date: 16th October 2021
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FINANCIAL REPORTS
OTA ANNUAL REPORT 2020-21 43
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OTA ANNUAL REPORT 2020-21 45
