ANNUAL FINANCIAL REPORT 2024
For the year ended 30 June 2024
Relationships Australia (NSW) Limited
Directors' report
30 June 2024
The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Relationships Australia (NSW) Limited (referred to hereafter as the 'Company' or 'parent entity') and the entity it controlled at the end of, or during, the year ended 30 June 2024.
Directors
The following persons were Directors of Relationships Australia (NSW) Limited during the whole of the financial year and up to the date of this report, unless otherwise stated:
Stephen Hollings (Chair)
Andrea Christie-David
Kathryn Greiner
Cameron O’Reilly
Katie Moore
Sanjay Sridher
Liz Forsyth
Steve Rust (resigned in November 2023)
Principal activities
The principal activities of the Group are to provide counselling, family mediation, relationship education workshops, professional training and support, and other tailored relationship support services across NSW.
There were no significant changes in the nature of the activities by the Group during the year.
Purpose and objectives
The Group's purpose is reshaping lives together: connecting people and communities.
For 75 years the Group has worked with people, couples, families, workplaces and communities to help them make positive choices about their relationships and life situations, strengthen bonds, and manage conflict and change.
Relationships have the power to transform our lives. By offering services that inform, educate and empower, the Group seeks to spotlight the value of relationships – and support people to give them the time, energy and respect they need to grow and thrive.
Strategy for achieving the objectives
The 2022‐2025 Strategic Plan articulates the following four strategic goals:
Strategic goal 1 – Growth and Innovation
We deliver high social value to funders and investors (credible, proactive policy partner, data insights, impactful, value for money).
Strategic goal 2 – Customer Impact
Our customers trust us to guide them when their relationships are impacting their wellbeing whatever their context or life stage. Using industry leading data and actionable insights, we develop and refine services to meet identified customer needs.
Strategic goal 3 – Connected People
Our engaged workforce reflects the diverse customers we are here to serve, able to flex and scale quickly in response to community and funder need.
Strategic goal 4 – Business Enablement
We are a contemporary, entrepreneurial organisation with modern, efficient operating models that service client needs and outcomes.
Performance measures
Relationships Australia (NSW) Limited continues to demonstrate full compliance with the accreditation standards for the Commonwealth Family Support Program. Industry accreditation standards, which cover a range of governance factors, including clinical governance, are also used to assess and ensure the quality of service provision and to monitor performance regarding HR/employment issues for the Group.
Relationships Australia (NSW) Limited
Directors' report
30 June 2024
The Board and Management monitor compliance with accreditation requirements, financial performance and service activity levels ensuring that the level of contracted service delivery is achieved within budget and in accordance with service contracts and legal requirements.
Client feedback (on process and outcomes of services) and program evaluation data are used to inform the management of teams and individual staff. A range of effectiveness and efficiency key performance indicators relevant to each program is also monitored. This information, in addition to special research projects, informs the review and improvement of service design.
Information on Directors
Name: Dr Stephen Hollings
Title: Non-Executive Director since January 2018 and Chair since November 2022. Qualifications: Qualifications: BA (Hons), PhD, FAICD
Experience and expertise:
Stephen has over three decades of experience as a Chair and Non-Executive Director across commercial organisations, not for profit companies and industry associations. His Board and senior executive experience spans the publishing, technology, health, education and employment sectors.
He also acts as a Board Advisor to Bolton Clarke and is Chair of Global Access Partners' National Standing Committee on Energy, the Environment and Agriculture. He consults to companies on strategy, digital opportunities and challenges, and marketing.
As a CEO and senior executive, he has had extensive experience in highly competitive, customer-driven industries as well as in the “for purpose” sector. He has successfully led businesses through periods of growth and development as well as through times of unprecedented change created by economic turbulence, industry restructuring and disruptive technology.
He is known for providing a strong focus on and a personal commitment to the development of emerging leaders, providing organisations with a robust talent pipeline.
Stephen is also Chair of the National Council of Relationships Australia.
Special responsibilities: Member of the Finance, Audit and Risk Committee
Name: Kathryn Greiner
Title: Non-Executive Director
Qualifications:
Bachelor of Social Work (UNSW), Certificate in Early Childhood, Doctor of Letters (UNSW), AO, MAICD
Experience and expertise: Kathryn has been a member of the Board of Directors since January 2018 and Deputy Chair since December 2023.
Kathryn has contributed in a wide range of leadership positions in public and private companies, government bodies and non‐profit organisations. She is a Director of Paul Ramsay Foundation, Menzies Foundation, ANAM, and Contact Inc. She is also the Chair of Lifestart Co-operative Ltd. She was a Councillor of City of Sydney (1995-2004), participated in the Gonski Review on Education and led Reviews into sectoral education, and Retirement Villages in New South Wales.
Special responsibilities: Member of the Finance, Audit and Risk Committee
Relationships Australia (NSW) Limited
Directors' report
30 June 2024
Name: Andrea Christie-David
Title: Non-Executive Director
Qualifications: M Int Law, Grad Cert Legal Practice, LLB, BA (Linguistics), Cert IV Training & Assessment, GAICD
Experience and expertise: Andrea has been a member of the Board of Directors since June 2015.
Andrea Christie-David is an experienced lawyer, company director and entrepreneur. With a background in social justice and consistent engagement in the community sector, Andrea has always been driven to create positive change in the world. This passion powered her journey through the entrepreneurial landscape when, in 2018, she founded a business that offered a disruptive model of early childhood education and disability support. In 2021 the business was acquired by the largest ASX listed early childhood provider, and since her exit from the business Andrea now finds herself mentoring other startup founders, working with private equity firms and investors to realise the growth opportunities of their investments, and is actively involved in community organisations.
Andrea is also on the Board of the OpenField Arts Festival, the Illawarra Women’s Trauma Recovery Centre, and is an Advisory Board Member of MYP Corporation, a private equity backed SaaS startup.
Andrea holds a Bachelor of Arts, Bachelor of Laws, Graduate Diploma in Legal Practice, Master of International Law, and a Graduate Diploma in Educational Studies. Special responsibilities: Member of the Governance, Remuneration and Nominations Committee
Name: Cameron O’Reilly
Title: Non-Executive Director
Qualifications: BEc (Hons), MPPM, GAICD
Experience and expertise: Cameron has been a member of the Board of Directors since January 2018.
Cameron has worked in government at State and Federal level, has led national industry associations, held public affairs roles in agencies and major corporates, and served on a range of public, not for profit and private sector boards. Cameron is an Associate Director of Marsden Jacob Associates (MJA) an economics, public policy, markets and strategy advisory firm. Previously he held a number of executive roles including Executive Director and Principal Energy Advisor in the NSW Department of Planning, Industry & Environment, Chief Executive of the Aged Care Guild, and Chief Executive of the Energy Retailers Association of Australia.
Aside from being a director of Relationships Australia NSW, Cameron previously served as a Non-Executive Director of Aurora Energy, Mojo Power, TUSMA – the Federal Government’s Telecommunications Universal Service Management Agency - and the Australian fundraising arm of the United Nations Refugee Agency Australia for UNHCR. Special responsibilities: Member of the Governance, Remuneration and Nominations Committee.
Relationships Australia (NSW) Limited
Directors' report
30 June 2024
Name: Katie Moore
Title: Non-Executive Director
Qualifications:
BBus (International Tourism Management), MBA, GAICD
Experience and expertise: Katie has been a member of the Board since June 2021.
Katie is passionate about creating meaningful, lasting change. She holds Senior Executive responsibilities as General Manager – Policy, Research and Strategic Programs at Reconciliation Australia and continues to advise across multiple industries.
In addition to serving as a Non-Executive Director at Relationships Australia NSW, Katie has recently been appointed the Aboriginal Housing Office and is a member of KU Children’s Services Aboriginal and Torres Strait Islander Advisory Committee.
As a UN Women National Committee Australia MBA Scholarship recipient, Katie also became the first Indigenous graduate of University of Sydney’s MBA Program.
Katie is a proud Wiradyuri woman with family connections to Central NSW while having lived mostly on Darug country in Western Sydney.
Special responsibilities: Member of the Governance, Remuneration and Nominations Committee
Name: Sanjay Sridher
Title: Non-Executive Director
Qualifications: MBA, GAICD
Experience and expertise: Sanjay has been a member of the Board of Directors since February 2022.
He has had a varied career, in Australia and the UK, primarily focused on working with the Public Service to design and deliver complex service programs. His current role is as Managing Director at Alvarez & Marsal. His last role with the government was at the NSW Department of Planning, Industry and Environment where he led a portfolio of high profile policy development initiatives and statewide delivery programs to promote a circular economy and effective resource recovery.
Complementing these experiences, he has also worked at senior levels in the private sector, focused on driving business growth through market expansion and strategic mergers and acquisitions.
Sanjay has a Masters of Business Administration from University of Technology, Sydney and was a member of its Industry Advisory Board for over four years. In 2013 he was awarded the UTS Alumni of the Year award for the Faculty of Engineering and IT.
Special responsibilities: Chair of the Finance, Audit and Risk Committee.
Relationships Australia (NSW) Limited
Directors' report
30 June 2024
Name: Liz Forsyth
Title: Non-Executive Director
Experience and expertise: Liz has been a member of the Board of Directors since February 2023.
Liz is currently the Global Lead for ForsythClement a global advisory firm specialising in government and the social services sector. Previously Liz led APM’s Aged Care and Disability Services business and its Strategic Growth function. Prior to that Liz was the Global Industry Lead for Infrastructure, Government and Healthcare, the Global Head of Government and Global Lead for Human and Social in KPMG. She was also the Deputy Chairperson of KPMG Australia until June 2017.
Liz’s driving passion when working is health and social policy reform. She has a long history focusing on issues related to disadvantage, disability and vulnerability, covering the many and varied aspects of the health, human services and aged care. Her professional career has concentrated in this arena, and she has worked in Australia and a range of countries (including the United Kingdom, Canada, United States, India, Kingdom of Saudi Arabia, New Zealand) and at a global level (e.g. with the United Nations and World Bank). She has worked as a Social Worker, Service Manager, Policy and Program Director and Executive in Government.
Liz has been at the forefront of many major social policy reforms across Australia, including reforms in child protection, disability services, domestic and family violence, social housing and aged care. Liz is a Board member at Bridge Housing – a social housing provider in NSW and a Steering Committee member of the Global Social Service Workforce Alliance.
Special responsibilities: Chair of the Governance, Remuneration & Nominations Committee.
Company secretary
The Company Secretaries at the end of the financial year were:
Elisabeth Shaw (BA (Hons); M.Mgt. (Comm.); MProf Ethics; MCFT; GAICD; FAPS (FCCLP; FCCOUNP))
Elisabeth was appointed as company secretary to the Board and all Board Committees in June 2018. Elisabeth is also the Chief Executive Officer.
Chris Last (BSC (HONS); ACMA (UK); MCT (UK); GAICD
Chris was appointed as Company Secretary to the Board and all Board Committees in April 2023. Chris is also the General Manager, Corporate Services.
Meetings of Directors
The number of meetings of the Company's Board of Directors ('the Board') and of each Board committee held during the year ended 30 June 2024, and the number of meetings attended by each Director were:
Held: represents the number of meetings held during the time the Director held office or was a member of the relevant committee.
Relationships Australia (NSW) Limited
Directors' report
30 June 2024
Contributions on winding up
In the event of the Company being wound up, ordinary members are required to contribute a maximum of $20 each. As at 30 June 2024, the number of members was 8 (2023:11).
Insurance and indemnity of auditor
The Group has agreed to indemnify their auditors, PricewaterhouseCoopers, to the extent permitted by law, against any claim by a third party arising from the Company’s breach of their agreement. The indemnity stipulates that the Group will meet the full amount of any such liabilities including a reasonable amount of legal costs. During the year, the Company has not paid a premium in respect of a contract to insure the auditor of the Group or any related entity.
Auditor's independence declaration
A copy of the auditor's independence declaration as required by Subdivision 60C of the Australian Charities and Not-for-profits Commission Act 2012 is set out immediately after this Directors' report.
This report is made in accordance with a resolution of Directors.
On behalf of the Directors
Stephen Hollings Chair
24 October 2024
Auditor’s Independence Declaration
As lead auditor for the audit of Relationships Australia (NSW) Limited for the year ended 30 June 2024, I declare that to the best of my knowledge and belief, there have been no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Relationships Australia (NSW) Limited and the entities it controlled during the period.
Sarah D'Arcy
Partner
Parramatta
PricewaterhouseCoopers 24 October 2024
PricewaterhouseCoopers, ABN 52 780 433 757
Level 1, JAGA, 33 Allara Street, CANBERRA CITY ACT 2601, GPO Box 447, CANBERRA ACT 2601 T: +61 2 6271 3000, F: +61 2 6271 3999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
Australia (NSW) Limited
Consolidated statement of profit or loss and
For the year ended 30 June 2024
(2,234)
Australia (NSW) Limited Consolidated statement of financial position As at 30 June 2024
Relationships Australia (NSW) Limited
Consolidated statement of changes in equity For the year ended 30 June 2024
Consolidated statement of cash flows
For the year ended 30 June 2024
Relationships Australia (NSW) Limited
Notes to the consolidated financial statements
30 June 2024
Note 1. General information
The financial statements cover Relationships Australia (NSW) Limited as a Group consisting of Relationships Australia (NSW) Limited and the entity it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is Relationships Australia (NSW) Limited's functional and presentation currency.
Relationships Australia (NSW) Limited is a not-for-profit unlisted public company limited by guarantee, incorporated and domiciled in Australia. Its registered office and principal place of business is:
Suite 102, Level 1, 68‐72 Waterloo Road, Macquarie Park NSW 2113
A description of the nature of the Group's operations and its principal activities are included in the Directors' report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on 24 October 2024. The Directors have the power to amend and reissue the financial statements.
Note 2. Material accounting policies
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the Group.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The following Accounting Standards and Interpretations are most relevant to the Group:
AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates
The Group has adopted AASB 2021-2 from 1 July 2023. This standard amends AASB Standards to improve accounting policy disclosures so that they provide more useful information to investors and users of the financial statements and clarifies the distinction between accounting policies and accounting estimates. Specifically, AASB 2021-2 amends:
● AASB 7 Financial Instruments: Disclosures, to clarify that information about measurement bases for financial instruments is expected to be material to an entity’s financial statements.
● AASB 101 Presentation of Financial Statements, to require entities to disclose their material accounting policy information rather than their significant accounting policies.
● AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, to clarify how entities should distinguish changes in accounting policies and changes in accounting estimates.
● AASB 134 Interim Financial Reporting, to identify material accounting policy information as a component of a complete set of financial statements.
● AASB Practice Statement 2 Making Materiality Judgements, to provide non-mandatory guidance on how to apply the concept of materiality to accounting policy disclosures.
Basis of preparation
These general purpose financial statements have been prepared in accordance with the Australian Accounting StandardsSimplified Disclosures issued by the Australian Accounting Standards Board ('AASB') and the Australian Charities and Notfor-profits Commission Act 2012, as appropriate for not-for profit oriented entities.
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income and certain classes of property, plant and equipment.
Relationships Australia (NSW) Limited
Notes to the consolidated financial statements
30 June 2024
Note 2. Material accounting policies (continued)
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Relationships Australia (NSW) Limited ('Company' or 'parent entity') as at 30 June 2024 and the results of all subsidiaries for the year then ended. Relationships Australia (NSW) Limited and its subsidiaries together are referred to in these financial statements as the 'Group'.
Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent.
Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.
Revenue recognition
The Group recognises revenue as follows:
Grant income
Grant income is recognised at the point in time when the monies are received, and obligations have been met in relation to the grant program. Funds received in advance of obligations are deferred and recognised over time as income as the related expenses are incurred and obligations are met.
Fees and education revenue
Fees received from rendering of education, training and other services is recognised upon delivery of the services to the customers.
Distribution income
Distribution income is recognised when it is received or when the right to receive payment is established.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Finance income
Finance income is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.
Income tax
As the Group is a tax exempt institution in terms of subsection 50-10 of the Income Tax Assessment Act 1997, as amended, it is exempt from paying income tax.
Relationships Australia (NSW) Limited
Notes to the consolidated financial statements
30 June 2024
Note
2. Material accounting policies
(continued)
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days.
The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is written off.
Financial assets at amortised cost
A financial asset is measured at amortised cost only if both of the following conditions are met: (i) it is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial asset represent contractual cash flows that are solely payments of principal and interest.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the Group's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
Notes to the consolidated financial statements
30 June 2024
Note 2. Material accounting policies
(continued)
For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is recognised in other comprehensive income with a corresponding expense through profit or loss. In all other cases, the loss allowance reduces the asset's carrying value with a corresponding expense through profit or loss.
Property, plant and equipment
Land and buildings are shown at fair value, based on periodic, at least every 3 years, valuations by external independent valuers, less subsequent depreciation and impairment for buildings. The valuations are undertaken more frequently if there is a material change in the fair value relative to the carrying amount. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Increases in the carrying amounts arising on revaluation of land and buildings are credited in other comprehensive income through to the revaluation surplus reserve in equity. Any revaluation decrements are initially taken in other comprehensive income through to the revaluation surplus reserve to the extent of any previous revaluation surplus of the same asset. Thereafter the decrements are taken to profit or loss.
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows:
Buildings
Leasehold improvements
Plant and equipment
Motor vehicle
25 years
3-5 years
2-7 years
5 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits.
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.
Relationships Australia (NSW) Limited
Notes to the consolidated financial statements
30 June 2024
Note 2. Material accounting policies (continued)
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.
Trade and other payables
Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
Provisions
Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past event, it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market.
Relationships Australia (NSW) Limited
Notes to the consolidated financial statements
30 June 2024
Note 2. Material accounting policies (continued)
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Comparative figures
Comparatives have been realigned where necessary, to be consistent with current year presentation. There was no effect on deficit, net assets, or equity.
Rounding of amounts
The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
Note 3. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. There are no critical accounting judgements, estimates and assumptions that are likely to affect the current or future financial years.
Note 4. Revenue
Note 4. Revenue (continued)
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Relationships Australia (NSW) Limited
Notes to the consolidated financial statements
30 June 2024
Note 5. Expenses
Deficit includes the following specific expenses:
Note 6. Cash and cash equivalents
Note 7. Trade receivables
Trade debtors are shown net of impairment losses of $165,884 (2023: $39,000). The amounts written off for the year ended 30 June 2024 were $nil (2023: $8,000).
Note 8. Financial assets at amortised cost
Relationships Australia (NSW) Limited
Notes to the consolidated financial statements 30 June 2024
Note 9. Other assets
Note 10. Property, plant and equipment
Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial year are set out below:
Valuations of land and buildings
The basis of the valuation of land and buildings is fair value. The land and buildings were revalued on 30 June 2024 based on independent assessments by Preston Rowe Paterson Newcastle and Central Coast Pty Ltd, [a member of the Australian Property Institute] having recent experience in the location and category of land and buildings being valued. Valuations are based on current prices for similar properties in the same location and condition.
Notes to the consolidated financial statements 30 June 2024
Note 10. Property, plant and equipment (continued)
Market value is determined by estimating the rental value of the property, which has then been capitalised at an appropriate rate of return. The resulting value for the property was then checked against the sales evidence for a range of commercial and retail premises in comparable locations.
Note 11. Right-of-use assets
Additions to the right-of-use assets during the year were $4,598,000 and the remeasurement and disposals total $446,000 and depreciation charged to profit or loss was $2,327,000.
The Group leases land and buildings for its offices under agreements of between 1 to 5 years with, in some cases, options to extend. The leases have various escalation clauses. On renewal, the terms of the leases are renegotiated.
The Group leases office equipment under agreements of less than 1 year. These leases are either short-term or low-value, so have been expensed as incurred and not capitalised as right-of-use assets.
Note 12. Trade and other payables
Note 13. Grants received in advance
Notes to the consolidated financial statements
Note 14. Lease liabilities
Note 15. Provisions
Lease make good
The provision represents the present value of the estimated costs to make good the premises leased by the Group at the end of the respective lease terms. Movements in provision
Note 16. Reserves
Relationships Australia (NSW) Limited
Notes to the consolidated financial statements 30 June 2024
Note 16. Reserves (continued)
Revaluation surplus reserve
The reserve is used to recognise increments and decrements in the fair value of land and buildings, excluding investment properties.
Movements in reserves
Movements in each class of reserve during the current financial year are set out below:
Note 17. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by PricewaterhouseCoopers, the auditor of the Company:
Note 18. Contingent liabilities
The Group has given bank guarantees as at 30 June 2024 of $813,000 (2023: $813,000) to various landlords.
Note 19. Key management personnel disclosures
Compensation
The aggregate compensation made to Directors and other members of key management personnel of the Group is set out below:
Note 20. Related party transactions
Parent entity
Relationships Australia (NSW) Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 21.
Relationships Australia (NSW) Limited
Notes to the consolidated financial statements
30 June 2024
Note 20. Related party transactions (continued)
Key management personnel
Disclosures relating to key management personnel are set out in note 19.
Transactions with related parties
There were no transactions with related parties during the current and previous financial year.
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Note 21. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiary in accordance with the accounting policy described in note 2:
Principal place of business / 2024 2023
incorporation
RASE Pty Limited Australia
Note 22. Economic dependency
The Group is reliant on the ongoing receipt of financial assistance from the Australian government to continue delivering its programs.
During the year ended 30 June 2024, the Group received funding in excess of $39 million (2023: $40 million) from various government sources including Australian Government Department of Social Services; Attorney-General's Department; NSW Department of Communities and Justice, NSW Ministry of Health, Prevention and Response to Violence, Abuse and Neglect; NSW Department of Juvenile Justice, Attorney General and Justice; and Legal Aid NSW.
As at 30 June 2024, the Directors have no reason to believe that the government grants will not continue.
Note 23. Events after the reporting period
No matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years.
Relationships Australia (NSW) Limited
Directors' declaration
30 June 2024
In the Directors' opinion:
● the attached financial statements and notes comply with the Australian Accounting Standards - Simplified Disclosures, the Australian Charities and Not-for-profits Commission Act 2012 and other mandatory professional reporting requirements;
● the attached financial statements and notes give a true and fair view of the Group's financial position as at 30 June 2024 and of its performance for the financial year ended on that date; and
● there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of Directors.
On behalf of the Directors
Stephen Hollings Chair
24 October 2024
Independent auditor’s report
To the members of Relationships Australia (NSW) Limited
Our opinion
In our opinion:
The accompanying financial report of Relationships Australia (NSW) Limited (the Company) and its controlled entities (together the Group) is in accordance with Division 60 of the Australian Charities and Not-for-profits Commission (ACNC) Act 2012, including:
(a) giving a true and fair view of the Group's financial position as at 30 June 2024 and of its financial performance for the year then ended
(b) complying with Australian Accounting Standards - Simplified Disclosures and Division 60 of the Australian Charities and Not-for-profits Commission Regulations 2022
What we have audited
The financial report comprises:
• the consolidated statement of financial position as at 30 June 2024
• the consolidated statement of changes in equity for the year then ended
• the consolidated statement of cash flows for the year then ended
• the consolidated statement of profit or loss and other comprehensive income for the year then ended
• the notes to the consolidated financial statements, including material accounting policy information and other explanatory information
• the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (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.
PricewaterhouseCoopers, ABN 52 780 433 757
Level 1, JAGA, 33 Allara Street, CANBERRA CITY ACT 2601, GPO Box 447, CANBERRA ACT 2601
T: +61 2 6271 3000, F: +61 2 6271 3999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report for the year ended 30 June 2024, but does not include the financial report and our auditor’s report thereon. Prior to the date of this auditor's report, the other information we obtained included Director's report .
Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon through our opinion on the financial report.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards - Simplified Disclosures and the Australian Charities and Not-for-profits Commission (ACNC) Act 2012 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar3.pdf. This description forms part of our auditor's report.
PricewaterhouseCoopers
Sarah D'Arcy
Partner
Parramatta
24 October 2024