Spinal Cord Injuries Australia ABN: 93 001 263 734
Financial Statements For the Year Ended 30 June 2015
Spinal Cord Injuries Australia ABN: 93 001 263 734
Contents For the Year Ended 30 June 2015
Page Financial Statements Directors' Report Auditors Independence Declaration under Section 307C of the Corporations Act 2001 Statement of Profit or Loss and Other Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements Directors' Declaration Independent Audit Report
1 7 8 9 10 11 12 24 25
Spinal Cord Injuries Australia ABN: 93 001 263 734
Directors' Report For the Year Ended 30 June 2015
Your directors present their report on Spinal Cord Injuries Australia for the financial year ended 30 June 2015. 1.
General information Directors The names of the directors in office at any time during, or since the end of, the year are: David Brawn Director 2006 *Antony Varrall Deputy President 2007 Appointed 1997 (excluding *Richard Klinger Director 2005-2007) *David O’Brien Director 1996 Brad O’Hara Chairman 2010 Anna-Maria Arabia Director 2012 Stewart Calderwood Director 2012 *Joan Hume Director 2012 Appointed 2013 Deceased *Edward Watts Director 2015 Appointed in 2014 Ceased in 2015 *Mark Tonga Director Peter Perry Company Secretary 2007 Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. * Denotes a person with disability Directors The names of the directors in office at any time during, or since the end of, the year are: David Brawn Experience
*Antony Varrall Experience
David holds a Bachelor of Science in Physics and Maths from London University, a Masters in Business Studies from the London Business School and a Diploma with Order of Merit from the Australian Institute of Company Directors. He was CEO of Telstra eBusiness Pty Ltd, a subsidiary of Telstra Corporation, before he retired in 2003. David is a Past District Governor of Rotary District 9750.
Tony had just completed his first year of Industrial Arts High School Teaching when he had a motorcycle accident breaking his back at the T6 level in January 1979. He returned to full-time High School Teaching at the start of 1980 which he enjoyed until he decided to retire at the start of 2005. Tony was a member of Kuringai Council’s Access Committee from 2000 to 2003. In 2006, he became an ambassador for Spinal Cord Injuries Australia and joined the Board of SCIA towards the end of 2007. Tony took on the role of SCIA President following the sad passing away of David Brice in 2012. He is a member of the CEO Liaison, Finance and Audit and Member Issues sub Committees. He says he is proud to be involved with such a great organisation that is doing so much for the disabled in our community.
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Spinal Cord Injuries Australia ABN: 93 001 263 734
Directors' Report For the Year Ended 30 June 2015 Directors (Cont'd) *Richard Klinger Experience
Richard was the Chairman of SCIA (AQA) from 1998–2001, President from 1999–2000, and a member of the Community Housing Advisory Committee from 2000–01. He is a past director and Chairman of Sargood Centre Pty Ltd. Richard’s background is in the civil construction engineering field and his present occupation is Managing Director of equibuilt, a Building Services Company.
*David O’Brien Experience
Brad O’Hara Experience
David holds a Bachelor of Business Administration and works for the Audit Office of NSW. He is a member of SCIA’s Finance and Audit Sub-Committee.
Brad is currently employed with The National Roads & Motorists Association and heads up the Lifestyle & Entertainment programs within the NRMA Group. Brad has over 20 years corporate experience with varying roles and responsibilities. His working life has exposed him to diverse community groups and this has helped him understand the unique challenges that these groups face and how corporates and the not for profit sector can work together successfully to deliver on common goals. Brad is passionate about helping in the community, having developed strategies and implemented community engagement programs at NRMA and acted as a volunteer for a number of charities and not for profits. He is also keen to explore new uses of communication and motoring technologies to further educate, engage and drive positive change in community attitudes towards people with spinal cord injury. Brad is a recipient of the Government of New South Wales medal for community service, a Member of the Institute of Automotive Mechanical Engineers and a Member of the Australian Institute of Company Directors. Brad uses his corporate knowledge and experience to strongly advocate for people with spinal cord injury so that they too can gain the independence and quality of life that others enjoy.
Anna-Maria Arabia Experience
Anna-Maria is currently Director of Policy to the Hon Bill Shorten MP, Leader of the Federal Opposition. She is a trained neuroscientist having undertaken her under graduate and post graduate training at the University of Melbourne, the Baker IDI Heart and Diabetes Institute in Melbourne, and the Mario Negri Pharmacological Research Institute in Milan. Anna-Maria was formerly General Manager of Questacon - the National Science and Technology Centre. She has held political advisory roles in both social and economic portfolios in federal government and opposition, has been in involved in policy development in the federal bureaucracy, and in efforts to foster international cooperation in the area of science and technology. Anna-Maria wishes to use her advocacy, political, and research skills to influence policy outcomes and assist others reach their potential. Anna-Maria holds a personal commitment to social justice and equity and is committed to Spinal Cord Injuries Australia's mission.
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Spinal Cord Injuries Australia ABN: 93 001 263 734
Directors' Report For the Year Ended 30 June 2015 Directors (Cont'd) Stewart Calderwood Experience
Stewart is currently Director at Ord Minnett. He has corporate background in the finance sector with over 25 years experience in London and Australia. He has client relationship management experience in a wide range of institutional and corporate clients. Stewart suffered a spinal injury in 1994, in a diving accident, was left temporarily paralysed and went through intensive therapy within a spinal unit which undoubtedly aided the recovery. Stewart subsequently became involved with the Back Up Trust, a UK charity assisting those paralysed through spinal cord injury to inspire independence and to encourage everyone to get the most from their lives. Stewart moved to Australia several years ago and wanted to be involved with a charity addressing the needs of people with spinal cord injury which is passionate about transforming lives. Stewart will use his corporate and financial back ground to bring the needs of the charity and its members to the awareness of the Corporate Sector.
*Joan Hume Experience
Joan’s long standing commitment to and involvement in disability and community activism was interrupted in 2000 with a diagnosis of leukaemia from which she is now in remission. A further bout of cancer in 2008 compounded her withdrawal from public activities until recovery. Joan decided to stand for the board of Spinal Cord Injuries again because she believes she can still make a valuable contribution to the development of the organisation with which she had an association for 35 years. Joan holds a B.A. Dip Ed., MA (English Literature), Sydney University and has been awarded the Medal of the Order of Australia (OAM) awarded in 1982 for services to people with disabilities, the Australian Human Rights Awards 1991: Print Magazine Category – Highly Commended – A Portfolio of Writings promoting the rights of People with Disabilities and the Australian Achievement Award 1994 for Media Guidelines on using appropriate language about people with disabilities. Joan has a passionate commitment to advocacy, the promotion of the rights and full participation of people with disabilities in all aspects of community life. Apart from the experience of decades in both mainstream and disability education, Joan brings well-honed writing and policy development skills, familiarity with management and collaborative board participation expertise.
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Spinal Cord Injuries Australia ABN: 93 001 263 734
Directors' Report For the Year Ended 30 June 2015
Principal activities The principal activity of Spinal Cord Injuries Australia during the financial year was the provision of range of services designed to maximise personal independence for all members and clients. 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: • • •
To advance the rights, choices and entitlements of people living with a spinal cord injury. To do whatever it takes to create and maintain relevant services for people with spinal cord injury and similar conditions. To position Spinal Cord Injuries Australia as the recognised leader in all matters relating to spinal cord injury
Strategy for achieving the objectives To achieve these objectives, the company has adopted the following strategies: •
Create a one-stop shop for advice, referral and services a) Deliver a compelling member value proposition in a rapidly-changing environment b) Further develop customer relationship management and client analysis capabilities c) Further develop program logic and evaluation d) Centralise all client intake, reporting, follow-up and evaluation activities e) Bring whole organisation to the client
•
Invest in infrastructure and people a) Upgrade business systems to ensure outstanding customer service in the new world b) Redevelop Little Bay site to streamline operations and enhance staff capability c) Further advance position as an employer of choice and learning organisation d) Ensure people are fully prepared for rapid change in an evolving sector
•
Build on what we do well a) Double the number of clients with SCI by 2018 b) Offer relevant services to: - other disability types as appropriate - pediatric clients where possible - new geographies across Australia, as appropriate c) Redesign existing services to respond to emerging client needs d) Consider the impact of ageing with a disability across all services e) Further build on policy influence at local, State and Federal level
•
Stay open to, and act on opportunities as they arise a) Closely monitor developments in relation to person centred approaches in NSW b) Closely monitor developments in relation to the NDIS launch sites nationally c) Develop new service offerings as opportunities arise d) Actively seek new ADE contracts across Australia
•
Build partnerships a) Build on existing relationships with hospitals, clinicians, researchers, employers b) Develop corporate partnerships to bolster funding, member benefit & capability c) Partner with like-minded organisations to enhance services and member benefits d) Consider mergers to achieve greater scale, scope and efficiency e) Further build on strong organisational profile, within Australia and internationally
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Spinal Cord Injuries Australia ABN: 93 001 263 734
Directors' Report For the Year Ended 30 June 2015 Strategy for achieving the objectives (Cont'd) •
Pursue a National Spinal Strategy / Chair in SCI Research a) Formalise National Alliance with other State-based SCI community organisations b) Drive the implementation of a National Spinal Strategy through the National Alliance c) Partner with Spinal Cure Australia / others to create a Chair in SCI Research in NSW
How principal activities assisted in achieving the objectives The principal activities assisted the company in achieving its objectives through the alignment of each department’s and individual’s performance plans to the strategic plan, with individual and departmental key performance indicators. Performance measures The following measures are used within the company to monitor performance: • • •
Key performance measures at the departmental level, appropriate to the needs of each department Key performance measures at the individual level, flowing from the departmental measures Social Return on Investment, to measure the social value being created through each program area
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 2015 the number of members was 1,063 (2014: 936). At 30 June 2015 the collective liability of members was $ 21,260 (2014: $ 18,720). Meetings of directors During the financial year, 12 meetings of directors were held. Attendances by each director during the year were as follows: David Brawn *Antony Varrall *Richard Klinger *David O’Brien Brad O’Hara *Mark Tonga Anna-Maria Arabia Stewart Calderwood *Joan Hume *Edward Watts
6 12 12 12 12 2 12 12 12 12
6 11 12 9 10 2 8 12 12 8
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Spinal Cord Injuries Australia ABN: 93 001 263 734
Directors' Report For the Year Ended 30 June 2015
Auditor's independence declaration The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for the year ended 30 June 2015 has been received and can be found on page 7 of the financial report. ordance with a resolution resolu lu ut Signed in accordance of the Board of Directors:
................................... Director: ............................................................... David Brawn
Director: ................................................................ Brad O’Hara
Dated 27 October 2015
6
Auditors Independence Declaration under Section 307C of the Corporations Act 2001 to the Directors of Spinal Cord Injuries Australia I declare that, to the best of my knowledge and belief, during the year ended 30 June 2015, there have been: (i)
no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and
(ii)
no contraventions of any applicable code of professional conduct in relation to the audit.
PKF Chartered Accountants
SCOTT TOBUTT Partner
Dated: 27 October 2015 Sydney, NSW
PKF(NS) Audit & Assurance Limited Partnership ABN 91 850 861 839
Liability limited by a scheme approved under Professional Standards Legislation
Sydney
Newcastle
Level 8, 1 O’Connell Street Sydney NSW 2000 Australia GPO Box 5446 Sydney NSW 2001
755 Hunter Street Newcastle West NSW 2302 Australia PO Box 2368 Dangar NSW 2309
p f
p f
+61 2 8346 6000 +61 2 8346 6099
+61 2 4962 2688 +61 2 4962 3245
PKF International Limited administers a network of legally independent firms which carry on separate business under the PKF Name. PKF International Limited is not responsible for the acts or omissions of individual member firms of the network. For office locations visit www.pkf.com.au
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Spinal Cord Injuries Australia ABN: 93 001 263 734
Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 30 June 2015 2015 Note
2014
$ 8,203,547 10,673 (3,099,442) (3,229,629) (77,824) (2,187,731)
7,991,691 98,183 (3,115,165) (3,085,274) (90,152) (2,056,752)
(Deficit)/Surplus before income tax Income tax expense
(380,406) -
(257,469) -
(Deficit)/Surplus for the year
(380,406)
(257,469)
Other comprehensive income: Profit/(Loss) on available for sale investments
(63,838)
148,599
Other comprehensive income for the year
(63,838)
148,599
Total comprehensive income for the year
(444,244)
(108,870)
Revenue Other income Community development expenses Community services expenses Direct costs of fundraising Administration and marketing
2 2
$
The accompanying notes form part of these financial statements. 8
Spinal Cord Injuries Australia ABN: 93 001 263 734
Statement of Financial Position As At 30 June 2015
Note ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Financial assets
2015
2014
$
$
481,120 541,788 2,621,522
1,736,319 510,937 2,530,873
3,644,430
4,778,129
483,065 1,643,360
513,223 909,348
TOTAL NON-CURRENT ASSETS
2,126,425
1,422,571
TOTAL ASSETS
5,770,855
6,200,700
827,758 633,918
816,968 634,632
1,461,676
1,451,600
67,679
63,356
67,679
63,356
TOTAL LIABILITIES
1,529,355
1,514,956
NET ASSETS
4,241,500
4,685,744
EQUITY Reserves Retained Surpluses
349,026 3,892,474
412,865 4,272,879
TOTAL EQUITY
4,241,500
4,685,744
4 5 6
TOTAL CURRENT ASSETS NON-CURRENT ASSETS Financial assets Property, plant and equipment
LIABILITIES CURRENT LIABILITIES Trade and other payables Short-term provisions
6 7
8 9
TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Long-term provisions
9
TOTAL NON-CURRENT LIABILITIES
The accompanying notes form part of these financial statements. 9
Spinal Cord Injuries Australia ABN: 93 001 263 734
Statement of Changes in Equity For the Year Ended 30 June 2015
Balance at 1 July 2014
Available for Sale Reserve
Retained Surpluses
Total
$
$
$
Gain/(Loss) on available for sale investments Deficit attributable to members of the entity
412,865 (63,838) -
4,272,879 (380,406)
4,685,744 (63,838) (380,406)
Balance at 30 June 2015
349,027
3,892,473
4,241,500
Balance at 1 July 2013 Gain on available for sale investments Deficit attributable to members of the entity
264,266 148,599 -
4,530,348 (257,469)
4,794,614 148,599 (257,469)
Balance at 30 June 2014
412,865
4,272,879
4,685,744
The accompanying notes form part of these financial statements. 10
Spinal Cord Injuries Australia ABN: 93 001 263 734
Statement of Cash Flows For the Year Ended 30 June 2015
Note
2015
2014
$
$
CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers Payments to suppliers and employees Donations received Interest received Receipt from grants
2,964,986 (8,231,840) 756,356 94,307 4,210,366
2,540,471 (7,956,614) 994,401 108,753 4,191,644
Net cash (used in)/provided by operating activities
(205,825)
(121,345)
CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of plant and equipment Purchase of property, plant and equipment
98,205 (1,147,579)
74,700 (229,685)
Net cash used in investing activities
(1,049,374)
(154,985)
(1,255,199) 1,736,319
(276,330) 2,012,649
481,120
1,736,319
CASH FLOWS FROM FINANCING ACTIVITIES: Net (decrease)/increase in cash and cash equivalents held Cash and cash equivalents at beginning of year Cash and cash equivalents at end of financial year
4
The accompanying notes form part of these financial statements. 11
Spinal Cord Injuries Australia ABN: 93 001 263 734
Notes to the Financial Statements For the Year Ended 30 June 2015
The financial statements are for Spinal Cord Injuries Australia as a not-for-profit individual entity. 1
Summary of Significant Accounting Policies (a)
Basis of Preparation The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated. The financial statements 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.
(b)
Comparative figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.
(c)
Property, plant and equipment Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses. Plant and equipment Plant and equipment are measured on the cost basis less depreciation and impairment losses. Cost includes expenditure that is directly attributable to the asset. Plant and equipment that have been contributed at no cost, or for nominal cost are valued and recognised at the fair value of the asset at the date it is acquired. Depreciation The depreciable amount of all fixed assets and capitalised leased assets is depreciated on a straight-line basis over the asset's useful life to the Company commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.
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Spinal Cord Injuries Australia ABN: 93 001 263 734
Notes to the Financial Statements For the Year Ended 30 June 2015
1
Summary of Significant Accounting Policies (Cont'd) (c)
Property, plant and equipment (Cont'd) The depreciation rates used for each class of depreciable asset are shown below: Class of Fixed Asset Leasehold improvements Plant and Equipment Motor Vehicles
Depreciation rate 20% 10 - 25% 15%
The assets' residual values, depreciation methods and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of profit or loss and other comprehensive income. (d)
Financial instruments Initial recognition and measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the instrument. For financial assets, this is the equivalent to the date that the company commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured at fair value plus transactions costs, except where the instrument is classified 'at fair value through profit or loss' in which case transaction costs are expensed to profit or loss immediately. Classification and subsequent measurement Financial instruments are subsequently measured at either fair value, amortised cost using the effective interest rate method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in an arm's length transaction. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is calculated as: (a)
the amount at which the financial asset or financial liability is measured at initial recognition;
(b)
less principal repayments;
(c)
plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the maturity amount calculated using the effective interest method; and
(d)
less any reduction for impairment.
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Spinal Cord Injuries Australia ABN: 93 001 263 734
Notes to the Financial Statements For the Year Ended 30 June 2015
1
Summary of Significant Accounting Policies (Cont'd) (d)
Financial instruments (Cont'd) The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss. The classification of financial instruments depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and at the end of each reporting period for held-to-maturity assets. The company does not designate any interest as being subject to the requirements of accounting standards specifically applicable to financial instruments. (i)
Financial assets at fair value through profit or loss
Financial assets are classified at ‘fair value through profit or loss’ when they are either held for trading for the purpose of short-term profit taking, derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying value being included in profit or loss. (ii)
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Loans and receivables are included in current assets, except for those which are not expected to mature within 12 months after the end of the reporting year. (iii)
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments. Available-for-sale financial assets are included in non-current assets, except for those which are expected to be sold within 12 months after the end of the reporting period.
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Spinal Cord Injuries Australia ABN: 93 001 263 734
Notes to the Financial Statements For the Year Ended 30 June 2015
1
Summary of Significant Accounting Policies (Cont'd)
(d)
Financial instruments (Cont'd) Fair value Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm's length transactions, reference to similar instruments and option pricing models. Impairment Objective evidence that a financial asset is impaired includes default by a debtor, evidence that the debtor is likely to enter bankruptcy or adverse economic conditions in the stock exchange. At the end of each reporting period, the Company assesses whether there is objective evidence that a financial asset has been impaired through the occurrence of a loss event. In the case of available-for-sale financial instruments, a significant or prolonged decline in the value of the instrument is considered to indicate that an impairment has arisen. Where a subsequent event causes the amount of the impairment loss to decrease (e.g. payment received), the reduction in the allowance account (provision for impairment of receivables) is taken through profit and loss. However, any reversal in the value of an impaired available for sale asset is taken through other comprehensive income rather than profit and loss. Impairment losses are recognised through an allowance account for loans and receivables in the statement of profit or loss and other comprehensive income. Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss. When available-for-sale investments are sold, the accumulated fair value adjustments recognised in other comprehensive income are reclassified to profit or loss.
(e)
Impairment of non-financial assets At the end of each reporting period the company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. Value in use is either the discounted cash flows relating to the asset or depreciated replacement cost if the criteria in AASB 136 'Impairment of Assets' are met. Any excess of the asset's carrying value over its recoverable amount is expensed to the statement of profit or loss and other comprehensive income. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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Spinal Cord Injuries Australia ABN: 93 001 263 734
Notes to the Financial Statements For the Year Ended 30 June 2015
1
Summary of Significant Accounting Policies (Cont'd) (e)
Impairment of non-financial assets (Cont'd) Where an impairment loss on a revalued asset is identified, this is debited against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that same class of asset.
(f)
Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, which are convertible to a known amount of cash and subject to an insignificant risk of change in value, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position.
(g)
Provisions Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.
(h)
Trade and other payables Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the Company during the reporting period which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.
(i)
Employee benefits Provision is made for the company's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. Those cashflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cashflows.
(j)
Income tax No provision for income tax has been raised as the company is exempt from income tax under Div 50 of the Income Tax Assessment Act 1997.
(k)
Leases Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that are transferred to the company are classified as finance leases.
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Spinal Cord Injuries Australia ABN: 93 001 263 734
Notes to the Financial Statements For the Year Ended 30 June 2015
1
Summary of Significant Accounting Policies (Cont'd) (k)
Leases (Cont'd) Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for that period. Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the company will obtain ownership of the asset or over the term of the lease. Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the life of the lease term.
(l)
Revenue and other income The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of Spinal Cord Injuries Australia's activities as discussed below. Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. Any consideration deferred is treated as the provision of finance and is discounted at a rate of interest that is generally accepted in the market for similar arrangements. The difference between the amount initially recognised and the amount ultimately received is interest revenue. Rendering of services Revenue in relation to rendering of services is recognised depending on whether the outcome of the services can be measured reliably. If this is the case then the stage of completion of the services is used to determine the appropriate level of revenue to be recognised in the period. If the outcome cannot be reliably measured then revenue is recognised to the extent of expenses recognised that are recoverable. Grant revenue Grant revenue is recognised in the statement of profit or loss and other comprehensive income when the entity obtains control of the grant, it is probable that the economic benefits gained from the grant will flow to the entity and the amount of the grant can be measured reliably. When grant revenue is received whereby the entity 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. Spinal Cord Injuries Australia 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.
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Spinal Cord Injuries Australia ABN: 93 001 263 734
Notes to the Financial Statements For the Year Ended 30 June 2015
1
Summary of Significant Accounting Policies (Cont'd)
(l)
Revenue and other income (Cont'd) Donations and collections Collections, donations and bequests are recognised as revenue when received. Directors acknowledge cash donations may be misstated due to the inherent nature of these items, however processes have been implemented that mitigate the risk to an acceptably low level. Interest revenue Interest is recognised using the effective interest method, which for floating rate financial assets is the rate inherent in the instrument. All revenue is stated net of the amount of goods and services tax (GST).
(m)
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). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the statement of cash flows are included on a gross basis, except for the GST component of investing and financing activities which are disclosed as operating cash flows.
(n)
Critical accounting estimates and judgments The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Company. The directors did not make any critical accounting estimates or judgments in the financial statements preparation.
(o)
Adoption of new and revised accounting standards The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods. The directors do not expect the adoption of these standards to have any impact on the reported position or performance of the company.
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Spinal Cord Injuries Australia ABN: 93 001 263 734
Notes to the Financial Statements For the Year Ended 30 June 2015
2
2015
2014
$
$
Revenue and Other Income Revenue from continuing operations Sales revenue - Fee income - Donations - Interest income - Residents contribution - Government subsidies and grants
2,845,369 756,356 250,000 141,456 4,210,366
2,541,493 994,401 234,876 119,777 4,101,144
8,203,547
7,991,691
1,661 9,012
2,409 95,774
10,673 8,214,220
98,183 8,089,874
Expenses Depreciation Depreciation - leasehold improvements Depreciation - plant and equipment Depreciation - motor vehicles
15,855 221,088 74,240
28,370 105,135 82,225
Total Depreciation
311,183
215,730
22,500 4,698,652 430,843
21,750 4,502,928 475,742
8,500 472,620
8,500 1,727,819
481,120
1,736,319
Other revenue - Gain on disposal of non-current assets - Sundry income Total Revenue 3
Result for the Year (a)
Audit fees Employee benefits expense Rental expense on operating leases 4
Cash and cash equivalents Cash on hand Cash at bank
19
Spinal Cord Injuries Australia ABN: 93 001 263 734
Notes to the Financial Statements For the Year Ended 30 June 2015
5
2015
2014
$
$
480,938 60,850
302,437 208,500
541,788
510,937
2,621,522
2,530,873
483,065
513,223
Freehold land & building At cost
809,969
-
Capital works in progress At cost
38,513
-
Motor vehicles At cost Accumulated depreciation
508,335 (139,984)
505,054 (132,119)
368,351
372,935
469,613 (411,679)
479,174 (395,824)
57,934
83,350
1,213,674 (845,081)
1,077,055 (623,992)
368,593
453,063
1,643,360
909,348
Trade and Other Receivables CURRENT Trade receivables Other receivables
6
Financial Assets CURRENT Available for sale financial assets - Managed investment fund NON-CURRENT Available for sale financial assets - Listed shares in other corporations
7
Property, Plant and Equipment LAND AND BUILDINGS
Leasehold Improvements At cost Accumulated depreciation
Plant and equipment At cost Accumulated depreciation
Total property, plant and equipment
20
Spinal Cord Injuries Australia ABN: 93 001 263 734
Notes to the Financial Statements For the Year Ended 30 June 2015
7
2015
2014
$
$
Property, Plant and Equipment (Cont'd)
(a)
Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Leasehold Plant and Land and Motor Vehicles Improvements Equipment Buildings Balance at the beginning of year Additions Disposals - written down value Transfers Depreciation expense
$ 372,935 172,036 (102,380) (74,240)
Balance at the end of the year
368,351
$ 83,350 28,078 (37,639) (15,855)
$ 453,063 136,618 (221,088)
809,969 -
57,934
368,593
809,969
Capital Work In Progress $
8
Total
Balance at the beginning of year Additions Disposals - written down value Transfers Depreciation expense
874 37,639 -
$ 909,348 1,147,575 (102,380) (311,183)
Balance at the end of the year
38,513
1,643,360
146,912 680,846
331,719 485,249
827,758
816,968
CURRENT Employee entitlements
633,918
634,632
NON-CURRENT Employee entitlements
67,679
63,356
Trade and Other Payables CURRENT Trade payables Other payables
9
$
Provisions
21
Spinal Cord Injuries Australia ABN: 93 001 263 734
Notes to the Financial Statements For the Year Ended 30 June 2015
10
2015
2014
$
$
Leasing Commitments (a)
Operating lease commitments Non-cancellable operating leases contracted for but not capitalised in the financial statements Payable - minimum lease payments: - not later than 1 year - between 1 year and 5 years
(b)
272,217 468,622
313,256 488,010
740,839
801,266
-
810,000
Capital expenditure commitments Capital expenditure commitments contracted for: Property, plant and equipment purchases
The company entered into a contract on 24 May 2014 to purchase a property at 34 Premier Street, Gymea 2227. This purchase has been settled on 1 July 2014. 11
Contingent Liabilities and Contingent Assets In the opinion of the Directors, the company did not have any contingencies at 30 June 2015 (30 June 2014:None).
12
Financial Risk Management The main risks Spinal Cord Injuries Australia is exposed to through its financial instruments are credit risk, liquidity risk and market risk consisting of interest rate and equity price risk. The company's financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable and payable, and leases. The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows: Financial Assets Cash and cash equivalents Trade and other receivables Financial assets at fair value through profit or loss - listed shares Available-for-sale financial assets: - at fair value - listed shares in other corporations
Financial Liabilities Trade and other payables
481,120 541,788
1,736,319 510,937
2,621,522
2,530,873
483,065
513,223
4,127,495
5,291,352
827,758
816,968
827,758
816,968 22
Spinal Cord Injuries Australia ABN: 93 001 263 734
Notes to the Financial Statements For the Year Ended 30 June 2015
13
Interests of Key Management Personnel The total remuneration paid to key management personnel of the company is $ 1,044,682 (2014: $ 1,069,864).
14
Events after the end of the Reporting Period The financial report was authorised for issue on by the Board of Directors. No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations or the state of affairs of the company in future financial years.
15
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 2015 the number of members was 1,063 (2014: 936).
23
Spinal Cord Injuries Australia ABN: 93 001 263 734
Directors' Declaration The directors of the company declare that: 1.
2.
The financial statements and notes, as set out on pages 8 to 23, are in accordance with the Corporations Act 2001 and: a.
comply with Accounting Standards - Reduced Disclosure Requirements; and
b.
give a true and fair view of the financial position as at 30 June 2015 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 .................................................................. David Brawn
Director .................................................................. Brad O’Hara
Dated 27 October 2015
24
Independent Audit Report to the members of Spinal Cord Injuries Australia Report on the Financial Report We have audited the accompanying financial report of Spinal Cord Injuries Australia, which comprises the statement of financial position as at 30 June 2015, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration. Directors' Responsibility 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 - Reduced Disclosure Requirements and the Corporations Act 2001 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. Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Spinal Cord Injuries Australia, would be in the same terms if given to the directors as at the time of this auditor’s report.
PKF(NS) Audit & Assurance Limited Partnership ABN 91 850 861 839
Liability limited by a scheme approved under Professional Standards Legislation
Sydney
Newcastle
Level 8, 1 O’Connell Street Sydney NSW 2000 Australia GPO Box 5446 Sydney NSW 2001
755 Hunter Street Newcastle West NSW 2302 Australia PO Box 2368 Dangar NSW 2309
p f
p f
+61 2 8346 6000 +61 2 8346 6099
+61 2 4962 2688 +61 2 4962 3245
PKF International Limited administers a network of legally independent firms which carry on separate business under the PKF Name. PKF International Limited is not responsible for the acts or omissions of individual member firms of the network. For office locations visit www.pkf.com.au
25
Independent Audit Report to the members of Spinal Cord Injuries Australia Opinion In our opinion the financial report of Spinal Cord Injuries Australia is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the company’s financial position as at 30 June 2015 and of its performance for the year ended on that date; and (b) complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations 2001. Emphasis of Matter We draw attention to Note 1 to the financial statements which describe the revenue recognition policy of Spinal Cord Injuries Australia, including the limitations that exist in relation to the recording of cash receipts from collections. Revenue from this source represents $126,373 which is 1.5% of Spinal Cord Injuries Australia overall revenue. Our opinion is unmodified in respect of this matter.
PKF Chartered Accountants
SCOTT TOBUTT Partner
Dated: 27 October 2015 Sydney, NSW
26