Cheltenham Youth Club Inc

Transcription

1 ABN Annual Report - 30 June 2018

2 Officers' report 30 June 2018 The officers present their report, together with the financial statements, on the incorporated association for the year ended 30 June Officers The following persons were officers of the incorporated association from the 2017 AGM up to the date of this report, unless otherwise stated: President Melanie Stone Vice President Christos Voulgairs Secretary Sara Vuong Treasurer Claire Woodbridge Fundraising Coordinator Kylie Teuma Committee members The following persons were committee members of the incorporated association from the 2017 AGM up to the date of this report, unless otherwise stated: Kylie Teuma Fundraising Coordinator Melanie Stone President Christos Voulgaris Vice President Sara Vuong Secretary Claire Woodbridge Treasurer Mandy Dawes General Member Review of operations For the year ended 30 June 2018 the association has made a surplus of $81,004 (2017 $144,471). Objectives The purposes of the Association are: 1. Participate, play and find your potential 2. To promote and foster the well-being of the youth of Cheltenham and surrounding areas. 3. To provide a wide range of 'gym sports' classes to suit all ages and abilities from beginner to international level. 4. To provide an active, safe and healthy environment where all athletes can achieve and learn the correct skills with good technique. 5. To provide as many opportunities as possible for athletes to perform through a variety of ways. 6. To provide opportunities for growth and learning and challenge the mind and body to reach new goals and succeed. 7. Develop confidence of mind and body, build strength, increase posture and agility. Principal activities Cheltenham Youth Club running programs in Gymnastics, Trampoline, Kinder Gym, Sports Aerobics and Adult Gym. The club has an active community role in a number of areas including but limited to: Our coaching staff work with school and community groups teaching and implementing gymnastics programs for children of all ages; and We also assist schools and groups with children with special needs to enjoy the benefits of gymnastics such as motor control skills and co-ordination activities. Performance measures The incorporated association measures its performance in both the amount of revenue and the number of members. Page 1

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4 Contents 30 June 2018 Contents Statement of profit or loss and other comprehensive income 4 Statement of financial position 5 Statement of changes in equity 6 Statement of cash flows 7 Notes to the financial statements 8 Officers' declaration 16 Independent auditor's report to the members of Cheltenham Youth Club Inc 17 General information The financial statements cover Cheltenham Youth Club Inc as an individual entity. The financial statements are presented in Australian dollars, which is the association s functional and presentation currency. Cheltenham Youth Club Inc is a not-for-profit incorporated association, incorporated and domiciled in Australia. Its registered office and principal place of business are: Registered office Principal place of business 126 Woodlands Drive 126 Woodlands Drive Braeside VIC 3185 Braeside VIC 3185 A description of the nature of the incorporated association's operations and its principal activities are included in the officers' report, which is not part of the financial statements. The financial statements were authorised for issue on 1 November Page 3

5 Statement of profit or loss and other comprehensive income For the year ended 30 June 2018 Note 2018 $ 2017 $ Revenue 3 1,180,019 1,114,468 Expenses Administration expense 4 72,275 47,758 Depreciation 8 32,010 14,720 Building expenses 176, ,739 Competition expenses 2,270 3,471 Employment expenses 816, ,309 Surplus / (Deficit) 81, ,471 Other comprehensive income for transfer from the asset revaluation reserve ,965 Total comprehensive surplus / (deficit) for the year attributable to the members of Cheltenham Youth Club Inc 81, ,436 The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes Page 4

6 Statement of financial position As at 30 June 2018 Note 2018 $ 2017 $ Assets Current assets Cash and cash equivalents 5 636, ,787 Trade and other receivables 6 26,429 2,815 Total current assets 662, ,602 Non-current assets Property, plant and equipment 8 174, ,335 Other assets 7 53,315 50,145 Total non-current assets 227, ,480 Total assets 890, ,082 Liabilities Current liabilities Trade and other payables 9 102,228 61,324 Employee benefits 10 84,277 74,326 Other liabilities , ,134 Total current liabilities 357, ,694 Non Current liabilities Provision for long service leave 10 19,145 30,876 Total non current liabilities 19,145 30,876 Total liabilities 376, ,570 Net assets 513, ,512 Equity Retained surpluses , ,512 Reserves Total equity 513, ,512 The above statement of financial position should be read in conjunction with the accompanying notes Page 5

7 Statement of changes in equity For the year ended 30 June 2018 Retained Total surpluses equity $ $ Balance at 1 July , ,076 Transfer from asset revaluation reserve 160, ,965 Total comprehensive surplus for the year 144, ,471 Balance at 30 June , ,512 Balance at 1 July , ,512 Total comprehensive surplus for the year 81,004 81,004 Balance at 30 June , ,516 The above statement of changes in equity should be read in conjunction with the accompanying notes Page 6

8 Statement of cash flows For the year ended 30 June 2018 Note 2018 $ 2017 $ Cash flows from operating activities Receipts from customers (inclusive of GST) 1,335,667 1,252,173 Payments to suppliers and employees (inclusive of GST) (1,198,665) (1,005,076) Interest received 5,466 1,606 Net cash from operating activities , ,703 Cash flows from investing activities Payments for property, plant and equipment (44,752) (136,967) Proceeds from disposal of property, plant and equipment Net cash (used in) investing activities (44,752) (136,967) Cash flows from financing activities - - Net cash (used in) financing activities - - Net increase / (decrease) in cash and cash equivalents 97, ,736 Cash and cash equivalents at the beginning of the financial year 538, ,051 Cash and cash equivalents at the end of the financial year 5 636, ,787 The above statement of cash flows should be read in conjunction with the accompanying notes Page 7

9 Notes to the financial statements 30 June 2018 Note 1. Significant accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. New, revised or amending Accounting Standards and Interpretations adopted The incorporated association has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Basis of preparation In the officers' opinion, the incorporated association is not a reporting entity because there are no users dependent on general purpose financial statements. These are special purpose financial statements that have been prepared for the purposes of complying with the Associations Incorporation Reform Act 2012, division 60 of the Australian Charities and Not-for-Profits Commission Regulations 2013 and associated regulations. The officers have determined that the accounting policies adopted are appropriate to meet the needs of the members of Cheltenham Youth Club Inc. These financial statements have been prepared in accordance with the recognition and measurement requirements specified by the Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the disclosure requirements of AASB 101 'Presentation of Financial Statements', AASB 107 'Statement of Cash Flows', AASB 108 'Accounting Policies, Changes in Accounting Estimates and Errors', AASB 1048 'Interpretation of Standards' and AASB 1054 'Australian Additional Disclosures', as appropriate for not-for-profit oriented entities. Historical cost convention The financial statements have been prepared under the historical cost convention. 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 incorporated association'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 2. Revenue recognition Revenue is recognised when it is probable that the economic benefit will flow to the incorporated association and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable. Training fees Training fees are recognised on receipt basis when it pertains to the year under reporting. Training fees received in advance are disclosed as current liabilities in the financial statements. Sales revenue Events, fundraising and raffles are recognised when received or receivable. Grants Grants are recognised at their fair value where there is a reasonable assurance that the grant will be received and all attached conditions will be complied with. Interest Interest revenue 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. Other revenue Other revenue is recognised when it is received or when the right to receive payment is established. Page 8

10 Notes to the financial statements 30 June 2018 Note 1. Significant accounting policies (continued) Income tax As the incorporated association is a charitable institution in terms of subsection 50-5 of the Income Tax Assessment Act 1997, as amended, it is exempt from paying income tax. 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 incorporated association'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 incorporated association'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. Deferred tax assets and liabilities are always 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 and other receivables are recognised at amortised cost, less any provision for impairment. Property, plant and equipment 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: Building leasehold improvements Plant and equipment Office equipment 10 years 3-5 years 3-5 years The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the incorporated association. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. 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. 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 These amounts represent liabilities for goods and services provided to the incorporated association 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. Page 9

11 Notes to the financial statements 30 June 2018 Note 1. Significant accounting policies (continued) Trade and other payables These amounts represent liabilities for goods and services provided to the company 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. 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 as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. 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. 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. Fees in advance OR Unearned income Fees in advance represents fees received from participants to club activities for the period post 30 June 2018 and are disclosed as current liabilities in the financial statements. Page 10

12 Notes to the financial statements 30 June 2018 Note 2. 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. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. Estimation of useful lives of assets The incorporated association determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down. Impairment of non-financial assets other than goodwill and other indefinite life intangible assets The incorporated association assesses impairment of non-financial assets other than goodwill and other indefinite life intangible assets at each reporting date by evaluating conditions specific to the incorporated association and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and assumptions. Page 11

13 Notes to the financial statements 30 June 2018 Note 3. Revenue $ $ Training fees 978, ,859 Sales other 181, ,248 Rental income 14,029 10,755 Interest income 5,466 1,606 Note 4. Administration and other expenses 1,180,019 1,114,468 Audit and accounting fees 10, Bank charges 8,773 8,201 Birthday party expense 743 2,394 Canteen and general expenses 1,214 5 Canteen/vending expenses 2,384 1,831 Club Rego GV & subscriptions 2,373 1,960 Computer expenses 633 1,449 Donation expense Employee medical costs Equipment purchases 1,653 1,021 First aid supplies Flowers and gifts 3,045 1,335 Foam pit 1, Fund raising expense 2,960 2,807 General expenses 2,141 5,655 Holiday program expense Insurance claims 1,789 4,363 Legal and professional expense 5,022 - Magnesium chalk Marketing 5,679 - Merchandising expense 7,962 7,542 Postage Printing & stationery 4,359 2,558 Recruitment fees Staff coaching Subscriptions 3, Sundry expenses Telephone expenses 2,568 3,040 72,275 47,758 Page 12

14 Notes to the financial statements 30 June 2018 Note 5. Cash and cash equivalents $ $ Current Cash on hand 3,559 1,106 Cash at bank 132, ,926 Cash on deposit 500, ,755 Note 6. Trade and other receivables 636, ,787 Current Trade & other receivables 26,429 2,815 Note 7. Other assets 26,429 2,815 Non-current Security deposits 53,315 50,145 Note 8. Non-current assets - property, plant and equipment 53,315 50,145 Plant and equipment - at cost 527, ,237 Less: Accumulated depreciation (455,049) (437,487) 72,940 45,750 Leasehold improvements - at cost 115, ,585 Less: Accumulated depreciation (14,448) - 101, , , ,335 Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Plant and Leasehold equipment improvements Total $ $ $ Balance at 1 July ,008-39,008 Additions 21, , ,967 Write offs Depreciation expense (14,720) - (14,720) Balance at 30 June , , ,335 Additions 44,752-44,752 Write offs Depreciation expense (17,562) (14,448) (32,010) Balance at 30 June , , ,077 Page 13

15 Notes to the financial statements 30 June 2018 Note 9. Trade and other payables $ $ Current Trade creditors 13,128 2,331 Other creditors and accruals 65,949 38,773 GST payable 23,151 20,130 Note 10. Employee benefits 102,228 61,234 Current Provision for annual leave 47,257 42,565 Provision for long service leave 37,020 31,761 84,277 74,326 Non-current Provision for long service leave 19,145 30,876 Note 11. Other liabilities 19,145 30,876 Current Fees in advance - Unearned income 171, ,134 Note 12. Equity - retained surpluses 171, ,134 Retained surpluses at the beginning of the financial year 432, ,076 Surplus / (Deficit) for the year 81, ,471 Transfers from asset revaluation reserve - 160,965 Retained surpluses at the end of the financial year 513, ,512 Note 13. Reserves Asset revaluation reserve - 160,965 Movements During the Year Asset Revaluation Balance at beginning of year - 160,965 Transferred to other comprehensive income - (160,965) Balance at end of year - - Page 14

16 Notes to the financial statements 30 June 2018 Note 14. Reconciliation of surplus after income tax to net cash from operating activities $ $ Surplus / (deficit) for the year 81, ,471 Adjustments for: Depreciation and amortisation 32,010 14,720 Change in operating assets and liabilities: Decrease/(increase) in trade and other receivables (23,614) 2,319 (Increase) in other assets (3,170) - Decrease/(increase) in accrued revenue 17,024 16,211 Decrease / (Increase) in trade and other payables 40,994 18,505 Increase in employee benefits (1,780) 52,477 Net cash from / (used in) operating activities 142, ,703 Note 15. Contingent liabilities The incorporated association had no contingent liabilities as at 30 June 2018 and 30 June Note 16. Commitments Operating lease commitments for the lease of the Club facility located at 126 Woodlands Drive Braeside Victoria Due within one year 136, ,780 Due beyond one year up to five years 683, ,900 Due beyond five years 142, , ,158 1,099,938 The incorporated association had no other commitments for expenditure as at 30 June 2018 and 30 June Note 17. Events after the reporting period No matter or circumstance has arisen since 30 June 2018 that has significantly affected, or may significantly affect the incorporated association's operations, the results of those operations, or the incorporated association's state of affairs in future financial years. Page 15

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18 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF CHELTENHAM YOUTH CLUB INC. DFK Collins Principal: Simon Bragg FCA 477 Bridge Road Richmond VIC 3121 TELEPHONE FACSIMILE Report on the Audit of the Financial Report We have audited the accompanying financial report of Cheltenham Youth Club Inc, which comprises the statement of financial position as at 2018, and the statement of 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 the officers declaration. In our opinion the financial report of Cheltenham Youth Club Inc, has been prepared in accordance with Division 60 of the Australian Charities and Not-for-Profits Commission Act 2012, including: (a) giving a true and fair view of the registered entity s financial position as at the 30 June 2018 and of its financial performance for the year then ended; and (b) complying with Australian Accounting Standards to the extent described in Note 1, and Division 60 of the Australian Charities and Not-for-Profits Commission Regulation 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 are independent of the registered entity in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of Matter - Basis of Accounting We draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the registered entity s financial reporting responsibilities under the ACNC Act. As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter. Members' Responsibility for the Financial Report Members of Cheltenham Youth Club Inc are responsible for the preparation of the financial report that gives a true and fair view and have determined that the basis of preparation and fair presentation of the financial report and have determined that the basis of preparation described in Note 1 is appropriate to meet the requirements of the of the ACNC Act and the needs of the members under the Associations Incorporation Reform Act The members responsibility also includes such internal control as the members determine is necessary to enable the preparation of a 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 members are responsible for assessing the registered entity s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the members either intend to liquidate the registered entity or to cease operations, or have no realistic alternative but to do so. The members are responsible for overseeing the registered entity s financial reporting process. Liability limited by a scheme approved under Professional Standards Legislation A member firm of DFK International, a worldwide association of independent accounting firms and business advisers Page 17

19 DFK Collins Principal: Simon Bragg FCA 477 Bridge Road Richmond VIC 3121 TELEPHONE FACSIMILE 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. As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our [my] opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the registered entity s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by responsible entities. Conclude on the appropriateness of responsible entities use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the registered entity s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor s report. However, future events or conditions may cause the registered entity to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. We communicate with responsible entities regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Liability limited by a scheme approved under Professional Standards Legislation A member firm of DFK International, a worldwide association of independent accounting firms and business advisers Page 18

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