NATIONAL HEALTH CO-OPERATIVE OPERATIVE LIMITED ABN

Transcription

1 NATIONAL HEALTH CO-OPERATIVE OPERATIVE LIMITED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2016

2 DIRECTORS REPORT Your directors present this report on the co-operative for the financial year ended 30 June Directors Directors during the year and to the date of this report are: Brian Frith Peter Carlin Adrian Watts Blake Wilson Michael Pilbrow Chairperson Deputy Chair (appointed 4 November 2015) Executive Director - CEO Executive Director - General Manager Board Member Peter White Secretary (resigned 5 August 2015) Anita Phillips Roger Nicoll Board Member Board Member Geoff Budd Secretary (appointed 4 November 2015) Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Principal Activities The principal activity of the co-operative during the financial year was to provide a wide range of health and related services to members, and in particular, provided bulk billing of general practice medical services to members; subject to that being financially viable within the prevailing Medicare rules and procedures and the commercial environment within which the co-operative operates. During the financial year, the co-operative s initiatives involved consolidating its activities and expanding the number of sites from which its medical practices operate. Information on Directors Adrian Watts B Actuarial Studies, B Commerce, G.A.I.C.D, Chartered Accountant Experience CEO Eight years experience as company director. Michael Pilbrow B Ec(Hons) Experience Director Eight years experience as a company director Peter White BA (Hons) Experience Director and Secretary until resignation 5 August 2015 Eight years experience as a company director. Brian Frith PhC, MACP, MPS Experience Board Chairperson 45 years experience as a company director. 2

3 DIRECTORS REPORT (CONTINUED) Information on Directors (continued) Anita Phillips MPA, BA & GD (Soc. Studs)PG Dip (Leg. Studies) AMAASW, G.A.I.C.D Experience Director Two years experience as a company director. Roger Nicoll Experience Director Eight years experience as a company director. Geoff Budd LLM, LLB (Hon), BA(Asian Studies), GD (Legal Practice), FAICD Experience Director & Secretary 20 years experience in governance of not for profit entities. Peter Carlin BA(Accounting), FCPA Experience Deputy Chair 20 years experience as a company director. Blake Wilson B BA, G.A.I.C.D Experience Executive Director & General Manager Four years experience as a company director. Meetings of Directors During the financial year, four meetings of directors were held. Attendances by each director were as follows: Directors Meetings Number eligible to attend Number attended Adrian Watts 4 4 Peter White - - Anita Phillips 4 4 Brian Frith 4 4 Roger Nicoll 4 4 Michael Pilbrow 4 4 Peter Carlin 3 3 Blake Wilson Geoff Budd Indemnifying Officers or Auditor No indemnities have been given or insurance premiums paid, during or since the end of the financial year, for any person who is or has been an officer or auditor of the Co-operative. 3

4 DIRECTORS REPORT (CONTINUED) Proceedings on Behalf of the Co-operative No person has applied for leave of Court to bring proceedings on behalf of the co-operative or intervene in any proceedings to which the co-operative is a party for the purpose of taking responsibility on behalf of the co-operative for all or any part of those proceedings. The co-operative was not a party to any such proceedings during the year. Auditor s Independence Declaration The lead auditor s independence declaration for the year ended 30 June 2016 has been received and can be found on page 5 of the financial report. Signed in accordance with a resolution of the Board of Directors. CEO Adrian Watts Chairman Brian Frith Dated this 18 th day of October

5 p (+61 2) e admin@bellchambersbarrett.com.au Level 1, 33 Torrens Street, Braddon ACT 2612 PO Box 5115, Braddon ACT 2612 ABN bellchambersbarrett.com.au AUDITOR S DECLARATION UNDER S60-40 OF THE AUSTRALIAN CHARITIES AND NOT-FOR-PROFITS COMMISSION ACT 2012 TO THE DIRECTORS OF NATIONAL HEALTH CO-OPERATIVE LIMITED. As auditor for the audit of National Health Co-operative Limited, I declare that, to the best of my knowledge and belief, during the year ended 30 June 2016 there have been no contraventions of any applicable code of professional conduct in relation to the audit. Shane Bellchambers, FCA Canberra, ACT Registered Company Auditor Dated this 18th day of October 2016 BellchambersBarrett Liability limited by a scheme approved under Professional Standards Legislation. 5

6 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016 NOTE $ $ Revenue 2 8,314,396 5,403,875 Accounting, legal and consultants (41,124) (16,912) Medical supplies (167,300) (81,902) Finance costs (60,284) (100,672) Rent expense (386,629) (292,291) Depreciation (122,740) (108,713) Employee benefits and on costs (5,165,931) (3,473,087) Contract GPs expense (1,139,820) (998,519) Other expenses (608,442) (361,237) Surplus / (Deficit) for the year 622,126 (29,458) Other comprehensive income Gains on revaluation of land and buildings - 52,983 Other comprehensive income for the year - 52,983 Total comprehensive income for the year 622,126 23,525 The accompanying notes form part of these financial statements. 6

7 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016 NOTE $ $ ASSETS CURRENT ASSETS Cash and cash equivalents 3 508,711 40,272 Trade and other receivables 4 181, ,282 Other assets 5 143,022 9,490 Financial assets 6 107,410 45,337 TOTAL CURRENT ASSETS 940, ,381 NON-CURRENT ASSETS Property, plant and equipment 7 1,248, ,831 Other assets 5 4, ,854 TOTAL NON-CURRENT ASSETS 1,252,487 1,047,685 TOTAL ASSETS 2,192,834 1,358,066 LIABILITIES CURRENT LIABILITIES Trade and other payables 8 561, ,899 Provisions 9 117,328 88,926 TOTAL CURRENT LIABILITIES 678, ,825 NON-CURRENT LIABILITIES Financial liabilities , ,047 TOTAL NON-CURRENT LIABILITIES 852, ,047 TOTAL LIABILITIES 1,531,514 1,318,872 NET ASSETS 661,320 39,194 EQUITY Retained earnings 608,337 (13,789) Reserves 52,983 52,983 TOTAL EQUITY 661,320 39,194 The accompanying notes form part of these financial statements. 7

8 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016 Asset Revaluation Reserve Retained earnings Total $ $ Balance at 1 July ,669 15,669 Comprehensive income (Deficit) for the year - (29,458) (29,458) Other comprehensive income for the year: gains on revaluation of land and buildings 52,983-52,983 Total comprehensive income for the year 52,983 (29,458) 23,525 Balance at 30 June ,983 (13,789) 39,194 Comprehensive income Surplus for the year - 622, ,126 Total comprehensive income for the year - 622, ,126 Balance at 30 June , , ,320 The accompanying notes form part of these financial statements. 8

9 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2016 NOTE $ $ CASH FLOW FROM OPERATING ACTIVITIES Operating receipts 8,530,998 5,370,226 Payments to suppliers and employees (7,610,827) (5,384,998) Interest received 8,302 43,246 GST refunded from the ATO 112, ,857 Net cash generated from operating activities 1,041, ,331 CASH FLOW FROM INVESTING ACTIVITIES Loan repayments received from other parties 147,371 - Loans provided to employees - (22,035) Payment for held-to-maturity investments (62,073) (13,228) Payment for property, plant and equipment (474,913) (57,576) Net cash (used in) investing activities (389,615) (92,839) CASH FLOW FROM FINANCING ACTIVITIES Interest paid on borrowings (60,284) (100,672) Repayment of borrowings (123,074) (6,953) Net cash (used in) financing activities (183,358) (107,625) Net increase / (decrease) in cash held 468,439 (51,133) Cash and cash equivalents at beginning of financial year 40,272 91,405 Cash and cash equivalents at end of financial year 3 508,711 40,272 The accompanying notes form part of these financial statements. 9

10 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements are for National Health Co-operative Limited (the Co-operative) as an individual entity, incorporated and domiciled in Australia. The financial statements were authorised for issue on 18 October 2016 by the directors of the Cooperative. Basis of Preparation The National Health Co-operative Limited applies Australian Accounting Standards Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards and AASB : Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements. The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and the Not-for-profits Commission Act The Cooperative is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of the financial statements are presented below and have been consistently applied unless stated otherwise. The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar. Accounting Policies a. Revenue Non-reciprocal grant revenue is recognised in profit or loss when the entity obtains control of the grant and 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. If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied. 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 state of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt. The National Health Co-operative Limited 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 profit or loss. Donations and bequests are recognised as revenue when received. Membership fees are recognised on receipt and are non-refundable. b. Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). 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 ATO is included with other receivables or 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 ATO are presented as operating cash flows included in receipts from customers or payments to suppliers. 10

11 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) c. Income Tax No provision for income tax has been raised as the co-operative is exempt from income tax under Division 50 of the Income Tax Assessment Act d. 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, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position. e. Property, Plant and Equipment Plant and equipment Plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(l) for details of impairment). 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, including buildings and capitalised lease assets, but excluding freehold land, is depreciated on a straight line basis over the asset s useful life to the entity 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. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Depreciation Rate Leasehold improvements 10% Plant and equipment 50% Buildings 2.5% The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are recognised in profit or loss in the period in which they arise. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained earnings. f. 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 Co-operative 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. g. Provisions Provisions are recognised when the entity 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. 11

12 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) h. Employee Benefits Short-term employee benefits Provision is made for the Co-operations obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service, including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled. The Co-operatives obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as a part of current trade and other payables in the statement of financial position. Other long-term employee benefits The Co-operative classifies employees long service leave and annual leave entitlements as other long-term employee benefits as they are not expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. Provision is made for the Co-operatives obligation for other long-term employee benefits, which are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures, and are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Upon the re-measurement of obligations for other long-term employee benefits, the net change in the obligation is recognised in profit or loss classified under employee benefits expense. The Co-operatives obligations for long-term employee benefits are presented as noncurrent liabilities in its statement of financial position, except where the Co-operative does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the obligations are presented as current liabilities. i. Retirement benefit obligations Defined contribution superannuation benefits All employees of the Co-operative receive defined contribution superannuation entitlements, for which the Co-operative pays the fixed superannuation guarantee contribution (currently 9.5% of the employee s average ordinary salary) to the employee s superannuation fund of choice. All contributions in respect of employees defined contribution entitlements are recognised as an expense when they become payable. The Co-operatives obligation with respect to employees defined contribution entitlements is limited to its obligation for any unpaid superannuation guarantee contributions at the end of the reporting period. All obligations for unpaid superannuation guarantee contributions are measured at the (undiscounted) amounts expected to be paid when the obligation is settled and are presented as current liabilities in the Co-operatives statement of financial position. 12

13 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) j. Leases Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset (but not the legal ownership) are transferred to the entity, are classified as finance leases. Finance leases are capitalised, recognising an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual values. Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the entity will obtain ownership of the asset. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the lease term. Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the lease term. k. Financial Instruments Initial recognition and measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the Co-operative commits itself to either purchase or sell the asset (ie 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 recognised immediately as expenses in profit or loss. Classification and subsequent measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest method, or cost. Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method. 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 amount with a consequential recognition of an income or expense item in profit or loss. (i) Financial assets at fair value through profit or loss Financial assets are classified at fair value through profit or loss when they are 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 amount being included in profit or loss. 13

14 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) k. Financial Instruments (continued) (ii) (iii) Impairment 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. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised. Financial liabilities Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial liability is derecognised. At the end of each reporting period, the Co-operative assesses whether there is objective evidence that a financial asset has been impaired. A financial asset (or a group of financial assets) is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a loss event ) having occurred, which has an impact on the estimated future cash flows of the financial asset(s). In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the instrument is considered to constitute a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point. In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults. For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial assets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance account. When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the Co-operative recognises the impairment for such financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered. De-recognition Financial assets are derecognised when the contractual rights to receipt of cash flows expire 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 when the related obligations are discharged or cancelled, or have expired. The difference between the carrying amount of the financial liability, which is 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. 14

15 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) l. Impairment of Assets At the end of each reporting period, the entity assesses whether there is any indication that an asset may be impaired. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset s fair value less costs to sell and value in use, to the asset s carrying amount. Any excess of the asset s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (eg. in accordance with the revaluation model in AASB 116). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard. Where it is not possible to estimate the recoverable amount of an individual asset, the entity estimates the recoverable amount of the cash-generating unit to which the asset belongs. Impairment testing is performed annually for goodwill and intangible assets with indefinite lives. m. Comparative Figures Where required by Accounting Standards, comparative figures have been adjusted to conform with changes in presentation for the current financial year. 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 Co-operative. Key judgments Employee benefits For the purpose of measurement, AASB 119: Employee Benefits (September 2011) defines obligations for short-term employee benefits as obligations expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related services. As the Co-operative expects that most employees will not use all of their annual leave entitlements in the same year in which they are earned or during the 12-month period that follows (despite an informal Co-operative policy that requires annual leave to be used within 18 months), the directors believe that obligations for annual leave entitlements satisfy the definition of other long-term employee benefits and, therefore, are required to be measured at the present value of the expected future payments to be made to employees. 15

16 NOTE 2: REVENUE Note $ $ Revenue Patient fees 5,849,487 4,625,347 Interest 8,302 43,246 Membership fees 782, ,146 Corporate membership fees 1,332,000 - Government grants 97,956 40,956 Rent 188, ,410 Other revenue 55,446 7,770 Total revenue 8,314,396 5,403,875 NOTE 3: CASH AND CASH EQUIVALENTS CURRENT Cash at bank and on hand ,711 40,272 NOTE 4: TRADE AND OTHER RECEIVABLES CURRENT Trade debtors 181, ,021 GST receivable - 9, , ,282 There are no material amounts included in the balance of trade and other receivables that are past due and not impaired. All items are considered to be of high credit quality. a. Financial assets classified as loans and receivables Trade and other receivables 181, ,282 Less: GST receivable - (9,261) Financial assets as loans and receivables , ,021 16

17 NOTE 5: OTHER ASSETS CURRENT Note $ $ Prepayments 39,944 9,490 Accrued revenue 103, ,022 9,490 NON-CURRENT Bond for lease 4,483 4,483 Loan to staff - 147, , ,854 Total other assets 147, ,344 NOTE 6: FINANCIAL ASSETS CURRENT Term-deposits ,410 45,337 NOTE 7: PROPERTY, PLANT AND EQUIPMENT LAND AND BUILDINGS Clinic fit-out and extension at cost 1,560,862 1,123,342 Less accumulated depreciation (357,517) (271,370) Total land and buildings 1,203, ,972 PLANT AND EQUIPMENT Furniture and equipment at cost 271, ,582 Less accumulated depreciation (227,319) (190,723) Total plant and equipment 44,659 43,859 Total property, plant and equipment 1,248, ,831 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 financial year: Land and buildings Plant and equipment Total 2016 $ $ $ Balance at the beginning of the year 851,972 43, ,831 Additions at cost 437,520 37, ,913 Depreciation expense (86,147) (36,593) (122,740) Carrying amount at the end of the year 1,203,345 44,659 1,248,004 17

18 Note $ $ NOTE 8: TRADE AND OTHER PAYABLES CURRENT Trade payables and accrued expenses 385, ,304 GST payable PAYG payable 72,436 29,380 Superannuation payable 102,689 61,215 a. Financial liabilities at amortised cost classified as trade and other payables 561, ,899 Trade and other payables 561, ,899 Less: GST payable (766) - Less: PAYG payable (72,436) (29,380) Less: Superannuation payable (102,689) (61,215) Financial liabilities as trade and other payables , ,304 NOTE 9: PROVISIONS CURRENT Provisions for employee benefits: annual leave 117,328 88,926 Analysis of total provisions Annual Leave Total $ $ Opening balance at 1 July ,926 88,926 Amounts accrued 28,402 28,402 Balance at 30 June , ,328 Provision for Employee Benefits Provision for employee benefits represents amounts accrued for annual leave. The current portion for this provision includes the total amount accrued for annual leave entitlements that have vested. Based on past experience, the Co-operative does not expect the full amount of annual leave classified as current liabilities to be settled within the next 12 months. However, these amounts must be classified as current liabilities since the Co-operative does not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlement. The Co-operative have not included amounts accrued for long service leave entitlements that have not yet vested in relation to those employees who have not yet completed the required period of service. Based on past experience, the Co-operative assessed the probability of employees reaching the minimum vesting period and its policy does not recognise a provision for long service leave until reaching five years of service. 18

19 $ $ NOTE 10: BORROWINGS NON-CURRENT Capital Chemist loan 330, ,750 Mortgage 30 Totterdell Street 522, , , ,047 Total borrowings 852, ,047 $330,000 of borrowings relate to an unsecured loan facility provided by Capital Chemist. $522,973 relates to a mortgage undertaken for the 30 Totterdell Street property. The mortgage is secured under the Land Title Act 1925 (ACT). NOTE 11: CAPITAL AND LEASING COMMITMENTS Operating Lease Commitments Non-cancellable operating leases contracted for but not capitalised in the financial statements Payable minimum lease payments (including GST) 2016 $ 2015 $ not later than 12 months 588, ,405 later than 12 months but not later than 5 years 1,209, ,501 Later than 5 years 92,675-1,891, ,906 The property lease commitments are non-cancellable operating leases contracted for but not capitalised in the financial statements. Increase in lease commitments occur in line with CPI. NOTE 12: KEY MANAGEMENT PERSONAL COMPENSATION Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity is considered key management personnel (KMP). The total remuneration paid to four (2015: two) KMP of the Co-operative during the year are as follows: $ $ Key management personnel compensation 390, ,666 19

20 NOTE 13: OTHER RELATED PARTY TRANSACTIONS Other related parties included close family members of key management personnel and entities that are controlled or jointly controlled by those key management personnel individually or collectively with their close family members. Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other persons unless otherwise stated. NOTE 14: CONTINGENT LIABILITIES AND ASSETS As at the end of the reporting period, the Co-operative has no known contingent liabilities or contingent assets. NOTE 15: EVENTS AFTER THE REPORTING PERIOD The directors are not aware of any significant events since the end of the reporting period. NOTE 16: FINANCIAL RISK MANAGEMENT The Co-operative financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, amounts receivable and payable, and leases. The carrying amounts 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 NOTE $ $ Cash and cash equivalents 3 508,711 40,272 Loans and receivables trade receivables 4 181, ,021 Loans and receivables bond and loan to staff 5 4, ,854 Held-to-maturity financial assets 6 107,410 45,337 Total financial assets 801, ,484 Financial liabilities Financial liabilities at amortised cost trade and other payables 8a 385, ,304 borrowings , ,047 Total financial liabilities 1,238,295 1,139,351 Refer to Note 17 for detail disclosures regarding the fair value measurement of the Co-operative s financial assets. NOTE 17: FAIR VALUE MEASUREMENTS The Co-operative has no assets that are measured at fair value on a recurring basis after initial recognition. The Co-operative does not subsequently measure any liabilities at fair value on a recurring basis, or any assets or liabilities at fair value on a non-recurring basis. 20

21 NOTE 18: CO-OPERATIVE DETAILS The registered office and principal place of business of the Co-operative is: National Health Co-operative Limited 5-7 Lawry Place Macquarie ACT 2614 NOTE 19: LIABILITY OF MEMBERS Under the Co-operative s constitution members have no liability in the event of the Co-operative being wound up, except for the amount of any charges payable by the member to the Cooperative under the Rules. 21

22 p (+61 2) e admin@bellchambersbarrett.com.au Level 1, 33 Torrens Street, Braddon ACT 2612 PO Box 5115, Braddon ACT 2612 ABN bellchambersbarrett.com.au INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF NATIONAL HEALTH CO-OPERATIVE LIMITED Report on the Financial Report We have audited the accompanying financial report of National Health Co-operative Limited (the entity), which comprises the statement of financial position as at 30 June 2016, 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 entity 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 Australian Charities and Not-for-profits Commission Act 2012 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that 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 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 Co-operatives 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 entity 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 We are independent of the entity in accordance with the auditor independence requirements of the Corporations Act 2001 and 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. Liability limited by a scheme approved under Professional Standards Legislation 22

23 INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF NATIONAL HEALTH CO-OPERATIVE LIMITED Opinion In our opinion, the financial report of National Health Co-operative Limited has been prepared in accordance with Div 60 of the Australian Charities and Not-for-profits Commission Act 2012, including: (i) giving a true and fair view of the Co-operative s financial position as at 30 June 2016 and of its performance for the year ended on that date; and (ii) complying with Australian Accounting Standards Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Regulations Shane Bellchambers, FCA Canberra, ACT Registered Company Auditor Dated this 18th day of October 2016 BellchambersBarrett 23