487 King St, West Melbourne, Vic 3003 PO Box 60, North Melbourne, Vic 3051 T F

Transcription

1 487 King St, West Melbourne, Vic 3003 PO Box 60, North Melbourne, Vic 3051 T F

2 STATEMENT OF COMPREHENSIVE INCOME 04 STATEMENT OF FINANCIAL POSITION 08 STATEMENT OF CASH FLOWS 12 NOTES TO THE FINANCIAL STATEMENT 16 DIRECTORS DECLARATION 28

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4 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 4 REVENUES Registrations 4,350,328 4,046,897 Competitions 1,272,344 1,183,403 Programmes 1,148, ,331 Events / Marketing 160, ,344 ANZ Championship League 1,295,008 1,230,773 Other revenues from ordinary activities 193, ,456 8,419,844 7,714,204 EXPENSES Registrations (234,875) (304,498) Competitions (890,464) (903,385) Programme Delivery (926,450) (930,817) Events / Marketing (190,719) (103,787) ANZ Championship League (1,454,471) (1,357,315) Australian National League (69,152) (72,060) Netball Australia Levy (622,204) (611,473) Insurance (703,680) (779,995) Employee Costs (1,755,922) (1,676,905) Depreciation (155,759) (149,117) Other expenses from ordinary activities (554,839) (484,435) (7,558,535) (7,373,787) RESULTS FROM OPERATING ACTIVITIES 861, ,417 Finance income 80,861 43,514 Finance costs (43,684) (56,295) Net finance costs 37,177 (12,781) Profit before income tax 898, ,636 Income tax expense - - Profit 898, ,636 Other comprehensive income, net of income tax - - Total comprehensive income for the year 898, ,636 The Statement of Comprehensive Income is to be read in conjunction with the notes to the financial statements set out on pages 16 to 24. Prior year revenues have been adjusted for certain revenues which were previously netted against expenses. Opening balance 2,669,458 2,341,822 Total Comprehensive Income for the year 898, ,636 Increase in Asset Revaluation Reserve - - Closing balance 3,567,944 2,669,458 The Statement of Changes in Equity is to be read in conjunction with the notes to the financial statements set out on pages 16 to 24. 5

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6 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER CURRENT ASSESTS Note Cash and Cash Equivalents 7 885,963 1,319,489 Receivables 9 82, ,841 Inventories 10 13,635 16,634 Other ,627 41,729 Total Current Assets 1,595,362 1,635,693 NON CURRENT ASSETS Land and Buildings 2 1,962,278 1,981,139 Leasehold Improvements 2 779, ,739 Plant and Equipment 2 60,010 47,642 Total Non Current Assets 2,801,799 2,902,520 Total Assets 4,397,161 4,538,213 CURRENT LIABILITIES Payables 12 70, ,117 Interest Bearing Liabilities 14 3,683 50,632 Provisions , ,543 Other , ,961 Total Current Liabilities 770,251 1,150,253 NON CURRENT LIABILITES Interest Bearing Liabilities 14 51, ,854 Provisions 15 7,402 9,648 Total Non Current Liabilities 58, ,502 Total Liabilities 829,217 1,868,755 NET ASSETS 3,567,944 2,669,458 EQUITY Reserves 6 1,650,658 1,624,934 Accumulated Funds 1,917,286 1,044,524 TOTAL EQUITY 3,567,944 2,669,458 8 The Statement of Financial Position is to be read in conjunction with the notes to the financial statements set out on pages 16 to 24.

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8 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER CASH FLOWS FROM OPERATING ACTIVITIES Cash Receipts in the course of operations 9,291,378 8,023,612 Cash Payments in the course of operations (9,002,803) (7,255,204) Interest received 80,861 43,514 Interest paid (43,685) (51,591) Net cash from / (used) in operating activities 325, ,331 Cash Flows from Investing Activities Payments for property, plant and equipment (55,039) (551,298) Net cash from / (used) in investing activities (55,039) (551,298) Cash Flows from Financing Activities Proceeds / (payments) of borrowings (704,238) 693,995 Net cash from / (used) in financing activities (704,238) 693,995 Net Increase / (Decrease) in Cash Held (433,526) 903,028 Cash at the beginning of the Financial Year 1,319, ,461 Cash at the end of the Financial Year 885,963 1,319,489 The Statement of Cash Flows is to be read in conjunction with the notes to the financial statements set out on 16 to

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10 NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES 16 The significant policies which have been adopted in the preparation of this financial report are: (a) Statement of Compliance This financial report is a special purpose financial report which has been prepared in accordance with the financial reporting requirements of the Associations Incorporation Act 1981 and the Rules of the Victorian Netball Association Incorporated. The Board of Directors has determined that the Association is not a reporting entity. The special purpose financial report has been prepared in accordance with the requirements of the recognition and measurement aspects of all Australian Accounting Standards (AASs), including the Australian Accounting Interpretations adopted by the Australian Accounting Standards Board (AASB). The financial report does not include the disclosure requirements of all AASB s except for the following minimum requirements: AASB 101 AASB 107 AASB 108 AASB 1031 AASB 1048 Presentation of Financial Statements (Revised) Cashflows accounting Policies, Changes in Accounting Estimates and Errors Materiality Interpretations and Application of Standards (b) Basis of Preparation The financial report is presented in Australian dollars. The financial report is prepared on the historical cost basis and, except where there is a change in accounting policy does not take into account changing money values or current valuations of non current assets. Non current assets are stated at the lower of cost and fair value less costs to sell. The preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. These accounting policies have been consistently applied by the Association. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. The accounting policies set out below have been applied consistently to all periods presented in the Association s financial report. (c) Trade Receivables Trade receivables are recognised at fair value and subsequently measured at amortised cost, less the provision for doubtful debts. Trade receivables are due for settlement no more than 7 days from the date of recognition. Collectability of trade receivables is received on an ongoing basis. Debts which are known to be uncollectable are written off. A provision for doubtful receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is recognised in the Statement of Comprehensive Income. (d) Property, Plant and Equipment Land and Buildings After recognition as an asset, an item of property whose fair value can be measured reliably shall be carried at a revalued amount, being its fair value at the date of the revaluation less any subsequent accumulated impairment losses. When an item of property is revalued, any accumulated depreciation at the date of the revaluation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount of the asset. The amount of the adjustment arising on the elimination of accumulated depreciation forms part of the increase or decrease in the carrying amount of the asset. If the asset s carrying amount is increased as a result of a revaluation, the increase shall be credited directly to equity under the asset revaluation reserve. However the increase shall be recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss. Other Plant and equipment are measured at cost, less accumulated depreciation and accumulated impairment losses. Depreciation is charged to the income statement on a straight line basis over the estimated useful lives of each part of plant and equipment. Land is not depreciated. The depreciation rates used for each class of depreciable assets for the current and comparative period are: Class of Fixed Assets Buildings 2% Plant and Equipment 10-40% (e) Inventories Depreciation Rate Stock on hand is valued at the lower of cost and net realisable value using the specific identification method. (f) Employee Benefits i) long term benefits The Association s net obligation in respect of long term service benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is calculated using expected future increases in wage and salary rates including related on-costs and expected settlement dates, and is discounted using the rates attached to the Commonwealth Government bonds at the balance date which have maturity dates approximating to the Association s obligations. 17

11 18 ii) short term benefits Liabilities for employee benefits for wages, salaries and annual leave that are expected to be settled within 12 months of the reporting date represent present obligations resulting from employees services provided to balance date, are calculated at undiscounted amounts based on remuneration wage and salary rates that the Association expects to pay as at balance date including related on-costs, such as superannuation, payroll tax and workers compensation insurance. (g) Income Tax The Victorian Netball Association Incorporated is a non-profit organisation established for the encouragement of the sport of Netball and is exempt from income tax under section of the Income Tax Assessment Act h) Expenses Operating lease payments Lease payments for operating leases, where substantially all the risk and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred. (i) Cash For the purposes of the statement of cash flows, cash includes cash on hand and at call deposits with banks or financial institutions in money market instruments maturing within less than two months and net of bank overdrafts. (j) Revenue Revenue is measured at fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances and duties and taxes paid. i) Sale of Goods Revenue from the sale of goods is recognised in the income statement when the significant risks and rewards of ownership have been transferred to the buyer. ii) Interest Revenue Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. iii) Memberships and Services Revenue Revenue from services rendered is recognised in the income statement in proportion to the stage of completion of the transaction at the balance sheet date. iv) Grant Income Government grants are recognised initially as deferred income when there is reasonable assurance that they will be received and that the Association will comply with the conditions associated with the grant. Grants that compensate the Association for expenses incurred are recognised in the profit or loss on a systematic basis in the same periods in which the expenses are recognised. Grants that compensate the Association for the cost of an asset are recognised in the profit or loss as other income on a systematic basis over the useful life of the asset. (v) Sponsorship The company receives sponsorships. They are recognised upon receipt. (vi) In-kind Sponsorship Revenue from in-kind sponsorship is recognised at fair value at the date of contribution. (k) Goods and Services Tax (GST) Revenues, 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 are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet. Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating flows. (l) Financial Instruments Non-derivative financial instruments comprise trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables. Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value through profit or loss, any directly attributable transaction costs. Subsequent to initial recognition non-derivative financial instruments are measured as described below. A financial instrument is recognised if the Association becomes a party to the contractual provisions of the instrument. Financial assets are derecognised if the Association s contractual rights to the cash flows from the financial assets expire or if the Association transfers the financial asset to another party without retaining control or substantially all risks and rewards of the asset. Regular way purchases and sales of financial assets are accounted for at trade date, i.e. the date that the Association commits itself to purchase or sell the asset. Financial liabilities are derecognised if the Association s obligations specified in the contract expire or are discharged or cancelled. (m) Licence agreement with the SSCT On 1 July 2008, the Victorian Netball Association Incorporated (VNAI) entered into a licence agreement with the State Sport Centres Trust (SSCT) for use of the State Netball and Hockey Centre for three years. The licence fee charged is 490,000 per annum. VNAI do not collect any revenue directly from the State Netball and Hockey Centre, as the SSCT acts as an agent and collects all revenues on VNAI s behalf. The legal obligation in the current and prior periods is disclosed in Note 3 Commitments. VNAI has a legal obligation to make good, to the SSCT any shortfall arising from the licence fee charged of 490,000 per annum. This legal obligation is disclosed in Note 3 Commitments. 19

12 NOTE 2. PROPERTY PLANT & EQUIPMENT NOTE 3. COMMITMENTS Land & Buildings Leasehold Improvements Plant and Equipment Total COST Balance at 1 January 2,000, , ,074 3,037,204 Additions 0 527,138 24, ,300 Revaluation based on Independent Valuation BALANCE AT 31 December 2,000, , ,236 3,588,504 COST Balance at 1 January 2,000, , ,236 3,588,504 Additions ,039 55,039 Balance at 31 December 2,000, , ,275 3,643,543 Operating Lease Commitments Due within 12 months 32,244 31,009 Due later than 1 year but less than 2 years 28,323 19,067 Due later than 2 years but less than 5 years 31,740 11,763 Total Operating Lease Commitments 92,307 61,839 Lease payments for year 30,547 31,787 Licence agreement with the SSCT On 1 July 2008, the Victorian Netball Association Incorporated (VNAI) entered into a licence agreement with the State Sport Centres Trust (SSCT) for use of the State Netball and Hockey Centre for three years, expiring on 30 June The licence fee charged is 490,000 per annum. NOTE 4. CAPITAL EXPENDITURE COMMITMENT Depreciation Balance at 1 January , ,865 Depreciation charge for the year 18,861 68,530 61, ,119 Revaluation based on Independent Valuation Accumulated Depreciation at 31 December 18,861 68, , ,984 Depreciation Balance at 1 January 18,861 68, , ,984 Depreciation charge for the year 18,861 94,227 42, ,760 Accumulated Depreciation at 31 December 37, , , ,744 Carrying Amounts At 1 January 2,000, ,130 85,209 2,500,339 At 31 December 1,981, ,738 47,643 2,902,520 At 1 January 1,981, ,738 47,643 2,902,520 At 31 December 1,962, ,511 60,010 2,801,799 A revaluation of the land & building was completed in November 2008 and was performed by Charter Keck Cramer. The independent valuation determined that the fair value of the land and building was 2,000,000. In 2008, the directors subsequently adopted the new valuation which was recorded as at 31 December The association does not have any capital expenditure commitments at the end of the financial year. NOTE 5. DIRECTORS Some directors are occasionally engaged to conduct or participate in courses and/or programs. They are reimbursed at the same rate as any other person(s) engaged in a similar activity. NOTE 6. RESERVES Asset Revaluation Reserve 1,061,283 1,061,283 Development Fund Reserve 432, ,546 Other Reserves 157, ,105 Closing Balance 1,650,658 1,624,

13 NOTE 7. CASH AND CASH EQUIVALENTS NOTE 11. OTHER CURRENT ASSETS NOTE 8. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES Cash at Bank 705,829 1,147,695 Fixed Interest Deposits 179, ,052 Petty Cash Total Cash and Cash Equivalents 885,963 1,319,489 Profit /(Loss) for the year 898, ,636 Adjustment for: Depreciation 155, ,117 Changes in Assets and Liabilities: Decrease / (Increase) in Debtors 175,704 77,837 Decrease / (Increase) in Inventories 2,999 13,375 Decrease / (Increase) in Other Assets (571,898) (33,368) Increase / (Decrease) in Trade Creditors (223,503) 211,436 Increase / (Decrease) in Accrued Expenses & Sundry Creditors 76,681 9,103 Increase / (Decrease) in Net GST Payable / (Receivable) (3,635) (85,328) Increase / (Decrease) in Income Received in Advance (151,478) 58,882 Increase / (Decrease) in Provisions (33,365) 31,641 Net Cash provided by Operating Activities 325, ,331 NOTE 12. PAYABLES NOTE 13. OTHER CURRENT LIABILITIES NOTE 14. INTEREST BEARING LIABILITIES Accrued income 3,613 4,240 Prepayments 610,014 37, ,627 41,729 Trade Creditors 70, ,117 Accrued expenses 155,713 87,908 Net GST payable / (receivable) (73,661) (70,026) Sundry creditors 44,489 35,610 Income received in advance 430, , , ,961 NOTE 9. RECEIVABLES Trade Debtors 82, ,841 Note the trade receivables balance is net of impairment losses amounting to 8,255. NOTE 10. INVENTORIES Mortgage loan - current 3,683 50,632 Mortgage loan - non-current 51, ,854 A registered mortgage is held by the Association s banker over the premises located at 487 King Street, West Melbourne, Victoria Stock on hand 13,635 16,634 23

14 NOTE 15. PROVISIONS Provision for Employee Entitlements (Current) 138, ,543 Provision for Employee Entitlements (Non-Current) 7,402 9,648 NOTE 16. NUMBER OF EMPLOYEES The number of employees of the Association as at balance date was 33 (: 35) NOTE 17. AUDITORS REMUNERATION Remuneration paid to the auditors for the year ended 31 December was 10,000 (: 7,000). Remuneration for non audit services for the year ended 31 December was 2,000 (: 2,000) NOTE 18. PRINCIPAL PLACE OF BUSINESS Victorian Netball Association Incorporated trading as Netball Victoria has its principal place of business at 487 King Street, West Melbourne, 3003, Victoria. NOTE 19. SUBSEQUENT EVENTS There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely in the opinion of the directors of the Association to affect significantly the operations of the entity, the result of those operations or the state of affairs of the entity in the future financial years. 24

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16 5.0 DIRECTORS DECLARATION In the opinion of the directors of Victorian Netball Association Incorporated: (a) (b) (c) the Association is not a reporting entity; the financial statements and notes, set out on pages 4 to 24, are drawn up in accordance with the basis of accounting described in Note 1, the Associations Incorporations Act 1981, and the Rules of the Association, and present fairly the financial position of Victorian Netball Association Incorporated as at 31 December and of its performance, as represented by the results of its operations and its cash flows for the year ended on that date; and there are reasonable grounds to believe that the Victorian Netball Association Incorporated will be able to pay its debts as and when they become due and payable. Dated at Melbourne this 18 th day of March, Signed in accordance with a resolution of the directors: Jenny Sanchez President 28

17 ABCD ABCD Independent audit report to the members of Victorian Netball Association Incorporated Report on the financial report We have audited the accompanying financial report, being a special purpose financial report, of the Victorian Netball Association Incorporated (the Association), which comprises the statement of financial position as at 31 December, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, note 1 comprising a summary of significant accounting policies and other explanatory information. Directors responsibility for the financial report The directors of the Association are responsible for the preparation and fair presentation of the financial report and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of Associations Incorporations Act 1981 and are appropriate to meet the needs of the members. The directors responsibility also includes such internal control as the directors determine necessary to enable the preparation of a 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. These Auditing 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 entity s preparation and fair presentation of the financial report 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 the accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. These procedures have been undertaken to form an opinion whether, in all material respects, the financial report is presented fairly in accordance with the basis of accounting described in Note 1 to the financial statements so as to present a view which is consistent with our understanding of the Associations financial position, and of its performance and cash flows. 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 Accounting Professional and Ethical Standards Board. 15 Auditor s Opinion In our opinion the financial report presents fairly, in all material respects, the financial position of Victorian Netball Association Incorporated as of 31 December and of its financial performance and its cash flows for the year then ended in accordance with the accounting policies described in Note 1 to the financial statements. Basis of Accounting Without modifying our opinion, we draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared to assist Victorian Netball Association Incorporated to meet the requirements of Victorian Associations Incorporations Act As a result, the financial report may not be suitable for another purpose. KPMG Don Pasquariello Partner Melbourne 18 March

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