Victorian AIDS Council Inc. / Gay Men's Health Centre Inc. (Combined)

Transcription

1 Victorian AIDS Council Inc. / Gay Men's Health Centre Inc. (Combined) Combined Financial report For the year ended 30 June 2016 Pitcher Partners Level William Street Melbourne VIC 3000 Telephone (03)

2 TABLE OF CONTENTS Directors' report Financial report Consolidated statement of profit or loss and other comprehensive income... 3 Consolidated statement of financial position... 4 Consolidated statement of changes in members funds... 5 Consolidated statement of cash flows... 6 Notes to financial statements Statement by the Board of Directors Independent auditor's report

3 DIRECTORS' REPORT The Board of Directors present their report together with the financial report of the group, being the association and its controlled entities, for the year ended 30 June 2016 and auditor's report thereon. Directors names The names of the Board of Directors in office at any time during or since the end of the year are: Aram Hosie (Term commenced 20 November 2015) Chad Hughes Chrissie Feagins Christopher McDermott Craig Burnett Deborah Sykes Isaac Huang (Term commenced 6 September 2016) Prof Jim Hyde (Term commenced 20 November 2015) Michael Tippett Austin Chia (Term ceased 20 November 2015) Mohammed El-Leissy (Term ceased 20 November 2015) Greg Carter (Resigned 29 February 2016) Glenn Pannam (Resigned 11 July 2016) The Board of Directors have been in office since the start of the year to the date of this report unless otherwise stated. Results The surplus of the group for the year amounted to $146,548 (2015: $61,326). Review of operations The group continued to engage in its principal activity, the results of which are disclosed in the attached financial statements. Significant changes in state of affairs There were no significant changes in the group's state of affairs that occurred during the financial year, other than those referred to elsewhere in this report

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5 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Note $ $ Revenue 2 9,127,045 7,817,618 Less: expenses Depreciation expense 3 (58,162) (63,716) Employee benefits expense 3 (5,429,968) (4,916,468) Occupancy expense (333,998) (232,963) Repairs and maintenance expense (58,852) (74,981) Advertising expense (1,338,985) (987,241) Consultancy costs (110,204) (110,295) Production coordination (272,003) (6,587) Professional fees (132,342) (140,122) Attendant care (155,607) (213,686) Motor vehicle costs (75,380) (73,993) Volunteer costs (44,745) (52,534) Emergency relief grants (193,441) (116,568) Food and catering costs (121,194) (156,505) Computer expenses (46,241) (27,199) Office expenses (226,799) (212,601) Medical expenses (264,781) (133,715) Travel expenses (90,652) (65,602) Other expenses (27,143) (171,516) (8,980,497) (7,756,292) Surplus for the year 146,548 61,326 Other comprehensive income Items that will not be reclassified to profit and loss Revaluation increment of 6-8 Claremont Street - 6,590,000 Other comprehensive income for the year - 6,590,000 Total comprehensive income 146,548 6,651,326 The accompanying notes form part of these financial statements

6 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016 Note $ $ Current assets Cash and cash equivalents 5 18,441,713 3,299,717 Receivables 6 12,327 13,138 Other assets 7 179, ,012 18,633,376 3,414,867 Assets and liabilities classified as held for sale 8-14,600,000 Total current assets 18,633,376 18,014,867 Non-current assets Property, plant and equipment 9 162, ,166 Total non-current assets 162, ,166 Total assets 18,796,116 18,176,033 Current liabilities Payables , ,375 Provisions , ,013 Other liabilities , ,501 Total current liabilities 1,620,910 1,131,889 Non-current liabilities Provisions 11 26,940 42,426 Total non-current liabilities 26,940 42,426 Total liabilities 1,647,850 1,174,315 Net assets 17,148,266 17,001,718 Members funds Reserves 13-13,414,556 Accumulated surplus 14 17,148,266 3,587,162 Total members funds 17,148,266 17,001,718 The accompanying notes form part of these financial statements

7 CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS FUNDS Accumulated Reserves surplus Total equity $ $ $ Combined Balance as at 1 July ,824,556 3,525,836 10,350,392 Surplus for the year - 61,326 61,326 Revaluation increment of 6-8 Claremont Street 6,590,000-6,590,000 Total comprehensive income for the year 6,590,000 61,326 6,651,326 Balance as at 30 June ,414,556 3,587,162 17,001,718 Balance as at 1 July ,414,556 3,587,162 17,001,718 Surplus for the year - 146, ,548 Total comprehensive income for the year - 146, ,548 Transfers - 13,414,556 13,414,556 Transfer from asset revaluation reserve (13,414,556) - (13,414,556) Balance as at 30 June ,148,266 17,148,266 The accompanying notes form part of these financial statements

8 CONSOLIDATED STATEMENT OF CASH FLOWS Note $ $ Cash flow from operating activities Receipts from customers 901,713 1,000,101 Grants received 8,082,786 6,771,892 Donations and bequests received 730, ,493 Membership fees 5,070 4,980 Interest received 416, ,826 Payments to suppliers and employees (9,535,063) (8,342,649) Net cash provided by operating activities 16(b) 601, ,643 Cash flow from investing activities Proceeds from sale of property, plant and equipment 14,602,148 - Payment for plant and equipment (61,884) (39,536) Net cash provided by / (used in) investing activities 14,540,264 (39,536) Reconciliation of cash Cash at beginning of the financial year 3,299,717 3,153,610 Net increase in cash held 15,141, ,107 Cash at end of financial year 16(a) 18,441,713 3,299,717 The accompanying notes form part of these financial statements

9 NOTES TO FINANCIAL STATEMENTS NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES This financial report is a special purpose financial report prepared for the purpose of members, executive and stakeholders. The committee has determined that the group is not a reporting entity. Victorian AIDS Council / Gay Men's Health Centre (Combined) is a not-for-profit group for the purpose of preparing the financial statements. The financial report was approved by the directors of both organisations as at the date of the directors' report. The financial report has been prepared in accordance with the requirements of the Associations Incorporation Reform Act 2012 and all applicable Accounting Standards, with the exception of: AASB 7: AASB 10: AASB 101: Financial Instruments: Disclosures Consolidated Financial Statements Presentation of Financial Statements The following specific accounting policies, which are consistent with the previous period unless otherwise stated, have been adopted in the preparation of this report: (a) Basis of preparation of the financial report Historical Cost Convention The financial report has been prepared under the historical cost convention, as modified by revaluations to fair value for certain classes of assets and liabilities as described in the accounting policies. (b) Principles of combination The entities included as part of the combined report are: - Victorian AIDS Council Inc. - Gay Men's Health Centre Inc. The financial statements of Victorian AIDS Council Inc. and Gay Men's Health Centre are prepared for the same reporting period as the combined entity, using consistent accounting policies. All inter-entity balances and transactions, including any unrealised profits or losses have been eliminated on combination. (c) Economic dependence Victorian AIDS Council Inc. is dependent on the grant funding from State, Federal and local sources for the majority of its revenue used to operate the business. At the date of this report the directors have no reason to believe the funding will not continue to support Victorian AIDS Council Inc

10 NOTES TO FINANCIAL STATEMENTS NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (d) Revenue Revenue from the rendering of services is recognised upon the delivery of the service to the customers. Grants with no reciprocal obligations are brought to account when an indefeasible interest in the income is established. Grants received with reciprocal obligations have been allocated proportionately over the period covered by the service period and brought to account as income accordingly. Interest revenue is recognised when it becomes receivable on a proportional basis taking in to account the interest rates applicable to the financial assets. Donation, fundraising and bequest income is recognised on a cash receipts basis. All revenue is measured net of the amount of goods and services tax (GST). (e) Income tax No provision for income tax has been raised as the group is exempt from income tax under Division 50 of the Income Tax Assessment Act (f) Cash and cash equivalents Cash and cash equivalents include cash on hand and at banks, short-term deposits with an original maturity of three months or less held at call with financial institutions, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position. (g) Property, plant and equipment Each class of plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and any accumulated impairment losses. Plant and equipment Plant and equipment is measured on the cost basis. Depreciation The depreciable amount of all fixed assets are depreciated over their estimated useful lives commencing from the time the asset is held ready for use. Land and the land component of any class of fixed assets is not depreciated. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements

11 NOTES TO FINANCIAL STATEMENTS NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (g) Property, plant and equipment (Continued) Class of fixed asset Depreciation rates Depreciation basis Leasehold improvements at cost 20% Straight line Plant and equipment at cost 6% Straight line Motor vehicles at cost 25% Straight line Office equipment at cost 6-10% Straight line Computer equipment at cost 20-33% Straight line (h) Leases Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and benefits incidental to ownership. Operating leases Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as an expense on a straight-line basis over the term of the lease. Lease incentives received under operating leases are recognised as a liability and amortised on a straightline basis over the life of the lease term. (i) Employee benefits (i) Short-term employee benefit obligations Liabilities arising in respect of wages and salaries, annual leave, accumulated sick leave and any other employee benefits (other than termination benefits) expected to be settled wholly before twelve months after the end of the annual reporting period are measured at the (undiscounted) amounts based on remuneration rates which are expected to be paid when the liability is settled. The expected cost of shortterm employee benefits in the form of compensated absences such as annual leave and accumulated sick leave is recognised in the provision for employee benefits. All other short-term employee benefit obligations are presented as payables in the statement of financial position. (ii) Long-term employee benefit obligations The provision for other long-term employee benefits, including obligations for long service leave and annual leave, which are not expected to be settled wholly before twelve months after the end of the reporting period, are measured at the present value of the estimated future cash outflow to be made in respect of the services provided by employees up to the reporting date. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee turnover, and are discounted at rates determined by reference to market yields at the end of the reporting period on high quality corporate bonds that have maturity dates that approximate the terms of the obligations. Any remeasurements for changes in assumptions of obligations for other long-term employee benefits are recognised in profit or loss in the periods in which the change occurs

12 NOTES TO FINANCIAL STATEMENTS NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (i) Employee benefits (Continued) Other long-term employee benefit obligations are presented as current liabilities in the statement of financial position if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting date, regardless of when the actual settlement is expected to occur. All other long-term employee benefit obligations are presented as non-current liabilities in the statement of financial position. (j) Comparatives Where necessary, comparative information has been reclassified and repositioned for consistency with current year disclosures

13 NOTES TO FINANCIAL STATEMENTS Note $ $ NOTE 2: REVENUE AND OTHER INCOME Revenue from operations Grant income 6,997,426 6,100,083 Client fees 955, ,008 Donations, fundraising and bequest income 730, ,493 Membership fees 5,070 4,980 8,688,921 7,673,564 Other revenue Interest income 416, ,826 Other revenue 21,454 26, , ,054 9,127,045 7,817,618 NOTE 3: OPERATING PROFIT Surplus for the year has been determined after: Depreciation 58,162 63,716 Employee benefits 5,429,968 4,916,468 Loss on disposal of plant and equipment 2,148 1,301 Remuneration of auditors for: Pitcher Partners (Melbourne) Audit and assurance services 23,590 23,600 Other non-assurance services ,464 23,990 47,064 NOTE 4: KEY MANAGEMENT PERSONNEL COMPENSATION Compensation received by key management personnel of the group - short-term employee benefits 714, ,905 - post-employment benefits 67,886 68,771 - termination benefits - 14, , ,

14 NOTES TO FINANCIAL STATEMENTS Note $ $ NOTE 5: CASH AND CASH EQUIVALENTS Cash on hand 6,250 5,950 Cash at bank 15,388, ,669 Cash on deposit 3,046,844 2,961,098 18,441,713 3,299,717 As at 30 June 2016, there is $78,384 held on behalf of the John Marriot Trust. NOTE 6: RECEIVABLES CURRENT Trade debtors 12,327 13,138 NOTE 7: OTHER ASSETS CURRENT Prepayments 75,942 57,582 Accrued income 103,394 44, , ,012 NOTE 8: ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE During the 30 June 2015 financial year the management and board of Gay Men's Health Centre Inc. made the decision to sell the building located at 6 Claremont Street, South Yarra. Carrying amounts of assets held for sale Property, plant and equipment - 14,600,000-14,600,

15 NOTES TO FINANCIAL STATEMENTS Note $ $ NOTE 9: PROPERTY, PLANT AND EQUIPMENT Leasehold improvements At cost 118, ,583 Accumulated depreciation (102,003) (99,984) 16,580 18,599 Plant and equipment Motor vehicles at cost 27,515 27,515 Accumulated depreciation (27,515) (27,515) - - Office equipment at cost 459, ,937 Accumulated depreciation (395,881) (393,734) 63,385 83,203 Computer equipment at cost 212, ,562 Accumulated depreciation (129,717) (125,198) 82,775 59,364 Total property, plant and equipment 162, ,166 (a) Reconciliations Leasehold improvements Opening carrying amount 18,599 17,764 Additions - 2,740 Depreciation expense (2,019) (1,905) 16,580 18,599 Office furniture and equipment Opening carrying amount 83,203 99,648 Additions 8,081 6,659 Depreciation expense (27,899) (23,104) 63,385 83,203 Computer equipment Opening carrying amount 59,364 69,232 Additions 53,803 30,137 Disposals (2,148) (1,298) Depreciation expense (28,244) (38,707) 82,775 59,

16 NOTES TO FINANCIAL STATEMENTS NOTE 9: PROPERTY, PLANT AND EQUIPMENT (CONTINUED) (a) Reconciliations (Continued) Note $ $ Total property, plant and equipment Opening carrying amount 161,166 8,196,644 Additions 61,884 39,536 Disposals (2,148) (1,298) Depreciation expense (58,162) (63,716) Revaluation increment - 6,590,000 Transferred to assets held for sale - (14,600,000) 162, ,166 NOTE 10: PAYABLES CURRENT Unsecured liabilities Trade creditors 224, ,019 Sundry creditors and accruals 126,975 79, , ,375 NOTE 11: PROVISIONS CURRENT Employee benefits (a) 610, ,513 Other 8,500 8, , ,013 NON CURRENT Employee benefits (a) 26,940 42,426 (a) Aggregate employee benefits liability 637, ,939 NOTE 12: OTHER LIABILITIES CURRENT Grant funds received in advance 572, ,873 Funds held on behalf of John Marriot Trust 78,384 80, , ,501 Funds held in the John Marriot Trust are included in the cash at bank account

17 NOTES TO FINANCIAL STATEMENTS Note $ $ NOTE 13: RESERVES Asset revaluation reserve - 13,414,556 The asset revaluation reserve was used to record increments and decrements on the revaluation of land and buildings. NOTE 14: ACCUMULATED SURPLUS Accumulated surplus at beginning of year 3,587,162 3,525,836 Surplus for the year 146,548 61,326 Transfer from asset revaluation reserve 13,414,556-17,148,266 3,587,162 NOTE 15: CAPITAL AND LEASING COMMITMENTS (a) Operating lease commitments Non-cancellable operating leases contracted for but not capitalised in the financial statements: Payable - not later than one year 96, ,157 - later than one year and not later than five years 82,871 42, , ,350 Operating lease commitments are in relation to leased premises in Victoria, motor vehicles and office photocopiers. NOTE 16: CASH FLOW INFORMATION (a) Reconciliation of cash Cash at the end of the financial year as shown in the consolidated statement of cash flows is reconciled to the related items in the consolidated statement of financial position is as follows: Cash on hand 6,250 5,950 Cash at bank 15,388, ,669 At call deposits with financial institutions 3,046,844 2,961,098 18,441,713 3,299,

18 NOTE 16: CASH FLOW INFORMATION (CONTINUED) NOTES TO FINANCIAL STATEMENTS (b) Reconciliation of cash flow from operations with profit after income tax Note $ $ Surplus from ordinary activities 146,548 61,326 Adjustments and non-cash items Depreciation 58,162 63,716 Loss on disposal of plant and equipment - 1,298 Changes in assets and liabilities Decrease in receivables ,657 (Increase) / decrease in other assets (77,324) 30,597 Increase / (decrease) in payables 136,328 (113,591) Increase in other liabilities 327,063 49,564 Increase in provisions 10,144 58,076 Cash flows provided by operating activities 601, ,643 NOTE 17: RELATED PARTY TRANSACTIONS The related parties of the associations are the directors as listed below: - Greg Carter - Mohammed El-Leissy - Chad Hughes - Chrissie Feagins - Michael Tippett - Aram Hosie - Glenn Pannam - Deborah Sykes - Austin Chia - Prof. Jim Hyde - Christopher McDermott - Craig Burnett Explicitly there are no transactions between the associations and the directors. NOTE 18: EVENTS SUBSEQUENT TO REPORTING DATE There has been no matter or circumstance, which has arisen since 30 June 2016 that has significantly affected or may significantly affect: (a) (b) (c) the operations, in financial years subsequent to 30 June 2016, of the group, or the results of those operations, or the state of affairs, in financial years subsequent to 30 June 2016, of the group

19 NOTES TO FINANCIAL STATEMENTS NOTE 19: ENTITY DETAILS The registered office of the group is: Victorian AIDS Council / Gay Men's Health Centre (Combined) 6 Claremont Street SOUTH YARRA VIC

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