SAMARINDA AGED CARE FINANCIALS

Transcription

1 SAMARINDA AGED CARE FINANCIALS The accompanying notes form part of these financial statements 1 36

2

3 COMMITTEE OF MANAGEMENT S REPORT 36 The accompanying notes form part of these financial statements 3

4 The Committee of Management of Samarinda Aged Services Inc (Samarinda) submit herewith the annual financial report for the financial year ended 30 June. Committee Members The names and details of the Committee members in office during the financial year are as follows. Members were in office for this entire period unless otherwise stated. Bob Stensholt (Chair) Elizabeth Lanyon (Vice Chair) Phil Henty (Secretary) George Andreola (Treasurer) Leong Lee Liz McNaughton Melissa Timbs Principal Activities The principal activity of Samarinda continued to be the management of a facility providing residential care for aged persons. On 1 July 2007 Samarinda took over the operational management of Elsie Salter House, a day respite service offering specialised programs for the frail aged and those living with dementia and their carers. This centre operates in the local Boroondara area. Review of Operations The operating loss amounted to 128,290( loss 44,748) for the year ended 30 June. Samarinda is exempt from paying taxation; therefore no provision for income tax is required. Samarinda has operated in pursuing its objectives throughout the year and is in a sound position to support future activities. Changes in State of Affairs During the financial year there were no significant changes in the state of affairs of Samarinda other than that referred to in the financial statements or notes thereto. Environmental Regulation Samarinda holds licences issued by the Department of Health and Ageing for 39 permanent places and 1 respite place. Samarinda has maintained full accreditation by the Aged Care Standards and Accreditation Agency since 2000 when these standards were introduced. Samarinda is currently classified as Class 9C of the Building Code of Australia which was developed in response to the introduction of Ageing in Place. Samarinda is also dependent on the Department of Human Services for the majority of the revenue used to operate Elsie Salter House. Future Developments In April Samarinda Aged Services was allocated 50 provisional bed licenses, 30 high care and 20 low care. In accordance with the Aged Care Act 1997 Samarinda has until April 2014 to apply to the Secretary to have these provisional places allocated to them. This will involve Samarinda embarking on a re-development and building project. Corporate Structure Samarinda is an Incorporated Association. The address of the registered office and principal place of business is 286 High Street, Ashburton. Indemnification and Insurance of Directors and Officers Samarinda has obtained insurance in respect of all directors and officers against all liabilities to other persons that may arise from their positions as directors and officers, except where the liability arises out of conduct involving a lack of good faith. As part of the funding agreement with the Department of Human Services, the premium of this insurance was paid for by the aforementioned for Samarinda for the period from 1 July to 30 June. Committee of Management Meetings The following table sets out the number of Committee of Management meetings held during the financial year and the number of meetings attended by each member. During the financial year, 12 ordinary Committee of Management meetings and 6 Finance Committee meetings were held. COMMITTEE OF MANAGEMENT FINANCE COMMITTEE Held Attended Held Attended Bob Stensholt Elizabeth Lanyon Phil Henty George Andreola Leong Lee Liz McNaughton 12 9 Melissa Timbs 12 4 Signed in accordance with a resolution of the Committee Dated this Nineteenth day of September Subsequent Events Currently Samarinda are in the process of securing funding and appointing a builder for the future redevelopment. Since 30 June, there have been no additional events which have a material effect that have not already been reported in the current period. Bob STENSHOLT (Chair) Elizabeth Lanyon (Vice Chair) 4 The accompanying notes form part of these financial statements

5 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE NOTES Revenues from ordinary activities 2 3,788,861 3,784,854 Employee benefits expense 3 2,924,666 2,798,143 Client Expense 244, ,333 Property and equipment maintenance 152, ,590 Depreciation 3 300, ,058 Administrative Expense 294, ,479 Profit/ (loss) from ordinary activities (128,290) (44,748) Profit/ (loss) attributable to members (128,290) (44,748) The accompanying notes form part of these financial statements 5

6 BALANCE SHEET AS AT 30 JUNE ASSETS NOTES CURRENT ASSESTS Cash Assets 5 5,940,820 4,012,683 Receivables 6 118, ,555 Other 7 64,933 67,803 Total Current Assets 6,124,132 4,219,041 NON CURRENT ASSETS Property, Plant and Equipment 8 6,219,212 5,698,367 Investments 9 4,457,374 4,220,465 Intangible Assets 10 1,600,000 1,600,000 Total Non Current Assets 12,276,586 11,518,832 TOTAL ASSETS 18,400,718 15,737,873 LIABILITIES CURRENT LIABILITIES Payables , ,454 Provisions , ,702 Non Interest Bearing Liabilities 13 12,033,491 10,293,873 Total Current Liabilities 12,748,619 10,753,028 NON CURRENT LIABILITIES Provisions 12 78, ,293 Total Non Current Liabilities 78, ,293 TOTAL LIABILITIES 12,827,557 10,970,322 NET ASSETS 5,573,161 4,767,552 EQUITY Reserves 14 2,894,934 1,961,035 Retained Profits 14 2,678,227 2,806,517 TOTAL EQUITY 5,573,161 4,767,552 6 The accompanying notes form part of these financial statements

7 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE ASSET REVALUATION RESERVE Opening Balance 1,961,035 1,920,031 Land Revaluation increment / decrement Available for sale investments Revaluation increment / decrement 235, , ,899 (203,996) Closing Balance 2,894,934 1,961,035 retained EARNINGS Opening Balance 2,806,517 2,851,265 Profit / (Loss) attributable to the entity (128,290) (44,748) Closing Balance 2,678,227 2,806,517 TOTAL EQUITY ATTRIBUTABLE TO MEMBERS 5,573,161 4,767,552 The accompanying notes form part of these financial statements 7

8 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Operating Activities 3,245,884 2,909,083 Interest and Dividends Received 537, ,910 Payments to suppliers and employees (3,522,393) (3,530,518) Net Cash Flows Provided by Operating Activities 17(b) 260, ,475 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sale of Investments 436, ,792 Payments for Property, Plant and Equipment (586,441) (158,453) Payments for Investments (557) (624,948) Net Cash Flows Provided by Investing Activities (150,607) 207,391 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Accomodation Bonds 2,362,311 4,932,535 Repayment of Accommodation Bonds (544,089) (3877,407) Net Cash Flows Provided by Financing Activities 1,818,222 1,055,128 Net Increase / (Decrease) in Cash Held 1,928,137 1,441,994 Cash at beginning of financial year 4,012,683 2,570,688 Cash at the end of the Financial Year 17(a) 5,940,820 4,012,683 8 The accompanying notes form part of these financial statements

9 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 1. Summary of Significant Accounting Policies This financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the requirements of the Associations Incorporation Reform Act of Victoria. All amounts are presented in Australian Dollars. The financial report covers Samarinda as an individual entity. Samarinda is an incorporated association domiciled in Australia under the Associations Incorporation Reform Act. The financial statements of Samarinda for the year ended 30 June are authorised for issue by a resolution of the Committee of Management on 19 September. The following is a summary of the significant accounting policies adopted by the Association in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated. Basis of Preparation The financial report has been prepared on an accruals basis and is based on historical costs and does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets. (a) Income Tax No provision for income tax has been raised as the association is exempt from income tax under Division 50 of the Income Tax Assessment Act (b) Revenue Recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to Samarinda and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised: Rendering of Services Where contracts can be reliably measured, control of a right to be compensated for services has been attained. Interest and Income from Investments Revenue is recognised when the right to receive the income is obtained. Sale of Non-Current Assets The net gain or loss of non-current asset sales are included as revenue at the date control passes to the buyer, usually when an unconditional contract of sale is signed. The gain or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal. Grants Government grants are recognised at their fair value where there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. Donations Revenue is recognised when the monies are received by Samarinda. In kind donations or donations of assets are recorded at fair value. (c) Financial Instruments Recognition Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below. Financial Assets Interests in listed investments are classified as being available-for-sale and are stated at fair value less impairment. Fair value is determined with reference to quoted market prices. Transaction costs are included in the determination of net fair value. Gains and losses arising from changes in fair value are recognised directly in the revaluation reserve, until the investment is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in the revaluation reserve is included in profit or loss for the period. Impairment At each reporting date, Samarinda assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement. (d) Property, Plant & Equipment Legal title of the land has been transferred to Samarinda. In the event that the Association ceases to use the property for the purposes of aged care, ownership will revert to The City of Boroondara. Land is measured at fair value. Fair value is determined on the basis of council valuation. The fair values are recognised in the financial statements and reviewed at the end of each reporting period to ensure that the carrying The accompanying notes form part of these financial statements 9

10 NOTES TO THE BALANCE FINANCIAL SHEETSTATEMENTS FOR THE AS YEAR AT 30 ENDED JUNE 30 JUNE value of land and buildings is not materially different from their fair values. Any revaluation increase arising on the revaluation of land is credited to the asset revaluation reserve, except to the extent that it reverses a revaluation decrease for the same asset previously recognised as an expense in profit or loss, in which case the increase is credited to the income statement to the extent of the decrease previously charged. A decrease in carrying amount arising on the revaluation of land is charged as an expense in profit or loss to the extent that it exceeds the balance, if any, held in the asset revaluation reserve relating to a previous revaluation of that asset. Depreciation on revalued buildings is charged to profit and loss. Buildings, plant and equipment are stated at cost less accumulated depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of the item. Depreciation is provided on property, plant and equipment, including buildings but excluding land. Depreciation is calculated on a straight line basis to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value. The expected useful lives for each class of depreciable asset are: Category Plant and Equipment Buildings Motor Vehicles Leasehold Improvements Useful Life 3-10 years 40 years 4 years 1 ½ years The carrying amount of plant and equipment is reviewed annually to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. Plant and equipment that have been contributed at no cost, or for nominal cost are valued at the fair value of the asset at the date it is acquired. (e) Cash and Cash Equivalents For the purpose of the Statements of Cash Flows, cash includes cash on hand and in banks and investments in money market instruments readily convertible to cash. (f) Employee Benefits Provision is made for Samarinda s liability for employee benefits arising from services rendered by employees to balance sheet date. Employee benefits have been measured at the amounts expected to be paid when the liability is settled plus related on costs. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Contributions are made by Samarinda to employee superannuation funds and are charged as expenses when incurred. (g) Comparative Amounts Where required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current year. (h) Goods and Services Tax Revenues, expenses, assets and liabilities are recognised net of the amount of goods and services tax (GST), except: (i) where the amount of GST incurred is not recoverable from the Australian Taxation Office, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or (ii) for receivables and payables which are recognised inclusive of GST. The net amount of GST recoverable from, or payable to, the Australian Taxation Office is included as part of receivables or payables. Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office is classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the Australian Taxation Office. (i) Impairment of Assets The carrying value of plant and equipment are reviewed for impairment at each reporting date, with recoverable amount being estimated when events or changes in circumstances indicated that the carrying value may be impaired. The recoverable amount of plant and equipment is the higher of fair value less costs to sell and the depreciated replacement cost. 10 The accompanying notes form part of these financial statements

11 NOTES TO THE BALANCE FINANCIAL SHEET STATEMENTS FOR THE AS YEAR AT ENDED 30 JUNE 30 JUNE An impairment exists when the carrying value of an asset exceeds its estimated recoverable amount. The asset is then written down to its recoverable amount. For plant and equipment, impairment losses are recognised in the income statement. However, because land and buildings are measured at revalued amounts, impairment losses on land and buildings are treated as a revaluation decrement. (j) Intangible Assets Intangible assets are initially measured at fair value. Following initial recognition, intangible assets are carried at deemed cost less any accumulated impairment losses. Any revaluation increase arising on the revaluation of intangible assets is credited to the asset revaluation reserve, except to the extent that it reverses a revaluation decrease for the same asset previously recognised as an expense in profit or loss, in which case the increase is credited to the income statement to the extent of the decrease previously charged. A decrease in carrying amount arising on the revaluation of intangible assets is charged as an expense in profit or loss to the extent that it exceeds the balance, if any, held in the asset revaluation reserve relating to a previous revaluation of that asset. The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are amortised over the useful life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. Intangible assets with indefinite useful lives are tested for impairment annually. Such intangibles are not amortised. The useful life of an intangible asset with an indefinite life is reviewed each reporting period to determine whether indefinite life assessment continues to be supportable. The following is a summary of the treatment of Samarinda s intangible assets: Bed Licences (l) Contributions Samarinda receives non-reciprocal contributions from the government and other parties for no or a nominal value. These contributions are recognised at the fair value on the date of receipt at which time an asset is taken up in the balance sheet and revenue is recognised in the income statement. (m) Provisions Provisions are recognised when Samarinda 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. (n) Economic Dependence Samarinda is dependent on the Department of Health and Ageing and the Department of Human Services for the majority of its revenue used to operate the business. At the date of this report the Committee of Management has no reason to believe that the Departments will not continue to support Samarinda. (o) Critical Accounting Estimates and Judgements The Committee of Management evaluate estimates and judgements incorporated into the financial report 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 Samarinda. (p) Key estimates Impairment Samarinda assesses impairment at each reporting date by evaluating conditions specific to the association that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Fair value less costs to sell or current replacement cost performed in assessing recoverable amounts incorporate a number of key estimates. - valuation method fair value - useful lives indefinite - amortisation method used no amortisation - internally generated or acquired acquired - impairment testing annually or when impairment indicator exists. (k) Accommodation Bonds Accommodation bonds are recorded at an amount equal to the proceeds received and classified as a current liability as they are repayable on demand. History has shown the residents stay for an average period of four years. The accompanying notes form part of these financial statements 11

12 BALANCE SHEET AS AT 30 JUNE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2. REVENUES FROM ORDINARY ACTIVITIES REVENUES FROM OPERATING ACTIVITIES Residents Fees 842, ,550 Government Subsidies 2,210,863 1,993,943 Investment Income 570, ,802 Gain on Sale of Investments (Note 3) (26,157) 37,205 Donations 40,866 73,855 Accommodation Bond Retentions 78,605 69,808 Sundry 71,841 77,691 Total Revenue from Operating Activities 3,788,861 3,784, OPERATING RESULT THE OPERATING RESULT FROM ORDINARY ACTIVITIES INCLUDES Total Employee Benefits Expense 2,924,666 2,798,143 Depreciation of property plant and equipment Plant and Equipment 146, ,303 Motor Vehichles 36,295 41,736 Leasehold Improvements 1, Buildings 116, ,715 Total Depreciation of property plant and equipment 300, ,058 Significant Revenue and Expenses Net gain/ (loss) on disposal of non-current assets: Investments 436, ,792 Proceeds on disposal - Disposals at cost 462, ,588 Net gain on disposals as at 30 June (26,157) 37, REMUNERATION OF COMMITTEE OF MANAGEMENT The following Committee Members held office during the year: Bob Stensholt (Chair), Elizabeth Lanyon (Vice Chair), Phil Henty (Secretary), George Andreola (Treasurer), Leong Lee Liz McNaughton and Melissa Timbs. The Committee Members do not receive remuneration. 5. CASH Cash at bank and on hand 91, ,111 Deposits at call 849,609 2,840,922 Term Deposits 5,000,000 1,005,650 5,940,820 4,012, The accompanying notes form part of these financial statements

13 6. RECEIVABLES BALANCE SHEET AS AT 30 JUNE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Sundry Debtors 118, , OTHER CURRENT ASSETS Accrued Income 58,603 58,959 Prepayments 6,330 8,844 64,933 67, PROPERTY, PLANT & EQUIPMENT Land - at revaluation 2,170,000 1,935,000 Buildings at cost 5,124,417 4,672,403 Less: Accumulated Depreciation (1,439,766) (1,323,051) Note 8a(i) 5,854,651 5,284,352 Leasehold Improvements 2,345 2,345 Less: Accumulated Depreciation (1,664) (304) Note 8a(ii) 680 2,041 Plant and Equipment at Cost 1,623,926 1,489,499 Less: Accumulated Depreciation (1,277,967) (1,131,742) Note 8a(iii) 345, ,757 Motor Vehicles at Cost 166, ,944 Less: Accumulated Depreciation (149,021) (112,727) Note 8a(iv) 17,922 54,217 Total Plant & Equipment 364, ,974 Total Property, Plant & Equipment 6,219,212 5,698,367 8(a). PROPERTY, PLANT AND EQUIPMENT - RECONCILIATION Reconciliation of the carrying amount of each class of the property, plant and equipment are set out below. (i) LAND AND BUILDINGS Carrying amount at beginning 5,284,352 5,152,277 Revaluation 235, ,000 Additions 452,014 3,790 Depreciation Expense (116,715) (116,715) 5,854,651 5,284,352 The accompanying notes form part of these financial statements 13

14 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE (ii) LEASEHOLD IMPROVEMENTS Carrying amount at beginning 2,041 - Additions - 2,345 Depreciation Expense (1,361) (304) 680 2,041 (iii) PLANT AND EQUIPMENT Carrying amount at beginning 357, ,740 Additions 134, ,319 Depreciation Expense (146,225) (134,303) 345, ,757 (iv) MOTOR VEHICHLE Carrying amount at beginning 54,217 95,953 Additions - - Depreciation Expense (36,295) (41,736) 17,922 54, INVESTMENTS Available for sale financial assets Investments in listed entities - at fair value 4,457,374 4,220, INTANGIBLE ASSETS Bed Licences - at fair value 1,600,000 1,600, PAYABLES Trade creditors and accruals 268, , PROVISIONS Current Employee entitlements 446, ,702 Non Current Employee entitlements 78, ,293 Aggregated employee benefits and related on-costs liabilities 525, , The accompanying notes form part of these financial statements

15 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 13. NON INTEREST BEARING LIABILITIES Accomodation Bond Liability 12,033,491 10,293, RESERVES & RETAINED EARNINGS (a) Asset Revaluation Reserve Investments 724,998 26,099 Land 2,169,936 1,934,936 Total Asset Revaluation Reserve 2,894,934 1,961,035 The asset revaluation reserve is used to record increments and decrements in the value of non current assets. (b) Retained Profits Retained profits at the beginning of the financial year 2,806,517 2,851,265 Net Profit / (Loss) (128,290) (44,748) Retained profits at the end of the financial year 2,678,227 2,806, EQUITY The Association does not have equity as it is an incorporated association. 16. REMUNERATION OF AUDITORS Amounts received, or due and receivable, by the auditors for: Annual Audit or audit review of the entity 9,000 8, NOTES TO THE STATEMENT OF CASH FLOWS (a) Reconciliation of Cash Cash at the end of the financial year as shown in the statements of cash flows is reconciled to the related items in the balance sheet as follows: Petty Cash 2,721 1,200 Cash at Bank 88, ,911 Deposit at Call 849,609 2,840,922 Term Deposits 5,000,000 1,005,650 5,940,820 4,012,683 The accompanying notes form part of these financial statements 15

16 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE (b) Reconciliation of Operating Result to Net Cash Flows from Operating Activities Net Profit / (Loss) (128,290) (44,748) NON CASH FLOWS IN NET RESULT Depreciation 300, ,057 Entry Contributions Retained (78,605) (67,348) Interest Charged to Accommodation Bonds - - (Gain) / Loss on Sale of Investments 26,157 (37,205) CHANGES IN ASSETS AND LIABILITIES Interest Accrued (38,191) 7,792 Income Accrued 38,548 (38,548) Prepayments and Debtors 22,690 28,052 Creditors 68,916 14,077 Employee Entitlement Provisions 48,701 24, , , SEGMENT INFORMATION Samarinda is a not-for-profit organisation focusing on the provision of aged care services. The organisation operates within Australia. RESIDENTIAL AGED CARE DAY RESPITE CONSOLIDATED Revenues from ordinary activities 3,446,560 3,468, , ,605 3,788,861 3,784,854 Employee benefits expense 2,650,437 2,513, , ,244 2,924,666 2,798,143 Client expense 235, ,223 8,897 11, , ,333 Property & equipment maintenance 152, , , ,590 Depreciation 298, ,791 2,045 1, , ,058 Administrative expense 273, ,617 21,208 19, , ,479 Segment Result (164,211) (45,050) 35, (128,290) (44,748) Segment Assets 18,382,100 15,470,352 18,618 22,521 18,400,718 15,737,873 Segment Liabilities 12,783,994 10,911,821 43,563 58,501 12,827,557 10,970, The accompanying notes form part of these financial statements

17 CERTIFICATE OF FINANCIAL STATEMENT The Committee of Management declare that: 1. in their opinion, the attached financial statements and notes thereto: i. give a true and fair view of Samarinda s financial position as at 30 June and for its performance for the year ended on that date; and ii. are in accordance with the Australian Accounting Standards and other mandatory professional reporting requirements and other authoritative pronouncements of the Australian Accounting Standards Board. 2. in their opinion, there are reasonable grounds to believe that Samarinda will be able to pay its debts as and when they fall due. Dated this Nineteenth day of September. Bob STENSHOLT (Chair) Elizabeth Lanyon (Vice Chair) The accompanying notes form part of these financial statements 17

18 INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF SAMARINDA AGED SERVICES INC We have audited the accompanying financial report of Samarinda Aged Services Inc ( the association ), which comprises the statement of financial position as at 30 June and the statements of comprehensive income, changes in equity and cash flows for the year then ended, a summary of significant accounting policies, other explanatory notes and the statement by members of the Committee of Management. The Committee of Management s Responsibility for the Financial Report The association s Committee of Management is responsible for the preparation of the financial report in accordance with Australian Accounting Standards and the Associations Incorporation Reform Act. This responsibility also includes such internal control as the Committee of Management determines is 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 have 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 our 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, we consider internal control relevant to the entity s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Committee of Management, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Australian professional accounting bodies. Auditor s Opinion In our opinion the financial report presents fairly, in all material respects, the financial position of Samarinda Aged Services Inc as of 30 June and of its financial performance and its cash flows for the year then ended in accordance with Australian Accounting Standards and the Associations Incorporation Reform Act. Lawler Draper Dillon Steven Bradby Partner Melbourne, 19 September Lawler Draper Dillon Audit & Assurance ABN Liability limited by a scheme approved under Professional Standards Legislation Melbourne Level 12, 440 Collins Street Melbourne VIC 3000 Australia telephone facsimile mail@lawlerdd.com.au 18 The accompanying notes form part of these financial statements

19

20 Samarinda AGED SERVICES 286 High St Ashburton, Victoria 3147 p f