NETBALL VICTORIA Financial Report Netball Victoria Financial Report 1

Transcription

1 NETBALL VICTORIA Financial Report Netball Victoria Financial Report 1

2 The overall financial health at Netball Victoria provides stability for us to continue to grow and support our sport at all levels; from grassroots to elite. Contents Jenny Sanchez, President 4 Directors 4 Directors Declaration 5 Auditor s Independence Declaration 8 Operating Performance 9 Financial Position 9 Financial Summary

3 Directors Auditor s Independence Declaration The Netball Victoria Directors at any time during or since the end of the financial year are: Director President Jenny Sanchez Elected Director Richelle McKenzie Elected Director Kirrily Zimmerman Elected Director Shane O Sullivan Elected Director Marlene Elliott Elected Director Gayle Lambert Elected Director Jan Fitzgerald Appointed Director Natalie Whitaker (nee Eden) Appointed Director Mary Bluett Observer Wendy Frost Period as Director 2000 to Present 2007 to Present 2008 to Present 2013 to Present 2013 to Present 2014 to Present to Present 2013 to Present to Present to Present 4 5

4 Auditor s Independence Declaration Auditor s Independence Declaration 6 7

5 Operating Performance Financial Position Netball Victoria has delivered sound financial performance for, with an operating surplus of 11,068 - a figure very close to the budget target. Importantly, we have met our financial targets, while also delivering against our key strategic aims for the year, some of which are detailed below: Driving growth in our netball participation community to over 216,000 people including over 114,681 individual and 200 Association and League members. Individual membership numbers grew by over 2,000, which marks the eighth consecutive year of growth. Investment in training and supporting our community with the MyNetball registration system continued at a high level. We introduced new forms of training, webinars, support and access to information for our Associations and Leagues, and continued to provide intensive support on key matters such as governance, insurance and dispute resolution. With the support of VicHealth and Sport and Recreation Victoria, we have continued to invest strongly in the development of new non-traditional netball programs that will open new markets, supporting both participation and financial growth for our sport. We continued with the development of a state-wide 10-year facility strategy and facilities manual. We worked with the State Government and four inner city Local Government Associations to commence plans on the delivery of the 64 court election commitment for Inner North Metro Melbourne, the continuation of the Country Football Netball Program and investment in technical services for facility development and court audits. That we have ongoing commitment to ensuring our regional areas are well supported, by having our regional staff in place. Successfully managing the transition from the ANZ Championships to Suncorp Super Netball including new player contracts and increased marketing and other activities. We achieved both growth and a very high level of retention with new partners and sponsors and continued to increase our profile across traditional and digital media. Maintaining a high investment in the professional development of our staff team, while increasing overall staff numbers and managing turnover. We continued a program of review and reduction of operating costs. Our work and achievements in these areas have been the major drivers of achieving our targeted operating position. Our focus is on continuing to grow revenues from a range of sources, and rather than make large surpluses invest that money into services and facilities that both support our community and grow our sport. We continue to operate with tight margins and pursue all appropriate opportunities and initiatives, in order to improve our financial health and that of our Associations and Leagues. We are prudent in all our financial dealings, respecting both our member contributions and the ongoing tightness of the economy. Our environment is dynamic and as we also develop we must recognise that new initiatives, such as our new products and programs, will take time to generate a positive and sustained financial outcome. As at 31 December, Netball Victoria has net assets of 4,749,054. This includes the value of Netball House our offices in King Street West Melbourne - which are fully owned and valued (land and buildings) at 3,175,000 (based on an independent valuation conducted in Oct ). Financial Summary In summary, the financial position of Netball Victoria as at the end of December is healthy. Our financial turnover continues to grow. This enables us to keep investing in our programs, competitions, and in our on and off-court teams, which bodes well for our sport s continued growth and future success. We thank all our members, Associations and Leagues, and Partners, for their role in enabling us to undertake this work and achieve such positive outcomes. 8 9

6 Financial Statements Statement of Profit or Loss and Other Comprehensive Income Revenue Fundraising / grants 879, ,792 Memberships income 6,422,872 6,124,382 NV competitions & programs income 1,591,377 1,506,873 Sponsorship income 1,484,634 1,667,518 Vixens operations income 1,679,837 1,416,356 Other revenue 55,217 78,313 12,113,890 11,543,234 Contents Financial Statements Statement of Profit or Loss and Other Comprehensive Income 1 Statement of Financial Position 2 Statement of Changes in Equity 3 Statement of Cash Flows 4 5 Directors' Declaration 14 Independent Auditor's Report 15 Page Expenses NV employment expenses (4,284,877) (3,940,084) Depreciation, amortisation and impairments (102,748) (111,670) Administrative expenses (752,108) (749,227) Bad debts - (1,463) Marketing & sponsorship expenses (874,993) (1,136,862) Profit/loss on sale of assets - (5,104) Insurance (764,036) (754,129) Sundry expenses (29,153) (40,051) Vixens operations expense (1,728,874) (1,475,607) NV competition & program expense (2,207,944) (1,969,599) Building & facilities expense (621,044) (604,404) NA affiliation expense (737,045) (744,199) (12,102,822) (11,532,399) Surplus for the year 11,068 10,835 Other comprehensive income Revaluation change for property - 502,441 Other comprehensive income for the year - 502,441 Total comprehensive income for the year 11, ,276 The accompanying notes form part of these financial statements

7 Statement of Financial Position 31 December Statement of Changes in Equity ASSETS CURRENT ASSETS Cash and cash equivalents 4 833, ,747 Trade and other receivables 5 68, ,052 Inventories 6 8,714 82,958 Other financial assets 7 1,606,115 1,990,474 Other assets 8 293, ,069 TOTAL CURRENT ASSETS 2,810,434 2,818,300 NON-CURRENT ASSETS Property, plant and equipment 9 3,377,684 3,315,758 Other assets 8 4,125 - TOTAL NON-CURRENT ASSETS 3,381,809 3,315,758 Note Asset Revaluation Reserve Accummulated Funds Total Balance at 1 January 1,749,192 2,988,794 4,737,986 Surplus for the year - 11,068 11,068 Balance at 31 December 1,749,192 2,999,862 4,749,054 Balance at 1 January 1,246,751 2,977,959 4,224,710 Increase in reserves during the year 502, ,441 Surplus for the year - 10,835 10,835 Balance at 31 December 1,749,192 2,988,794 4,737,986 TOTAL ASSETS 6,192,243 6,134,058 LIABILITIES CURRENT LIABILITIES Trade and other payables , ,837 Employee benefits , ,672 Income received in advance , ,096 TOTAL CURRENT LIABILITIES 1,424,758 1,386,605 NON-CURRENT LIABILITIES Employee benefits 11 18,431 9,467 TOTAL NON-CURRENT LIABILITIES 18,431 9,467 TOTAL LIABILITIES 1,443,189 1,396,072 NET ASSETS 4,749,054 4,737,986 EQUITY Asset revaluation reserve 1,749,192 1,749,192 Accumulated funds 2,999,862 2,988,794 TOTAL EQUITY 4,749,054 4,737,986 The accompanying notes form part of these financial statements. 2 The accompanying notes form part of these financial statements

8 Statement of Cash Flows CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers 12,236,001 11,331,134 Payments to suppliers and employees (12,122,528) (11,290,488) Interest received 52,576 70,963 Net cash provided by operating activities , ,609 Note The financial statements cover as an individual entity. is a not-for-profit Association incorporated in Victoria under the Associations Incorporation Reform Act 2012 ('the Act') and the Rules of the The principal activity of the Association for the year ended 31 December was the administration of netball in Victoria. The functional and presentation currency of is Australian dollars. CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (164,674) (39,138) Payments for fixed interest deposits - (1,490,474) Proceeds from fixed interest deposits 384,359 - Net cash provided by/(used) in investing activities 219,685 (1,529,612) Net increase / (decrease) in cash and cash equivalents held 385,734 (1,418,003) Cash and cash equivalents at beginning of year 447,747 1,865,750 Cash and cash equivalents at end of financial year 4 833, ,747 Comparatives are consistent with prior years, unless otherwise stated. 1 Basis of Preparation In the opinion of the Board of Directors, the Association is not a reporting entity since there are unlikely to exist users of the financial report who are not able to command the preparation of reports tailored so as to satisfy specifically all of their information needs. These special purpose financial statements have been prepared to meet the reporting requirements of the Act. The financial statements have been prepared in accordance with the recognition and measurement requirements of the Australian Accounting Standards and Accounting Interpretations, and the disclosure requirements of AASB 101 Presentation of Financial Statements, AASB 107 Statement of Cash Flows, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, AASB 1048 Interpretation of Standards and AASB 1054 Australian Additional Disclosures. 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. The accounting policies set out below have been applied consistently to all periods presented in the Association's financial report, unless otherwise stated. 2 Summary of Significant Accounting Policies (a) Income Tax The Association is exempt from income tax under Division 50 of the Income Tax Assessment Act (b) Leases Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the life of the lease term. (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 seven days from the date of recognition. Collectibility of trade receivables is reviewed 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 Association will not be able to collect all amounts due according to the original terms of the receivables. The amount of provision is recognised in the statement of financial position. The accompanying notes form part of these financial statements

9 2 Summary of Significant Accounting Policies (continued) 2 Summary of Significant Accounting Policies (continued) (d) Revenue and other income (g) Property, plant and equipment Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates. Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment. All revenue is stated net of the amount of goods and services tax (GST). Sale of goods Where the cost model is used, the asset is carried at its cost less any accumulated depreciation and any impairment losses. Costs include purchase price, other directly attributable costs and the initial estimate of the costs of dismantling and restoring the asset, where applicable. Revenue from sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer. Assets measured using the revaluation model are carried at fair value at the revaluation date less any subsequent accumulated depreciation and impairment losses. Revaluations are performed whenever there is a material movement in the value of an asset under the revaluation model. Grant revenue Land and buildings Government grants are recognised initially as deferred income where there is reasonable assurance that the grant will be received and all grant conditions will be met. Grants relating to expense items are recognised as income over the periods necessary to match the grant to the costs they are compensating. Grants relating to assets are credited to deferred income at fair value and are credited to income over the expected useful life of the asset on a straight-line basis. Land and buildings are measured using the revaluation model. Plant and equipment Interest revenue Plant and equipment are measured using the cost model. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Memberships and services revenue Depreciation Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assets useful life to the Association, commencing when the asset is ready for use. Revenue from services rendered is recognised in proportion to the stage of completion of the transaction at the balance sheet date. Leased assets and leasehold improvements are amortised over the shorter of either the unexpired period of the lease or their estimated useful life. Sponsorship The depreciation rates used for each class of depreciable asset are shown below: Fixed asset class Depreciation rate Buildings 2.5% Plant and Equipment 10-40% Leasehold Improvements 20% The Association receives sponsorships, with sponsorship monies recognised as earned. Sponsorship funding has been expended into the event or program area for which it was allocated as a mandatory requirement in the sponsorship agreement. Revenue from in-kind sponsorship is recognised at fair value at the date of the contribution. At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate. (e) Goods and Services Tax (GST) (h) Cash and cash equivalents 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 Tax Office. 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 in the statement of financial position are shown inclusive of GST. Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value. Bank overdrafts also form part of cash equivalents for the purpose of the statement of cash flows and are presented within current liabilities on the statement of financial position. (f) Inventories Inventories are measured at the lower of cost and net realisable value. Cost of inventory is determined using the individual item basis and is net of any rebates and discounts received

10 2 Summary of Significant Accounting Policies (continued) 2 Summary of Significant Accounting Policies (continued) (i) Financial instruments (k) Licence agreement Financial instruments are recognised initially using trade date accounting, i.e. on the date that the Association becomes party to the contractual provisions of the instrument. On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for instruments measured at fair value through profit or loss where transaction costs are expensed as incurred). Financial Assets Financial assets are divided into the following categories which are described in detail below: On 1 July 2008, the Association entered into a licence agreement with the State Sport Centres Trust (SSCT) for the use of the State Netball and Hockey Centre for three years. This has been renewed for future periods, now expiring 30 June The licence fee payable is 520,000 per annum. The Association does not collect any revenue directly from the State Netball and Hockey Centre, as the SSCT acts as an agent and collects all revenues on the Association's behalf. The Association has a legal obligation to make good to the SSCT any shortfall arising from the licence fee payable of 520,000 per annum. This legal obligation is disclosed in Note 16(b) to the financial statements. loans and receivables; financial assets at fair value through profit or loss; 3 Critical Accounting Estimates and Judgments The directors make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances. available-for-sale financial assets; and held-to-maturity investments. Financial assets are assigned to the different categories on initial recognition, depending on the characteristics of the instrument and its purpose. A financial instrument s category is relevant to the way it is measured and whether any resulting income and expenses are recognised in profit or loss or in other comprehensive income. These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates. The estiimates 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. All income and expenses relating to financial assets are recognised in the statement of profit or loss and other comprehensive income in the finance income or finance costs line item respectively. Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity. Investments are classified as held-to-maturity if it is the intention of the Association's management to hold them until maturity. Held-to-maturity investments are subsequently measured at amortised cost using the effective interest method, with revenue recognised on an effective yield basis. In addition, if there is objective evidence that the investment has been impaired, the financial asset is measured at the present value of estimated cash flows. Any changes to the carrying amount of the investment are recognised in profit or loss. (j) Employee benefits Provision is made for the Association's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits expected to be settled more than one year after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Cashflows are discounted using market yields on high quality corporate bond rates incorporating bonds rated AAA or AA by credit agencies, with terms to maturity that match the expected timing of cashflows. Changes in the measurement of the liability are recognised in profit or loss

11 4 Cash and Cash Equivalents Cash on hand Bank balances 829, ,047 Other cash and cash equivalents 2,960 - Reconciliation of cash 833, ,747 Cash and Cash equivalents reported in the statement of cash flows are reconciled to the equivalent items in the statement of financial position as follows: Cash and cash equivalents 833, ,747 5 Trade and Other Receivables CURRENT Trade receivables 68,201 96,404 GST receivable - 6,648 6 Inventories CURRENT 68, ,052 At cost: Inventories - at cost 8,714 82,958 7 Other financial assets CURRENT Held-to-maturity financial assets - Fixed interest term deposits 1,606,115 1,990,474 8 Other Assets CURRENT Prepayments 188, ,266 Accrued income 105,243 48, , ,069 NON-CURRENT Security deposit 4,125-9 Property, plant and equipment LAND AND BUILDINGS Freehold land At independent valuation 2,075,000 2,075,000 Buildings At independent valuation 1,100,000 1,100,000 Accumulated depreciation (27,500) - Total buildings 1,072,500 1,100,000 Total land and buildings 3,147,500 3,175,000 PLANT AND EQUIPMENT Plant and equipment At cost 456, ,558 Accumulated depreciation (327,625) (275,800) Total plant and equipment 129, ,758 Leasehold Improvements At cost 110,078 - Accumulated amortisation (9,263) - Total leasehold improvements 100,815 - Total property, plant and equipment 3,377,684 3,315,758 A revaluation of the land and buildings was completed in October, performed by Charter Keck Cramer. The independent valuation determined that the fair value of the land and buildings was 3,175,000. The directors subsequently adopted the new valuation which was recorded as at 31 December. 10 Trade and Other Payables CURRENT Unsecured liabilities Trade payables 117, ,432 GST payable 11,088 - Accrued expenses 17,478 52,703 Jean Cowan bequest 12,080 - Accrued wages, superannuation and PAYG 279, , , ,

12 11 Employee Benefits Current liabilities Annual leave 242, ,518 Long service leave 58,459 54, , ,672 Non-current liabilities Long service leave 18,431 9, Capital and Leasing Commitments (a) Operating Leases Minimum lease payments under non-cancellable operating leases: - not later than one year 95,338 51,162 - between one year and five years 172,480 93,359 - later than five years , , Income Received In Advance CURRENT Grants received in advance 283,765 75,000 Income received in advance 401, , , ,096 (b) Operating leases have been have been taken out for an office building, photocopier and coffee machine. Lease payments are increased on an annual basis to reflect market rentals. Contracted Commitments State Sport Centres Trust Licence fee payable 260, , Cash Flow Information Reconciliation of result for the year to cashflows from operating activities Surplus for the year 11,068 10,835 Non-cash flows in profit: - depreciation 102, ,670 Changes in assets and liabilities: - (increase)/decrease in trade and other receivables 34,851 (6,020) - (increase)/decrease in other assets (103,979) (50,303) - (increase)/decrease in inventories 74,244 50,498 - increase/(decrease) in income in advance 139,836 (113,709) - increase/(decrease) in trade and other payables (143,341) 41,889 - increase/(decrease) in employee benefits 50,622 66,749 Cashflow from operating activities 14 Contingencies 166, ,609 In the opinion of the Board of Directors, the Association did not have any contingencies at 31 December (31 December : None). 15 Related Parties 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. On 1 July 2008, the Association entered into a licence agreement with the State Sport Centres Trust for the use of the State Netball and Hockey Centre for three years expiring on 30 June 2011, the agreement was further renewed for a period of three year expiring on 30 June This agreement has been further renewed and now expires on 30 June The Association did not record a shortfall in the previous year and does not expect to incur a shortfall in the next 12 months. 17 Auditors' Remuneration Remuneration of the auditor of the association for: - auditing the financial statements 18,000 18,000 - other services 1,000 2,100 Other services include the audit of a government grant. 18 Events after the end of the Reporting Period 19,000 20,100 No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Association, the results of those operations or the state of affairs of the Association in future financial years. 19 Association Details The registered office and principal place of business of the association is: 487 King Street West Melbourne VIC

13 Netball Victoria 487 King Street West Melbourne Victoria 3003 /NetballVic /MelbourneVixens P: F: Netball Victoria Financial Report