ANGLICARESA. Anglicare SA Ltd ABN ACN Consolidated Financial Statements

Transcription

1 ANGLICARESA Anglicare SA Ltd Consolidated Financial Statements

2 Contents Page 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 Notes to the Financial Statements 5 Directors Declaration 17 Independent Audit Report 18

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4 ABN Consolidated Statement of Financial Position Consolidated Note ASSETS Current Assets Cash and cash equivalents 3 35, Trade and other receivables 4 2, Inventories Other assets 6 4,320 3,670 Total Current Assets 42,272 38,777 Non-Current Assets Trade and other receivables 4 1,626 1,521 Financial assets 7 17,289 15,693 Property, plant and equipment 8 134, ,673 Investment property 9 127,432 89,822 Total Non-Current Assets 280, ,710 TOTAL ASSETS 322, ,487 LIABILITIES Current Liabilities Trade and other payables 10 7,924 6,696 Borrowings 11 66,669 60,968 Short-term provisions Employee benefits 13 6,920 5,958 Other financial liabilities 14 7,018 5,520 Total Current Liabilities 88,537 79,158 Non-Current Liabilities Borrowings ,400 Employee benefits 13 3,625 3,186 Total Non-Current Liabilities 4,174 9,586 TOTAL LIABILITIES 92,711 88,744 NET ASSETS 230, ,743 EQUITY Reserves ,086 73,636 Accumulated surplus 124, ,107 TOTAL EQUITY 230, The accompanying notes for m part of these financial statements. 2

5 Consolidated Statement of Changes in Equity For the Year Ended 30 June 2016 Consolidated Accumulated Asset Investment Equity Westbourne NBESP Grant Maintenance Debenture Housing Asset Total Surplus Revaluation Revaluation Mortgage Park Capital Reserve Reserve Reserve Transfer Surplus Reserve Revaluation Replacement Reserve Reserve Reserve 2017 $000 $000 $000 Balance at 1 July ,107 18, , , ,743 Surplus attnbutable to members of the entity 46,496-46,496 Transfers from accumulated surplus reserves (45) - 81 (36) _ Housing Asset Transfer (35,616) _ - 35,616 Transfers between reserves - (20,929) (32,856) 53,785 Total other comprehensive income for the year (4,874) (4,211) Total comprehensive income for the year 10,835 (4,874) (20,929) (36) (32,856) 89,401 42,285 Balance at 30 June ,942 13,579 1, , ,028 Accumulated Asset Investment Equity Westbourne NBESP Grant Maintenance Debenture Housing Asset Total Surplus Revaluation Revaluation Mortgage Park Capital Reserve Reserve Reserve Transfer Surplus Reserve Revaluation Replacement Reserve Reserve Reserve 2016 $000 $000 $000 $000 $000 $000 $000 $000 Balance at 1 July ,811 34,393 1, , ,266 Surplus attributable to members of the entity 35, ,723 Transfers from accumulated surplus reserves (33,503) ,856 Transfer to accumulated surplus 76 (76) Total other comprehensive income for the year (15,940) (1,306) - (17,246) Total comprehensive income for the year 2,296 (15,940) (1,306) (76) ,856 18,478 Balance at 30 June ,107 18, , , ,743 The accompanying notes form part of these financial statements. 3

6 Consolidated Statement of Cash Flows Consolidated Note CASH FLOWS FROM OPERATING ACTIVIES Receipts from residents and other users (includng govemrnent funding: Payments to supplies and employees Receipts from donations and fundraising 140,766 (127,691) 2, ,612 (125513) 2080, Net cash provided by operating activities 15,380 4,179 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of investments 840 2,815 Purchase of property, plant and equipment (13,474) (5,777) Purchase of investment properties (3,318) Purchase of financial assets (1,427) (3,000) Cash acquired through gaining control of trusts 2,069 Receipts from investment interest and other distributions 1,319 1,393 Net cash used by investing activities (10,673) (7,888) CASH FLOWS FROM FINANCING ACTIVITIES Receipts from resident loans 18,760 19,886 Repayment of resident funding loans (13,109) (6,257) Finance costs (241) (145) Proceeds from borrowings 8,549 9,800 Payment of borrowings (10,300) (8500) Net cash provided by financing activities 3,659 14,783 Net increase in cash and cash equivalerrs held 8,366 11,075 Cash and cash equivalents at beginning of year 26, Cash and cash equivalents at end of financial year 3 35,340 26,974 The accompanying notes for tr part of these financial statements 4

7 1 General information and statement of compliance The financial report includes the consolidated financial statements and notes of Anglicare SA Ltd and its controlled entities, Anglicare SA Housing Ltd, The WAA West Estate, The Peter Laycock Estate and the EC Knox Estate (the Group'). Anglicare SA Ltd and Anglicare SA Housing Ltd are not-for-profit Companies Limited by Guarantee, incorporated under the Corporations Act 2001 The consolidated general purpose financial statements of Anglicare SA Ltd have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Act This financial report was approved and authorised for 1.,sue by the Boatt of Directors on 5 October The functional and presentation currency of Anglicare SA Ltd is Australian dollars. 2 Summary of Significant Accounting Policies (a) Basis of Consolidation The Group financial statements consolidate those of tie Parent company and its subsidiaries. The Parent controls a subsidiary if it is exposed, or has rights to, variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. Intercompany transactions, balances and unrealised gains and losses on transactions between the Group are eliminated. Where unrealised losses on intra-group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a group perspective. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group. Profit or loss and other comprehensive income of susidiaries acquired or disposed of during the year are recognised from the effective date of acquisition, or up to the effective date of disposal, as applicable. The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at lair value of selected non-current assets, financial assets and financial liabilities. Amounts in the financial statements have been rounded to the nearest thousand in accordance with ASIC class order 2016/191 unless otherwise noted (b) Comparative Amounts Comparatives are consistent with prior years, unless otherwise stated (c) Income Tax The Group is exempt from income tax under Divisk,n 50 of the Income Tax Assessment Act (d) Goods and Services Tax (GST) Revenue, 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 Ohre (ATO). Receivables and payables are stated inclusive of.st. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the statement of financial position. Cash flows are included in the statement of cash 'ows on a gross basis and the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the ATO is classified as operating cash flows (e) Critical accounting estimates and judgements Land and Buildings Land and buildings are measured at fair value usrng the revaluation method. Fair value is based on the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date (see Note 8) Investment property Investment property is measured at fair value usng the revaluation method. Fair value has been determined with reference to recent market sales data with judgements made regarding the comparability of that data with properties held (See Note 9). 5

8 3 Cash and cash equivalents Cash at bank and in hand 3,817 2,812 Short-term deposits 1,535 Deposits at call Accommodation bonds account 29,815 23,719 Total Cash and cash equivalents 35,340 26,975 Cash and cash equivalents includes cash on hand and at bank, deposits held at call with financial institutions, other short term, highly liquid investments with maturities of twelve months or less, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. 4 Trade and other receivables Current Resident debtors 2,218 7,142 Provision for doubtful debts (11) (11) GST receivable Other receivables ,442 7,883 Non Current Trade receivables 1,626 1,521 Accounts receivable and other debtors include amounts due from members as well as amounts receivable from customers for goods sold in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets. Accounts receivable are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. The value of the provision for impairment of receivables is estimated by considering the ageing of receivables, communication with the debtors and prior history. 5 Inventories Inventories are measured at the lower of cost and net realisable value. Current Merchandise Other non-financial assets Current Prepayments Accrued income 3,373 2,752 4,320 3,670 7 Other non-current financial assets Listed investments, at fair value Shares in listed corporations 6,512 5,382 Units in listed property trusts Listed fixed interest Units in unlisted unit trust 9,540 8,826 Total available-for-sale financial assets 17,

9 7 Other non-current financial assets (continued) Fair value is determined based on quoted prices in active markets for identical assets at measurement date. Impairment At the end of each reporting period, the Group assesses whether there is objective evidence that the asset as is has been impaired. A financial asset (or a group of financial assets) is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a "loss event") having occurred, which has an impact on the estimated future cash flows of the financial asset(s). In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the instrument is considered to constitute a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified into profit or loss at this point. In the case of financial assets carried at amortised cost, loss events may include, indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments, indications that they will enter bankruptcy or other financial reorganisation and changes in arrears or economic conditions that correlate with defaults. When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the Group recognises the impairment for such financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered. Derecognition Financial assets are derecognised when the contractual right to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. 8 Property, plant and equipment '000 Land and buildings At independent valuation 118, ,495 Work in progress - at cost 5, , ,096 Plant and equipment At cost 17,061 16,772 Accumulated depreciation (12,764) (11,654) 4,297 5,118 Motor vehicles At cost 3, Accumulated depreciation (807) (539) 2, Computer equipment At cost 5,328 5,120 Accumulated depreciation (4,742) (4,399) Computer software At cost 7,589 5,844 Accumulated depreciation (1,321) (838) 6,268 5,006 Leasehold improvements At cost 2,635 1,836 Accumulated depreciation (718) (353) 1,917 1,483 Total plant and equipment 15,882 12,577 Total property, plant and equipment 134, ,672 7

10 8 Property, plant and equipment (continued) Movements in carrying amounts of property, plant and equipment Movements in the carrying amounts for each class of property plant and equipment between the beginning and the end of the current financial year. Year ended 30 June 2017 Land & Buildings Plant and Equipment Motor Vehicles Computer Equipment 5'000 Computer Software Leasehold Improvements Balance at the beginning of year 118,096 5, ,006 1, ,673 Additions , , ,423 Disposals - written down value (228) (19) (247) Depreciation expense {2,306) 11,110) (249) (342) (483) (365) (4,855) Revaluation increaseldecreasei recognised,n equity 14,8741 (4,874) Balance at the end of the year 118,238 4,297 2, ,268 1, ,120 Land and Buildings carried at fair value Land and buildings are measured using the revaluation model. All land and buildings are revalued independently on a rolling three year basis, with annual appraisals being made by the Directors. In the current financial year, the Group's residential aged care facilities at Elizabeth (Dutton Court), Brompton and Grange were independently valued by Knight Frank on a "freehold land and building basis" in compliance with AASB13 Fair Value Measurement. This has resulted in a revaluation decrease of $4.874m. The current valuation methodology is not considered by the Directors to be indicative of market value should the facilities be sold as a going concern including associated bed licences. 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. Any revaluation movements are recognised in an asset revaluation reserve in other comprehensive income on a class basis. When an asset is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market: or in the absence of a principal market in the most advantageous market. Plant and Equipment Plant and equipment are stated at cost less accumulated depreciation and impairment losses Costs include purchase price, other directly attributable costs and the initial estimate of costs of dismantling and restoring the asset, where applicable. Depreciation The depreciable amount of all fixed assets including buildings and capitalised leased assets is depreciated on a straight line basis over the assets useful life commencing from the time the asset is helc ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. The depreciation rates used for each class of depreciable asset are shown below: Fixed asset class Depreciation rate Buildings 2.5% Plant and equipment 10-20% Motor Vehicles 10% % Computer Equipment 33.3% Computer Software 10-20% Leasehold Improvements 20% Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the Group will obtain ownership of the asset or over the term of the lease. 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. When an asset is disposed of, the gain or loss is calcuated t.)), comparing proceeds received with its carrying amount and is taken to profit or loss. Total Vino 8

11 8 Property, plant and equipment (continued) Impairment of non-financial assets At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, to the asset's carrying amount. Any excess of the asset's carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (e.g. in accordance with the revaluation model in AASB116). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cashgenerating unit to which the asset belongs. Where the future economic benefits of the asset are not primarily dependent upon the asset's ability to generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciated replacement cost of an asset. Where an impairment loss on a revalued asset is identified, this is recognised against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that class of asset. 9 Investment Property Note Balance at the beginning of year 89,822 57,849 Additions at Fair Value 27 35,616 3,506 Re-recognition of Housing transfer 32,856 Revaluation increase/(decrease) recognised in profit or loss 1,994 (4,389) Balance at the end of the year 127,432 89,822 Investment properties are properties held to earn rentals and/or for capital appreciation, and are accounted for using the fair value model. Investment properties are revalued annually and are included in the statement of financial position at their fair value. In the current year, the properties in the portfolio have been valued by management, taking into account recent market sales of comparable properties. Any gain or loss resulting from either a change in the fair value or the sale of an investment property is immediately recognised in surplus or deficit. Rental income and operating expenses from investment property are reported within revenue and expenses respectively Borrowing costs that are directly attributable to the acquisition construction or production of a qualifying asset are capitalised as part of the cost of that asset All other borrowing costs are recognised as an expense in the period in which it is incurred. 9

12 10 Trade and other payables Note Current Unsecured liabilities Trade payables 890 1,300 Sundry payables and accrued expenses 7,034 5,396 7,924 6,696 Financial liabilities at amortised cost classified as trade and other payables Trade and other payables Total current 7,924 6,696 Financial liabilities as trade and other payables 7,924 6,696 Trade and other payables represent the liabilities outstanding at he end of the reporting period for goods and services received by the Group during the reporting period that remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. No collateral has been pledged for any of the trade and other payable balances. 11 Borrowings Current Unsecured liabilities Resident loans Secured liabilities Lease liabilities secured 17 Bank loans (a) 4,100 Resident loans (b) 62,569 60,881 66,669 60,897 66,669 60,968 Non-Current Secured liabilities Bank loans 6,400 Vendor Finance (c) 549 Total non-current borrowings 549 6,400 Total borrowings 67,218 67,368 Financial Liabilities Non-derivative financial liabilities (excluding financial guarantees) are measured at amortised cost. Fees payable on the establishment of loan facilities are recognised as transaction costs of the loan. Gains or losses are recognised in profit or loss through the amortisation process and when the financial liability is derecognised. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. During the current and prior year, there were no defaults or breaches on any of the loans. Derecognition Financial liabilities are derecognised when the related obligations are discharged or cancelled, or have expired. The difference between the carrying amount of the financial liability extinguished or transferred to another party and the fair value of consideration paid including the transfer of non-cash assets or liabilities assumed. is recognised in profit or loss. (a) Bank loans secured Anglicare SA Ltd has two variable rate advance facilities with ANZ. The first facility is for $10,000,000 and as at 30 June 2017, $4,100,000 was drawn from this facility. Termination date for this facility is 30 April 2018 at which time the full amount owing is payable. Registered First Mortgages are held over property situated at Elizabeth East, VVestbourne Park and Trott Park as security for this loan. Additionally a Specific Security Agreement is held over all assets at Westbourne Park Elizabeth East and Trott Park Residential Aged Care Facilities. The second facility is for $7,600,000 for the construction of a Bail Accommodation Support Program at Port Adelaide. As at 30 June 2017, no withdrawals have been made on this facility. Termination date for this facility is 30 April 2019 at which time the full amount owing is payable. Registered First Mortgage is held over property situated at Dale Street, Port Adelaide for this loan. 10

13 11 Borrowings (continued) (b) Secured resident loans Secured resident loans consists of accommodation bonds, refundabie accommodation deposits and independent living unit ficences. Amounts refundable in respect of licence fees received for independent living units vary according to the length of stay of the resident and the terms of refund as stated in the agreement with the resident. A proportion of the hostel residents original accommodation bond is brought to account as income each year in accordance with guidelines of the Department of Health and Ageing. Resident loans have been classified as current liabilities to comply with AASB101 Presentation of Financial Statements as Anglicare SA Ltd does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Subdivision 570 of the Aged Care Act 1997 requires that loans are settled w thin 14 days after the day on which the approved provider is shown the probate of the will of the care recipient. Anglicare SA Ltd considers it highly unlikely that the total liability would be settled within the next 12 months. Amounts settled within the financial year were $13 321m (2016 $8.040m) which is considered by Anglicare SA Ltd to be reflective of the normal current liability position. Secured resident loans Opening balance 60,881 48,103 Balance paid on entry 16,192 21,863 Settlement on exit (13,321) (8,040) Transfer of income (366) (325) ILU Licence fee retention (818) (720) 62,568 60, Unsecured resident loans Opening balance Refunded to residents/estate or transferred to Nursing Home (71) Total 71 (c) Vendor Finance The loan from Pegasus 21 Pty Ltd is an interest free borrowing secured by a Registered Second Mortgage over properties at Sixth Street Bowden, repayable 17 June Provisions Provisions are recognised when the Group 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 oiaflow can be reliably measured. Provisions recognised represent the best estimaie of the amounts required to settle the obligation at the end of the reporting period Current Other provisions Employee Benefits Current Long service leave 1,228 1,036 Annual Leave 5,692 4,922 6,920 5,958 Non-Current Long service leave 3,625 3,186 Provision is made for the Group'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 so!,ed within one year have been measured at the amounts expected to be paid when the liability is due to be settled. 11

14 13 Employee Benefits (continued) Employee benefits payable later than one year 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. Those cashflows are discounted using market yields on high quality corporate bonds with terms to maturity that match the expected timing of the cashflows. Employee benefits include the amount accrued for annual leave and long service leave entitlements that have vested with the employees. Based on past experience, the Group does not expect the full amount of annual leave and current long service leave balance to be settled within the next 12 months. However, these amounts must be classified as current liabilities since the Group does not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlements Other Financial Liabilities 5'000 $000 Current Government grants 5, Resident fees in advance 1, Deferred income ,018 5, Reserves Asset revaluation reserve The asset revaluation reserve records unrealised gains on revaluation of land and buildings recorded at fair value. Investments revaluation reserve The investments revaluation reserve records revaluation of financ:al assets recorded at fair value. Westbourne Park Capital Replacement Reserve The Westboume Park Capital Replacement Reserve records funds reserved to refurbish a vacated unit to ensure that it is in a proper state for next occupation and replace structural and other non-recurrent items of expenditure in the maintenance of the physical structure of the independent living village and its units NBESP Grant Reserve The NBESP Grant reserve records the grant of land and buildings as part of the National Building Economic Stimulus Plan by the South Australian Housing Trust. The balance of the NBESP Grant reserve has been transferred to the Housing Asset Transfer Reserve in the current financial year. Maintenance Reserve The maintenance reserve records the Maintenance Allowance provisioned in previous years that are contractually no longer required to be set aside due to a new Funding Agreement negotiated with Housing SA. Debenture Reserve The Debenture reserve records the grant of land and bu;idings under the Master Community Housing Agreement. The Master Community Housing Agreement was renegotiated in the current year and effective from 1 April 2016 these assets were recognised as a contribution to the Company. The balance of the Debenture Reserve has been transferred to the Housing Asset Transfer Reserve in the current financial year. Housing Asset Transfer Reserve The Housing Asset Transfer Reserve records tie transfer of land and buildings to the company as follows: - National Building Economic Stimulus Plan by the SA Housing Trust 20,928 - Debentured properties under the Master Community Housing Agreement 32,856 - Trust assets 35,616 Total Reserve 89, Capital and Leasing Commitments (a) Operating Leases Minimum lease payments under non-cancellable operating leases less than one year 2,278 2,616 not later than five years 5,803 8,619 8,081 11,235 12

15 Operating leases have been taken out for property, motor vehicles and equipment. Lease payments are increased on an annual basis to reflect market rentals. 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. Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term. Bank guarantees have been given under the lease over the premises at Holden Hill and 159 Port Road, Hindmarsh with a total value of $489,303 Note (b) Capital commitments Capital commitments payables not later than one year 9,403 not later than five years ,111 The Group had no capital commitments as at 30 June Financial Risk Management The Group's financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable, bank loans and leases. The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follow: Financial Assets Cash and cash equivalents 3 35,340 26,974 Loans and receivables 4 4,068 9,404 Available-for-sale financial assets at fair value - listed investments 7 6,512 5,382 - listed shares in other corporations listed shares in other related parties units in unlisted unit trust 7 9,540 8,826 Total available-for-sale financial assets 17,289 15,693 Total financial assets 56,697 52,072 Financial Liabilities Financial liabilities at amortised cost - Trade and other payables 10 7,924 6,696 - Borrowings 11 67,218 67,368 Total financial liabilities 75,142 74,065 13

16 18 Revenue and Other Income '000 Revenue Government funding for services provided 94,050 88,986 Resident and clients fees 29,574 26,906 Fundraising and donations Parishes 6 10 Other 1,848 1,767 Sales, services & commercial operations Rental revenue 10,555 8,258 Other income 2,607 3, , ,121 Other Revenue Interest received Dividend income Legacies & bequests Gain on disposal of assets ,168 2,227 Total Revenue 141, ,348 Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the entity and specific criteria relating to the type of revenue as noted below has been satisfied. Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates. At revenue is stated net of the amount of goods and services tax (GST). Sale of goods Revenue is recognised on transfer of goods to the customer as this is deemed to be the point in time when risks and rewards are transferred and there is no longer any ownership or effective control over the goods. Grant Revenue Grant revenue is recognised in profit or loss when the entity obtains control of the grant, it is probable that the economic benefits gained from the grant will flow to the entity and the amount of he grant can be measured reliably. When grant revenue is received whereby the entity incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt. The Group receives non-reciprocal contributions of assets from the government and other parties for zero or a nominal value. These assets are recognised at fair value on the date of acquisitor in the statement of financial position, with a corresponding amount of income recognised in profit or loss, Donations Donations, fundraising income, legacies and bequests are recognised as revenue when the Group gains control, economic benefits are probable and the amount of the donation can be measured reliably. Interest revenue Interest is recognised using the effective interest method. Dividend revenue Dividends are recognised when the entity's right to receive payment is established. Rendering of services Revenue in relation to rendering of services is recognised depending on whether the outcome of the services can be measured reliably. If this is the case then the stage of completion of the services is used to determine the appropriate level of revenue to be recognised in the period. If the outcome cannot be reliably measured then revenue is recognised to the extent of expenses recognised that are recoverable. Rental revenue Property rental revenue is recognised on a straight-line basis over a period of the lease term so as to reflect a constant periodic rate of return on the net investment. 14

17 19 Capital Income Note Capital replacement income Revaluation increase/(decrease) recognised in profit or loss 9 1,994 (4,389) Recognition of Housing Transfer 32,856 Recognition of consolidation of trust assets 27 37,952 - Recognition of Maintenance provision 557 Total Capital Income 40,027 29, Result for the Year The result of the year includes the following specific expenses: Superannuation contributions 7,209 6,830 Operating lease expenses 866 1, Aged Care Act In order to comply with the Aged Care Act, the Group reports the following information on its residential aged care operations: (a) Financial performance REVENUE Government funding 44, Resident and clients fees 13,037 13,274 Accommodation bond retentions Donations 2 Profit on Sale of Non-Current Assets 18 Other income Total revenue 58,030 57,288 EXPENSES Employee costs including Agency staff* 35,780 36,076 Property costs 1,579 1,481 Depreciation 2,603 3,141 Travel & motor vehicle costs Repairs / maintenance & maintenance contracts 1,493 1,353 Materials Trading stock Food supplies 1,661 1,597 Interest Corporate overhead 6,162 5,862 Other expenses 3,146 2,748 Total expenses 52,948 52,816 Total result 5,082 4,472 * includes care staff salaries & wages of: 25,297 27,105 (b) Financial Position Assets Current assets 50,727 39,750 Non-current assets 89,047 94,963 Total assets 139, ,713 Liabilities Current liabilities 64,767 60,658 Non current liabilities 4,465 8,585 Total liabilities 69,222 69,243 Net Assets 70,552 65,470 (c) Geographical Information The Group operates wholly within Australia. 15

18 22 Key Management Personnel Disclosures The totals of remuneration paid to the key management personnel of Anglicare SA Ltd during the year are as follows: Remuneration paid 1,328,640 1,135,492 For details of other transactions with key management personnel, refer to Note 24: Related Party Transactions. 23 Contingent Liabilities Under the Master Community Housing Agreement, the Group has an obligation to repay the "Contribution Repayment Amount" if a breach of contract occurs and is not rectified within a defined period. "The Contribution Repayment Amount" is defined in the Deed of Statutory Charge and is based on the funding provided for each property The Group considers this event to be extremely unlikely. 24 Related Parties The Group's main related parties are as follows: (a) Key Management Personnel Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of tha entity is considered key management personnel. For details of disclosures relating to key management personnel refer to Note 22: Key Management Personnel Compensation. (b) Other related parties Other related parties include immediate family members of key management personnel and entities that are controlled or significantly influenced by those key management personnel, individually or collectively with their immediate family members. Transactions between related parties are on normal commercial terms and conditions are no more favourable than those available to other parties unless otherwise stated. 25 Balances from related parties As at reporting date, there were no trade receivab es from or payables to related parties (2016:nil). 26 Events Occurring after the Reporting Date On 23 September 2017, the management of 737 SA Housing Trust properties in Woodville and surrounding suburbs was transferred to AnglicareSA Housing as part of the South Austraian Government's initiative, Renewing Our Streets and Suburbs 6, through Renewal SA. 27 Investment in Controlled Entities On 18 May 2017 Anglicare SA Housing Ltd was appointed the new sole trustee of the following trusts under a Deed of Appointment between it and Laura & Alfred West Cottage Homes Inc (the retiring trustee). There was no consideration in respect of the transfer of the Trust Assets. Trust Name Portion of controlling interest WA West Estate 100, Peter Laycock Estate 100". EC Knox Estate The carrying values (also the fair values) of the dentifiable assets and liabilities of the trusts on the date of appointment were as follows. Net Identifiable assets and liabilities Assets $000 Cash and cash equivalents 2,023 Trade and other receivables 482 Investment Property 35,616 Liabilities Trade and other payables 69 Loans ,952 The net fair value of the identifiable assets am labrlities of the trusts on the date of appointment have been recognised as non-operating revenue in Note 19. The trust deeds restrict the assets to the prov,sion of community housing with characteristics of tenants specified. 28 Company Details The registered office of the Company is; Anglicare SA Ltd 159 Port Road Hindmarsh SA

19 Directors Declaration In the opinion of the Directors of Anglicare SA Ltd: a The consolidated financial statements and notes of Anglicare SA Ltd are in accordance with the Australian Charities and Not-for-profits Commission Act 2012, including: Giving a true and fair view of its financial position as at 30 June 2017 and of its performance for the financial year ended on that date; and ii Complying with Australian Accounting Standards - Reduced Disclosure Requirements (including the Australian Accounting Interpretations) and the Corporations Regulations ; and b There are reasonable grounds to believe that Anglicare SA Ltd will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of the Directors: Director Director Dated this. day of. 2017

20 Tel: Fax: Level 7, BDO Centre 420 King William St Adelaide SA 5000 GPO Box 2018, Adelaide SA 5001 AUSTRALIA INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ANGLICARE SA LTD Report on the Audit of the Financial Report Opinion We have audited the financial report of Anglicare SA Ltd (the registered entity) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2017, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial report, including a summary of significant accounting policies, and the responsible entities declaration. In our opinion the accompanying financial report of Anglicare SA Ltd has been prepared in accordance with Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, including: (i) (ii) Giving a true and fair view of the Group s financial position as at 30 June 2017 and of its financial performance for the year ended on that date; and Complying with Australian Accounting Standards Reduced Disclosure Requirements and Division 60 of the Australian Charities and Not-for-profits Commission Regulation Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the registered entity in accordance with the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act) and the ethical requirements of the Accounting Professional and Ethical Standards Board s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of the responsible entities for the Financial Report The responsible entities of the registered entity are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards Reduced Disclosure Requirements and the ACNC Act and for such internal control as the responsible entities determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the responsible entities are responsible for assessing the group s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the registered entity or to cease operations, or has no realistic alternative but to do so. The responsible entities of the registered entity are responsible for overseeing the registered entity s financial reporting process. BDO Audit (SA) Pty Ltd ABN is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN , an Australian company limited by guarantee. BDO Audit (SA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation (other than for the acts or omissions of financial services licensees).

21 Auditor s responsibilities for the audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website ( at: This description forms part of our auditor s report. BDO Audit (SA) Pty Ltd G K Edwards Director Adelaide, 6 October 2017