PERTH REGION NRM Inc. FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2016

Transcription

1 PERTH REGION NRM Inc. FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2016

2 Table of Contents Page No. Directors Report 2 Statement of Financial Position 3 Statement of Change in Equity 4 Cash Flow Statement 4 Income Statement 5 Notes to the Financial Statements 6 Officers Assertion Statement 11 Auditor s Report 12 Page 1 of 13

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4 Statement of Financial Position as at 30 June 2016 ASSETS Notes Current assets Cash and Equivalents 5 2,277,317 2,852,254 Accounts Receivable 6 28,007 17,145 2,305,324 2,869,399 Non-current assets Property, Plant and Equipment 2,5 54,625 98,701 54,625 98,701 Total Assets 2,359,949 2,968,100 LIABILITIES Current liabilities Motor Vehicle Loan 4-30,202 Motor Vehicle Leases 4-55,422 Accounts Payable 73, ,625 Payroll Liabilities 170, ,634 GST Payable 14,839 16,527 Funding received in advance 3 415, , ,657 1,236,217 Non-current liabilities Provision for Long Service Leave 18,770 15,707 18,770 15,707 Total Liabilities 692,427 1,251,924 Net Assets 1,667,522 1,716,176 EQUITY Retained Surplus 1,667,522 1,716,176 Total Equity 1,667,522 1,716,176 The accompanying notes form part of these financial statements Page 3 of 13

5 Statement of Change in Equity for the year ended 30 June EQUITY Equity at the Start of the Year 1,716,176 1,746,599 Total deficit (48,654) (30,424) Equity at the end of the Year 1,667,522 1,716,176 Cash Flow Statement for the year ended 30 June 2016 CASH FLOW FROM OPERATING ACTIVITIES Notes Cash Receipts from Customers 2,836,171 3,362,161 Cash Paid to Suppliers and Employees (3,403,219) (3,157,791) Net Cash (used in) / from Operating Activities 5 (567,048) 204,370 CASH FLOW FROM INVESTING ACTIVITIES Purchase of Property or Equipment (7,760) (10,882) Proceeds from Sale of Property or Equipment 15,791 11,700 Interest Received 69,705 78,548 Net Cash from Investing Activities 5 77,736 79,366 CASH FLOW FROM FINANCING ACTIVITIES Payment of Finance Liabilities (85,624) (21,814) Net Cash used in Financing Activities (85,624) (21,814) Net Increase / (Decrease) in Cash and Cash Equivalents (574,936) 261,922 Cash and Cash Equivalents at Beginning of Period 2,852,254 2,590,331 Cash and Cash Equivalents at End of Period 5 2,277,317 2,852,254 The accompanying notes form part of these financial statements Page 4 of 13

6 Income Statement for the year ended 30 June 2016 REVENUE Notes Grants and Contributions 2,614,097 3,189,098 Other Revenues: Interest Received 70,982 75,965 Other income 40,839 24,451 Total Income 2,725,918 3,289,513 EXPENSES Project Expenses 1,124,040 1,155,145 Employment Costs 1,308,179 1,817,561 Accounting and Audit Expense 11,400 21,998 Advertising & Marketing 58,752 18,270 Bank Fees Board and Committee Costs 8,895 12,814 Communication and IT Costs 64,807 64,552 Consulting fee 11,651 2,800 Depreciation 36,050 48,670 Industry Service Fees 12,000 12,000 Insurances 11,781 13,410 Motor Vehicle Expenses 24,596 40,747 Office Supplies 13,749 21,251 Postage Freight and Delivery 992 1,195 Promotions 25,950 17,949 Rent & Electricity 32,492 32,984 Repairs & Maintenance 102 4,480 Subscriptions and Publications 6,430 3,520 Training and Development 5,551 7,292 Travel Expenses 16,831 22,640 Total Expenses 2,774,572 3,319,938 Net Deficit (48,654) (30,424) The accompanying notes form part of these financial statements Page 5 of 13

7 Notes to the Financial Report for the year ended 30 June 2016 The financial report covers Perth Region NRM Inc. as an individual entity ( Association ). Perth Region NRM Inc. is an Association incorporated in Western Australia under the Incorporated Associations Act The principal activities of the Association are to provide co-ordination of natural resource management in the Perth region. Note 1: Summary of Significant Accounting Policies a) Basis of Preparation This financial report is a special purpose financial report prepared for distribution to the Members of the Association and for internal management reporting purposes to fulfill the Board of Management's ("Board") financial reporting requirements under the Australian Charities and Not-for-Profits Commission Act 2012 and the Associations Constitution. The Board has determined that the Association is not a reporting entity. The accounting policies used in the preparation of the financial statements, are consistent with the financial reporting requirements of the Australian Charities and Not-for-Profits Commission Act 2012 and the Associations Constitution and with prior years, and are, in the opinion of the Board appropriate to meet the needs of the members. The financial report has been prepared on an accruals basis and is based on historic costs and does not take into account changing money values or, except where specifically stated, current valuations of non-current assets. The requirements of Australian Accounting Standards and other professional reporting requirements do not have mandatory applicability to Perth Region NRM Inc. because it is not a reporting entity. The Board has, however, prepared the financial statements in accordance with the recognition, measurement and classification requirement of Australian Accounting Standards and the disclosure requirements of Accounting Standards AASB 101 Presentation of Financial Statements, AASB 107 Statement of Cash Flows, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, AASB 1031 Materiality, AASB 1048 Interpretation & Application of Standards and AASB 1054 Australian Additional Disclosures. The financial statements have been prepared on the going concern basis. The financial statements are presented in Australian Dollars. Values are rounded to the nearest whole dollar. The following material accounting policies have been adopted in the preparation of this special purpose financial report. b) Income Revenue recognition is as follows: Grants, donations, gifts and other non-reciprocal contributions Revenue is measured at the fair value of contributions received or receivable. Income arising from the contribution of an asset to the Association is recognised when all of the following conditions are met: The Association obtains control of the contribution or the right to receive the contribution It is probable that the economic benefits comprising the contribution will flow to the entity, and The amount of the contribution can be measured reliably Interest Revenue is recognised as the interest accrues. Page 6 of 13

8 Notes to the Financial Report continued c) Financial Instruments In addition to cash and cash equivalents, the Association has two categories of financial instrument: Receivables; and Financial liabilities measured at amortised cost These have been disaggregated into the following classes: Financial Assets Cash and cash equivalents Receivables and prepayments Financial Liabilities Payables Finance lease liabilities Initial recognition and measurement of financial instruments is at fair value which normally equates to the transaction cost or the face value. Subsequent measurement is at amortised cost using the effective interest method. The fair value of short-term receivables and payables is the transaction cost or the face value because there is no interest rate applicable and subsequent measurement is not required as the effect of discounting is not material. d) Income Tax The Association is a non-profit organisation and thus exempted from income tax by virtue of section 50(5) of the Income Tax Assessment Act 1997, as amended. e) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation 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 expense. Receivables and payables in the Statement of Financial Position are shown inclusive of GST. f) Property, Plant and Equipment (Note 2) In accordance with the Constitution, Net assets (after all other costs are paid) are to be passed over to a like organisation on winding up and in the case of leasehold improvements; these will be abandoned when Perth Region NRM Inc. vacates the premises. Property, Plant and Equipment are recognised as Non-current assets in the Statement of Financial Position. All Property, Plant and Equipment having a limited useful life are systematically depreciated over their estimated useful lives in a manner that reflects the consumption of their future economic benefits. Depreciation on assets is calculated using the straight line method, using rates which are reviewed annually. Estimated useful lives for each class of depreciable asset are: Furniture and fittings Motor Vehicles 4 years 4 years Page 7 of 13

9 Notes to the Financial Report continued g) Provisions Provisions are liabilities of uncertain timing or amount and are recognised where there is a present legal or constructive obligation as a result of a past event and when the outflow of resources embodying economic benefits is probable and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at the end of each reporting period. Provisions employee benefits Annual leave and long service leave The liability for annual and long service leave that is expected to be settled within 12 months after the end of the reporting period is recognised and measured at the undiscounted amounts expected to be paid when the liabilities are settled. Long service leave expected to be settled more than 12 months after the reporting period is measured at the present value of amounts expected to be paid when the liabilities are settled. Leave liabilities are in respect of services provided by employees up to the end of the reporting period. When assessing expected future payments, consideration is given to expected future wage and salary levels including non-salary components such as employer superannuation contributions. h) Trade and Other Payables Trade and other payables are carried at amortised cost and due to their short-term nature they are not discounted. They represent liabilities for goods and services provided to the Association prior to the end of the financial year that are unpaid and arise when the Association becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition. Note 2: Property, Plant and Equipment 2016 At cost: COST ACCUMULATED DEPRECIATION CARRYING AMOUNT $ Furniture and Equipment 56,626 (34,023) 22,603 Vehicles 144,021 (111,999) 32, At cost: 200,647 (146,022) 54,625 Furniture and Equipment 48,862 (20,453) 28,409 Vehicles 157,552 (87,260) 70, ,414 (107,713) 98,701 Page 8 of 13

10 Notes to the Financial Report continued Note 3: Funding received in advance Balance at the beginning of the year 337, ,365 Add: funding received during the year 2,775,554 3,253,562 Less: reclassified to other current liabilities (37,500) (25,729) Less: prior year funding not used returned to funding body (16,903) - Less: funding received in advance transferred to income statement (2,643,752) (3,271,391) Balance at the end of the year carried forward 415, ,807 Note 4: Lease Commitments Finance Leases Payable minimum lease payments: Not later than 12 months - 31,289 Less: future finance charges - (1,087) Total lease liability - 30,202 Operating Leases Payable minimum lease payments: Not later than 12 months 29,320 58,905 Between 12 months and five years - 57,042 Total Operating Lease Commitments 29, ,947 Finance leases are capitalised in the accounts in accordance with the accounting policies. The Association has an executed operating lease from the City of Swan (the lessor) for office space. The lease term expires 30 June 2018 however the lessor has given notice that the Association must vacate the building after 30 June 2017 as the building is to be demolished. The Association may, by negotiation, end the lease prior to 30 June Page 9 of 13

11 Notes to the Financial Report continued Note 5: Cash Flow Statement Reconciliation of cash flows from operating activities to net deficit Net Deficit (48,654) (30,424) Add: Adjustment for Depreciation 49,022 50,697 Less: Adjustment for Gain on disposal (12,972) (2,027) Less: Adjustment for Investment income (70,982) (75,965) (83,586) (57,719) Movements in working capital Change in receivables (9,584) (973) Change in income in advance 77,399 (43,558) Change in other liabilities (31,833) 19,524 Change in payables (519,443) 287,096 Cash (used in) / from operations (567,048) 204,370 Property Plant and Equipment During the period cash payments were made to purchase property, plant and equipment with an aggregate cost of $7,760 (2015 $10,882) and $15,791 (2015 $11,700) cash was received for the sale of property, plant and equipment with an aggregate cost of $ 13,531 (2015 $16,024). Cash and cash equivalents Cash and cash equivalents consist of cash on hand and balances with banks and investments in money market instruments. Cash and cash equivalents included in the statement of cash flows comprise the following amounts in the statement of financial position: Cash on hand and balances with banks 77, ,237 Investments in money market instruments 2,200,000 1,856,017 Total Cash and cash equivalents 2,277,317 2,852,254 Note 6: Accounts Receivable Accounts receivable comprises: Trade customers 5,913 1,208 Accrued interest on money market deposits 9,661 8,385 Prepayments 12,433 7,552 Total Accounts Receivable 28,007 17,145 Page 10 of 13

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