WESTERN AUSTRALIAN INSTITUTE OF SPORT (INC) ANNUAL FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2005

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2 WESTERN AUSTRALIAN INSTITUTE OF SPORT (INC) ANNUAL FINANCIAL STATEMENTS YEAR ENDED JUNE

3 Index Certification of Financial Statements Page 61 Statement of Financial Performance Page 62 Statem ent of Financial Position Page 63 Statement of Cash Flows... Page 64 Notes to the Financial Statem ents Pages 6-78 Certification of Performance Indicators... Page 79 Perform ance I ndicators Pages 8 83

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5 Statement of Financial Performance for year ended Note 4 $ $ COST OF SERVICES Expenses from ordinary activities Employee expenses 2 3,74,684 3,63,461 Supplies and services 3 1,378,286 1,333,67 Depreciation expense 4 161, ,313 Administration expense 6 1,793 49,266 Accommodation expense 7 22,411 26, Amortisation expense 8-2,8 Carrying value of non-current assets disposed of -,982 Other expenses from ordinary activities 9 7,723 2,914 Total cost of services,196,8,222,393 Revenues from ordinary activities - Revenue from operating activities User charges and fees 116,1 9,871 Commonwealth grants and contributions , ,63 - Revenue from non-operating activities Proceeds from disposal of non-current assets 12 16,636 62, Interest Income 49,847,47 Other revenues from ordinary activities 13 1,, 1,291, Total revenues from ordinary activities 1,6,116 1,628,471 NET COST OF SERVICES 3,96,192 3,93,922 REVENUES FROM STATE GOVERNMENT State grants 3,, 3,, Total revenues from State Government 3,, 3,, CHANGE IN NET ASSETS (96,192) (343,922) TOTAL CHANGES IN EQUITY OTHER THAN THOSE RESULTING FROM TRANSACTIONS WITH OWNERS AS OWNERS (96,192) (343,922) The Statement of Financial Performance should be read in conjunction with the accompanying notes. 62

6 Statement of Financial Position as at Note 4 $ $ Current Assets Cash assets ,61 678,8 Receivables 17 66,49 143,89 Other assets 18 86,66 121,72 Total Current Assets 876, ,736 Non-Current Assets Property, plant, equipment and furniture 19 66,677 33,131 Total Non-Current Assets 66,677 33,131 Total Assets 1,41,943 1,476,867 Current Liabilities Payables 268, ,63 Provisions ,62 411,4 Other current liabilities , ,943 Total Current Liabilities 896, ,9 Non-Current Liabilities Provisions 22 2,884 7,87 Total Non-Current Liabilities 2,884 7,87 Total Liabilities 999,7 837,87 NET ASSETS 42, ,6 Equity Accumulated surplus 24 42, ,6 TOTAL EQUITY 42, ,6 The Statement of Financial Position should be read in conjunction with the accompanying notes. 63

7 Statement of Cash Flows for year ended Note 4 $ $ Inflows Inflows (Outflows) (Outflows) CASH FLOWS FROM STATE GOVERNMENT State grants 3,, 3,, Net cash provided by State Government 3,, 3,, Utilised as follows: CASH FLOWS FROM OPERATING ACTIVITIES Payments Employee costs (3,164,9) (2,99,22) Supplies and services (1,331,792) (1,321,76) Administration costs (1,793) (49,266) Accommodation costs (22,411) (26,) GST payments on purchases (179,844) (163,93) Other payments (3,27) (9,366) (,3,473) (,1,317) Receipts User charges and fees 116,1 9,871 Commonwealth grants and contributions 112, ,63 Interest received 49,847,47 GST receipts on sales 417,7 18,716 Other receipts 1,179,374 1,9,47 1,87,499 1,814,834 Net cash used in operating activities (3,177,974) (3,,483) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of non-current physical assets (293,97) (8,871) Proceeds from the sale of non-current physical assets 16,636 62, Net cash used in investing activities (277,3) (146,21) Net increase/(decrease) in cash held 44,76 (197,4) Cash assets at the beginning of the financial year 678,8 87,89 CASH ASSETS AT THE END OF THE FINANCIAL YEAR ,61 678,8 The Statement of Cash Flows should be read in conjunction with the accompanying notes. 64

8 1. Significant Accounting Policies The following accounting policies have been adopted in the preparation of the financial statements. Unless otherwise stated these policies are consistent with those adopted in the previous year. (a) General Statement The financial statements constitute a general purpose financial report which has been prepared in accordance with Accounting Standards, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board,and Urgent Issues Group ( UIG ) Consensus Views as applied by the Treasurer s Instructions. Several of these are modified by the Treasurer s Instructions to vary the application, disclosure, format and wording. The Financial Administration and Audit Act and the Treasurer s Instructions are legislative provisions governing the preparation of financial statements and take precedence over Accounting Standards, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board, and UIG Consensus Views. The modifications are intended to fulfil the requirements of general application to the public sector together with the need for greater disclosure and also to satisfy accountability requirements. If any such modification has a material or significant financial effect upon the reported results, details of that modification and where practicable, the resulting financial effect, are disclosed in individual notes to these financial statements. Basis of Accounting The financial statements have been prepared on the accrual basis of accounting using the historical cost convention. (b) Leases The Institute s rights and obligations under finance leases, which are leases that effectively transfer to the Institute substantially all of the risks and benefits incident to ownership of the leased items, are initially recognised as assets and liabilities equal in amount to the present value of the minimum lease payments. The assets are disclosed as property, plant and equipment under lease, and are amortised to the Statement of Financial Performance over the period during which the Institute is expected to benefit from use of the leased assets. Minimum lease payments are allocated between interest expense and reduction of the lease liability, according to the interest rate implicit in the lease. Finance lease liabilities are allocated between current and non-current components. The principal component of lease payments due on or before the end of the succeeding year is disclosed as a current liability, and the remainder of the lease liability is disclosed as a noncurrent liability. The Institute has entered into an operating lease arrangement for motor vehicles where the lessor effectively retains all of the risks and benefits incident to ownership of the items held under the operating leases. Equal instalments of the lease payments are charged to the Statement of Financial Performance over the lease term, as this is representative of the pattern of benefits to be derived from the leased property. (c) Grants and Other Contributions Revenue Grants, donations, gifts and other non-reciprocal contributions are recognised as revenue when the Institute obtains control over the assets comprising the contributions. Control is normally obtained upon their receipt. Contributions are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated. 6

9 (d) Depreciation of Non-current assets All non-current assets having a limited useful life are systematically depreciated over their useful lives in a manner which reflects the consumption of their future economic benefits. Depreciation is calculated on the straight line basis, using rates which are reviewed annually. Useful lives for each class of depreciable asset are: Plant & equipment: Sport Science Equipment Administration Software Computer Hardware Weight Training Equipment Sport Programs Equipment Office equipment Building improvements - years - years 3- years years 4- years 3- years - years (e) Inventories Inventories are valued at the lower of cost and net realisable value. Costs are assigned by the method most appropriate to each particular class of inventory, with the majority being valued on a first in first out basis. (f) Employee Benefits Annual leave This benefit is recognised at the reporting date in respect to employees' services up to that date and is measured at the nominal amounts expected to be paid when the liabilities are settled. Long service leave The liability for long service leave expected to be settled within 12 months of the reporting date is recognised in the provisions for employee benefits, and is measured at the nominal amounts expected to be paid when the liability is settled. The liability for long service leave expected to be settled more than 12 months from the reporting date is recognised in the provisions for employee benefits and is measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given, when assessing expected future payments, to expected future wage and salary levels including relevant on costs, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. This method of measurement of the liability is consistent with the requirements of Accounting Standard AASB 28 Employee Benefits. Superannuation Contributions to employee superannuation funds are charged as expenses when incurred. Employee benefit on-costs Employee benefit on-costs, including payroll tax, are recognised and included in employee benefit liabilities and costs when the employee benefits to which they relate are recognised as liabilities and expenses. (See notes 2 and 22) 66

10 (g) Revenue Recognition Revenue from the sale of goods and disposal of other assets and the rendering of services, is recognised when the Institute has passed control of the goods or other assets or delivery of the service to the customer. (h) Receivables and Payables Receivables are recognised at the amounts receivable as they are due for settlement no more than days from the date of recognition. Collectability of receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful debts is raised where some doubts as to collection exist. Payables, including accruals not yet billed, are recognised when the Institute becomes obliged to make future payments as a result of a purchase of assets or services. Payables are generally settled within days. (i) Resources Received Free of Charge or for Nominal Value Resources received free of charge or for nominal value which can be reliably measured are recognised as revenues and as assets or expenses as appropriate at fair value. (j) Interest Bearing Liabilities Finance lease liabilities are recorded at the principal amounts outstanding. Borrowing costs expense is recognised on an accrual basis. (k) Acquisition of Assets The cost method of accounting is used for all acquisitions of assets. Cost is measured as the fair value of the assets given up or liabilities undertaken at the date of acquisition plus incidental costs directly attributable to the acquisition. Assets acquired at no cost or for nominal consideration are initially recognised at their fair value at the date of acquisition. Assets costing less than $2, are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total). (l) Cash For the purpose of the Statement of Cash Flows, cash includes cash assets and restricted cash assets net of outstanding bank overdrafts. These include short-term deposits that are readily convertible to cash on hand and are subject to insignificant risk of changes in value. (m) Comparitive Figures Comparitive figures are, where appropriate, reclassified so as to be comparable with the figures presented in the current financial year. 67

11 4 $ $ 2 Employee expenses Salaries 2,436,18 2,81,328 Annual leave 18,217 46,137 Long service leave 24,416 22,3 Superannuation 238,78 2,64 Payroll tax 124,8 124,6 Workers compensation insurance, 42,949 Fringe benefits tax,17, 3,74,684 3,63,461 3 Supplies and services Travel costs 338,9 4,236 Contractors 246,76 213,23 Communication 33,87,877 Repairs & Maintenance 32,916 37,687 Other supplies and services 726,68 642,284 1,378,286 1,333,67 4 Depreciation expense Sport Science Equipment 18,987 22,11 Computer Hardware 47,4,3 Building Improvements 8 81 Weight Training Equipment 1,7 1,17 Office Equipment 7, 2,89 Sport Programs Equipment 8,472 7, , ,313 6 Administration expense General administration expenses 1,793 49,266 1,793 49,266 7 Accommodation expense Rent 22,411 26, 22,411 26, 8 Amortisation expense Administration Software - 2,8-2,8 9 Other expenses from ordinary activities Sport Programs 2,199 16,413 Scholarships 3,2 26,6 Sport Science 9,3 6,1 Marketing & promotion 42,869 61,794 7,723 2,914 68

12 4 $ $ User charges and fees Coaching fees 116,1 9, ,1 9, Commonwealth grants and contributions Australian Sports Commission / AIS funding 112, ,63 112, ,63 12 Net Gain/(loss) on disposal of non-current assets Gain on disposal of non-current assets Computer Hardware - 1,4 Sports Programs Equipment 16,636 2,7 Plant and Equipment - 12,233 16,636 16,368 Gross proceeds on disposal of asset 16,636 62, Total Gain / (loss) 16,636 16, Other revenues from ordinary activities Sponsorship 131, 16,9 Contributions from sporting bodies 1,116,341 1,41,26 Other general revenue 7,714 89,434 1,, 1,291, 14 Resources received free of charge An arrangement existed and was terminated with Qantas Airways where a rebate was given valued at % of all airfares purchased by WAIS. This rebate amount is redeemable only in the form of domestic air tickets for WAIS s use and is valued at ($) as at (4: $). 69

13 4 $ $ State grants Sports Lotteries grant 3,291,667 3,, Special grant 8,333, 3,, 3,, 16 Cash Assets Deposits 6, 6, Cash at Bank 122,861 78, Cash on hand ,61 678,8 17 Receivables Current Trade Debtors 66,49 143,89 66,49 143,89 (i) (ii) Net Fair Values The Institute considers the carrying amounts of all accounts receivable approximate their net fair values. Credit Risk Exposure The Institute does not have any significant exposure to any individual customer or counterparty. 18 Other Assets Prepayments Salaries (1 July ),27,62 Other 76,386,4 86,66 121,72 19 Property, plant, equipment and furniture Sport Science Equipment at cost 8,287 6, Less: Accumulated Depreciation (381,261) (362,273) 27,26 43,827 Computer Hardware at cost 6,323 27,189 Less: Accumulated Depreciation (236,63) (188,79) 7,26 81,4 Weight Training Equipment at cost 121, 111,84 Less: Accumulated Depreciation (3,67) (1,96) 17,48 9,119 Building Improvements at cost 89,684 31,414 Less: Accumulated Depreciation (14,671) (14,263) 7,13 17,1 Office Equipment at cost 36,783 27,132 Less: Accumulated Depreciation (19,4) (11,874) 17,379,8 Sport Programs Equipment at cost 746, ,62 Less: Accumulated Depreciation (3,2) (276,6) 4, ,346 Leased Administration Software at cost 8,1 8,1 Less: Accumulated Amortisation (8,1) (8,1) - - Work-in-Progress 27,63 - Total property, plant, equipment and furniture 66,677 33,131 7

14 Reconciliations of the carrying amounts of property, plant, equipment and furniture at the beginning and end of the current and previous financial years are set out below. Sport Science Equipment at start of year 43,827 47,973 Additions 2,186 13,7 Depreciation (18,987) (17,81) Sport Science Equipment at end of year 27,26 43,827 Computer Hardware at start of year 81,4 73,68 Additions 36,134 6,66 Disposals - (779) Depreciation (47,4) (2,131) Computer Hardware at end of year 7,26 81,4 Weight Training Equipment at start of year 9,119,9 Additions,71 - Depreciation (1,7) (1,39) Weight Training Equipment at end of year 17,48 9,119 Building Improvements at start of year 17,1 18,2 Additions 8,27 - Depreciation (8) (81) Building Improvements at end of year 7,13 17,1 Office Equipment at start of year,8 4,187 Additions 9,61 14,619 Depreciation (7,) (3,48) Office Equipment at end of year 17,379,8 Sport Programs Equipment at start of year 366, , Additions 1,42 119,887 Disposals - (,4) Depreciation (8,472) (72,42) Sport Programs Equipment at end of year 4, ,346 Leased Assets Administration Software at start of year - 2,8 Amortisation - (2,8) Administration Software at end of year - - Work-in-Progress at start of year - - Additions 27,63 - Administration Software at end of year 27,63-66,677 33,131 Total Property, plant, equipment and furniture at start of year 33,131 21,6 Additions 293,97 8,871 Disposals - (,983) Depreciation and amortisation (161,411) (1,163) Property, plant, equipment and furniture at end of year 66,677 33,131 71

15 4 $ $ Payables Current Trade Payables 268, ,63 268, ,63 21 Other Current Liabilities Accrued expenses 261,97 7,618 Unearned income 71,416 7,18 Equipment deposits - 1,1 333, , Provisions (a) Current Annual leave 3,98 7,3 Long service leave 9,744 4,9 294,62 411,4 (b) Non-current Long service leave 2,884 7,87 397,36 487, Lease Commitments for expenditure (a) (b) Operating Lease Commitments Commitments in relation to leases contracted for at the reporting date but not recognised as liabilities, are payable as follows: Within 1 year 14,3 11,4 Later than 1 year and not later than years 86 7,78, 18,789 Capital Commitments Commitments for capital purchases after the reporting date are as follows: Within 1 year 34, - Later than 1 year and not later than years , - 72

16 4 $ $ 24 Accumulated Surplus Opening Balance 639,6 982,982 Add Net Change in Assets (96,192) (343,922) Closing Balance 42, ,6 Reconciliation of net cost of services to net cash used in operating activities Net cost of services (3,96,192) (3,93,922) Non-cash items Depreciation expense 161, ,313 Amortisation expense - 2,8 Net gain on sale of property, plant and equipment (16,636) (16,368) (Increase)/decrease in assets: Current receivables 77,76 47,2 Other current assets 34,416 (4,79) Increase/(decrease) in liabilities: Current accounts payable 46,494 11,847 Other current liabilities (33,9) 18,622 Current provisions (116,72) 6,98 Non-current provisions 27,27 7,31 Net GST payments 237,87 16,813 Net cash used in operating activities (3,177,974) (3,,483) 26 Reconciliation of Cash For the purpose of the Statement of Cash Flows, cash includes cash on hand, cash in banks and investments in money market instruments. Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows: Deposits 6, 6, Cash at Bank 122,861 78, Cash on hand ,61 678,8 73

17 27 Remuneration of Senior Officers 4 $ $ The members of the Accountable Authority do not receive any remuneration except for the Chairperson. The Chairpersons' remuneration is disclosed in $-$, band. The number of Senior Officers other than members of the Institute whose total of fees, salaries, superannuation and other benefits for the financial year, falls within the following bands are: $ - $, 1 1 $,1 - $, - 1 $,1 - $, 2 - $,1 - $, 1 - $,1 - $6, 1 - $6,1 - $7, - 2 $8,1 - $9, 2 1 $9,1 - $, - 1 $, - $1, - - $1,1 - $1, - 1 $1,1 - $1, 1 - Total remuneration of senior officers is: 488,7 466,2 The above figures include wages, superannuation, motor vehicle expenses and fringe benefits tax on those benefits. The superannuation included here represents the superannuation expense incurred by the Institute in respect of Senior Officers other than senior officers reported as members of the Accountable Authority. 28 Remuneration of Auditor Total fees paid or due and payable to the auditors for auditing the financial statements and performance indicator of the Institute for the financial year is as follows: Fee to the Auditor General - external audit 27, 28, 74

18 29. Additional Financial Instrument Disclosures Interest Rate Exposure The Institute's exposure to interest rate risk on financial instruments is as follows Weighted average effective interest rate Floating interest rate Fixed Interest Rate Maturities 1 year or less $ Non- interest bearing Total 1 to years $ $ $ % $ Financial Assets Cash - deposits 3.49%,969 6, - - 6,969 Cash at Bank 3.6% , ,861 Cash - On hand Accounts receivable ,49 66,49 Total Financial Assets,969 6, - 189,6 8,79 Financial Liabilities Accounts payable , ,148 Accrued expenses ,97 261,97 Total Financial Liabilities - - -,123,123 Net Financial Assets /Liabilities,969 6, - (3,13) 27,6 Net Fair Values The carrying amounts of financial assets and financial liabilities recorded in the financial statements are not materially different from their net fair values, determined in accordance with Note 1 to the financial statements. June 4 Weighted average effective interest rate Floating interest rate Fixed Interest Rate Maturities 1 year or less $ Non- interest bearing Total 1 to years $ $ $ % $ Assets Cash - deposits 3.69%, 6, - - 6, Cash at Bank 1.% , 48, Cash - On hand Accounts receivable ,89 143,89 Total Financial Assets, 6, - 192,9 822,664 Liabilities Accounts payable ,63 221,63 Accrued expenses ,618 7,618 Deposits ,1 1,1 Total Financial Liabilities , ,416 Net Financial Assets /Liabilities, 6, - (,87) 29,248 7

19 . Services Information The Institute only has one Service (as detailed in page ), therefore a separate statement of Service is not required. 31. Explanatory Statement (a) Significant variances between actual revenues and expenditures for the financial year and revenues and expenditures for the immediate preceeding financial year. Details are provided for significant variations between actual revenue (income) and expenditure and the corresponding item of the preceeding year. Significant variations are considered to be those greater than % or $,. Actual Actual Variance Variance 4 Expenditure $ $ $ % (i) Employee expenses 3,74,684 3,63,461 11,223.4% Increase due to new terms and conditions of employment including remuneration review (ii) Supplies and services 1,378,286 1,333,67 44, % Increase due to: a) Increase in other supplies of $77K mainly due to consultants fees, computer expenses and non-capital equipment costs. b) Increase in contractors expense of $33K c) Decrease in travel costs of $6K (iii) Depreciation expense 161, ,313 13,98 8.8% Increase due to Sports program additions during the year. (iv) Amortisation expense - 2,8 (2,8) -.% Decrease due to assets becoming fully amortised (v) Other expenses from ordinary activities 7,723 2,914 (,191) -8.2% Decrease due to: a) Decrease in Marketing & Promotion expenses of $19K. b) Decrease in Sports Programs expenses of $13K. c) Decrease in Scholarship expenses of $13K. (vi) Carrying value of non-current assets disposed of -,982 (,982) -.% Decrease due to Assets having $nil value at the time of disposal Income (i) User charges and fees 116,1 9,871,9 21.1% Increase mainly due to increase in one-off coaching fees of $K (ii) Commonwealth grants and contributions 112, ,63 (26,) -18.9% Decrease mainly due to decrease in one-off grants from Australian Sports Commission of $26K (iii) Other revenues from ordinary activities 1,, 1,291, 13, 1.% Increase mainly due to: a) Increase in National Sporting Organisations funding of $74K b) Decrease in Other revenue of $31K c) Decrease in Sponsorship income of $K (iv) Proceeds from disposal of non-current assets 16,636 62, (,714) -73.3% Decrease due to lower sale of assets compared to the prior year of $46K 76

20 (b) Significant variations between estimates and actual results for the financial year Details are provided below for significant variations between estimates and actual results. Significant variations are considered to be those greater than % or $,. Expenditure Actual Estimate Variance Variance $ $ $ % (i) Employee costs 3,74,684 3,316,69 241,97 7.3% Decrease mainly due to: a) Decrease in Salaries expense of $379K b) Increase in Annual Leave & Long service of $1K c) Decrease in Superannuation of $K & Payroll tax of $2K d) Increase in Workers Compensation Insurance of $9K (ii) Supplies and Services 1,378,286 1,322,819 (,467) -4.2% Increase mainly due to: a) Increase in travel costs of $4K due to increased participation in various National & International championships. b) Increase in contractors expense of $73K & Repairs of $32K c) Decrease in other communication expenses of $13K & Other supplies of $41K (iii) Other expenses from ordinary activities Increase mainly due to: Increase in Sports Science expenses of $6K, Marketing & Promotion of $8K, offset of decrease in Scholarships of $K, Program expenses of $19K. (iv) Depreciation expense Increase mainly on computer hardware depreciation of $17K due to increased purchase. (v) Administration expense Increase mainly on Repairs & Maintenance expense of $6K due to overall repairs that needed attention. 7, ,63 (,1) -8.6% 161, ,841 (16,7) -11.4% 1,793,429 (6,364) -14.% Income (i) User charges and fees 116,1 2,194 13, % Increase due to increase in coaching income of $14K. (iii) Proceeds from disposal of non-current assets 16,636-16,636.% Increase due to increase in disposal of non-current assets (iv) Other revenues from ordinary activities 1,, 1,1,3 (146,498) -.1% Decrease mainly due to: a) Decrease in sponsorsorship of $93K b) Decrease in Miscellaneous Income of $6K due mainly to decrease of sale of DIAS software of $8K and other miscellaneous income of $7K. c) Increase in contribution of Sporting bodies of $12K. 77

21 32. Capital Commitments Capital commitments are highlighted on note: 23(b) 33. Contingent Liabilities and Contingent Assets There are no contingent liabilities or contingent assets at (4: None) 34. Events occurring after Reporting Date The public liability claim WAIS entered into by one of the athletes is progressing. The nature of the claim relates to alleged WAIS's responsibility to the athlete's injury. The amount has not been ascertained as yet. WAIS is covered by insurance currently & believe that this liability should be covered if arose although it is not anticipated.. Impact of Adopting Australian Equivalents to IFRS Australia is adopting Australian equivalents to International Financial Reporting Standards (AIFRS) for reporting periods beginning on or after 1 January. WAIS will adopt these standards for the first time for the year ended June 6. AASB 47 'Disclosing the Impacts of Adopting Australian Equivalents to International Financial Reporting Standards' requires disclosure of any known or reliably estimable information about the impacts on the financial statements had they been prepared using AIFRSs. The information provided below discloses the main areas impacted due to the effects of adopting AIFRS. Management have determined the quantitative impacts using their best estimates available at the time of preparing the financial statements. These amounts may change in circumstances where the accounting standards and/or interpretations applicable to the first AIFRS financial statements are amended or revised: The impact of adopting AIFRS including the key differences in accounting policies a) Reconciliation of total equity as presented under previous AGAAP to that under AIFRS: 1 July 4 $ $ Total equity under previous AGAAP 42, ,6 Adjustments to Retained profit: Increase Inventory ¹ 29,3,78 Total equity under AIFRS 72, ,638 b) Reconciliation of net profit for the period under previous AGAAP to that under AIFRS: $ Surplus/(deficit) for the period under previous AGAAP (96,192) Increase Inventory ¹ 3,72 Surplus/(deficit) for the period under AIFRS (92,4) ¹ Inventory is valued at lower of cost or current replacement cost whichever is higher. 78

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23 Key Performance Indicators The following Performance Indicators demonstrate the extent to which the Western Australian Institute of Sport s outcome has been achieved. \ Service: To provide opportunities for talented Western Australian sports persons to achieve excellence in high performance sport with support from their home environment. WAIS has produced performance indicators that provide a benchmark for a satisfactory level of achievement for WAIS athletes and the Institute. WAIS has based its performance on the following indicators that measure the achievement of Western Australian sports persons at the national/international level. 1. Effectiveness Indicators WAIS provides opportunities for talented (elite) Western Australian sports people to achieve excellence in high performance sport with support from their home environment. A talented athlete is defined by the national institute network as being an athlete who is of Australian Open team standard in his or her sport. Australia aims to be an internationally competitive nation. WAIS is considered by the Australian elite sports system to be a significant contributor to Australian success and is recognised by membership to the Australian National Elite Sports Council. WAIS will therefore assess its contribution to Australia s international success. Two indicators are used to measure the extent to which WAIS is meeting its purpose. 1.1 WA s Representative Numbers in Australian Open Teams The aim is to achieve ten per cent representation in Australian Open teams in sports supported by WAIS. This figure is based on WA having approximately ten percent (currently 9.9) of the national population. The graphs on the following page show the current and historical representation by WA on the major national team for each year for each sport in which WAIS operates a sport program. In the current year nine of 13 assessable programs were considered to have reached their target (the Sailing Program commenced in November 4 and no benchmark events were attended prior to ). Overall WAIS achived excellent results with 46 (% of total team) athletes representing Australia at the 4 Olympic Games. 8

24 Key Performance Indicators Athletics Canoeing Gymnastics (Women - artistic) Hockey (Women) Rowing Swimming Water Polo (Women) Baseball Cycling Hockey (Men) Netball Softball Sailing N / A Water Polo (Men)

25 Key Performance Indicators 1.2 WA representative contribution to Australian World Class Performance WAIS assesses its contribution to Australia s international competitiveness by measuring the number of World Class performances (top eight individual or top four team or multiple athlete event performance at a World Championship or Olympic Games) recorded by Western Australians. The Institutes aim is for athletes in sports supported by WAIS to achieve ten percent of Australian World Class performances. 4 Australian World Class Performances in WAIS Sport Programs % 9% 8% 7% age 6% % % % % % N / A N / A N / A N / A % Athletics Baseball (m) Canoeing Cycling Gymnastics (w) Hockey (m) Hockey (w) Sport Netball Rowing Softball (w) Swimming Sailing Water Polo (m) Water Polo (w) WA contribution Non-WA Contribution 3 Australian World Class Performances in WAIS Sport Programs % 9% 8% 7% Number 6% % % % % % % Athletics N / A N / A N / A N / A N / A Baseball (m) Canoeing Cycling Gymnastics (w) Hockey (m) Hockey (w) Netball Rowing Softball (w) Swimming Sailing Water Polo (m) Water Polo (w) Sport WA contribution Non WA Contributionl Note: In some sports World Class events do not occur every year. 82

26 Key Performance Indicators 2. Efficiency Indicators This indicator provides an efficiency measure which shows the average cost of providing services to athletes. It shows that WAIS is responding to its responsibility to provide more opportunities for talented Western Australian athletes by providing cost efficient management and support systems to meet the high performance requirements of our talented athletes. The number of athletes at the Western Australian Institute of Sport comprises athletes in squads and athletes awarded Individual Scholarships. The number of athletes granted individual scholarships are determined at the beginning of the financial year. The number of athletes within squads remains relatively consistent, however the athletes making up those particular squads may change during the year. The cost per athlete is determined on the total operating expenditure of the Western Australian Institute of Sport. The cost per athlete has increased marginally over the past year. This result is due to the number of athletes supported decreased during 4- by 23. The corresponding decrease in costs were not proportional due to the minimum cost involvement for a particular program. WAIS Efficiency as indicated by Financial Cost per Athlete Supported $, $17, $, Cost per Athlete $ $12, $, $7, $, $2, $