BUSINESS ENTERPRISE CENTRE ST GEORGE & SUTHERLAND SHIRE LTD ABN FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2011

Size: px

Start display at page:

Download "BUSINESS ENTERPRISE CENTRE ST GEORGE & SUTHERLAND SHIRE LTD ABN FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2011"

Samuel Fowler
5 years ago
Views:

1 FINANCIAL REPORT

2 TABLE OF CONTENTS Directors' Report... 1 Auditor's Independence Declaration... 5 Financial Report Statement of Financial Performance... 6 Statement of Financial Position... 7 Statement of Changes to Equity 8 Statement of Cash Flows... 9 Notes to the Financial Statements Directors' Declaration Independent Audit Report Additional Information

3 DIRECTORS' REPORT Your directors present their report on the company for the financial year ended 30 June Directors The names of the directors in office at any time during or since the end of the financial year are: Ken McDonell Terry Dewing Yvonne Bellamy Ferdie Dominelli Diane Craven Mark Coure Lorraine Kelly Dean Groundwater Jan Sky Con Hindi (appointed September 2010) David Perry (resigned September 2010) Tony Greaves Geoff Silk Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Operating Results The profit/(loss) from ordinary activities after providing for income tax amounted to $323 Review of Operations A review of the operations of the company during the financial year and the results of those operations found that during the year, the company continued to engage in its principal activity, the results of which are disclosed in the attached financial statements. Significant Changes in State of Affairs No significant changes in the state of affairs of the company occurred during the financial year. Principal Activity The principal activity of the company during the financial year was rendering or extending every practical assistance to small business and persons who seek to establish such businesses. No significant change in the nature of these activities occurred during the year. After Balance Date Events No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations, or the state of affairs of the company in future financial years. Likely Developments The company expects to maintain the present status and level of operations and hence there are no likely developments in the company's operations. Environmental Issues The company's operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a State or Territory. Dividends Paid or Recommended No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends has been made

4 DIRECTORS' REPORT (continued) Ken McDonell Terry Dewing Special Responsibilities Yvonne Bellamy Ferdie Dominelli Special Responsibilities Diane Craven Mark Coure Lorraine Kelly Dean Groundwater Jan Sky Con Hindi Life Member (Community) Community Service Chartered Accountant Sullivan Dewing Caringbah Treasurer Councillor Rockdale City Council Company Director Dominelli Ford Director St George College of TAFE Councillor Kogarah Council Councillor Sutherland Shire Council Solicitor B Com LLB Warren Mckeown Dickson Lawyers Training & Development Small Business Deputy Mayor Hurstville City Council - 2-

5 DIRECTORS' REPORT (continued) Tony Greaves Geoff Silk Recruitment Consultancy Ascendancy Recruitment Consulting Training and Development Executive Leadership Coach Meetings of Directors DIRECTORS DIRECTORS' MEETINGS Number eligible to attend Ken McDonell 4 4 Terry Dewing 4 4 Yvonne Bellamy 4 4 Ferdie Dominelli 4 1 Diane Craven 4 3 Mark Coure 4 1 Lorraine Kelly 4 2 Dean Groundwater 4 1 Jan Sky 4 1 Con Hindi (Appointed September 2010) 3 0 David Perry (Resigned September 2010) 1 0 Tony Greaves 4 4 Geoff Silk 4 3 Number attended Indemnification of Officer or Auditor During or since the end of the financial year, the company has given indemnity or entered an agreement to indemnify, or paid or agreed to pay insurance premiums as follows: The company has paid premiums to insure each of the following directors against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of director of the company, other than conduct involving a wilful breach of duty in relation to the company. The amount of the premium was $ for each director. Ken McDonell Mark Coure Terry Dewing Lorraine Kelly Yvonne Bellamy Dean Groundwater Ferdie Dominelli, Jan Sky Diane Craven David Perry Tony Greaves Geoff Silk Con Hindi Proceedings on Behalf of the Company No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings. The company was not a party to any such proceedings during the year. - 3-

8 STATEMENT OF FINANCIAL PERFORMANCE Notes $ $ Revenue from ordinary activities 2 568, ,346 Employee benefits expense (303,762) (303,292) Other expenses from ordinary activities (264,791) (261,458) Profit from ordinary activities 323 (15,404) Total changes in equity other than those resulting from transactions with owners as owners (15,404) The accompanying notes form part of these financial statements

9 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2011 Notes $ $ CURRENT ASSETS Cash assets 5 364, ,565 Receivables 6 16,852 6,427 Other 14,088 13,151 TOTAL CURRENT ASSETS 394, ,143 NON-CURRENT ASSETS Property, plant and equipment 7 45,689 61,255 TOTAL NON-CURRENT ASSETS 45,689 61,255 TOTAL ASSETS 440, ,398 CURRENT LIABILITIES Payables 8 49,992 73,484 Provisions 9 38,590 39,969 Other ,990 29,181 TOTAL CURRENT LIABILITIES 196, ,634 TOTAL LIABILITIES 196, ,634 NET ASSETS 244, ,764 EQUITY 18 Retained profits , ,764 TOTAL EQUITY , ,764 The accompanying notes form part of these financial statements

10 STATEMENT OF CHANGES IN EQUITY Retained Earnings Total $ $ Balance at 1 July , ,168 Profit attributable to members of parent entity (15,404) (15,404) Transfers to and from reserves Balance at 30 June , ,764 Profit attributable to members of parent entity Transfers to and from reserves Balance at 30 June , ,087 The accompanying notes form part of these financial statements

11 STATEMENT OF CASH FLOWS Notes $ $ CASH FLOW FROM OPERATING ACTIVITIES Receipts from Memberships 68,035 42,330 Operating grant receipts 267, ,542 Receipts from Workshops & Other Income 210, ,901 Payments to suppliers and employees (499,049) (551,513) Interest received 10,588 11,013 Net cash provided by operating activities 16(b) 58,465 (20,727) CASH FLOW FROM INVESTING ACTIVITIES Payment for property, plant and equipment - (32,554) Net cash used in investing activities - (32,554) Net increase in cash held 58,465 (53,281) Cash at beginning of financial year 305, ,846 Cash at end of financial year 16(a) 364, ,565 The accompanying notes form part of these financial statements

12 NOTES TO THE FINANCIAL STATEMENTS NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The financial report is a general purpose financial report that has been prepared in accordance with Accounting Standards, Urgent Issues Group Consensus Views and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act The financial report is for the entity Business Enterprise Centre St George & Sutherland Shire Ltd as an individual entity. Business Enterprise Centre St George & Sutherland Shire Ltd is a company limited by guarantee, incorporated and domiciled in Australia. The financial report has been prepared on an accruals basis and is based on historical costs. It does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below and have been consistently applied unless otherwise stated. (a) Income Tax No provision for income tax has been raised as the company is exempt from income tax under Division 50 of the Income Tax Assessment Act (b) Property, Plant and Equipment Each class of property plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation. Property Freehold land and buildings are measured on the fair value basis being the amount which an asset could be exchanged between knowledgeable willing parties in an arm's length transaction. It is the policy of the company to have an independent valuation every three years, with annual appraisals being made by the directors. Plant and equipment Plant and equipment is measured on the cost basis. The carrying amount of plant and equipment is reviewed annually by the directors to ensure it is not in excess of the recoverable amount from those assets. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the assets employment and subsequent disposal. The expected net cash flows have not been discounted to present values in determining recoverable amounts. Depreciation The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land, are depreciated over their estimated useful lives to the company commencing from the time the asset is held ready for use. Properties held for investment purposes are not subject to a depreciation charge. Leasehold improvements are amortised over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. The depreciation rates and useful lives used for each class of depreciable assets are: Class of fixed asset Depreciation rates/useful lives Depreciation basis Office Equipment 15 % Diminishing Value Furniture Fixtures and Fittings 15 % Diminishing Value Computer Equipment 37.5% Diminishing Value Motor Vehicles 25 % Diminishing Value

13 NOTES TO THE FINANCIAL STATEMENTS NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c) Employee Benefits Provision is made for the company's liability for employee benefits arising from services rendered by employees to balance date. Employee benefits expected to be settled within one year together with benefits arising from wages and salaries, annual leave and sick leave which will be settled after one year, have been measured at the amounts expected to be paid when the liability is settled plus related on-costs. Other 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. Contributions are made by the company to an employee superannuation fund and are charged as expenses when incurred. (d) Cash For the purposes of the Statement of Cash Flows, cash includes cash on hand and at call deposits with banks or financial institutions, investments in money market instruments maturing within less than two months and net of bank overdrafts. (e) Revenue Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Finance and insurance revenue is recognised when the right to receive finance and insurance revenue has been established. Other revenue is recognised when the right to receive the revenue has been established. All revenue is stated net of the amount of goods and services tax (GST)

14 NOTES TO THE FINANCIAL STATEMENTS Note $ $ NOTE 2: REVENUE Operating activities - interest 2(a) 10,588 11,013 - Training & Workshop income 29,856 29,610 - member subscriptions 78,460 47,739 - operating grants 267, ,542 - business and fashion events income 82,950 87,900 - other revenue 99,099 85, , ,346 (a) Interest from: - other persons 10,588 11,013 NOTE 3: PROFIT FROM ORDINARY ACTIVITIES Profit (losses) from ordinary activities has been determined after: (a) Expenses Depreciation of non-current assets - Office Equipment 9,004 10,331 - Motor Vehicles 6, ,566 10,439 Bad and doubtful debts: - trade debtors - - Remuneration of the auditors for - audit or review services 4,739 4,030 NOTE 4: REMUNERATION AND RETIREMENT BENEFITS (a) Directors' remuneration Number of directors whose income from the company or any related parties was within the following bands: No. No. $0 - $9, The names of directors who have held office during the financial year are: Ken McDonell Terry Dewing Yvonne Bellamy Ferdie Dominelli Diane Craven Mark Coure Lorraine Kelly Dean Groundwater Jan Sky Con Hindi David Perry Tony Greaves Geoff Silk -12-

15 NOTES TO THE FINANCIAL STATEMENTS Note $ $ NOTE 5: CASH ASSETS Cash on hand Cash at bank 363, , , ,565 NOTE 6: RECEIVABLES CURRENT Trade debtors 16,852 6,427 NOTE 7: PROPERTY, PLANT AND EQUIPMENT PLANT AND EQUIPMENT (a) Office equipment At cost 95,575 95,575 Less accumulated depreciation (69,570) (60,566) 26,005 35,009 Motor vehicles 26,354 26,354 At cost (6,670) (108) Less accumulated depreciation 19,684 26,246 Total property, plant and equipment 45,689 61,

16 2BUSINESS ENTERPRISE CENTRE ST GEORGE & SUTHERLAND SHIRE LTD NOTES TO THE FINANCIAL STATEMENTS NOTE 7: PROPERTY, PLANT AND EQUIPMENT (Continued) (a) Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year Motor Office vehicles equipment Total $ $ $ 2011 Balance at the beginning of the year 26,246 35,009 61,255 Additions Depreciation expense (6,562) (9,004) (15,566) Carrying amount at end of year 19,684 26,005 45,689 NOTE 8: PAYABLES CURRENT Unsecured liabilities Sundry creditors and accruals 35,904 55,984 Income in advance 14,088 17,500 49,992 73,484 NOTE 9: PROVISIONS CURRENT Employee benefits 9(a) 38,590 39,969 (a) Aggregate employee benefits liability 38,590 39,969 NOTE 10: OTHER LIABILITIES CURRENT Grants received in advance 107,990 29, ,990 29,181 NOTE 11: EQUITY Total equity at the beginning of the financial year 243, ,168 Total changes in equity recognised in the statement of financial performance 323 (15,404) Total equity at the reporting date 244, ,764 NOTE 12: RETAINED PROFITS Retained profits at the beginning of the financial year 243, ,168 Net profit (loss) attributable to members of the entity 323 (15,404) Retained profits at the end of the financial year 244, ,764 NOTE 13: CONTINGENT LIABILITIES AND ASSETS Contingent Liabilities There are no material known contingent liabilities as at balance date or at the date of this report

17 NOTES TO THE FINANCIAL STATEMENTS NOTE 14: EVENTS SUBSEQUENT TO REPORTING DATE There were no events subsequent to balance date and up to the date of this report. NOTE 15: RELATED PARTY TRANSACTIONS (a) The names of each person who held the position of director during the financial year were Ken McDonell, Terry Dewing, Yvonne Bellamy, Ferdie Dominelli, Mark Coure, Lorraine Kelly, Dean Groundwater, Jan Sky, Vince Badalati (resigned November 2009), David Perry (appointed November 2009), Tony Greaves (appointed November 2009) and Geoff Silk (appointed November 2009). (b) Directors may have attended various functions organised by the company during the year at which such directors have paid the same fees as other members. NOTE 16: CASH FLOW INFORMATION (a) Reconciliation of cash 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: Cash on hand Cash at bank 363, , , ,565 (b) Reconciliation of cash flow from operations with profit from ordinary activities after income tax Profit from ordinary activities after income tax 323 (15,405) Non-cash flows in profit from ordinary activities Depreciation 15,566 10,439 Changes in assets and liabilities (Increase)/decrease in receivables (10,425) (5,409) (Increase)/decrease in other assets (937) 5,553 Increase/(decrease) in payables (23,492) (26,784) Increase/(decrease) in provisions 77,430 10,879 Cash flows from operations 58,465 (20,727) - 15-

18 NOTES TO THE FINANCIAL STATEMENTS NOTE 17: FINANCIAL INSTRUMENTS (a) Interest Rate Risk The company's exposure to interest rate risk, which is the risk that a financial instrument's value will fluctuate as a result of changes in market interest rates Details of financial instruments are as follows: Fixed Interest Rate Maturing Within 1 Year Floating Interest Rate Non Interest Bearing Financial Assets: $ $ $ $ $ $ Cash 113, , ,113 34, Receivables ,852 6,427 Total Financial Assets 113, , ,113 34,340 16,852 6,427 Financial Liabilities: Trade and sundry creditors ,992 73,484 Total Financial Liabilities ,992 73,484 Total Financial Assets: $ $ Cash 364, ,565 Receivables 16,852 6,427 Total Financial Assets 380, ,992 Financial Liabilities: Trade and sundry creditors 49,992 73,484 Total Financial Liabilities 49,992 73,484 NOTE 18: MEMBERS' GUARANTEE The company is limited by guarantee. If the company is wound up, the articles of association state that each member is required to contribute a maximum of $NIL each towards meeting any outstanding obligations of the company. At 30 June 2011 the number of members was NIL (2010: NIL). NOTE 19: COMPANY DETAILS The registered office of the company is: Business Enterprise Centre St George & Sutherland Shire Ltd Unit 1A, Waratah Street KIRRAWEE NSW

22 PRIVATE INFORMATION FOR THE DIRECTORS ON THE 2011 FINANCIAL STATEMENTS DETAILED PROFIT AND LOSS $ $ INCOME Interest 10,588 11,013 Subsidies and grants 267, ,542 Training & Workshop Income 29,856 29,610 Membership subscriptions 78,460 77,739 Business and fashion events income 82,950 87,900 Other income 99,099 55,542 TOTAL INCOME 568, ,346 LESS EXPENSES Accounting fees 2,232 3,192 Audit fees 4,739 4,030 Bank charges 1,285 1,647 Cleaning 5,470 5,440 Computer expenses 4,566 4,240 Conference/Seminar/Workshop costs 41,935 37,027 Consultancy fees - 2,860 Depreciation 15,566 10,439 Equipment < $ Fashion show expenses 25,988 22,039 Fringe benefits tax 4,393 Holiday pay -1,379 10,878 Insurance 10,591 6,818 Legal costs 1,639 3,857 Marketing expenses 24,442 13,744 Motor vehicle expenses 2,495 3,971 Networking expenses 4,400 6,290 Office expenses 1,038 1,279 Postage Printing and stationery 14,334 18,261 Recruitment costs Rent 6,143 6,046 Repairs and maintenance Salaries and wages 303, ,292 Security costs Subscriptions 4,721 4,447 Superannuation 31,574 26,217 Expenses carried forward 511, ,639 These financial statements should be read in conjunction with the attached Disclaimer

23 PRIVATE INFORMATION FOR THE DIRECTORS ON THE 2011 FINANCIAL STATEMENTS DETAILED PROFIT AND LOSS $ $ Expenses brought forward 511, ,639 Telephone 4,098 4,023 Think Business Expo expenses 47,737 55,627 Traineeship expenses 1,625 - Travelling and entertainment Web Site expenses 1,340 5,820 Workcare/WorkCover/Workers Compensation 1,345 1,390 TOTAL EXPENSES 568, ,750 OPERATING PROFIT/(LOSS) 323 (15,404) These financial statements should be read in conjunction with the attached Disclaimer

Financial Report. Science Teachers Association of Victoria ACN And Controlled Entity. For the year ended 30 June 2005

Financial Report. Science Teachers Association of Victoria ACN And Controlled Entity. For the year ended 30 June 2005 And Controlled Entity Financial Report For the year ended 30 June 2005 ANNEXURE A This is Annexure A of pages referred to in Form 388 Copy of Financial Statements and Reports.... DIRECTOR Dated: Table