Legacy Brisbane ABN: Financial Statements

Transcription

1 Legacy Brisbane Financial Statements

2 Legacy Brisbane Contents Legacy Brisbane Corporate Directory 1 Directors' Finance Report 2 Auditor s Independence Declaration 4 The Legacy Club of Brisbane Limited Statement of Comprehensive Income 5 Statement of Financial Position 7 Statement of Changes in Equity 8 Statement of Cash Flows 9 Notes to the Financial Statements 10 Directors' Declaration 22 Audit Report 23 Jack Bean Memorial Charitable Trust Statement of Comprehensive Income 25 Statement of Financial Position 25 Notes to the Financial Statements 26 Trustees Declaration 27 Audit Report 28 Page

3 Corporate Directory Patron His Excellency, the Honourable Paul de Jersey AC Governor of Queensland Board of Directors President, Legacy Club of Brisbane & Chairman, Board of Directors Non-executive Director & Vice-President Non-executive Director & Honorary Treasurer Non-executive Director Non-executive Director Non-executive Director Non-executive Director Non-executive Director Non-executive Director Non-executive Director Peter Keane Brian McIntyre Greg Shannon OAM Andrew Craig Mal Rerden AM CSC Keith Carl John Reid William Powell Andrew Abbott Annabel Leslie-McGuire Executive Staff Chief Executive Officer Finance Manager & Company Secretary Community Services Manager Fundraising & Communications Manager Brendan Cox Pamela Krueger Christina Davidson Ben Cox Auditors UHY Haines Norton Bank National Australia Bank Honorary Solicitors Thynne & Macartney Legacy Brisbane Offices 41 Merivale Street, South Brisbane QLD 4101 (Registered Office) 106 Memorial Drive, Maroochydore QLD b Elphinstone Street, Berserker QLD

4 Directors' Finance Report The Board of Directors of The Legacy Club of Brisbane Limited present the financial report for the financial year ended 31 December. Directors The names and details of the directors in office at any time during the financial year and details of their attendance at meetings of the board are as follows. Directors were in office for this entire period unless otherwise stated. Directors Date Appointed Date of Cessation Meetings Attended Number of Meetings Eligible to Attend COL A Abbott July K Carl January A Craig March P Keane (Chair from 21 March ) March A Leslie-McGuire March B McIntyre June B Powell March J Reid March M Rerden AM CSC March G Shannon OAM March COL K Fegan November 2014 July 5 6 I Ferguson March 2011 March 1 1 C Hamilton March 2012 March 1 1 Principal activities Legacy Brisbane s principal focus for the year has continued to be to Care for the families of those who have served their country. This has been achieved through programs directed to specifically support: Traditional Legacy widows Families of veterans who have sacrificed their health, Young families and children Family members with disabilities Through the efforts of Legatees, staff and community supporters, Legacy Brisbane actively works toward improving the lives of those in Legacy s care through: advocating on their behalf providing information and support providing social contact and interaction practical in home support youth development and education support raising funds to resource Legacy Brisbane s support programs developing partnerships with other welfare providers. 2

5 Directors' Finance Report Legacy Brisbane s district includes the greater Brisbane area, Sunshine Coast, Gympie and various country Queensland areas. From July, Legacy Brisbane extended its support to include the communities in the Rockhampton and Central Queensland area. Legacy Brisbane s long term objective is to ensure that Legacy services are relevant, effective and sustainable. The strategies to achieve this are detailed in our Strategic Plan to Our priorities remain focused on care and support, through people willing and trained, responsible management and with the financial and practical support of the wider community who understand the importance of caring for Legacy widows and families. Members Guarantee As a company limited by guarantee, the constitution states that each member is required to contribute a maximum of 10 towards outstanding obligations of the Club in the event of its being wound up. At 31 December, the collective liability of members is 3,010 (: 2,730). Operating result The deficit of the Company for the financial year amounted to 25,604 (: surplus 215,567). Events after the reporting date No matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years. Future developments Legacy Brisbane will continue to carry on the principal activities noted above. There are no likely developments in the activities in future years which will affect the results and therefore require disclosure. Benefits received directly or indirectly by officers No Board member received or became entitled to receive, during or since the financial year, a benefit either in the form of remuneration or a contract made by the Company, or a related body corporate with a Board member, a firm of which a Board member is a member, or an entity in which a Board member has substantial financial interest. Indemnification and insurance of officers and auditors No indemnities have been given or insurance premiums paid, during or since the end of the financial year, for any person who is or has been an officer or auditor of The Legacy Club of Brisbane Limited. Signed in accordance with a resolution of the directors: Legatee Peter Keane President Legatee Gregory Shannon OAM Honorary Treasurer Brisbane, 20 February

6 AUDITOR S INDEPENDENCE DECLARATION TO THE DIRECTORS OF THE LEGACY CLUB OF BRISBANE LIMITED Level Albert Street Brisbane QLD 4000 GPO Box 2876 Brisbane QLD 4000 t: f: brisbane@uhyhn.com.au ABN QLDBN I declare that, to the best of my knowledge and belief, during the year ended 31 December, there have been no contraventions of any applicable code of professional conduct in relation to the audit. UHY HAINES NORTON CHARTERED ACCOUNTANTS DARREN LAARHOVEN Partner Brisbane, 17 February Liability limited by a scheme approved under Professional Standards Legislation. UHY Haines Norton is an association of independent firms in Australia and New Zealand and a member of UHY, an international association of independent accounting and consulting firms. Not your average bean counters

7 Statement of Comprehensive Income Note Revenue from ordinary activities Interest 58,258 64,904 Dividend imputation credits 105, ,181 Dividends 283, ,871 Trusts and grants 216, ,279 Appeals 409, ,625 Fundraising events 108, ,917 Third party activities 87,970 30,692 Direct mail 481, ,281 Donations 557, ,769 Bequests 1,216,421 1,667,807 Torch advertising 6,523 5,288 Holiday unit rental 6,410 3,700 Laurel club 10,449 13,292 Other revenue 3 342,857 39,818 Sales - major events 318, ,530 Cost of sales Gross profit Expenses from ordinary activities Administration Members Legacy House Sunshine Coast office Rockhampton office Fundraising operating Fundraising appeals Fundraising events 4,209,928 4,534,954 (244,661) (281,177) 3,965,267 4,253,777 (782,421) (704,509) (43,684) (43,466) (219,011) (179,175) (17,982) (20,936) (5,323) - (721,621) (622,166) (147,047) (127,751) (126,818) (30,329) Fundraising third party activities - (3,983) Fundraising direct mail Fundraising donations Fundraising other Welfare operating Youth Families People with disabilities Widows (206,258) (172,158) (280) (4,738) (85) (505) (1,086,703) (1,030,802) (340,074) (90,117) (107,459) (86,576) (63,115) (43,452) (371,632) (371,006) Bequest program expenses (50,393) (60,643) (4,289,906) (3,592,312) Operating surplus for the year (324,639) 661,465 The accompanying notes form part of these financial statements. 5

8 Statement of Comprehensive Income Note Revenue from other activities Net gain/(loss) on disposal of property, plant and equipment (93) 985 Realised gain on available-for-sale financial assets 299,128 73, ,035 74,564 Expenses from other activities Impairment expense - financial assets 8(a) - (520,462) - (520,462) Deficit from other activities 299,035 (445,898) Net (deficit)/surplus for the year (25,604) 215,567 Other comprehensive income Items that will not be reclassified to surplus or deficit Items that may be reclassified to surplus or deficit Changes in the fair value of available-for-sale financial assets 8(a) 260,594 96,371 Other comprehensive income for the year 260,594 96,371 Total comprehensive income for the year 234, ,938 The accompanying notes form part of these financial statements. 6

9 Statement of Financial Position As At 31 December Note ASSETS CURRENT ASSETS Cash and cash equivalents 5 572, ,606 Trade and other receivables 6 242, ,512 Inventories 115,694 80,331 Other current assets 7 104,802 73,648 TOTAL CURRENT ASSETS NON-CURRENT ASSETS 1,035,097 1,362,097 Trade and other receivables 6 30,789 30,789 Other financial assets 8 9,787,283 9,449,596 Property, plant and equipment 9 6,451,003 6,162,212 TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES 16,269,075 15,642,597 17,304,172 17,004,694 Trade and other payables , ,442 Borrowings 11 26,467 18,277 Employee benefits , ,791 Other liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES - 1, , ,700 Borrowings 11 35,852 32,755 Employee benefits 12 29,210 17,193 TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS 65,062 49, , ,648 16,793,036 16,558,046 EQUITY Reserves 5,525,162 5,264,568 Accumulated surplus 11,267,874 11,293,478 TOTAL EQUITY 16,793,036 16,558,046 The accompanying notes form part of these financial statements. 7

10 Statement of Changes in Equity Accumulated Surplus Capital Profits Reserve Asset Revaluation Reserve Financial Assets Reserve Balance at 1 January 11,293, ,073 4,286, ,243 16,558,046 Comprehensive income Deficit for the year (25,604) (25,604) Other comprehensive income for the year , ,594 Total comprehensive income for the year (25,604) , ,990 Balance at 31 December 11,267, ,073 4,286, ,837 16,793,036 Total Accumulated Surplus Capital Profits Reserve Asset Revaluation Reserve Financial Assets Reserve Balance at 1 January 11,077, ,073 4,286, ,872 16,246,108 Comprehensive income Surplus for the year 215, ,567 Other comprehensive income for the year ,371 96,371 Total comprehensive income for the year 215, , ,938 Balance at 31 December 11,293, ,073 4,286, ,243 16,558,046 Total The accompanying notes form part of these financial statements. 8

11 Statement of Cash Flows Note CASH FLOWS FROM OPERATING ACTIVITIES: Donations, fundraising and other activities 2,232,202 2,233,616 Payments to suppliers, employees and clients (4,625,228) (3,909,569) Interest paid (2,766) (618) Dividends and distributions received 435, ,004 Interest received 65,386 65,098 Trusts and grants 216, ,279 Bequests 1,441,224 1,287,807 Net cash provided from operating activities (237,197) 356,617 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of plant and equipment 7,099 24,248 Proceeds from sale of financial assets 5,381,349 1,440,942 Purchase of property, plant and equipment (109,790) (142,450) Purchase of financial assets (5,004,117) (2,359,873) Loans to families - payments made (4,280) (2,631) Loans to families - proceeds from repayments 4,323 12,019 Net cash used by investing activities 274,584 (1,027,745) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from borrowings 30,893 56,204 Repayment of borrowings (19,606) (5,172) Net cash provided by financing activities 11,287 51,032 Net increase in cash and cash equivalents held 48,674 (620,096) Cash and cash equivalents at beginning of the year 523,606 1,143,702 Cash and cash equivalents at end of the year 5 572, ,606 The accompanying notes form part of these financial statements. 9

12 Notes to the Financial Statements The financial report covers The Legacy Club of Brisbane Limited as an individual entity. The Legacy Club of Brisbane Limited is a not-for-for profit Company limited by guarantee, incorporated and domiciled in Australia. The principal activities of the Company for the year ended 31 December were the provision of services to Australian families suffering financially and socially after the incapacitation or death of a spouse or parent, during or after their defence force service. The functional and presentation currency of The Legacy Club of Brisbane Limited is Australian dollars. The financial report was authorised for issue by the Directors on 20 February Comparatives are consistent with prior years, unless otherwise stated. 1 Basis of Preparation The financial statements are general purpose financial statements that have been prepared in accordance with the Australian Accounting Standards and the Australian Charities and Not-for-profits Commission Act The financial statements have been prepared on an accruals basis except for cash flow information and are based on historical costs modified, where applicable, by the measurement at fair value of selected non-current assets and financial assets. Significant accounting policies adopted in the preparation of these financial statements are presented below and are consistent with prior reporting periods unless otherwise stated. 2 Summary of Significant Accounting Policies (a) Income Tax 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 and impairment losses. Where the cost model is used, the asset is carried at its cost less any accumulated depreciation and any impairment losses. Costs include purchase price, other directly attributable costs and the initial estimate of the costs of dismantling and restoring the asset, where applicable. 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. Land and buildings Land and buildings are measured using the revaluation model. Plant and equipment Plant and equipment, which includes motor vehicles and office furniture and fittings, are measured using the cost model. 10

13 Notes to the Financial Statements 2 Summary of Significant Accounting Policies (b) Property, Plant and Equipment Depreciation Property, plant and equipment, excluding freehold land, is depreciated on either a straight-line or diminishing value basis over the assets useful life to the Fund, commencing when the asset is ready for use. Leased assets and leasehold improvements are amortised over the shorter of either the unexpired period of the lease or their estimated useful life. The depreciation rates used for each class of depreciable asset are shown below: Fixed asset class Depreciation rate Freehold Land Buildings 2% - 2.5% Office furniture and equipment 5% - 20% Motor Vehicles 22.5% Nil 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. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. The gain or loss on disposal of all fixed assets is determined as the difference between the carrying amount of the asset at the time of disposal and the proceeds of disposal, and is included in profit and loss in the year of disposal. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. Items of property, plant and equipment acquired for nil or nominal consideration have been recorded at the acquisition date fair value. (c) Inventories Inventories are measured at the lower of cost or net realisable value. Inventories acquired at no cost or for nominal consideration are valued at the current replacement cost as at the date of acquisition. (d) Cash and cash equivalents Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value. 11

14 Notes to the Financial Statements 2 Summary of Significant Accounting Policies (e) Financial instruments Financial instruments are recognised initially using trade date accounting, i.e. on the date that the Company becomes party to the contractual provisions of the instrument. On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for instruments measured at 'fair value through profit or loss' where transaction costs are expensed as incurred). Financial Assets Financial assets are divided into the following categories which are described in detail below: loans and receivables; available-for-sale financial assets; and held-to-maturity investments. Financial assets are assigned to the different categories on initial recognition, depending on the characteristics of the instrument and its purpose. A financial instrument s category is relevant to the way it is measured and whether any resulting income and expenses are recognised in the surplus or deficit or in other comprehensive income. All income and expenses relating to financial assets are recognised in the statement of comprehensive income. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers but also incorporate other types of contractual monetary assets. After initial recognition these are measured at amortised cost using the effective interest method, less provision for impairment. Any change in their value is recognised in the surplus or deficit. The Company s family loans, trade and most other receivables fall into this category of financial instruments. Discounting is omitted where the effect of discounting is considered immaterial. Significant receivables are considered for impairment on an individual asset basis when they are past due at the reporting date or when objective evidence is received that a specific counterparty will default. The amount of the impairment is the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable. For trade receivables, impairment provisions are recorded in a separate allowance account with the loss being recognised in the surplus or deficit. When confirmation has been received that the amount is not collectable, the gross carrying value of the asset is written off against the associated impairment provision. Subsequent recoveries of amounts previously written off are credited against other expenses in the surplus or deficit. In some circumstances, the Company renegotiates repayment terms with customers which may lead to changes in the timing of the payments, the Company does not necessarily consider the balance to be impaired, however assessment is made on a case-by-case basis. 12

15 Notes to the Financial Statements 2 Summary of Significant Accounting Policies Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity. Investments are classified as held-to-maturity if it is the intention of the Company's management to hold them until maturity. Held-to-maturity investments are subsequently measured at amortised cost using the effective interest method, with revenue recognised on an effective yield basis. In addition, if there is objective evidence that the investment has been impaired, the financial asset is measured at the present value of estimated cash flows. Any changes to the carrying amount of the investment are recognised in the surplus or deficit. Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that do not qualify for inclusion in any of the other categories of financial assets. The Company's available-for-sale financial assets include listed securities. Purchases and sales of available-for-sale investments are recognised on settlement date. All of the Company's available-for-sale financial assets are measured at fair value, with subsequent changes in value recognised in other comprehensive income. Gains and losses arising from financial instruments classified as available-for-sale are only recognised in the surplus or deficit when they are sold or when the investment is impaired. In the case of impairment or sale, any gain or loss previously recognised in equity is transferred to the surplus or deficit. Losses recognised in prior periods' statement of comprehensive income resulting from the impairment of debt securities are reversed through thestatement of comprehensive income, if the subsequent increase can be objectively related to an event occurring after the impairment loss was recognised in the surplus or deficit. Financial liabilities Financial liabilities are recognised when the Company becomes a party to the contractual agreements of the instrument. All interest-related charges and, if applicable, changes in an instrument's fair value that are reported in the surplus or deficit are included in the statement of comprehensive income. Financial liabilities are classified as either financial liabilities at fair value through profit or loss or 'other financial liabilities' depending on the purpose for which the liability was acquired. The Company s financial liabilities include trade and other payables which are measured at amortised cost using the effective interest rate method. Impairment of Financial Assets At the end of the reporting period the Company assesses whether there is any objective evidence that a financial asset or group of financial assets is impaired. 13

16 Notes to the Financial Statements 2 Summary of Significant Accounting Policies Impairment of Financial Assets Financial assets at amortised cost If there is objective evidence that an impairment loss on financial assets carried at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset s carrying amount and the present value of the estimated future cash flows discounted at the financial assets original effective interest rate. Impairment on loans and receivables is reduced through the use of an allowance accounts, all other impairment losses on financial assets at amortised cost are taken directly to the asset. Available-for-sale financial assets A significant or prolonged decline in value of an available-for-sale asset below its cost is objective evidence of impairment, in this case, the cumulative loss that has been recognised in other comprehensive income is reclassified from equity to the surplus or deficit as a reclassification adjustment. Any subsequent increase in the value of the asset is taken directly to other comprehensive income. (f) Employee benefits Provision is made for the Company'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 settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits expected to be settled more than twelve months after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Cashflows are discounted using market yields on high quality corporate bonds with terms to maturity that match the expected timing of cashflows. Changes in the measurement of the liability are recognised in the surplus or deficit. Employee benefits are presented as current liabilities in the statement of financial position if the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date regardless of the classification of the liability for measurement purposes under AASB 119. (g) Leases Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses in the period in which they are incurred. (h) 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 Office (ATO). Receivables and payables are stated inclusive of GST. 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. 14

17 Notes to the Financial Statements 2 Summary of Significant Accounting Policies (h) Goods and Services Tax (GST) Cash flows in the statement of cash flows are included 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 taxation authority is classified as operating cash flows. (i) Revenue and other income 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. All 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. Donations and bequests Donations and bequests are recognised as revenue when received. Interest revenue Interest is recognised using the effective interest method. Dividend revenue Dividends are recognised when the Company s right to receive payment is established. 3 Other revenue On 30 June, Rockhampton and C Q Legacy Fund Inc. ('RCQ') transferred its operations to Brisbane Legacy to ensure services continued to be provided to the communities of Rockhampton and Central Queensland. In May, the Company entered into a Deed of Gift with RCQ with an effective date of 30 June.As part of the deed, RCQ transferred its net assets to Brisbane Legacy on that date. A contribution of 291,449 was received and represents the net fair value of the assets gifted to and liabilities assumed by Brisbane Legacy. The assets contributed comprised mostly of property, plant and equipment of 290,092 (see Note 9(a)). The net contribution of 291,449 has been recognised in 'other revenue' in the statement of comprehensive income. 15

18 Notes to the Financial Statements 4 Expenses The deficit/surplus for the year includes the following specific expenses. Depreciation and Amortisation Depreciation - buildings 42,471 36,682 Depreciation - motor vehicles 23,603 10,624 Depreciation - office equipment 37,825 26,926 Total Depreciation and Amortisation 103,899 74,232 Interest expense on financial liabilities 2, Employee benefits expense 2,011,471 1,847,158 5 Cash and cash equivalents Cash at bank and on hand 211, ,617 Cash on deposit - strategic reserve fund 360, ,528 - working capital fund - 114, , ,606 6 Trade and other receivables Note CURRENT GST receivable 34,329 29,946 Family loans (a) 1,734 1,777 Accrued income 162, ,676 Other receivables 43,283 26, , ,512 NON-CURRENT Family loans (a) 30,789 30,789 30,789 30,789 (a) Movements in carrying amount of family loans Balance at the beginning of the year 32,566 41,954 Loans advanced 4,280 2,631 Loans repayment received (4,323) (12,019) Balance at the end of the year 32,523 32,566 16

19 Notes to the Financial Statements 7 Other assets CURRENT Prepayments 104,802 73, ,802 73,648 8 Other financial assets Note Available for sale financial assets (a) 9,416,874 8,207,771 Held-to-maturity financial assets (b) 370,408 1,241,826 9,787,282 9,449,597 (a) Available-for-sale financial assets Available-for-sale financial assets include the following: Listed investments, at fair value - Working capital portfolio - 535,110 - Strategic portfolio 9,416,874 7,672,661 9,416,874 8,207,771 (i) Amounts recognised in surplus or deficit and other comprehensive income During the year, the following gains/(losses) were recognised in surplus or deficit and other comprehensive income. Surplus or deficit - Impairment expense - (520,462) - (520,462) Other comprehensive income - Gains/(losses) recognised in other comprehensive income 588,755 (327,940) - (Gains)/losses reclassified to surplus or deficit from other comprehensive income (328,161) 424, ,594 96,371 17

20 Notes to the Financial Statements 8 Other financial assets (ii) Significant judgements - impairment A financial asset is considered to be impaired if there has been a significant or prolonged decline in the fair value below its cost. See Note 2(e) for further details about the Company's impairment policy for financial assets. To determine if an available-for-sale financial asset is impaired, the Company evaluates the duration and extent to which the fair value of the asset is less than its cost, and the financial health of and short-term business outlook for the investee (including factors such as industry and sector performance, changes in technology and operational and financing cash flows). In the prior financial year, the Company concluded three of its available-for-sale financial assets were both significant and prolonged. Accordingly the net cumulative loss of 520,462 that had been recognised in other comprehensive income was reclassified from equity to surplus or deficit as a reclassification adjustment. The Company did not recognise any impairments in the financial year. (b) Held-to-maturity investments Held-to-maturity investments include the following: Term deposits 328,910 1,200,328 2/2 Australian Anti-Tank Regiment Bursary 21,498 21,498 Limbless Soldiers of Queensland Association Bursary 20,000 20, ,408 1,241,826 9 Property, plant and equipment Land & Buildings At fair value (b) 6,317,976 6,019,152 Accumulated depreciation (79,153) (36,682) 6,238,823 5,982,470 Office furniture & equipment At cost 337, ,080 Accumulated depreciation (226,310) (218,678) 111, ,402 Motor vehicles At cost 140, ,431 Accumulated depreciation (38,972) (34,091) 101,052 76,340 6,451,003 6,162,212 18

21 Notes to the Financial Statements 9 Property, plant and equipment (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: Office Legacy House furniture and equipment Motor Vehicles Total Year ended 31 December Balance at the beginning of year 5,982, ,402 76,340 6,162,212 Additions - at cost 20,294 46,542 42, ,790 Donated assets from Rockhampton and CQ Legacy Fund Inc 278, , ,092 Disposals - written down value - (1,712) (5,480) (7,192) Depreciation (42,471) (37,825) (23,603) (103,899) Balance at the end of the year 6,238, , ,052 6,451,003 (b) Land The carrying value of land and buildings includes freehold land with a carrying value of 4,543,645 (: 4,543,645). Land is not depreciated. (c) Significant estimates - asset revaluations An independent valuation of property (land and buildings) carried at fair value was obtained as at 31 December At the end of each reporting period, the Directors update their assessment of the fair value of the property, taking into account the most recent independent valuations. The Directors determine the property's value within a range of reasonable fair value estimates. The Company obtains independent valuations for its freehold land and building at least every three years. The valuation is an estimation which would only be realised if the property is sold. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available the Directors consider information from a variety of sources including: current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences discounted cash flow projections based on reliable estimates of future cash flows capitalised income projections based upon a property's estimated net market income, and a capitalisation rate derived from an analysis of market evidence. The 2014 revaluation of Legacy House, 41 Merivale Street, South Brisbane, was made by the Directors as at 31 December 2014 based on an independent assessment undertaken by Taylor Byrne of 6,000,000. The increase in fair value of the property was attributed to a reassessment of highest and best use of the property. 19

22 Notes to the Financial Statements 10 Trade and other payables CURRENT Unsecured liabilities Trade payables 109,787 52,740 Other payables 54,371 56, , , Borrowings CURRENT Secured liabilities: Bank loans 26,467 18,277 NON-CURRENT Secured liabilities: 26,467 18,277 Bank loans 35,852 32,755 35,852 32,755 (a) Bank loan facility The bank loan facility is an asset finance facility with a limit of 200,000 (: 200,000). The facility has been used to finance the acquisition of motor vehicles and is secured by the goods financed. 12 Employee Benefits CURRENT Long service leave 61,290 77,709 Annual leave 130, ,756 Accrued wages and other employee benefits 63,813 49,326 NON-CURRENT 255, ,791 Long service leave 29,210 17,193 29,210 17,193 20

23 Notes to the Financial Statements 13 Reserves and retained surplus (a) Asset revaluation reserve The asset revaluation reserve records the cumulative unrealised gains on the revaluation of property, plant and equipment recorded at fair value. (b) Capital profits reserve The capital profits reserve records the cumulative capital gain on the sale of property. (c) Financial asset reserve Change in the fair value of available for sale investments are recognised in other comprehensive income - financial asset reserve. Amounts are reclassified to the surplus or deficit on disposal of the investment or when an impairment arises. 14 Key management personnel remuneration The totals of remuneration paid to the key management personnel of The Legacy Club of Brisbane Limited during the year was 177,153 (: 160,108). The Directors of The Legacy Club of Brisbane Limited do not receive any remuneration for their services in their capacity as Directors. 15 Contingencies In the opinion of the Directors, the Company did not have any contingencies at 31 December (31 December :None). 16 Events occurring after the reporting date 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. 21

24 Directors' Declaration The responsible persons declare that in the responsible persons' opinion: there are reasonable grounds to believe that the registered entity is able to pay all of its debts, as and when they become due and payable; and the financial statements and notes satisfy the requirements of the Australian Charities and Not-for-profits Commission Act Signed in accordance with subsection 60.15(2) of the Australian Charities and Not-for-profit Commission Regulation Chairman Peter Keane Treasurer Gregory Shannon OAM Brisbane, Dated 20 February

25 INDEPENDENT AUDIT REPORT TO THE MEMBERS OF THE LEGACY CLUB OF BRISBANE LIMITED Level Albert Street Brisbane QLD 4000 GPO Box 2876 Brisbane QLD 4000 t: f: brisbane@uhyhn.com.au ABN QLDBN QUALIFIED OPINION We have audited the financial report of The Legacy Club of Brisbane Limited, which comprises the statement of financial position as at 31 December, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors declaration. In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the financial report of The Legacy Club of Brisbane Limited is in accordance with Division 60 of the Australian Charities and Not-For-Profit Commission Act 2012, including: (a) (b) giving a true and fair view of the company s financial position as at 31 December and of its performance for the year ended on that date; and Complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Regulation BASIS FOR QUALIFIED OPINION Donations, appeals and other fundraising events are a significant source of fundraising revenue for The Legacy Club of Brisbane Limited. The Company has determined that it is impracticable to establish control over the collection of cash donations prior to entry into its financial records. Accordingly, as the evidence available to us regarding fundraising revenue from this source was limited, our audit procedures with respect to donations, appeals and other fundraising events had to be restricted to the amounts recorded in the financial records. We therefore are unable to express an opinion whether donations, appeals and other fundraising events of The Legacy Club of Brisbane Limited recorded are complete. 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 Company in accordance with the auditor independence requirements of the Australian Charities and Not-for-profits Commission Act 2012 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 qualified opinion. RESPONSIBILITIES OF THE DIRECTORS FOR THE FINANCIAL REPORT The directors of the Company 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 Australian Charities and Not-for-profits Commission Act 2012 and for such internal control as the directors 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 directors are responsible for assessing the Company 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 Company or to cease operations, or have no realistic alternative but to do so. 23 Liability limited by a scheme approved under Professional Standards Legislation. UHY Haines Norton is an association of independent firms in Australia and New Zealand and a member of UHY, an international association of independent accounting and consulting firms. Not your average bean counters

26 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. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company s ability to continue as a going concern. If we conclude that a material uncertain ty exists, we are required to draw attention in our auditor s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor s report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. UHY HAINES NORTON CHARTERED ACCOUNTANTS DARREN LAARHOVEN Partner Brisbane, 1 March Liability limited by a scheme approved under Professional Standards Legislation. UHY Haines Norton is an association of independent firms in Australia and New Zealand and a member of UHY, an international association of independent accounting and consulting firms. Not your average bean counters

27 Jack Bean Memorial Charitable Trust Statement of Comprehensive Income Revenue from ordinary activities Interest 2,572 2,947 Net surplus for the year 2,572 2,947 Statement of Financial Position As At 31 December ASSETS CURRENT ASSETS Cash and cash equivalents 35,935 33,362 Fixed term deposit 90,000 90,000 Accrued interest 1,145 1,145 TOTAL CURRENT ASSETS TOTAL ASSETS 127, , , ,507 EQUITY Initial capital 100, ,000 Accumulated surplus 27,080 24,507 TOTAL EQUITY 127, ,507 The accompanying notes form part of these financial statements. 25

28 Jack Bean Memorial Charitable Trust Notes to the Financial Statements This financial report is a special purpose financial report which has been prepared for the sole purpose of reporting to the members of The Legacy Club of Brisbane Limited. The Trust is a not -for-profit entity for the purpose of preparing these financial statements. The functional and presentation currency of the Jack Bean Memorial Charitable Trust is Australian dollars. 1 Summary of Significant Accounting Policies (a) Basis of Preparation In the opinion of the Board of Directors of the Trustee, the trust is not a reporting entity and therefore, the complete disclosure requirements of all Australian accounting standards and other professional reporting requirements have not been applied in the preparation and presentation of this financial report. All measurement components of relevant Australian accounting standards have been applied. The significant accounting policies used in the preparation and presentation of these financial statements are provided below and are consistent with prior reporting periods unless otherwise stated. The financial statements are based on historical costs. (b) Income Tax The trust is exempt from income tax under Division 50 of the Income Tax Assessment Act (c) Revenue and other income 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. All revenue is stated net of the amount of goods and services tax (GST). Dividend revenue Dividends are recognised when the entity s right to receive payment is established. Interest revenue Interest is recognised using the effective interest method. (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 Office (ATO). Receivables and payables are stated inclusive of GST. 26

29 Jack Bean Memorial Charitable Trust Trustees Declaration In the opinion of the Directors of the Trustee, the financial report: 1. Presents fairly the financial position of the Jack Bean Memorial Charitable Trust as at 31 December and its performance for the year ended on that date in accordance with the accounting policies outlined in Note 1 to the financial statements. 2. At the date of this statement, there are reasonable grounds to believe that the Jack Bean Memorial Charitable Trust will be able to pay its debts as and when they fall due. This statement is made in accordance with a resolution of the Directors of the Trustee and is signed for and on behalf of the Directors of the Trustee by: Peter Keane President Gregory Shannon OAM Honorary Treasurer Brisbane, 20 February

30 INDEPENDENT AUDIT REPORT TO THE TRUSTEE OF THE JACK BEAN MEMORIAL CHARITABLE TRUST Level Albert Street Brisbane QLD 4000 GPO Box 2876 Brisbane QLD 4000 t: f: brisbane@uhyhn.com.au ABN QLDBN OPINION We have audited the financial report of The Jack Bean Memorial Charitable Trust, which comprises the statement of financial position as at 31 December and the statement of comprehensive income for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the trustees declaration. In our opinion, the accompanying financial report presents fairly, in all material respects, the financial position of the Trust as at 31 December, and its financial performance for the year then ended in accordance with the accounting policies disclosed in Note 1. 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 Trust in accordance with 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 qualified opinion. RESPONSIBILITIES OF THE TRUSTEES FOR THE FINANCIAL REPORT The trustees of the Trust are responsible for the preparation and fair presentation of the financial report in accordance with relevant Australian Accounting Standards and the accounting policies disclosed in Note 1, and for such internal control as management determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In preparing the financial report, management is responsible for assessing the Trust 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 management either intends to liquidate the Trust or to cease operations, or has no realistic alternative but to do so. The trustees are responsible for overseeing the Trust s financial reporting process. 28 Liability limited by a scheme approved under Professional Standards Legislation. UHY Haines Norton is an association of independent firms in Australia and New Zealand and a member of UHY, an international association of independent accounting and consulting firms. Not your average bean counters