The Australian Orthotic Prosthetic Association Limited

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2 Contents For the Year Ended 30 June 2017 Financial Statements Directors' Report 1 Auditors Independence Declaration 3 Statement of Profit or Loss and Other Comprehensive Income 4 Statement of Financial Position 5 Statement of Changes in Equity 6 Statement of Cash Flows 7 Notes to the Financial Statements 8 Directors' Declaration 15 Review Report 16 Page

3 The Australian Orthotic Prosthetic Association Limited ABN: Directors' Report For the Year Ended 30 June 2017 The directors present their report on The Australian Orthotic Prosthetic Association Limited for the financial year ended 30 June General information Information on directors The names of each person who has been a director during the year and to the date of this report are: Harvey Blackney Paul Sprague Hannah Furlong Bruce Poole Michael Storey Monique Van Den Boon Ngaire Elwood Melanie Dooley Appointed 17 August 2016 Patricia Malowney Brendan Cahill Appointed 7 October 2016 Katherine Hudson Resigned 7 October 2016 Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Principal activities The principal activity of The Australian Orthotic Prosthetic Association Limited during the financial year were the provision of member services and representation activities in line with the objects of the company. No significant changes in the nature of the Company's activity occurred during the financial year. Review of Operations A review of the operations of the company during the financial year and the results of those operations are as follows: The Australian Orthotic Prosthetic Association provided leadership and unified representation of the orthotics and prosthetics profession. The company's governance development enhanced and streamlined operational activities. The company continued to deliver member services and enhancing the profile and reputation of the profession during this period of change. The activities of 2016/17 were in line with the company's strategic plan and demonstrate a commitment to positioning itself as the primary voice for orthotics and prosthetics in Australia, contributing to development of the profession and access to the services of members and the enhancement of the member experience. Members' guarantee The Australian Orthotic Prosthetic Association Limited is a company limited by guarantee. In the event of, and for the purpose of winding up of the company, the amount capable of being called up from each member is limited to 10 each towards meeting any outstanding obligations of the company. 1

5 The Australian Orthotic Prosthetic Association Limited Auditors Independence Declaration To the Directors of The Australian Orthotic Prosthetic Association Limited In accordance with the requirements of section 307C of the Corporations act 2001, I declare that, to the best of my knowledge and belief, during the year ended 30 June 2017, there have been: (i) (ii) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and no contraventions of any applicable code of professional conduct in relation to the review. Saward Dawson Jeffrey Tulk Partner Blackburn Dated 3 3

6 Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 30 June Note Revenue 3 570, ,396 Employee benefits expense (301,874) (288,579) Depreciation expense (5,654) (5,441) Congress expenses (154,623) (147,950) Promoting the profession (9,679) (14,576) Processing expenses (1,844) (4,354) Professional development (34,657) (830) Meetings expense (14,704) (13,297) Printing and stationery (18,784) (17,621) Office expenses (52,561) (47,924) Bank charges (253) (200) Loss before income tax (24,304) (55,376) Income tax expense 16,508 (2,330) Loss for the year (7,796) (57,706) Other comprehensive income, net of income tax Items that will not be reclassified subsequently to profit or loss - - Total comprehensive loss for the year (7,796) (57,706) The accompanying notes form part of these financial statements. 4

7 Statement of Financial Position As at 30 June 2017 ASSETS CURRENT ASSETS Cash and cash equivalents 4 229, ,341 Trade and other receivables 5 69,028 28,287 Financial assets 6 105,532 - Other assets 7 104,828 - TOTAL CURRENT ASSETS 509, ,628 NON-CURRENT ASSETS Property, plant and equipment 8 3,198 8,852 Deferred tax assets 16,508 - TOTAL NON-CURRENT ASSETS 19,706 8,852 TOTAL ASSETS 529, ,480 LIABILITIES CURRENT LIABILITIES Trade and other payables 9 130,077 47,024 Current tax liabilities - 2,330 Employee benefits 10 12,835 14,986 Other liabilities , ,730 TOTAL CURRENT LIABILITIES 445, ,070 NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS Note , ,070 83,614 91,410 EQUITY Retained earnings 83,614 91,410 TOTAL EQUITY 83,614 91,410 The accompanying notes form part of these financial statements. 5

8 Statement of Changes in Equity For the Year Ended 30 June Retained Earnings Total Balance at 1 July ,410 91,410 Loss for the year (7,796) (7,796) Balance at 30 June ,614 83, Retained Earnings Total Balance at 1 July , ,116 Loss for the year (57,706) (57,706) Balance at 30 June ,410 91,410 The accompanying notes form part of these financial statements. 6

9 Statement of Cash Flows For the Year Ended 30 June 2017 Note CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from members and customers 711, ,403 Payments to suppliers and employees (673,623) (535,312) Interest income 3,354 4,073 Interest expense (253) - Income tax paid (2,330) - Net cash provided by/(used in) operating activities 14 39,122 (51,836) CASH FLOWS FROM INVESTING ACTIVITIES: Payment for intangible assets - (360) Purchase of property, plant and equipment - (3,341) Placement of term deposits (105,532) - Net cash used by investing activities (105,532) (3,701) Net increase/(decrease) in cash and cash equivalents held (66,410) (55,537) Cash and cash equivalents at beginning of year 296, ,878 Cash and cash equivalents at end of financial year 4 229, ,341 The accompanying notes form part of these financial statements. 7

10 Notes to the Financial Statements For the Year Ended 30 June 2017 The financial report covers The Australian Orthotic Prosthetic Association Limited as an individual entity. The Australian Orthotic Prosthetic Association Limited is a not-for-profit Company limited by guarantee, incorporated and domiciled in Australia. The functional and presentation currency of The Australian Orthotic Prosthetic Association Limited is Australian dollars. Comparatives are consistent with prior years, unless otherwise stated. 1 Basis of Preparation In the Directors opinion, the Company is not a reporting entity since there are unlikely to exist users of the financial statements who are not able to command the preparation of reports tailored so as to satisfy specifically all of their information needs. This special purpose financial report has been prepared to meet the reporting requirements of the Corporations Act The financial statements have been prepared in accordance with the recognition and measurement requirements of the Australian Accounting Standards and Accounting Interpretations, and the disclosure requirements of AASB 101 Presentation of Financial Statements, AASB 107 Statement of Cash Flows, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors and AASB 1054 Australian Additional Disclosures. 2 Summary of Significant Accounting Policies (a) Income Tax The company is a membership based organisation and as such relies on the principle of mutuality to exempt income from members from income tax. Where an organisation satisfies the principle of mutuality its net income from members is not subject to tax. The principle of mutuality is a common law principle arising from the premise that individuals cannot profit from themselves. Where income is generated from transactions with non-members (including interest, sponsorship income, donations and some other income) the principle of mutuality allows the company to claim a "reasonable allocation" of expenses in calculating its taxable income. Expenses need to be separated into the following categories: Non-allowable: expenses relating to mutual income. Wholly allowable: expenses specifically relating to non-mutual income and certain statutory expenses such as superannuation and donations. Partly allowable: expenses that are not specifically related to either mutual or non-mutual income. The partly allowable expenses must be apportioned between mutual and non-mutual income on some reasonable basis. The company has used non-mutual gross income divided by total gross income as an allocation basis. Income tax is then measured at the relevant corporate tax rate. (b) Leases Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the life of the lease term. 8

11 Notes to the Financial Statements For the Year Ended 30 June Summary of Significant Accounting Policies (c) Revenue 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 Company 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. Membership, rental and advertising income is recognised on an accrual basis. Congress income is recognised upon delivery of the event. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. All revenue is stated net of the amount of goods and services tax (GST). (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 payable 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. 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. (e) Property, plant and equipment Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment. Depreciation Property, plant and equipment, excluding freehold land, is depreciated on a reducing balance basis over the assets useful life to the Company, commencing when the asset is ready for use. The depreciation rates used for each class of depreciable asset are shown below: Fixed asset class Depreciation rate Office Equipment % Computer Software 50% 9

12 Notes to the Financial Statements For the Year Ended 30 June Summary of Significant Accounting Policies (e) Property, plant and equipment 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. (f) 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; financial assets at fair value through profit or loss; 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 profit or loss or in other comprehensive income. All income and expenses relating to financial assets are recognised in the statement of profit or loss and other comprehensive income in thefinance incomeorfinance costsline item respectively. 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 profit or loss. 10

13 Notes to the Financial Statements For the Year Ended 30 June Summary of Significant Accounting Policies (g) Cash and cash equivalents Cash and cash equivalents comprises cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less. (h) 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 wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled. 11

14 Notes to the Financial Statements For the Year Ended 30 June Revenue Advertising 45,012 29,029 - Membership fees 159, ,504 - Congress 278, ,252 - Other 76,455 62,889 - Interest income 3,354 4,073 - Rental income 7,145 7, , ,396 4 Cash and Cash Equivalents Cash at bank and in hand 229, , , ,341 5 Trade and Other Receivables CURRENT Trade receivables 69,028 28,287 69,028 28,287 6 Financial Assets CURRENT Term deposit 105, ,532 - Term deposit placed with Westpac Banking Corporation for a term of 12 months at 2.5%. 7 Other Assets CURRENT Prepayments 1,557 - Congress prepaid expenses 103, ,828-12

15 Notes to the Financial Statements For the Year Ended 30 June Property, plant and equipment PLANT AND EQUIPMENT Office equipment At cost 16,228 16,228 Less accumulated depreciation (13,640) (11,232) Total office equipment 2,588 4,996 Computer software At cost 26,150 26,150 Less accumulated depreciation (25,540) (22,294) Total computer software 610 3,856 Total property, plant and equipment 3,198 8,852 9 Trade and Other Payables CURRENT Trade payables 107,689 9,880 GST payable 15,230 29,560 Sundry payables and accrued expenses 7,158 7, ,077 47, Employee Benefits CURRENT Provision for annual leave 12,835 14,986 12,835 14, Other Liabilities CURRENT Congress income in advance 173,361 71,874 Membership fees in advance 129, , , ,730 13

16 Notes to the Financial Statements For the Year Ended 30 June Members' Guarantee The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If the Company is wound up, the constitution states that each member is required to contribute a maximum of 10 each towards meeting any outstandings and obligations of the Company. 13 Contingencies In the opinion of the Directors, the Company did not have any contingent liabilities at 30 June 2017 (30 June 2016:None). 14 Cash Flow Information (a) Reconciliation of result for the year to cashflows from operating activities Reconciliation of net income to net cash provided by operating activities: Loss for the year (7,796) (55,376) Cash flows excluded from profit attributable to operating activities Non-cash flows in profit: - depreciation 5,654 5,441 - increase/(decrease) in income taxes payable (2,330) - - (increase)/decrease in deferred tax asset (16,508) - Changes in assets and liabilities: - (increase)/decrease in trade and other receivables (40,741) (1,920) - (increase)/decrease in other assets (104,828) - - increase/(decrease) in income in advance 124, increase/(decrease) in trade and other payables 83,053 (2,597) - increase/(decrease) in provisions (2,151) 2,616 Cashflows from operations 39,122 (51,836) 15 Company Information The registered office of the company is: The Australian Orthotic Prosthetic Association Limited 5/321 Balwyn Road Balwyn North VIC

The Australian Orthotic Prosthetic Association Limited Review Report to the members of The Australian Orthotic Prosthetic Association Limited Report on the Financial Report We have reviewed the

18 The Australian Orthotic Prosthetic Association Limited Review Report to the members of The Australian Orthotic Prosthetic Association Limited Report on the Financial Report We have reviewed the accompanying financial report being a special purpose financial report of The Australian Orthotic Prosthetic Association Limited, which comprises the statement of financial position as at 30 June 2017, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration. Responsibility for the Financial Report The directors' of the company are responsible for the preparation of the financial report and have determined that the accounting policies described in Note 2to the financial statements, which form part of the financial report, are appropriate to meet the requirements of the Corporations Act 2001, and are appropriate to meet the needs of the members. The directors' responsibility also includes such internal control as the directors' determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express a conclusion on the financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2415 Review of a Financial Report: Company Limited by Guarantee or an Entity Reporting under the ACNC Act or Other Applicable Legislation or Regulation, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the company's financial position as at 30 June 2017 and its performance for the year ended on that date; and complying with the Australian Accounting Standards and Corporations Regulations ASRE 2415 requires that we comply with the ethical requirements relevant to the review of the financial report. A review of a financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Independence In conducting our review, we have complied with the independence requirements of the Corporations Act We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of The Australian Orthotic Prosthetic Association Limited, would be in the same terms if given to the directors as at the time of this review report

19 The Australian Orthotic Prosthetic Association Limited Review Report to the members of The Australian Orthotic Prosthetic Association Limited Conclusion Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the financial report of The Australian Orthotic Prosthetic Association Limited is not in accordance with the Corporations Act 2001 including: a) (b) giving a true and fair view of the company's financial position as at 30 June 2017 and of its performance for the year ended on that date; and complying with Australian Accounting Standards to the extent described in Note 2 to the financial report and the Corporations Regulations Basis of Accounting Without modifying our opinion, we draw attention to Note 1 to the financial statements which describes the basis of accounting. The financial report is prepared to assist The Australian Orthotic Prosthetic Association Limited to comply with the finanical reporting provisions of the Corporations Act As a result, the financial report may not be suitable for another purpose. Saward Dawson Jeffrey Tulk Partner Blackburn Dated 17 17

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