SPECIFIC LEARNING DIFFICULTIES OF VICTORIA INCORPORATED

Transcription

1 SPECIFIC LEARNING DIFFICULTIES OF VICTORIA INCORPORATED Financial Report For The Year Ended 30 June

2 SPECIFIC LEARNING DIFFICULTIES OF VICTORIA INCORPORATED Financial Report For The Year Ended 30 June CONTENTS Board of Governance Report Statement of Profit or Loss and Other Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements True and Fair Certification by Members of the Board of Governance Independent Auditor's Report Page

3

4 STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 JUNE Note Revenue 2 774, ,398 Employee benefits expense 3 (221,528) (278,969) Depreciation and amortisation expense (5,012) (4,842) Other operating expenses 3 (692,938) (718,567) Profit / (loss) for the year (144,514) (163,980) The accompanying notes form part of these financial statements. 2

5 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE Note ASSETS CURRENT ASSETS Cash on hand 5 1,070, ,901 Accounts receivable and other debtors 6 6,450 8,133 Inventories on hand 7-3,445 Other current assets 8-1,219 TOTAL CURRENT ASSETS 1,077, ,698 NON-CURRENT ASSETS Property, plant and equipment 9 14,193 1,125,862 TOTAL NON-CURRENT ASSETS 14,193 1,125,862 TOTAL ASSETS 1,091,197 1,274,560 LIABILITIES CURRENT LIABILITIES Accounts payable and other payables 10 38,074 62,380 Employee provisions ,593 TOTAL CURRENT LIABILITIES 38,125 76,973 TOTAL LIABILITIES 38,125 76,973 NET ASSETS 1,053,072 1,197,587 EQUITY Reserves - 853,159 Retained surplus 1,053, ,428 TOTAL EQUITY 1,053,072 1,197,587 The accompanying notes form part of these financial statements. 3

6 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE Asset Retained Surplus Revaluation Reserve Total Balance at 1 July , ,159 1,361,566 Net surplus/(loss) for the year (163,980) (163,980) Balance at 30 June 344, ,159 1,197,586 Net surplus/(loss) for the year (144,514) - (144,514) Asset revaluation reserve transferred to retained surplus 853,159 (853,159) - Balance at 30 June 1,053,072-1,053,072 The accompanying notes form part of these financial statements. 4

7 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts from assessment fees and other services and products 634, ,308 Grant receipts from government 132,000 80,000 Contributions (members) received 3,785 5,226 Donations received 4,193 18,566 Interest received 10,185 4,111 Payments to suppliers and employees (1,011,324) (960,091) Net cash provided by / (used in) operating activities 15 (226,519) (204,880) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment 1,164,172 - Purchase of property, plant and equipment (3,000) (21,051) Net cash provided by / (used in) investing activities 1,161,172 (21,051) CASH FLOWS FROM FINANCING ACTIVITIES Payment of borrowings - - Proceeds from borrowings - - Net cash provided by/(used in) financing activities - - Net increase/(decrease) in cash held 934,653 (225,931) Cash on hand at beginning of financial year 135, ,832 Cash on hand at end of financial year 5 1,070, ,901 The accompanying notes form part of these financial statements. 5

8 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE The financial statements cover Specific Learning Difficulties of Victoria Incorporated as an individual entity. Specific Learning Difficulties of Victoria Incorporated is an association incorporated in Victoria and operating pursuant to the Associations Incorporation Reform Act The financial statements were authorised for issue on 14 September by the members of the Board of Governance. Note 1 Summary of Significant Accounting Policies Basis of Preparation These special purpose financial statements have been prepared in accordance with the Associations Incorporation Reform Act 2012 and Australian Accounting Standards and Interpretations of the Australian Accounting Standards Board. The association is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise. The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets. The amounts presented in the financial statements have been rounded to the nearest dollar. Accounting Policies (a) (b) (c) Income Tax The association is endorsed as an income tax exempt charity. Therefore there is is no liability to pay income tax on any profits of the association. Inventories on hand Inventories held for sale consist of books and learning aids in stock and are measured at the lower of cost and net realisable value. Property, Plant and Equipment Property Property holding was carried at market value and reviewed regularly to ensure that the carrying value was reflective of the current market value. Any increments arising were taken to the revaluation reserve. Plant and equipment Plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. Depreciation The depreciable amount of all fixed assets is depreciated on a diminishing value basis over the asset's useful life commencing from the time the asset is available for use. The depreciation rates used for depreciable assets are: Depreciation Rate Office furniture and fittings 15% Office equipment and computers 20-50% 6

9 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE The assets residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing net proceeds with the carrying amount. These gains and losses are recognised in profit or loss when the item is derecognised. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained surplus. (d) Employee Provisions Short-term employee benefits Provision is made for the Association s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service, including wages, salaries and annual leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled. (e) Cash on Hand Cash on hand includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. (f) Accounts Receivable and Other Debtors Accounts receivable and other debtors include amounts due from members as well as amounts receivable from customers for goods sold in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets. (g) Revenue and Other Income Non-reciprocal grant revenue is recognised in profit or loss when the association obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the association and the amount of the grant can be measured reliably. If conditions are attached to the grant which must be satisfied before the entity is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied. When grant revenue is received whereby the association incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt. Membership fees and donations are recognised as revenue when received. Interest revenue is recognised using the effective interest method, which for floating rate financial assets is the rate inherent in the instrument. Revenue from rendering of services (such as assessments, seminars, work shops and Learning Centre fees) is recognised upon the delivery of the service to the customers. All revenue is stated net of the amount of goods and services tax. 7

10 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE (h) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers. (i) Comparative Figures Where appropriate, comparative information has been restated to assist with user understanding. (j) Accounts Payable and Other Payables Accounts payable and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the association during the reporting period that remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 12 months of recognition of the liability. (k) Provisions Provisions are recognised when the association has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period. Note 2 Revenue and Other Income Operating activites Fees and charges 570, ,141 government and other grants 120, ,000 donations received 4,193 18,566 membership subscriptions 3,785 5,226 sale of goods - publications 8,842 10, , ,599 Non-operating activities interest income 10,185 4,111 gain on sale of property 57,002 - other income - 13,688 67,187 17,799 Total revenue 774, ,398 8

11 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 3 Expenses a. Employee benefit expense wages and salaries 202, ,134 superannuation 19,081 23, , ,969 b. Significant other operating expenses The following significant expense items are relevant in explaining the financial performance: Client support - professional services and consumables Rent and outgoings Recruitment expenses IT expenses Write off of fixed assets 477, ,351 69,876 6,184 21,870 4,700 20,169 21,724-14,837 Note 4 Auditor's Fees Remuneration of the auditor of the association for: auditing or reviewing the financial report 2,200 2,200 2,200 2,200 Note 5 Cash on Hand Cash at bank - unrestricted 1,070, ,901 1,070, ,901 Note 6 Accounts Receivable and Other Debtors CURRENT Trade debtors Total current accounts receivable and other debtors 6,450 8,133 6,450 8,133 No impairment of accounts receivable and other debtors was required at 30 June (: none). Credit risk The association has no significant concentration of credit risk with respect to any single counterparty or group of counterparties. The main source of credit risk to the association is considered to relate to the class of assets described as Trade debtors. 9

12 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 7 Inventories on Hand CURRENT Publications held for distribution (at cost) - 3,445-3,445 Note 8 Other Current Assets CURRENT Prepayments - 1,219-1,219 Note 9 Property, Plant and Equipment Office equipment: At cost Accumulated depreciation Freehold land and improvements At fair value Total property, plant and equipment 20,683 43,249 (6,490) (17,387) 14,193 25,862-1,100,000-1,100,000 14,193 1,125,862 Movements in carrying amounts Movement in carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Balance at 1 July 2014 Additions Disposals at net book value Depreciation expense Carrying amount at 30 June Additions Disposals at net book value Depreciation expense Carrying amount at 30 June Freehold land Office Equipment Plant and Equipment Leased Plant and Equipment Total 1,100,000 24, ,124,490-21, ,051 - (14,837) - - (14,837) - (4,842) - - (4,842) 1,100,000 25, ,125,862-3, ,000 (1,100,000) (9,657) - - (1,109,657) - (5,012) - - (5,012) - 14, ,193 10

13 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 10 Accounts Payable and Other Payables CURRENT Accounts payable Revenue received in advance Credit cards GST payable / (refundable) PAYG payable Wages payable Superannuation payable 27,719 41,361 4, ,131 (2,689) (3,376) 3,476 10,852-5,452 3,955 5,960 38,074 62,380 Note 11 Employee Provisions CURRENT Employee provisions - Annual leave entitlements NON-CURRENT Employee provisions - Long service leave Total provisions 51 14, , ,593 Employee Provisions - Annual Leave Entitlements The provision for employee benefits represents amounts accrued for annual leave. Based on past experience, the association does not expect the full amount of annual leave to be settled wholly within the next 12 months. However, the amount must be classified as a current liability because the association does not have an unconditional right to defer the settlement of the amount in the event employees wish to use their leave entitlements. Note 12 Contingent Liabilities and Contingent Assets There are no contingent liabilities or contingent assets known to the association. Note 13 Events after the Reporting Period The Board is not aware of any significant events since the end of the reporting period. Note 14 Related Party Transactions There have been no transactions with related parties during the reporting year. 11

14 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Note 15 Cash Flow Information Reconciliation of cash flows from operating activities with net current year surplus Net current year surplus / (deficit) (144,514) (163,980) Cash flows excluded from current year surplus/(deficit) Non-cash flows in current year surplus: Depreciation expense 5,012 4,842 Net (gain)/loss on disposal of property, plant and equipment (57,002) 14,837 Changes in assets and liabilities (Increase)/decrease in accounts receivable and other debtors 1,683 14,377 (Increase)/decrease in prepayments 1,219 (1,218) (Increase)/decrease in inventories on hand 3,445 11,106 Increase/(decrease) in accounts payable and other payables (21,820) (92,320) Increase/(decrease) in current tax liabilities - Increase/(decrease) in employee provisions (14,542) 7,476 (226,519) (204,880) Note 16 Economic Dependence Whilst the association s activities are largely funded by fees and charges, the association is assisted in its activities by operating grants provided by the state government. At the date of this report, the members of the Board of Governance had no reason to believe that the state government would not continue to provide financial support to Specific Learning Difficulties of Victoria Incorporated. Note 17 Association Details The principal place of business of the Association is: Specific Learning Difficulties of Victoria Incorporated 60 High Street Preston Vic

15

16

17