WaterAid Australia Ltd ABN:

Transcription

1 Ltd Financial Statements For the Year Ended 31 March

2 Ltd Contents Financial Statements Directors' Report 1 Auditors Independence Declaration under Section 307C of the Corporations Act Statement of Profit or Loss and Other Comprehensive Income 9 Statement of Financial Position 11 Statement of Changes in Equity 12 Statement of Cash Flows 13 Summary of Significant Accounting Policies 14 Notes to the Financial Statements 18 Directors' Declaration 29 Independent Audit Report 30 Page

3 Ltd Directors' Report For the Year ended 31 March The directors present their report on Ltd for the financial year ended 31 March. 1. General information Directors The names of the directors in office at any time during, or since the end of, the year are: Names Appointed/Resigned Robert Skinner John Ringham Rhonda Chapman Jane Ellis Catherine Ferrari Tom Mollenkopf Ian Payne Peter Quinn Wendy Rose AM Peter Williams John Weate Resigned August 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 Ltd during the financial year was to improve access to safe water, hygiene and sanitation in the world's poorest communities. We work with partners and influence decision makers to maximise our impact. There has been no change in our principal activity during the year. continues to work in many countries across the world to achieve its vision of a world where everyone has access to safe water and sanitation. These include Timor-Leste, Papua New Guinea, Nepal, India, Cambodia, Solomon Islands, Tanzania, Malawi, Mozambique and Ghana. In order to engage in this work WaterAid has continued to be successful in raising funds from the Australian community, DFAT (AusAID) and other donors. WaterAid continues to receive strong support from the Australian water industry through the hard work of volunteer committees, payroll giving and inserts into water bills. WaterAid also receives strong support from WaterAid in the UK. A grant of 800,000 was received from WaterAid in the U.K. in the financial year to support 's operations. 1

4 Ltd Directors' Report For the Year ended 31 March 1. General information continued Short term objectives The Company's short term objectives are to: Continue to build WaterAid s reputation of providing safe water, sanitation and hygiene (WASH) programs and producing high quality evidence based research and policy on WASH issues in order to influence critical decision makers such as government, corporates and other regional stakeholders. Build the WaterAid brand and philanthropic fundraising with the Australian community. Continue to expand our operations in South East Asia and the Pacific region. We currently operate in Cambodia, Timor- Leste and Papua New Guinea and we will establish our presence in Myanmar and the Solomon Islands in the /2015 financial year. Continue to build a strong organisation with robust governance structures and a financially sustainable business model. Long term objectives The Company's long term objective: WaterAid s vision is of a world where everyone has access to safe water and sanitation. Our mission is to transform lives by improving access to safe water, hygiene and sanitation in the world s poorest communities. Strategy for achieving the objectives To achieve these objectives, the Company has adopted the following strategies:, as a member of the WaterAid International Federation, adheres to WaterAid s 5 year global strategy refers to the WaterAid global strategy when it compiles its annual business plan which outlines its annual objectives and strategy for achieving these. Management reports to the Board quarterly on its progress against the business plan. WaterAid works with local partners to help communities access safe water and sanitation and we use our experience and research to influence decision-makers to do more to provide these vital services. We only use practical technologies and make sure the right skills exist in communities so that they can keep working long into the future. 2

5 Ltd Directors' Report For the Year ended 31 March 1. General information continued Key Performance measures The company measures its own performance through the use of both quantitative and qualitative benchmarks. The benchmarks are used by the directors to assess the financial sustainability of the company and whether the company s short-term and long-term objectives are being achieved. Actual % Benchmark % Actual % Benchmark Unrestricted (fundraising) income to total income Restricted income (Government & Other) to total income Fundraising and Communications to total expenditure Administration and Accountability to total expenditure International Programs to total expenditure Australian Support to total expenditure Policy and Campaigns to total expenditure % Information on directors The names of each person who has been a director during the year and to the date of this report are: Robert Skinner Board Chair (Director, Monash Water for Liveability Centre, Melbourne) Qualifications MSc, BE(Civil), FAICD, FIWA, FIEA Experience Rob has extensive experience in organisational leadership, including six years as Managing Director of Melbourne Water (until 2011) and ten years as CEO of Kingston Council (Victoria). He has served on the Boards of a number of key water sector bodies including the CRC for Water Sensitive Cities, the Water Services Association of Australia, Northern Territory Power and Water and Southern Rural Water. Recently Rob chaired the Steering Committee responsible for the development of a drainage and sanitation strategy for the city of Dili in Timor Leste. Special responsibilities Ex officio - Finance, Audit and Risk Management Committee, Program and Advocacy Committee, Governance and Nominations Committee. John Ringham Qualifications Experience Special responsibilities Board Deputy Chair (Chief Executive, SA Water) BSc (Hons) Civil Eng, Post Grad Dip. Geotechnics, MBA, C.Eng, MICE, MCIWEM, FIEAust, MAICD, John joined the South Australian Water Corporation (SA Water) in November His responsibilities include water supply and wastewater treatment services, asset management and capital works delivery to SA Water's 752,000 customers, servicing over 1.5 million people in South Australia. John has 40 years' experience in the water industry and has worked previously with North West Water in the UK. Finance, Audit and Risk Management Committee, Governance and Nominations Committee 3

6 Ltd Directors' Report For the Year ended 31 March 1. General information continued Information on directors continued Rhonda Chapman Qualifications Experience Special responsibilities Consultant Bsc. Grad Dip Leisure & Tourism Rhonda Chapman is a development practitioner working as an independent consultant in international community development and as an NGO reviewer for AusAID. Her work includes monitoring, learning and evaluation, participatory community development; AusAID accreditation; capacity building and development effectiveness. Rhonda has worked with development NGOs for over twenty years in a range of fundraising, administrative, management and program roles, including with the Australian Council for International Development. She has lived and worked as a community development practitioner in Central Africa, Azerbaijan, and Cambodia, and has conducted short term assignments in many countries in Asia, Pacific and African countries. Program and Advocacy Committee (Chair) Jane Ellis Qualifications Experience Special responsibilities Principal, Assertia Pty Ltd BA, LLB, M Public Policy, Solicitor ACT, NSW and Victoria Jane is the Principal of Assertia Pty Ltd, a company that works with business toward strengthening corporate cultures and cultures of compliance. Jane advises corporates, government agencies and regulators on business ethics, anti-corruption and anti-bribery laws, competition laws, and compliance in those and other sectors. Jane has also advised on third party access to infrastructure, the regulation of energy and water utilities, and the reforms in those sectors. Finance, Audit and Risk Management Committee, Governance and Nominations Committee (Chair) Catherine Ferrari Qualifications Experience General Manager, Communications (Water Corporation) BBus, PGradDipBus, MLM, FCPA, GAICD Catherine has been at the Water Corporation since She came to the Corporation from the West Australian Symphony Orchestra where she was Chief Executive Officer and prior to that was Western Australian Director of the Society of Certified Practicing Accountants. Catherine has major experience in the strategic positioning of organisations with key strengths in the engagement of stakeholders and the community. She is Deputy Chairman of the West Australian Opera board, a trustee of the Legal Contribution Trust, a board member of the John Curtin Art Gallery and the State Library of Western Australia Foundation. 4

7 Ltd Directors' Report For the Year ended 31 March 1. General information continued Information on directors continued Tom Mollenkopf Qualifications Experience Special responsibilities Ian Payne Qualifications Experience Peter Quinn Qualifications Experience Special responsibilities Independent Advisor and Company Director B. Juris. LLB, MBA, FCIS, FAICD Tom is an Independent Advisor on Governance, Policy and Strategy. He was the Chief Executive of the Australian Water Association from May 2007 until June. Between 2005 and 2007 Tom was Deputy Executive Director of the International Water Association based in London and from 1995 to 2005 he was an executive at South East Water in Melbourne. Tom's background is in law, both in private practice then as corporate counsel. He is President and Chairman of the Board of Life Saving Victoria and a Director of Surf Life Saving Australia. He serves on numerous International Water Association committees: member of the Governing Assembly; Governance Committee; and Host Committee for the 2016 Brisbane World Water congress. He is a member of the International Council of the American Water Works Association. Finance, Audit and Risk Management Committee (Chair), Remuneration Committee, Governance Working Group. Project Director, Systems Branch, Transport Projects Division, Transport for NSW BE (Civil), MEngSc, MBA Prior to his current role, Ian was appointed General Manager of Infrastructure Delivery, Sydney Water in April Before this appointment, Ian worked in the Infrastructure Delivery Division as Project Director for Sydney's Desalination Plant. Joining Sydney Water in 1975, Ian has worked in a range of roles including planning engineer, construction manager, business development manager and asset management services manager. In 1988, Ian worked in the United Kingdom for an engineering consultant and undertook further study. In 1990 he returned to a position with Australian Water Technologies. Managing Director (Goulburn Valley Water) AAPI (CPV), FIWA, MAICD, MBA Peter joined Goulburn Valley Water in 1996 and was appointed to the role of Managing Director in He has extensive experience in strategic planning, regional infrastructure development, organisational capacity building, risk management and governance. He holds an Executive MBA from the Australian Graduate School of Management, and has undertaken a Churchill Fellowship project on water resource management. Peter is a member of the Australian Property Institute and the Australian Institute of Company Directors, the Institute of Water Administration and Goulburn Ovens Institute of TAFE. Program and Advocacy Committee. 5

8 Ltd Directors' Report For the Year ended 31 March 1. General information continued Information on directors continued Wendy Rose AM International Development Consultant Experience Wendy Rose AM, international development specialist. Wendy has over 25 years experience and is a senior member of the international aid community, representing Australia on various world bodies for many years. She has served as CEO of Save the Children Australia and on the boards of ChildFund Australia and Anglicord. Wendy is also one of the founders of the International Women's Development Agency. Wendy is retired from professional employment; however, she continues to work with the NGO community as an active board member. Wendy has represented the Australian NGO community for many years as a member of the ACFID Executive Committee and the AusAID NGO Committee for Development Cooperation, including overseeing and reviewing for AusAID accreditation and negotiating with governments and multilateral organisations. Special responsibilities Program and Advocacy Committee, Governance and Nominations Committee. Peter Williams Experience Special responsibilities Water Industry Consultant Peter is a senior executive with 25 years experience providing services predominantly to the water industry. His current role is the development and delivery of infrastructure across transportation, water and energy. He has worked across a range of industry sectors and has included development projects through Asia and China, working with agencies to deliver infrastructure and services. Peter is a member of the Australian Water Association Finance, Audit and Risk Management Committee Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Members guarantee Ltd 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 members and any person or association who ceased to be a member in the year prior to the winding up, is limited to 10 for members that are corporations and 10 for all other members, subject to the provisions of the company's constitution. At 31 March the collective liability of members was 330 (: 360). 6

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10 Ltd Auditors Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Ltd I declare that, to the best of my knowledge and belief, during the year ended 31 March, there have been: (i) (ii) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and no contraventions of any applicable code of professional conduct in relation to the audit. Saward Dawson Chartered Accountants Peter Shields 20 Albert St Blackburn VIC 3130 Dated: 20 Albert Street / PO Box 256 Blackburn Victoria 3130 T: F: contact@youraccountant.com.au PRINCIPALS: Bruce Saward FCA Cliff Dawson FCA Peter Shields CA Tim Flowers CA Joshua Morse CA ASSOCIATE: Cathy Braun CA Liability limited by a scheme approved under Professional Services Legislation Chartered Accountants A member of Russell Bedford International 8

11 Statement of Profit or Loss and Other Comprehensive Income REVENUE Note Donations and Gifts - Monetary 3,261,285 3,064,311 - Non-Monetary - - Bequests and Legacies - 4,500 Grants - AusAID AACES 1,821,973 2,954,400 - AusAID CSO WASH 1,709, AusAID NEWAH 874,287 1,618,677 - AusAID Clean Dehli 35, ,597 - AusAID ANCP 919, ,218 - AusAID other 213, ,388 - WaterAid UK 800,001 1,090,015 - other Australian grants 275,380 83,509 Investment Income 25,499 32,697 Other income 31,233 38,747 Revenue for International Political or Religious Adherence Promotion - - TOTAL REVENUE 9,967,708 10,624,059 EXPENDITURE International Aid and Development Programs Expenditure International programs - Funds to international programs 6,418,790 7,704,175 - Other project costs 788, ,168 Community education 532, ,150 Fundraising costs - Public 1,254,157 1,271,077 - Government, Multilateral and Private - - Accounting and Administration 815, ,901 Non-Monetary Expenditure - - Total International Aid and Development Programs Expenditure 9,810,016 10,263,470 International Political or Religious Proselytisation Programs Expenditure - - Domestic programs expenditure - - TOTAL EXPENDITURE (9,810,016) (10,263,470) EXCESS/(SHORTFALL) OF REVENUE OVER EXPENDITURE 157, ,589 The accompanying notes form part of these financial statements. 9

12 Statement of Profit or Loss and Other Comprehensive Income Note Other comprehensive income Items that will not be reclassified subsequently to profit and loss - - Items that will be reclassified subsequently to profit and loss when specific conditions are met - - Items that have been reclassified to profit or loss - - Other comprehensive income: Write-off the bank account in SA 2 (a) - (196,230) Total comprehensive income for the year 157, ,359 The accompanying notes form part of these financial statements. 10

13 Statement of Financial Position As at 31 March ASSETS CURRENT ASSETS Cash and cash equivalents 4 3,172,242 4,586,941 Trade and other receivables 5 593, ,431 Other financial assets 6 75,900 - Other assets 7 65,694 54,383 TOTAL CURRENT ASSETS 3,907,435 4,750,755 NON-CURRENT ASSETS Property, plant and equipment 8 135,690 47,017 Intangible assets 9 64,956 - TOTAL NON-CURRENT ASSETS TOTAL ASSETS Note 200,646 47,017 4,108,081 4,797,772 LIABILITIES CURRENT LIABILITIES Trade and other payables , ,652 Provisions , ,067 Other financial liabilities 12 2,048,324 2,469,846 TOTAL CURRENT LIABILITIES 2,426,715 3,288,565 NON-CURRENT LIABILITIES Provisions 11 36,223 21,756 TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS 36,223 21,756 2,462,938 3,310,321 1,645,143 1,487,451 EQUITY Retained earnings 1,645,143 1,487,451 TOTAL EQUITY 1,645,143 1,487,451 The accompanying notes form part of these financial statements. 11

14 Statement of Changes in Equity Retained Earnings Total Balance at 1 April 1,487,451 1,487,451 Excess/(Shortfall) of revenue over expenses 157, ,692 Balance at 31 March 1,645,143 1,645,143 Retained Earnings Total Balance at 1 April ,323,092 1,323,092 Excess/(Shortfall) of revenue over expenses 360, ,589 Other comprehensive income (196,230) (196,230) Balance at 31 March 1,487,451 1,487,451 The accompanying notes form part of these financial statements. 12

15 Statement of Cash Flows Note CASH FLOWS FROM OPERATING ACTIVITIES: Receipts and loans from members, donors and supporters 10,061,584 11,914,011 Payments to suppliers and employees (11,219,118) (9,104,025) Interest received 25,498 30,835 Net cash provided by (used in) operating activities 15 (1,132,036) 2,840,821 CASH FLOWS FROM INVESTING ACTIVITIES: Deposit to support bank guarantee (75,900) - Payment for intangible asset (72,733) - Purchase of property, plant and equipment (148,022) (6,919) Proceeds from sale of property, plant and equipment 13,992 - Net cash used by investing activities (282,663) (6,919) Net increase (decrease) in cash and cash equivalents held (1,414,699) 2,833,902 Cash and cash equivalents at beginning of year 4,586,941 1,753,039 Cash and cash equivalents at end of financial year 4 3,172,242 4,586,941 The accompanying notes form part of these financial statements. 13

16 Summary of Significant Accounting Policies 1 Summary of Significant Accounting Policies (a) Basis of Preparation The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Corporations Act The company is a not-forprofit entity for financial reporting purposes under Australian Accounting Standards. Australian Accounting Standards set out accounting policies that AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated. 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, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar. The financial statements cover Ltd as an individual entity, incorporated and domiciled in Australia. WaterAid Australia Ltd is a company limited by guarantee. (b) Revenue and other income Service income including government grants is recognised in the Statement of Profit or Loss and Other Comprehensive Income when the entity obtains control of the income and it is probably that the economic benefits gained from the income will flow to the entity and the amount of the grant can be measured reliably. When there are conditions attached to the service income relating to their use for specific purposes, it is recognised in the Statement of Financial Position as a liability until such conditions are met or services provided. Revenue is recognised when the amount of the revenue can be measured reliably, it is probably that future 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. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Donations are recognised as revenue when received. Bequest donations are recognised when the funds are received. has a number of bequest notifications at any point in time, but the exact amount of the bequest usually is not known until the bequest distribution is actually received. 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). No revenue was raised or expended on any international political or religious proselytisation program. 14

17 Summary of Significant Accounting Policies 1 Summary of Significant Accounting Policies continued (c) Plant and Equipment Each class of plant and equipment is carried at cost or fair value less, where applicable, accumulated depreciation and impairment losses. Plant and equipment Plant and equipment are measured on the cost. 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. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(e) for details of impairment). Subsequent costs are included in the asset s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are recognised as expenses in profit or loss in the financial period in which they are incurred. Plant and equipment that have been contributed at no cost or for nominal cost are recognised at the fair value of the asset at the date it is acquired. Depreciation The depreciable amount of all plant and equipment, is depreciated on a straight-line method over the asset's useful life to the entity commencing from the time the asset is available for sale. The depreciation rates used for each class of depreciable asset are shown below: Fixed asset class Depreciation rate Plant and Equipment % Furniture, Fixtures and Fittings % Vehicles 33.3% Computer Hardware % 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. (d) 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. 15

18 Summary of Significant Accounting Policies 1 Summary of Significant Accounting Policies continued (e) Impairment of Assets At the end of each reporting period, the entity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset s fair value less costs to sell and value in use, is compared to the asset s carrying amount. Any excess of the asset s carrying amount over its recoverable amount is recognised in profit or loss. Where the future economic benefits of the asset are not primarily dependent upon the asset s ability to generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciated replacement cost of an asset. Where it is not possible to estimate the recoverable amount of an asset s class, the entity estimates the recoverable amount of the cash-generating unit to which the class of assets belong. Where an impairment loss on a revalued asset is identified, this is recognised against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that class of asset. (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 provisions have been measured at the amounts expected to be paid when the liability is settled. Contributions are made by the entity to an employee superannuation fund and are charged as expenses when incurred. (g) Cash and cash equivalents Cash and cash equivalents include 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. (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 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. 16

19 Summary of Significant Accounting Policies 1 Summary of Significant Accounting Policies continued (i) Income Tax No provision for income tax has been raised as the Company is exempt from income tax under Div 50 of the Income Tax Assessment Act is registered with the Australian Charities and Not-for-profit Commission as a Public Benevolent Institution and operates Overseas Aid Fund which holds deductible gift recipient status. (j) Intangible Assets Software and other intangible assets are recorded at cost. They have been assessed as having a finite life and are carried at cost less any accumulated amortisation and impairment losses. They have an estimated useful life of between one and five years and are assessed annually for impairment. (k) Provisions Provisions are recognised when the Company 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. (l) Comparative Amounts Comparatives are consistent with prior years, unless otherwise stated. (m) Critical accounting estimates and judgments The directors make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances. These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates. The significant estimates and judgements made have been described below: Key estimates - impairment The company assesses impairment at each reporting date by evaluating conditions specific to the company that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Fair value less costs to sell or current replacement cost calculations performed in assessing recoverable amounts incorporate a number of key estimates. Key judgments - provision for impairment No provision has been made against trade and other receivables since the directors believe that the total amount disclosed in the accounts at 31 March is receivable. (n) Economic dependence The operation of the company is dependent upon the continued support from its membership. At the date of this report, the directors have no reason to believe that the members will not continue to support Ltd. 17

20 Notes to the Financial Statements 2 Expenses from ordinary activities Employee benefits expense 1,952,254 2,085,329 Depreciation and amortisation 67, ,821 Remuneration of auditor Audit Fees 6,500 7,250 Other services 2,350 - (a) Write-off the bank account in SA In 2012, as WaterAid did not have control over the bank account in South Australia and it is not managed by the company, the Board decided to remove the bank balance out from the accounts in the reporting period. 3 Key Management Personnel Disclosures The totals of remuneration paid to the key management personnel of during the year are as follows: Key management personnel compensation: Short-term employee benefits 190, ,739 Post-employment benefits 16,995 14, , ,226 Any person(s) having authority and responsibility for planning, directing and controlling the activities of the company, directly or indirectly, including any director (whether executive or otherwise) is considered key management personnel. 4 Cash and cash equivalents Cash at bank and in hand 3,172,242 4,586,941 3,172,242 4,586,941 5 Trade and other receivables CURRENT Trade receivables 596, ,940 Provision for doubtful debts (a) (6,200) (33,580) Other receivables 3,051 17,071 Total current trade and other receivables 593, ,431 18

21 Notes to the Financial Statements 5 Trade and other receivables continued (a) Provision for Doubtful Debts Movement in the provision of doubtful debts is as follows: Balance at beginning of the year (33,580) - Charge for the year (6,200) (33,580) Provision used 33,580 - Balance at end of the year (6,200) (33,580) (b) Credit risk - Trade and Other Receivables The company does not have any material credit risk exposure to any single receivable or group of receivables. The following table details the Company's trade and other receivables exposure to credit risk (prior to collateral and other credit enhancements) with ageing analysis and impairment provided for thereon. Amounts are considered as 'past due' when the debt has not been settled, within the terms and conditions agreed between the Company and the customer or counter party to the transaction. Receivables that are past due are assessed for impairment by ascertaining solvency of the debtors and are provided for where there is objective evidence indicating that the debt may not be fully repaid to the Company. The balances of receivables that remain within initial trade terms (as detailed in the table) are considered to be of high credit quality. Past due but not impaired Gross amount Past due and impaired < 30 (days overdue) > 90 Within initial trade terms Trade and term receivables 596,748 (6,200) 7, , ,953 Other receivables 3, ,051 Total 599,799 (6,200) 7, , ,004 Trade and term receivables 125,940 (33,580) 84,220 6,820 6,820 20,160 41,500 Other receivables 15, ,209 Total 141,149 (33,580) 84,220 6,820 6,820 20,160 56,709 19

22 Notes to the Financial Statements 6 Other financial assets Term Deposit - Bank guarantee for building 75,900-75,900 - had a bank guarantee with Westpac which acts as a bond payment for the East Melbourne leased property and car park due 31 January Other assets Prepayments 65,694 54,383 65,694 54,383 8 Plant and equipment Plant and Equipment At cost 25,059 - Accumulated depreciation (24,482) - Total plant and equipment Fixtures and Fittings At cost 49,572 46,678 Accumulated depreciation (6,613) (45,678) Total furniture, fixtures and fittings 42,959 1,000 Vehicles At cost 279, ,217 Accumulated depreciation (218,367) (212,737) Total motor vehicles 61,629 40,480 Computer Hardware At cost 64,524 43,989 Accumulated depreciation (33,999) (38,452) Total computer equipment 30,525 5,537 Total plant and equipment 135,690 47,017 Total property, plant and equipment 135,690 47,017 20

23 Notes to the Financial Statements 8 Plant and equipment continued (a) Movements in carrying amounts of property, plant and equipment Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Plant and Fixtures and Equipment Fittings Vehicles Computer Hardware Year ended 31 March Balance at the beginning of the year - 1,001 40,479 5,537 47,017 Additions - 49,954 63,696 34, ,405 Disposals - Written Down Value - (325) - - (325) Transfers 1, (1,353) (521) - Depreciation expense (577) (8,391) (41,193) (9,246) (59,407) Balance at the end of the year ,959 61,629 30, ,690 Total Plant and Equipment Furniture, Fixtures and Fittings Motor Vehicles Computer Hardware Year ended 31 March Balance at the beginning of the year - 1, ,871 2, ,595 Additions ,014 5,014 Depreciation expense - - (60,392) (2,200) (62,592) Balance at the end of the year - 1,001 40,479 5,537 47,017 Total 21

24 Notes to the Financial Statements 9 Intangible Assets Computer Software Cost 79,631 - Accumulated amortisation and impairment (40,956) - Net carrying value 38,675 - Policy and Procedure documents Cost 27,671 - Accumulated amortisation and impairment (1,390) - Net carrying value 26,281 - Total Intangibles 64,956 - (a) Movements in carrying amounts Computer software Policy and Procedure documents Total Year ended 31 March Balance at the beginning of the year Additions 45,063 27,671 72,734 Amortisation (6,388) (1,390) (7,778) Closing value at 31 March 38,675 26,281 64,956 Computer software Policy and Procedure documents Total Year ended 31 March Balance at the beginning of the year Closing value at 31 March

25 Notes to the Financial Statements 10 Trade and other payables CURRENT Trade payables 21,674 63,933 GST payable 28, ,110 Accrued expenses 179,913 25,233 Other liabilities 17,465 11, , , Provisions (a) Employee entitlements CURRENT Annual leave 101,932 83,726 Long service leave 28,603 21,341 Total current employee provisions 130, ,067 NON-CURRENT Long service leave 36,223 21, , ,823 Analysis of Employee Provisions Employee Provisions Opening balance at 1 April 126,823 Additional provisions raised during year 60,639 Amounts used (20,704) Balance as at 31 March 166, Other Financial Liabilities CURRENT Government grants 1,946,619 2,360,843 Income in advance 101, ,003 2,048,324 2,469,846 23

26 Notes to the Financial Statements 13 Capital and Leasing Commitments (a) Operating Leases Minimum lease payments under non-cancellable operating leases: - not later than one year 173, ,053 - between one year and five years 48, ,601 - later than five years , ,654 Operating leases primarily costs of the office lease and related car park lease. 14 Related Parties The Company's main related parties are as follows: (a) Key management personnel Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity is considered key management personnel. For details of disclosures relating to key management personnel, refer to Note 3: Key Management Personnel Compensation. (b) Transactions with related parties Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. The following transactions occurred with related parties: a) Revenue from director-related entities Goulburn Valley Water (Peter Quinn) 20,460 18,400 MWH (Peter Williams - 6,100 Mid Coast Water (John Weate) 46, ,800 Water Corporation (Catherine Ferrari) 1,500 - SA Water (John Ringham) 34,100 30,700 Sydney Water (Ian Payne) 7,460 6,200 WaterAid UK (Barbara Frost) - 1,090,015 Yarra Valley Water (Tony Kelly) - 41, ,346 1,597,015 24

27 Notes to the Financial Statements 14 Related Parties continued (b) Transactions with related parties continued b) Revenue from directors Grant Hill - 50 Tom Mollenkopf Rob Skinner 2,675 1,800 John Ringham 1, John Weate Jane Ellis Catherine Ferrari Wendy Rose Rhonda Chapman 50 - Peter Quinn 400-7,535 3,960 c) Expenditure to director related entities WaterAid UK (Barbara Frost) - 4,957,596 Oxfam Australia (Grant Hill) - 3,000-4,960,596 We note that Barbara Frost (WaterAid UK), Tony Kelly (Yarra Valley Water) and Grant Hill are no longer directors in the current year. 25

28 Notes to the Financial Statements 15 Cash Flow Information Reconciliation of result to net cash provided by operating activities: Surplus for the year 157, ,359 Non-cash flows in profit: - depreciation and amortisation 59,350 62,593 - provision for doubtful debts (27,380) - - net loss (gain) on disposal of property, plant and equipment (13,992) - Changes in assets and liabilities, net of the effects of purchase and disposal of subsidiaries: - (increase)/decrease in trade and other receivables (458,649) 1,536,352 - (increase)/decrease in other assets (9,452) (215,565) - increase/(decrease) in trade and other payables (458,017) 285,600 - increase/(decrease) in other liabilities (421,521) 981,322 - increase/(decrease) in provisions 39,933 26,160 Cashflow from operations (1,132,036) 2,840, Financial Risk Management Objectives, policies and processes The Company's financial instruments consist mainly of deposits with banks, accounts receivable and payables. Risk management is carried out by the Company s Finance, Audit and Risk Management Committee under the delegated power from the Board of Directors. The Business Director has primary responsibility for the development of relevant policies and procedures to mitigate the risk exposure of the Company, these policies and procedures are then approved by the risk management committee and tabled at the board meeting following their approval. Reports are presented at each Board meeting regarding the implementation of these policies and any risk exposure which the Risk Management Committee believes the Board should be aware of. Specific information regarding the mitigation of each financial risk to which Company is exposed is provided below. Credit risk Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss for the company. The company does not have any material credit risk exposures as its major source of revenue is the receipt of grants. The maximum exposure to credit risk by class of recognised financial assets at the end of the reporting period is equivalent to the carrying amount and classification of those financial assets (net of any provisions) as presented in the statement of financial position. Accounts receivable and other debtors that are neither past due nor impaired are considered to be of high credit quality. The company has no significant concentrations of credit risk exposure to any single counterparty or group of counterparties. 26

29 Notes to the Financial Statements 16 Financial Risk Management continued Liquidity risk Liquidity risk arises from the possibility that the company might encounter difficulty in settling its debts or otherwise meeting its obligations in relation to financial liabilities. The company manages this risk by monitoring forecast cash flows. Market risk (a) Foreign Currency Risk The Company is not exposed to fluctuations in foreign currencies other than in respect of its operations in Timor Leste which are in US dollars and some of the programs in PNG which are in Kina. (b) Interest rate risk Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments. The company also manages interest rate risk by ensuring that, whenever possible, payables are paid within any pre-agreed credit terms. (c) Net Fair Values The aggregate net fair values of financial assets and financial liabilities approximate their carrying amounts as disclosed in the Statement of Financial Position and in the Notes to the Financial Statements. The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to the financial statements are as follows: Financial Assets Cash and cash equivalents 3,172,242 4,586,941 Trade and other receivables 593, ,431 Total Financial Assets 3,765,841 4,696,372 Financial Liabilities Trade and other payables 247, ,651 Total Financial Liabilities 247, ,651 27

30 Notes to the Financial Statements 17 Table of Cash Movements for Designated Purposes 's membership of the Australian Council for International Development (ACFID) requires reporting of cash movements where cash received for a designated purpose in any one financial period exceeds 10% of total revenue. Details of cash receipts and disbursements are set out below. No other individual appeals exceeded 10% in. Cash available at beginning of financial year Cash raised during the financial year Cash disbursed during financial year Cash available at end of financial year Balance at 1 April 4,586, ,586,941 WaterAID Grant AACES - 1,714,477 (1,821,973) (107,496) DFAT (AusAid) CS WASH II - 2,515,536 (1,709,998) 805,538 DFAT (AusAid) ANCP - 916,696 (919,386) (2,690) DFAT (AusAid) Grant NEWAH - - (874,287) (874,287) WaterAID UK Grant - 616,849 (616,849) - Total for other purposes - 3,352,512 (4,588,276) (1,235,764) Total 4,586,941 9,116,070 (10,530,769) 3,172, 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. At 31 March the number of members was 33 (: 36). 19 Company Details The registered office of and principal place of business of the company is: Ltd Level 7, 176 Wellington Parade, East Melbourne, VIC 3002 Australia 28

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32 Ltd Independent Audit Report to the members of Ltd Report on the Financial Report We have audited the accompanying financial report of Ltd, which comprises the statement of financial position as at 31 March, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration. Directors' Responsibility 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 and the Corporations Act 2001 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. Auditor s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the Company s preparation of the financial report that gives a true and fair view 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 controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, 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 Ltd, would be in the same terms if given to the directors as at the time of this auditor s report. 20 Albert Street / PO Box 256 Blackburn Victoria 3130 T: F: contact@youraccountant.com.au PRINCIPALS: Bruce Saward FCA Cliff Dawson FCA Peter Shields CA Tim Flowers CA Joshua Morse CA ASSOCIATE: Cathy Braun CA Liability limited by a scheme approved under Professional Services Legislation Chartered Accountants A member of Russell Bedford International 30

33 Ltd Independent Audit Report to the members of Ltd Opinion In our opinion the financial report of Ltd is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the Company s financial position as at 31 March and of its performance for the year ended on that date; and (b) complying with Australian Accounting Standards and the Corporations Regulations Saward Dawson Chartered Accountants Peter Shields 20 Albert Street, Blackburn Dated: 20 Albert Street / PO Box 256 Blackburn Victoria 3130 T: F: contact@youraccountant.com.au PRINCIPALS: Bruce Saward FCA Cliff Dawson FCA Peter Shields CA Tim Flowers CA Joshua Morse CA ASSOCIATE: Cathy Braun CA Liability limited by a scheme approved under Professional Services Legislation Chartered Accountants A member of Russell Bedford International 31