ROYAL AUSTRALIAN ARTILLERY HISTORICAL COMPANY ABN

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1 ROYAL AUSTRALIAN ARTILLERY HISTORICAL COMPANY Financial Report - for the year ended 30 June

2 Contents page Directors' Report 3 Auditors' Independence Declaration 8 Statement of Comprehensive Income 9 Statement of Financial Position 10 Statement of Changes in Equity 11 Statement of Cash Flows 12 Notes to the Financial Statements 13 Independent Auditor's Report 19 Declaration by directors 21 Detailed Statement of Profit and Loss 22 2

3 DIRECTORS' REPORT Your directors present this report on the company for the financial year ended 30 June Directors The names of each person who has been a director during the year and to the date of this report are: Tim Ford AO (Chairman from 22 Oct 11) Ian Ahearn Schon G Condon RFD, KCSJ Jason Cooke RFD John Cox AM Jon Green RFD Brian Hall (appointed 7 Jun 16) Nicholas Floyd Peter Lawrence Vincent Williams CSC Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. The company returned an operating surplus for the year ended 30 June 2016 of $2,286 (2015: 1,391). Principal Activities The principal activities of the company during the financial year were to promote and support the heritage and history of Australian Artillery on a national basis. Specifically to: commemorate the role of Australian Artillery,, assure the national artillery collection s preservation and enhance its accessibility, effectively communicate with RAAHC stakeholders, fund and sustain approved RAAHC activities, and assure appropriate governance The company s short-term objectives are to: Support the RAA Regimental Committee Heritage Plan. Develop the RAAHC ability to achieve its objective. Continue to provide the Anzac Centennial Gun and team to commemorate the role of Australian Artillery in WWI, at least through to November Develop the RAAHC Library into an artillery research centre 1. Continue to conduct the Centenary of WW1 Artillery History Seminar Series. 1 The RAAHC Research Centre is titled the Sir Roden Cutler VC Artillery Research Centre after that famous Australian Gunner. 3

4 DIRECTORS' REPORT The company measures its performance through such key performance indicators as: a. Membership numbers. b. Delivery of projects on time and within budget. c. Ability to generate income to support displays of collection items. d. Frequency of requests for support from museums/agencies. Volunteer Hours It was estimated following a survey of RAAHC Volunteers conducted in early 2015, that volunteers provide at least 12,850 hours (30 volunteers) of voluntary service each year. Information on Directors Tim Ford AO Chairman Qualification Experience Special Responsibilities BE (Elec) Syd Uni, G, AWC, JSSC, psc., Graduate Australian Institute Company Directors. 40 years experience in ADF and the UN, Director Artillery , RAA Representative Colonel Commandant Joined the company in Chair Australian Peacekeeping Memorial Project, Chair Peace Operations Training Institute. Chair Board of Directors, Life Governor. Ian Ahearn Deputy Chair Qualification Experience Special Responsibilities Graduate Diploma Defence Studies UNSW, Graduate of the Royal Military College, Army Command and Staff College and the Joint Services Staff College. 36 year career in the ADF, RAA Colonel Commandant Eastern Region, President of the RAA Association (ACT); Vice Chairman of the Australian Industry Defence Network, Board Member Federal Golf Club, President Federal Golf Club, Member RSL National Conditions of Service Committee. Chairman, Membership Committee; Member, Governance Committee. Schon G Condon RFD, KCSJ Qualification Experience B. Bus (Acc) UTS; Graduate Diploma Management University of Canberra; and psc(r) Australian Command and Staff College, Canberra, FCA, FCPA, FIPA, FAICD. Managing Principal Condon Associates Group; Past President of the Royal Australian Artillery Association of NSW Inc.; Former Commanding Officer 23 4

5 DIRECTORS' REPORT Field Regiment RAA; Former Chairman Western Sydney Itec Ltd; Former Chair Public Practice Committee CPA Australia; Former President Turnaround Management Association of Australia Ltd Special Responsibilities Chairman, Governance Committee; Member, Finance Committee, Life Governor. John Cox AM Qualification Experience Special Responsibilities Graduate of the Royal Military College, the Joint Services Staff College and the Australian College of Defence and Strategic Studies. Doctor of Philosophy (Physics UNSW). Chairman of the History Sub Committee of the RAA Regimental Committee; Chairman of the RAA Historical Society (3 years); Director of Royal Australian Artillery; Australian Defence/Army appointments (40 plus years); Project Director and Manager of Defence of Sydney Monument and Commemoration Event (2 years). Chairman, History Committee, Life Governor. Jason Cooke RFD Qualification Experience Special Responsibilities Grad Cert in Project Management UTS, Graduate Australian Command & Staff College. Army Reserve Officer with over 30 years commencing in 1982 and currently posted to 4 BDE Headquarters as Assistant Commander - Capability and Workforce Planning. In his civilian role he is appointed within Defence Materiel Organisation as the Deputy Director Project and Sustainment. Collections Director, Member Membership Committee. Jon Green Qualification Bachelor of Education (Secondary Mathematics) Experience Army Reserve Officer with over 30 years commencing in January Currently posted as the SO2 Soldier Career Management at the Career Advisory Group Eastern Region. Special Responsibilities Honorary Treasurer, Chair of Finance and Governance Committee Brian Hall Qualification Graduate of the Royal Military College, Duntroon, the Royal Military College of Science, Shrivenham UK, the Australian Army Command and Staff College and the Joint Services Staff College. Bachelor of Arts (Military Studies) Graduate 5

6 DIRECTORS' REPORT Diploma in Management Studies; Graduate Diploma in Strategic Studies; Graduate Certificate in Strategic Procurement (Deakin); Member of the Australian Institute of Company Directors Experience Special Responsibilities 35 year career in ADF including DA Wellington New Zealand, DA Baghdad. Director Trials, Director Vehicle Systems Projects, Project Director Ninox, Project Director Special Projects, member of teaching staff RMCS, Shivenham. Five years self employed as a Management Consultant, Business Development Manager (Joint Projects) for CAE Pty Ltd. Member of Committee of Management, Army Ski Lodge, Thredbo; Member of Council of Australian Defence Colleges Association. Honorary Treasurer, Chair of Finance and Governance Committee Nicholas Floyd Qualification Experience Special Responsibilities Bachelor degree in history and post-graduate degrees in defence studies, and in history/archaeology, graduate of Command and Staff College. Regimental experience (8th/12th, 1st and 2nd/10th Regiments), Army Headquarters, and Chief of Army s Visiting Fellow, Lowy Institute. Former Directing Staff at the Australian Command & Staff College Operational service in Iraq and Afghanistan. President of the RAA Association (ACT). Councillor of the United Services Institute (ACT). Membership Committee, History Committee Peter Lawrence Qualification Experience Special Responsibilities Bachelor of Arts and is a graduate of the Australian Army and Canadian Command and Staff Courses Australian Army for 30 years in field, operational and training appointments; and CEO of the Australian Society of Anaesthetists (not for profit society for nine years). Honorary and Company Secretary, Finance and Membership Committees Vincent Williams CSC Qualification Experience Master of Arts (International Relations), Postgraduate Diploma of TESOL (Teaching English to Speakers of other Languages), Graduate Diploma in Management and a Bachelor of Arts degree Served on the Committee of the Royal Australian Artillery Historical Society Regimental Committee s representative to the Australian Army 6

7 DIRECTORS' REPORT Artillery Museum Special Responsibilities Liaison with SHFT, Life Governor Meetings of Directors During the financial year, five meetings of the directors were held. Attendances by each director were as follows: Directors Meetings Number eligible to attend Number attended Tim Ford 5 5 Ian Ahearn 5 4 Schon Condon 5 4 John Cox 5 4 Jason Cooke 5 3 Jon Green 5 3 Brian Hall 0 0 Nicholas Floyd 5 4 Peter Lawrence 5 5 Vincent Williams 5 5 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 outstanding obligations of the entity. At 30 June 2016, the total amount that members of the company are liable to contribute if the company is wound up is $2,390 (2015: $2,470). Auditors' Independence Declaration A copy of the auditors' independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 8. Signed in accordance with a resolution of the Board of Directors: Director: Director: Dated this 14th day of September

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9 Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2016 Note $ $ Revenue 2 12,456 11,630 Grant expenditure Australian Memorial Walk expenditure 4 (2,306) (1,552) Restoration expenditure 4 (3,131) (4,928) Other expenses (6,282) (3,759) (11,719) (10,239) Profit/(Loss) before income tax expense 737 1,391 Income tax expense - - Profit/(Loss) for the year after income expense attributable to the owners of the company 737 1,391 Other comprehensive income, net of tax - Adjustment to deferred revenue of prior periods 1, Transfer to reserves Total comprehensive income for the year Total comprehensive income for the year attributable to the members of the company 2,286 1,391 5a 2,286 1,391 The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. 9

10 Statement of Financial Position as at 30 June 2016 Note $ $ ASSETS Current Assets Cash and Cash Equivalents 5 145, ,491 Trade and Other Receivables ,408 Stock 7 6, Total current assets 152, ,819 Non-current assets Museum Inventory - Memorabilia 10 1,110,690 1,117,180 Australian Memorial Walk , ,000 Total non-current assets 1,510,690 1,517,180 Total assets 1,663,122 1,677,999 LIABILITIES Current liabilities Deferred Revenue 9 3,055 4,604 Unexpended AMW Obligations 8 3,636 - Unexpended Project Obligations 8 75,286 94,536 Total current liabilities 81,977 99,140 Total liabilities 81,977 99,140 NET ASSETS 1,581,145 1,578,859 EQUITY Asset Revaluation Reserve 1,512,364 1,512,364 Reserves Membership 11,615 10,066 Retained Earnings 57,166 56,429 Total equity 1,581,145 1,578,859 The above Statement of Financial Position should be read in conjunction with the accompanying notes 10

11 Statement of Changes in Equity for the year ended 30 June 2016 Notes Retained Earnings Reserves Total Balance at 1 July ,429 1,522,430 1,578,859 Profit for the year Transfers to reserves - 1,549 1,549 Total comprehensive income for the year 737 1,549 2,286 Balance at 30 June ,166 1,523,979 1,581,145 Balance at 1 July ,038 1,522,293 1,577,331 Profit for the year 1,391-1,391 Transfers to Reserves Total comprehensive income for the year 1, ,528 Balance at 30 June ,429 1,522,430 1,578,859 The above Statement of Changes in Equity should be read in conjunction with the accompanying notes 11

12 Statement of Cash Flows for the year ended 30 June 2016 Notes $ $ Cash flows from operating activities Receipts from customers 11,806 9,305 Interest received 1,947 2,317 Payments to suppliers (11,043) (10,483) Net cash flows from operating activities 5 2,710 1,139 Cash flows from investing activities Payments for restorations (36,161) (81,431) Proceeds from grants and sponsorships 13,910 42,473 Proceeds from donations 6, ,494 Net cash flows from investing activities (15,615) 94,536 Cash flows from financing activities - - Net cash flows from financing activities - - Net decrease in cash and cash equivalents (12,905) 95,675 Cash and cash equivalents at the beginning of the financial year 158,491 62,816 Cash and cash equivalents at the end of the financial year 5 145, ,491 The above Statement of Cash Flows should be read in conjunction with the accompanying notes 12

13 ROYAL AUSTRALIAN HISTORICAL COMPANY Notes to the Financial Statements for the year ended 30 June 2016 Note 1 Summary of Significant Accounting Policies The directors have prepared the financial statements on the basis that the Company is a non reporting entity because there are no users dependent on general purpose financial statements. These financial statements are therefore special purpose financial statements that have been prepared in order to meet the requirements of the Corporations Act The financial statements have been prepared in accordance with the mandatory Australian Accounting Standards applicable to entities reporting under the Corporations Act 2001, and the significant accounting policies disclosed below with the directors have determined are appropriate to meet the needs of members. Such accounting policies are consistent with the previous period unless stated otherwise. The financial statements have been prepared on an accruals basis and are based on historical costs unless otherwise stated in the notes. The material accounting policies that have been adopted in the preparation of these statements are as follows: New, revised or amending Accounting Standards and Interpretations adopted The company has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Any significant impact on the accounting policies of the company from the adoption of these Accounting Standards are disclosed in the relevant accounting policy. The adoption of these Accounting Standards and Interpretation did not have significant impact on the financial performance or position of the company. Accounting Policies a. Revenue recognition Revenue is recognised when it is probable that the economic benefit will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable. Rendering of services- membership fees Rendering of services revenue from membership fees is recognised when no significant uncertainty as to its collectability exists. Revenue from membership fees is apportioned to reflect amounts for current year subscriptions. Amounts paid in advance in the current and prior years, is apportioned to deferred revenue. Donations Donations are recognised at the time the pledge is made. 13

14 Notes to the Financial Statements for the year ended 30 June 2016 Note 1 Summary of Significant Accounting Policies (cont.) Grants Grants are recognised at their fair value where there is a reasonable assurance that the grant will be received and all attached conditions will be complied with. Interest Interest revenue is recognised as income when it is received. Other revenue Other revenue is recognised when it is received or when the right to receive payment is established. b. Income Tax As the Company is a charitable institution in terms of subsection 50-5 of the Income Tax Assessment Act 1997, as amended, it is exempt from paying income tax. c. Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. d. Trade and other receivables Other receivables are recognised at amortised cost, less any provision for impairment. e. Memorabilia, Australian Memorial Walk and Property, Plant and Equipment Memorabilia is carried at the directors estimation of realisable value. The Australian Memorial Walk is carried at estimated replacement cost. Plant and equipment is stated at historical cost and is expensed in the period it is acquired, installed ready for use. f. Other payables These amounts represent liabilities for services yet to be provided to members in accordance with financial periods to which membership fees have been paid. g. Impairment of Assets At the end of each reporting period, the Company reviews the carrying values of its tangible 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 values less costs to sell and value in use, is compared to the asset s carrying value. Any excess of the asset s carrying value over its recoverable amount is expensed to the statement of comprehensive income. h. Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from, or payable to, the ATO. GST refundable or payable at year end is included in receivables and payables. 14

15 Notes to the Financial Statements for the year ended 30 June 2016 Note 1 Summary of Significant Accounting Policies (cont.) Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows. i. New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the company for the annual reporting period ended 30 June The company has not yet assessed the impact of these new or amended Accounting Standards and Interpretations. j. Critical Accounting Estimates and Judgements The directors evaluate estimates and judgements incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data obtained both externally and within the company. k. Changes to Accounting Policy AC18 Pounder Project Funds raised during the year, specifically for the Australian Memorial Walk and for the AC 18 Pounder Project (AC18Pdr) not fully expended during the year, have been recognised as a liability at year end. This represents a change to the accounting policy of previously recognising all donation and grant revenue as income, with corresponding outlays disclosed as expenditure in the Statement of Profit and Loss. 15

16 Notes to the Financial Statements for the year ended 30 June 2016 Note 2. Revenue $ $ Revenue from membership fees 2,427 3,109 Revenue from donations 8,080 6,200 Total Revenue 10,507 9,309 Other revenue Interest revenue 1,947 2,317 Miscellaneous 1 4 Total revenue 12,455 11,630 Note 3. Grant Expenditure The following expenditure relates to specific grant funding - fully expended in 2016 Grant expenditure - AC18Pdr Department of Veterans Affairs - 34,473 BAE Systems 3,000 8,000 All AC18Pdr grant funding has been fully expended in 2016 financial year. Note 4. Expenses Profit or loss before tax includes the following specific expenses: Library costs 368 1,558 Restoration costs - CA18Pdr project (refer to note 9.) - - Restoration costs - other 1,780 4,928 Australian Memorial Walk 2,306 1,552 Note 5. Cash and cash equivalents Cash on Hand - Library Float Cheque Account - Operations 1, Cheque Account - Gift Cash Reserve Account - Operations 28,631 21,515 Cash Reserve Account - Gift 115, ,620 Paypal , ,491 16

17 Notes to the Financial Statements for the year ended 30 June $ $ Note 5 a. Cashflow related disclosure Reconciliation of profit/(loss) after income tax to net cash outflow from operating activities Net Profit/(Loss) 2,286 1,391 Adjustments for Changes in assets and liabilities (Increase)/decrease in receivables and inventories 1,973 (8) (Decrease)/increase in creditors and accruals (1,549) (244) Net cash flows from operating activities 2,711 1,139 Note 6. Trade and other receivables Other debtors - - GST refundable 111 1, ,408 Note 7. Stock on hand AMW Pavers Memorabilia Held for Resale 6,490 - Restoration leather , Note 8. Other Payables Sundry creditors - - Membership revenue received in advance 3,055 4,604 3,055 4,604 Note 9. AC18Pdr Project - Liability to expend funds Balance Carried Forward from Prior Year 94,537 Grant funding received - fully expended 3,000 42,473 Donations received - partially expended 13, ,494 Total project specific revenue raised in year 16, ,967 Expenses Fodder & farrier 6,747 6,631 Transportation 8,294 25,504 Horse training - 18,320 Insurance and licences 1,064 3,605 Restoration and uniforms 20,056 27,370 Total project related expenses 36,161 81,430 Net (deficit)/surplus from project specific activities during the year (19,251) 94,537 Liability for unexpended project funds raised 75,286 94,537 Represents a change to accounting policy effective from 1 July 2014 refer to Note 1. 17

18 Notes to the Financial Statements for the year ended 30 June 2015 Note 10. Non Current Assets Australian Museum Memorial Walk Memorabilia Total Gross carrying amount Balance at 1 July ,000 1,117,180 1,517,180 Revaluations / impairment Transfer to Held for Resale (6,490) (6,490) Balance at 30 June ,000 1,110,690 1,510,690 Net book value As at 30 June ,000 1,110,690 1,510,690 Note 7. Current assets - other $ $ Prepaid expenses Bloomberg terminal fees 3,540 3,110 18

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21 DIRECTORS' DECLARATION The directors have determined that the company is not a reporting entity and that these special purpose financial statements should be prepared in accordance with the accounting policies outlined in Note 1 to the financial statements. The directors of the company declare that: 1. The financial statements and notes are in accordance with the Corporations Act 2001 and give a true and fair view of the Company s financial position as at 30 June 2016 and of its performance for the year ended on that date in accordance with the accounting policies described in Note 1 to the financial statements. 2. In the directors opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by: Tim Ford Director Peter Lawrence Director Sydney Dated this 14 th day of September

22 Detailed Profit and Loss Statement for the year ended 30 June 2016 Note $ $ INCOME Subscriptions 2,427 3,109 Donations - AMW and unspecified 5,830 5,450 Donatons - unspecified 2, Interest Income 1,947 2,317 Other Miscellaneous Income ,456 11,630 OTHER INCOME Grants - Australian Government GVESHO Program National Library of Australia ,456 11,630 EXPENSES Advertising Bank charges Paypal charges Equipment expensed 1,592 - Insurance 1,866 1,856 Library expenses 368 1,558 Meeting costs Memorial walk expenditure 2,306 1,552 Publications Restoration costs 1,780 1,200 Supplies, postage and stationery 1,092 1,006 Travel costs Internet and website 1, ,719 10,239 Profit/(Loss) before income tax expense 737 1,391 The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. 22

ROYAL AUSTRALIAN ARTILLERY HISTORICAL COMPANY ABN

ROYAL AUSTRALIAN ARTILLERY HISTORICAL COMPANY Financial Report - for the year ended 30 June 2017 Page 1 Contents page Directors' Report 3 Auditors' Independence Declaration 10 Statement of Comprehensive