FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2016 DIRECTORS REPORT Your directors present this report on the entity for the financial year ended 30 June 2016. Directors, Chief Executive Officer and Company Secretary The names of each person who have been a director, chief executive officer or company secretary during the year and up until the date of this report are listed below. All directors have been in office since the start of the financial year and up until the date of this report unless otherwise stated. Bruce Argyle Qualifications Experience Other Directorships and Professional Memberships Chairman (Non-executive) Bachelor of Science (Hons) Massey University NZ Diploma of Education NZ Associate Diploma of Business Masters in Conflict Resolution Latrobe University Board member and Chairman since 2012 Director, Bendigo and Adelaide Bank Director, Kinglake Ranges Foundation (Deputy Chair) Director, Lockwood Trust Member, Australian Institute of Management Member, Philanthropy Australia Chair, Business Higher Education Round Table Philanthropy Awards Chair, Community Sector Banking Strategic Grants Investment Program Terry Bramham Qualifications Experience Director (Non-executive) Chair of Governance, Compliance & Risk Management Committee Bachelor of Jurisprudence (Monash) Bachelor of Laws (Monash) Chairman 1997-2012, Board member since 1996 Keith Grant Qualifications Experience Professional Memberships Director (Non-executive) Chair of Finance Committee Diploma of Business Studies (Accounting) Latrobe University Certified Practising Accountant Board member since 2007 Australian Society of CPA s Page 2 of 22
DIRECTORS REPORT (Continued) INTERACT AUSTRALIA (VICTORIA) LIMITED Julie-Anne Busch Qualifications Experience Other Directorships and Professional Memberships Director (Non-executive) Chair of People & Culture Management Committee Graduate Certificate Business Monash University Certified Property Manager Australian Property Institute Graduate Certificate Shopping Centre Management - University of NSW Certified Shopping Centre Manager Property Council of Australia Bachelor of Arts (Journalism/Psychology) University of Queensland Board member since 2012 Non-executive Director Marriott Support Services Non-executive Director Western Leisure Services Pty Ltd Chairman Dandenong Market Pty Ltd Non-executive Director Dianella Community Health Trustee Member Southern Metropolitan Cemeteries Trust Committee of Management Caulfield South Community House Australian Institute Company Directors Property Council of Australia Retail Committee Tourism Victoria Marketing Awards Chair Judging Panel Women on Boards Andrew James Qualifications Experience Chief Executive Officer (since May 2013) Andrew is tertiary qualified, including an MBA from Melbourne University. Andrew has worked primarily in Banking and Finance for 32 years. During this time, he has held Senior Management and Executive roles across a number of functional areas including Corporate Finance, Commercial/Business Banking, Retail Mortgages, Mortgage Broking and Operations, where he has guided teams through difficult periods and growth phases. Andrew has held non-executive directorship roles and was Vice Chairman for a Not for Profit organisation in the disability sector for 5 years. Page 3 of 22
DIRECTORS REPORT (Continued) INTERACT AUSTRALIA (VICTORIA) LIMITED Glenn O Sullivan Qualifications Experience Company Secretary and Chief Financial Officer (since November 2015) Bachelor of Business (Accounting) Deakin University Australian Society of CPA's MBA University of New England Graduate Institute of Company Directors With over 30 years experience, Glenn s career as a finance executive covers local government, not for profit community care, Information technology and property, Principal activities The principal activity for the year was the provision of community and employment programs, in particular for people with a disability. No significant changes in the nature of the entity s activity occurred during the financial year. Short term and long term objectives Interact developed its Corporate 3 Year Strategic Plan 2015-2017 which identified the following Strategic Objectives; 1. Work towards a long term sustainable financial position; 2. Transition current service delivery support models towards individualised, person centred and selfdirected programs. To seek revenue growth opportunities through new contracts and emerging markets; 3. Develop an appropriate marketing presence, or Service Proposition, that leverages our point of difference; 4. Be NDIS ready. Build, develop and integrate appropriate systems, disciplines and supports that allow our workforce to deliver programs and track individualised funding packages; 5. Develop and pursue a People and Staff culture that is reflective of our values and Purpose Statement; 6. Work in partnership with our key stakeholders to ensure we maintain an outstanding, high quality provision of Community Services; and 7. Ensure good Corporate Governance across the organisation and the Board. Strategies to achieve short term and long term goals Contained within the Interact Corporate Strategic Plan is an Operational Plan which details individual functional areas and their respective accountabilities for achieving the overall organisational strategic outcomes. Having virtually completed our organisational restructuring, Interact has now simplified its operations, concentrating on its core business of Community Services and Employment, within the disability sector. The organisation has transformed its balance sheet, eliminating its debt and moving longer term assets to liquid cash in readiness for the NDIS industry reforms. Page 4 of 22
DIRECTORS REPORT (Continued) We continue to focus on our short term trading performance to ensure that we are a responsible corporate who manages within our means. All opportunities for growth and expansion will be canvassed and considered in the context of providing the best quality outcome for our participants and staff. Interact Executive and Board will continue to operate under a framework of good corporate governance that supports our short and longer term strategic priorities. 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. Meeting of Directors Attendances by each director at meetings held during the year to 30 June 2016 were as follows: Board Meetings Number Number eligible attended to attend Finance Committee Meetings Number Number eligible attended to attend Mr Bruce Argyle (Chairperson) 10 10 - - Mr Terry Bramham (Approved leave of Absence from March 31 meeting) 10 4 - - Mr Keith Grant (Chair of the Finance Committee) 10 10 10 10 Ms Julie-Anne Busch 10 10 - - The company is incorporated under the Corporations Act 2001 and is a company limited by guarantee and is registered with Australian Charities and Not-for-Profits Commission. If the company is wound up, the constitution states that each member is required to contribute a maximum of $20 each towards meeting any outstanding obligations of the company. At 30 June 2016, the total amount that members of the company are liable to contribute if the company is wound up is $80 (2015: $80). Auditor s Independence Declaration The auditor s independence declaration for the year ended 30 June 2016 has been received and can be found on page 6 of the financial report Signed in accordance with a resolution of the Board of Directors. Keith Grant Director Dated this 29 th day of September 2016 Page 5 of 22
STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 JUNE 2016 Notes 2016 2015 $ $ Revenue 9,033,589 10,209,552 Less: Expenses Employment benefits expense (6,920,014) (8,047,880) Depreciation expense (53,680) (134,539) Finance costs (1,546) (5,483) Property costs (897,143) (1,106,209) Communication costs (213,656) (239,924) Motor vehicle expenses (508,750) (386,198) Marketing expenses (3,102) (38,053) Printing and stationery expenses (19,090) (31,104) Other expenses (707,744) (665,538) Loss before income tax (291,136) (445,376) Income tax expense 1(i) - - Total comprehensive loss attributable to members of the entity (291,136) (445,376). The accompanying notes form part of these financial statements. Page 7 of 22
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016 Notes 2016 2015 $ $ CURRENT ASSETS Cash on hand 4 1,032,767 1,697,917 Accounts receivable and other debtors 5 105,074 119,117 Other assets 6 85,880 125,395 TOTAL CURRENT ASSETS 1,223,721 1,942,429 NON-CURRENT ASSETS Property office and other equipment 7 86,966 133,503 Other assets 6 45,353 116,766 TOTAL NON-CURRENT ASSETS 132,319 250,269 TOTAL ASSETS 1,356,040 2,192,698 CURRENT LIABILITIES Accounts payable and other payables 8 456,082 975,796 Borrowings 9-6,427 Employee provisions 10 458,099 399,646 TOTAL CURRENT LIABILITIES 914,181 1,381,869 NON-CURRENT LIABILITIES Borrowings 9-12,871 Employee provisions 10 24,664 89,627 TOTAL NON-CURRENT LIABILITIES 24,664 102,498 TOTAL LIABILITIES 938,845 1,484,367 NET ASSETS 417,195 708,331 EQUITY Retained surplus 417,195 708,331 TOTAL EQUITY 417,195 708,331 The accompanying notes form part of these financial statements. Page 8 of 22
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016 Retained Surplus Balance at 1 July 2014 1,153,707 Deficit for the year attributable to members of the entity (445,376) Balance at 30 June 2015 708,331 Deficit for the year attributable to members of the entity (291,136) Balance at 30 June 2016 417,195 $ The accompanying notes form part of these financial statements. Page 9 of 22
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2016 2016 2015 $ $ CASH FLOW FROM OPERATING ACTIVITIES Receipts 9,264,935 9,772,455 Payment to suppliers and employees (9,903,837) (11,154,914) Interest received 19,287 41,883 Interest paid (1,546) (5,483) Net cash used in operating activities 11 (621,161) (1,346,059) CASH FLOW FROM INVESTING ACTIVITIES Purchase of property, office and other equipment (7,896) (83,011) Proceeds from sale of property, office and other equipment and investment property - 3,350,953 Proceeds from sale of financial assets - 482,728 Net cash from investing activities (7,896) 3,750,670 CASH FLOW FROM FINANCING ACTIVITIES Repayment of finance lease commitments (36,093) (16,118) Repayment of commercial bill - - Net cash used in financing activities (36,093) (16,118) Net increase/(decrease) in cash held (665,150) 2,388,493 Cash and cash equivalents at beginning of the financial year 1,697,917 (690,576) Cash and cash equivalents at end of the financial year 4 1,032,767 1,697,917 The accompanying notes form part of these financial statements. Page 10 of 22
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 The financial statements cover Interact Australia (Victoria) Limited as an individual entity, incorporated and domiciled in Australia. Interact Australia (Victoria) Limited is a company limited by guarantee. The financial statements were authorised for issue on 1st day of October 2016 by the directors of the company. 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 who are dependent on its 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 Australian Charities and Not-for-Profits Commission Act 2012 The company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. The financial statements have been prepared in accordance with the mandatory Australian Accounting Standards applicable to entities reporting under the Australian Charities and Not-for-Profits Commission Act 2012 and the significant accounting policies disclosed below, which the directors have determined are appropriate to meet the needs of members. Such accounting policies are consistent with those of previous periods 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 unless otherwise stated in the notes. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise. The amounts presented in the financial statements have been rounded to the nearest dollar. Accounting Policies a. Revenue Grant revenue is recognised in the statement of comprehensive income when the entity obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the entity and the amount of the grant can be measured reliably. If conditions are attached to the grant which must be satisfied before it 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 entity 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 state of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt. Interact Australia (Victoria) Limited receives non-reciprocal contributions of assets from the government and other parties for zero or a nominal value. These assets are recognised at fair value on the date of acquisition in the statement of financial position, with a corresponding amount of income recognised in the statement of comprehensive income. Donations and bequests are recognised as revenue when received. Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets is the rate inherent in the instrument. Dividend revenue is recognised when the right to receive a dividend has been established. Revenue from the rendering of a service is recognised upon the delivery of the service to the customers. All revenue is stated net of the amount of goods and services tax (GST). Page 11 of 22
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) b. Property, Office and Other Equipment Each class of property, office and other equipment is carried at cost or fair value as indicated, less, where applicable, accumulated depreciation and any impairment losses. Office and Other Equipment Office and other 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 the asset 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. An asset that has been contributed at no cost or for nominal cost are valued and recognised at the fair value of the asset at the date it is acquired. Depreciation The depreciable amount of all fixed assets, including buildings and capitalised lease assets, but excluding freehold land, is depreciated on a straight line or diminishing value basis over the asset s useful life to the entity commencing from the time the asset is available for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Depreciation Rate Office and other equipment 15 33.33% Furniture and Fittings 10 33.33% Motor Vehicles 20% 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 proceeds with the carrying amount. These gains or losses are included in the statement of comprehensive income in the period in which they arise. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. c. Leases Leases of property, office and other equipment, where substantially all the risks and benefits incidental to the ownership of the asset but not the legal ownership are transferred to the entity, are classified as finance leases. Finance leases are capitalised, recognising an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual values. Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the entity will obtain ownership of the asset. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as expenses on a straight-line basis over the lease term. Page 12 of 22
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) d. Financial Instruments Initial recognition and measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured at fair value plus transaction costs except where the instrument is classified at fair value through profit or loss, in which case transaction costs are recognised as expenses in profit or loss immediately. Classification and subsequent measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest method, or cost. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method. The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying amount with a consequential recognition of an income or expense item in profit or loss. (i) (ii) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised. Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the company s intention to hold these investments to maturity. They are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised. Impairment At the end of each reporting period, the company assesses whether there is objective evidence that a financial asset has been impaired. A financial asset or a group of financial assets will be deemed to be impaired if, and only if, there is objective evidence of impairment as a result of the occurrence of one or more events (a loss event ), which has an impact on the estimated future cash flows of the financial asset(s). For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial assets impaired by credit losses. After having undertaken all possible measures of recovery, if the management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance accounts. When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the company recognises the impairment for such financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered. Page 13 of 22
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability, which is extinguished or transferred to another party and the fair value of consideration paid, including the transfer of noncash assets or liabilities assumed, is recognised in profit or loss. 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 Short-term employee provisions Provision is made for the company 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. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation 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 shortterm highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position. h. 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. Accounts receivable are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate method, less any provision for impairment. i. Income Tax No provision for income tax has been raised as the entity is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997. Page 14 of 22
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) j. 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 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 or 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. k. Provisions Provisions are recognised when the entity 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 Figures Where required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year. When an entity applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items in its financial statements, a statement of financial position as at the beginning of the earliest comparative period must be disclosed. m. 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 company during the reporting period which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. n. Critical Accounting Estimates and Judgments The directors evaluate estimates and judgments incorporated into the financial statements 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. Key Estimates Impairment The company assesses impairment at the end of each reporting date by evaluation of conditions and events specific to the company that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions. The directors estimate doubtful debts to be $1,546 and accrued income to be $71,203. o. Economic Dependence Interact Australia (Victoria) Limited is dependent on the Victorian Department of Health & Human Services (DHHS), the Commonwealth Department of Employment, Education and Workplace Relations (DEEWR), and the Queensland Department of Communities, Child Safety and Disability Services (DSQ) for the majority of its revenue used to operate the business. At the date of this report the Board of Directors has no reason to believe that DHHS, DEEWR and DSQ will not continue to support Interact Australia (Victoria) Limited. Page 15 of 22
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) p. Going Concern The financial report has been prepared on a going concern basis which assumes continuity of the normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. The company has sustained losses for past several years and has net surplus of assets of $417,195 as at 30 June 2016. The company has entered into merger agreement with IntoWork Australia which will assist Interact Australia to operate on going concern basis and enable it to grow its business. The merger will take effect from 1 October 2016 and will remove doubts whether Interact Australia will be able to continue its operations on going concern basis. The company will have access to IntoWork Australia s sound financial position. The merger has been confirmed in the Director s meeting held on 16 September 2016. q. New Accounting Standards for Application in Future Periods The AASB has issued a number of new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods, some of which are relevant to the company. The company has decided not to early adopt any of the new and amended pronouncements. Page 16 of 22
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 2: SIGNIFICANT REVENUE AND EXPENSES Note 2016 2015 $ $ a. Expenses Depreciation and amortisation: 53,680 134,539 Audit fees 18,000 17,500 Rental expense 432,024 664,253 b. Significant Revenue Government Grants 6,574,181 6,287,264 NOTE 3: REGISTRATION The Company is registered under Section 41 of the Disability Act 2006 as a disability service provider. NOTE 4: CASH ON HAND CURRENT Cash on hand 7,805 10,691 Cash at bank 1,024,962 1,687,226 1,032,767 1,697,917 NOTE 5: ACCOUNTS RECEIVABLE AND OTHER DEBTORS CURRENT Accounts receivable 101,676 98,698 Provision for bad and doubtful debts (1,771) (2,153) Other debtors 5,169 22,572 Total current accounts receivable and other debtors 105,074 119,117 NOTE 6: OTHER ASSETS CURRENT Accrued income 71,203 41,403 Prepayments 14,677 83,992 85,880 125,395 NON-CURRENT Bonds receivable 45,353 116,766 Page 17 of 22
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 7: PROPERTY, OFFICE AND OTHER EQUIPMENT Note 2016 2015 $ $ OFFICE AND OTHER EQUIPMENT Office and other equipment At cost 758,198 737,200 Less accumulated depreciation (719,375) (683,552) 38,823 53,648 FURNITURE AND FITTINGS Furniture and fittings At cost 397,076 397,061 Less accumulated depreciation (395,034) (391,724) 2,042 5,337 MOTOR VEHICLES Motor vehicles At cost 57,666 109,074 Less accumulated depreciation (11,565) (34,556) 46,101 74,518 Total property, office and other equipment 86,966 133,503 NOTE 8: ACCOUNTS PAYABLE AND OTHER PAYABLES CURRENT Accounts payable and sundry payables 319,190 629,444 Deferred income 48,327 48,972 Other current payables 88,565 297,380 456,082 975,796 NOTE 9: BORROWINGS CURRENT Bank overdraft - - Lease liability - 6,427-6,427 NON-CURRENT Lease liability - 12,871 Total borrowings - 19,298 Page 18 of 22
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 10: EMPLOYEE PROVISIONS Note 2016 2015 $ $ CURRENT - annual leave entitlements 248,329 264,355 - long service leave entitlements 209,770 135,291 458,099 399,646 NON-CURRENT - long service leave entitlements 24,664 89,627 24,664 89,627 NOTE 11: CASH FLOW INFORMATION Reconciliation of Cash Flow from Operations with Profit/(Loss) after Income Tax Profit/(loss) after income tax (291,136) (445,376) Non-cash flows - depreciation 53,680 134,539 - (profit)/loss on sale of non-current assets - (393,155) - doubtful debts - - Changes in assets and liabilities - (increase)/decrease in accounts and other receivables 19,915 (3,199) - (increase)/decrease in other assets 122,604 (41,650) - (increase)/decrease in inventories - - - increase/(decrease) in accounts and other payables (519,068) (583,525) - increase/(decrease) in income in advance (646) 42,790 - increase/(decrease) in employee provisions (6,510) (56,483) Cash flow from operations (621,161) (1,346,059) NOTE 12: CONTINGENT LIABILITIES AND CONTINGENT ASSETS There are no contingent liabilities and assets as at 30th June 2016. NOTE 13: ENTITY DETAILS The registered office and principal place of business of the entity is: Interact Australia (Victoria) Limited 267 High St Preston Victoria 3072 NOTE 14: MEMBERS GUARANTEE The entity is incorporated under the Corporations Act 2001 and is an entity limited by guarantee and registered with Australian Charities and Not-for-Profits Commission. If the entity is wound up, the constitution states that each member is required to contribute a maximum of $20 each towards meeting any outstandings and obligations of the entity. At 30 June 2016 the number of members was 4 (2015: 4). Page 19 of 22
DIRECTORS DECLARATION In accordance with a resolution of the directors of Interact Australia (Victoria) Limited, the directors declare that: 1. The financial statements and notes, as set out on pages 7 to 19, are in accordance with the Australian Charities and Not-for-Profits Commission Act 2012 and: a. comply with Australian Accounting Standards applicable to the company; and b. give a true and fair view of the financial position as at 30 June 2016 and 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 entity 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. Keith Grant Director Dated this 29 th day of September 2016 Page 20 of 22