Independent Living Centre

(Tas) Inc.

Financial Statements

2014 - 2015


Text Box: Notes to and forming the financial statements are attached	Page 1

INDEPENDENT LIVING CENTRE (TAS) INC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015

 

 

2015

$

2014

$

Revenue

2

808,113

891,063

Employee benefits expense

 

(532,168)

(534,591)

Operational expenses

 

(146,090)

(154,686)

Depreciation and amortisation

2

(28,261)

(24,681)

Administration expenses

 

(128,388)

(128,778)

OPERATING SURPLUS/(DEFICIT)

 

(26,794)

48,327

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

 

(26,794)

48,327


Text Box: Notes to and forming the financial statements are attached	Page 2INDEPENDENT LIVING CENTRE (TAS) INC
STATEMENT OF FINANCIAL POSITION

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015

CURRENT ASSETS

Note

2015

$

2014

$

Cash and cash equivalents

3

125,520

209,342

Accounts receivable and other debtors

4

3,706

7,987

Other current assets

5

1,717

713

TOTAL CURRENT ASSETS

 

130,943

218,042

NON CURRENT-ASSETS

 

 

 

Property, plant and equipment

6

963,981

968,868

TOTAL NON-CURRENT ASSETS

 

963,981

968,868

TOTAL ASSETS

 

1,094,924

1,186,910

CURRENT LIABILITIES

 

 

 

Accounts payable and other payables

7

68,762

95,144

Borrowings

8

23,297

52,873

Provisions

9

36,952

46,845

TOTAL CURRENT LIABILITIES

 

129,011

194,862

NON-CURRENT LIABILITIES

 

 

 

Borrowings

8

580,000

580,000

Provisions

9

30,654

29,995

TOTAL NON-CURRENT LIABILITIES

 

610,654

609,995

TOTAL LIABILITIES

 

739,665

804,857

NET ASSETS

 

355,259

382,053

EQUITY

 

 

 

Building Reserve

10

265,000

265,000

Education Reserve

10

30,000

30,000

Accumulated funds

 

60,259

87,053

TOTAL EQUITY

 

355,259

382,053


INDEPENDENT LIVING CENTRE (TAS) INC
STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015

2014

Accumulated

Note         Funds

$

Building
Reserve

$

Education
Reserve

$

Total

$

Balance at 1 July 2013

38,726

265,000

30,000

333,726

Net surplus/deficit for year

48,327

 

 

48,327

Transfers

 

 

 

 

Balance at 30 June 2014

87,053

265,000

30,000

382,053

2015

 

 

 

 

Balance at 1 July 2014

87,053

265,000

30,000

382,053

Net surplus/deficit for year

(26,794)

 

 

(26,794)

Transfers

 

 

 

 

Balance at 30 June 2015

60,259

265,000

30,000

355,259


Text Box: Notes to and forming the financial statements are attached	Page 4                                                                                                                                                                                                                                                                INDEPENDENT LIVING CENTRE (TAS) INC
STATEMENT OF CASH FLOWS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015

Cash Flows from Operating Activities

Note

2015

$

2014

$

Receipts from Grants

 

708,741

787,379

Receipts from Customers

 

77,232

102,560

Payments to Suppliers and Employees

 

(788,216)

(828,450)

 

 

(2,243)

61,489

Interest Paid

 

(34,900)

(9,236)

Interest Received

 

6,271

15,209

Net Cash from Operating Activities

11

(30,872)

67,462

Cash Flows from Investing Activities

 

 

 

Proceeds from Sales of Assets

 

 

 

Purchase of Land and Buildings

 

(21,551)

(900,000)

Purchase of Plant and Equipment

 

(1,822)

(39,287)

Purchase of Motor Vehicles

Net Cash used in Investing Activities

 

 

 

 

(23,373)

(939,287)

Cash Flows from Financing Activities

 

 

 

Proceeds from Short Term Borrowings

 

 

60,000

Proceeds from Long Term Borrowings

 

 

580,000

Repayment of Short Term Borrowings

 

(29,576)

(7,127)

Net Cash from Financing Activities

 

(29,576)

632,873

Net Increase/(Decrease) in cash held

 

(83,821)

(238,952)

Cash and Cash Equivalents at Beginning of period

 

209,342

448,294

Cash and Cash Equivalents at End of period

3

125,521

209,342


INDEPENDENT LIVING CENTRE (TAS) INC NOTES TO FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015

Note

1          Significant Accounting Policies

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and the Associations Incorporation Act (Tasmania) 1964. The association is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards.

Australian Accounting Standards set out accounting policies that the 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 stated otherwise.

The financial statements, except for the cash flow information have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statement have been rounded to the nearest dollar.

The financial statements were authorised for issue on 2nd September 2015.

(a)       Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

(b)       Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses.

The depreciable amount of all fixed assets is depreciated on a straight-line basis over their useful lives commencing from the time the asset is available for use.

The following rates are used for each class of depreciable assets:

Buildings                                                         40 years

Motor Vehicles                                                5 years

Plant and Equipment (including computers) 2 to 10 years

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are recognised in profit or loss when the item is derecognised.


Text Box: Page 6INDEPENDENT LIVING CENTRE (TAS) INC NOTES TO FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015

(c)        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 association commits itself to either purchase or sell the asset (ie trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transactions costs, except where the instrument is classifed "at fair value through profit or loss" in which case transaction costs are recognised immediately as expenses in profit or loss.

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.

(d)        Cash and Cash Equivalents

Cash includes cash on hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less.

(e)        Employee Benefits

Provision is made for the association's liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on costs. Employee benefits payable later than one year have been measured at present value of the estimated future cash outflows to be made for those benefits.

(f)         Income Tax

The association has not adopted the principles of tax effect accounting as it is exempt from income tax under section 50-45 of the Australian Income Tax Assessment Act 1997.

(g)        Revenue

Non-reciprocal grant revenue is recognised in the profit or losss when the association obtains control of the grant and it is probable that the economic benefits from the grant will flow to the association and the amount of the grant can be measured reliably.

If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisified.


Text Box: Page 7INDEPENDENT LIVING CENTRE (TAS) INC NOTES TO FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015

When grant revenue is received whereby the association incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt.

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

Revenue from the rendering of services is recognised upon the delivery of the service to the customers.

All revenue is stated net of the amount of goods and services tax.

(h)     Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

(I)         Leases

Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred over the lease term.

2        Note to the Income Statement

The net surplus/(deficit) includes the following items of revenue and expense:

(a)        Operating Revenue

2015

$

2014

$

Professional Fees

19,699

6,163

Grant Income

695,320

698,189

Other Grant Income

33,571

76,976

Parental Leave Payments Received

11,539

 

Rental Income

27,378

8,997

Subscriptions

370

315

Sundry

12,397

22,723

Education Fees Charged

1,282

2,225

Donations

286

60,266

Interest

6,271

15,209

 

808,113

891,063


Text Box: Page 8INDEPENDENT LIVING CENTRE (TAS) INC NOTES TO FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015

(b)         Expenses

Depreciation

2015

$

2014

$

Building

2,625

-

Plant and Equipment

3,910

3,339

Computer Equipment

15,558

15,175

Motor Vehicles

6,168

6,167

 

28,261

24,681

Rental expense on operating leases

56,173

54,643

Key management personnel compensation

106,099

103,272

3          Cash Assets (and Cash Equivalents)

 

 

Cash and cash equivalents in the cash flow statement reconcile to the following balance sheet amounts.

Bendigo Bank Community Account

8,035

35,253

Tasmanian Perpetual Trustees Cash Management

117,285

160,680

Tasmanian Perpetual Trustees Term Investment

-

13,209

Cash on Hand

200

200

 

125,520

209,342

4          Accounts Receivable and Other Debtors

 

 

Accounts Receivable and Other Debtors

3,706

7,987

5          Other Assets

 

 

Prepayments

1,717

713

6          Property, Plant and Equipment at Cost

 

 

Land

600,000

600,000

Buildings

321,551

300,000

Accumulated Depreciation

(2,625)

 

 

318,926

300,000

Plant and Equipment

40,779

38,956

Accumulated Depreciation

(33,221)

(29,311)

 

7,558

9,645


Text Box: Page 9INDEPENDENT LIVING CENTRE (TAS) INC NOTES TO FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015

 

2015

$

2014

$

Motor Vehicles

61,672

61,672

Accumulated Depreciation

(43,134)

(36,966)

 

18,538

24,706

Computer Equipment

90,293

90,293

Accumulated Depreciation

(71,334)

(55,776)

 

18,959

34,517

Total Property Plant and Equipment

963,981

968,868

7          Accounts Payable and Other Payables

 

 

Current

 

 

Trade Creditors

19,047

14,201

GST & PAYG Payable

13,912

21,569

Unexpended Grants

854

8,318

Accrued expenses

19,400

19,532

Bendigo Bank Mastercard

1,508

4,797

Other Grants/Income received in Advance

14,041

26,727

 

68,762

95,144

8          Borrowings

 

 

Current

 

 

Bendigo Bank Loan

23,297

52,873

Non-Current

 

 

Bendigo Bank Mortgage

580,000

580,000

 

Assets pledged as security for borrowings: First mortgages over land and building as disclosed in Note 6.

Terms of Borrowings

Mortgage is interest only until 31st March 2016, following which it will revert to principal reducing with an expiry date of 31st March 2029.

9          Provisions

Current

 

 

Annual Leave

32,690

28,824

Long Service Leave

4,262

18,021

 

36,952

46,845

Non-Current

 

 

Long Service Leave

30,654

29,995


Text Box: Page 10INDEPENDENT LIVING CENTRE (TAS) INC NOTES TO FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015

10      Reserves

(a)       Building Reserve

The building reserve records funds set aside for the future provision of building facilities for the centre, including renovations.

(b)       Education Reserve

The education reserve was created to designate funds received for the specific purpose of providing edicational resources and services to the centre's clients. Funds will be drawn from this reserve as relevant expenditure is incurred in future.

11      Note to the Cash Flow Statement

a)         Reconciliation of net cash provided by operating activities to surplus for the year

 

2015

$

2014

$

Surplus for the Year

(26,794)

48,327

Non-cash flows in profit from ordinary activities

 

 

- Depreciation

28,261

24,681

- Provisions for staff entitlements

(9,234)

2,030

 

(7,767)

75,038

Changes in assets and liabilities

 

 

- Decrease/(Increase) in trade receivables

4,281

1,871

- Decrease/(Increase) in prepayments

(1,004)

325

- Increase/(Decrease) in trade and other payables

(26,382)

(9,772)

Cash from operating activities

(30,872)

67,462

b)      Non-cash investing and financing activities

 

 

 

Independent Living Centre (Tas) Inc. did not enter into any non-cash investing and financing activities for the year ended 30 June 2015.

c)         Financing Facilities

 

 

Unsecured credit card facility

 

 

Amount used

1,508

4,797

Amount unused

3,492

203

 

5,000

5,000


Text Box: Page 11INDEPENDENT LIVING CENTRE (TAS) INC NOTES TO FINANCIAL STATEMENTS

12         Members Guarantee                                                                                                           FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015

The Independent Living Centre (Tas) Inc is incorporated under the Associations Incorporation Act 1964 (as amended). The members are liable in the event of winding up to the amount not exceeding $2 per member in accordance with the association's constitution.

13       Related Party Transactions

There were no related party transactions for the association during 2014/15.

14       Financial Risk Management

The association's financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable and payable.

The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements are disclosed in Notes 3, 4, 7 and 8.

 

2015

2014

Financial assets

$

$

Cash and cash equivalents

125,520

209,342

Accounts receivable and other debtors

3,706

7,987

Total financial assets

129,226

217,329

Financial liabilities

 

 

Financial liabilities at amortised cost:

 

 

Accounts payable and other payables

68,762

95,144

Borrowings

603,297

632,873

 

672,059

728,017


Independent Living Centre (Tas) Inc

Committee Declaration

For the Year Ended 30 June 2015

In the opinion of the committee the financial report as set out on pages 1 to 11:

1.    Presents a true and fair view of the financial position of the association as at 30 June 2015 and its performance for the year ended on that date in accordance with Australian Accounting Standards.

2.    At the date of this statement, there are reasonable grounds to believe that the association will be able to pay its debts as and when they fall due.

This statement is made in accordance with a resolution of the Management Committee and is signed for and on behalf of the Management Committee by:

Dated


Page 12


Text Box: Crowe Horwath Tasmania
ABN 55 418 676 841
Member Crowe Horwath International
62 Paterson Street
Launceston TAS 7250 Australia
PO Box 1000
Launceston TAS 7250 Australia
Tel 03 6323 1222 Fax 03 6323 1231
www.crowehorwath.com.au
\ \ Crowe Horwath 1,

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF INDEPENDENT LIVING CENTRE TAS INC


Report on the Financial Report

We have audited the accompanying financial report of Independent Living Centre Tas Inc, which comprises the statement of financial position as at 30 June 2014, the statement of profit and loss and 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 certification by members of the committee on the annual statements giving a true and fair view of the financial position of the association.

Committees' Responsibility for the Financial Report

The committee of the Independent Living Centre Tas Inc are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards —Reduced Disclosure Requirements and the Associations Incorporation Act (Tasmania) 1964 and for such internal control as the committee determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express 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 control relevant to the entity'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 entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the committee, 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.

Page 13

Crowe Horwath Tasmania is a member of Crowe Norwell? International, a Swiss verein. Each member firm of Crowe Horwath is a separate and independent legal entity

 


Text Box: Page 14Independence

In conducting our audit, we have complied with the independence requirements of APES 110 Code of Ethics for Professional Accountants and Associations Incorporation Act (Tasmania) 1964.

Auditor's Opinion

In our opinion the financial report of Independent Living Centre Tas Inc is in accordance with the Association Incorporations Act (Tasmania) 1964, including:

·         Giving a true and fair view of the association's financial position as at 30 June 2015 and of its performance for the year ended on that date; and

·         Complying with Australian Accounting Standards — Reduced Disclosure Requirements.

·         We obtained the information we required for the audit and the Independent Living Centre Tas Inc at 30 June 2015; and

·         The rules relating to the administration of the funds of the Independent Living Centre Tas Inc have been observed

Cky,E t-         fitl'Asr-1PsrvA-

Crowe Horwath Tasmania

Launceston

Date: 2/9/15

Malcolm Matthews Partner