Annual General Meeting - Chairo Christian School · 2017. 5. 9. · Jeff Calway will also outline the progress that has been made this year with regard to developing a new strategic

10 May 2017

Annual General Meeting

Chairo’s Annual General Meeting for 2017 will be held in the Library at the Drouin Campus on Thursday 25

May, commencing at 7.30 pm and concluding with supper at about 9.20 pm. All parents, staff members and other

members of the Association are warmly invited to attend.

Full members in particular are expected to attend and exercise their right to vote, and to contribute generally to

the governance of the association that operates all Chairo campuses. General meetings at Chairo are always

interesting, informative and even enjoyable occasions!

Documents relevant to the meeting include the agenda, minutes of the two general meetings held last year, and

the Annual Reports booklet (which includes the audited financial statements for 2016, plus short reports from the

Executive Principal and Board Chairman).

Our guest speaker will be Martin Hanscamp, who is the Executive Officer of AACS

(Australian Association of Christian Schools) and was previously the Principal at

Mount Evelyn Christian School. AACS is an advocacy organisation representing

many Christian schools across Australia. It seeks to provide a voice for Christian

education; to represent independent Christian schools in the national political space;

to advocate for the interests of over 100 Christian schools throughout Australia; and

to serve member schools through effective communication and policy-making.

During the course of the meeting, Pete Wells (Pakenham Campus Principal) will

present a devotion, Bryan Lewis (Business Manager) will report regarding financial

results for 2016 and the budget and projects for 2017, and Anthony Collier

(Leongatha Campus Principal) will provide an update regarding Leongatha.

Jeff Calway will also outline the progress that has been made this year with regard to developing a new strategic

plan, and Simon Matthews will bring us up-to-date regarding preparations for Flinders Traralgon to become

Chairo Traralgon from the start of next year.

It would be great to see all Chairo families represented at the meeting. If you’ve been to Chairo general meetings

in the past, we’re confident you’ll agree that they are more than just meetings —and if you haven’t attended

before, please allow us to encourage you to take the opportunity to do so on Thursday 25 May!

Simon Matthews Jeff Calway

Executive Principal Board Chairman

http://www.chairo.vic.edu.au/_literature_166386/Annual_Report_2014

Chairo Christian School ABN 12 451 824 370

WARRAGUL DISTRICT PARENT CONTROLLED CHRISTIAN SCHOOL ASSOCIATION INC. Reg. No. A5753

~ ANNUAL GENERAL MEETING AGENDA ~

Thursday 25 May 2017, 7:30 pm, Drouin Campus Page 1 of 1

Thursday 25 May 2017, 7.30pm, Drouin Campus Library

1. Opening

1.1 Welcome & prayer (Jeff Calway)

1.2 Devotion (Peter Wells)

2. General resolutions (Jeff Calway)

2.1 Recommendation: That the agenda as distributed be adopted.

2.2 Recommendation: That the apologies received be adopted.

2.3 Recommendation: That the minutes of the Annual General Meeting held on 26 May 2016 be

confirmed as a true and correct record.

2.4 Recommendation: That the minutes of the General Meeting held on 10 November 2016 be

confirmed as a true and correct record.

2.5 Recommendation: That the annual reports for 2016 by the Chairman, Executive Principal and

Business Manager as distributed be received.

3. Special reports

3.1 Leongatha Campus (Anthony Collier)

3.2 Strategic Plan (Jeff Calway)

3.3 Traralgon Campus (Simon Matthews)

4. Financial report (Bryan Lewis)

4.1 Financial results for 2016

4.2 Budget and projects for 2017

4.3 Recommendation: That the audited annual Financial Statements for 2016 as distributed be

accepted as an accurate representation of the financial position of the Warragul District Parent Controlled Christian School Association Inc.

4.4 Recommendation: That Mary Winter of Crowe Horwath be appointed as Auditor for 2017 for

the Warragul District Parent Controlled Christian School Association Inc.

5. Guest address (Martin Hanscamp)

6. Closing prayer (Jeff Calway)

~~ Fellowship over supper to follow the meeting ~~



~ ANNUAL GENERAL MEETING MINUTES ~


Thursday 26 May 2016, 7.30pm, Drouin Campus Library

1. Attendance

1.1 Full members present: Jeff Calway, Rob Bray, Sharon Bray, Caroline Weatherhead, Annette

Martin, Chris Dean, Bryan Lewis, Brian Tucker, Steve McAllister, Tom Guilford, Peter Morison,

Melissa Rumble, Stephen Young, Helen Neumann, Mark Ross, Louise Hood, Allan Piening,

Michael Van Leeuwin, Sean Walsh, Justin Groenewaldt, Danielle Smith, Andrea Munn, David

Sollberger, Hannah Sollberger, Phil McCorriston, Janet King, Leon Pederson, Danielle Chew,

Hazel Rhodes, Diane Sydenham, Lisa Finlay, Janene Williames

1.2 Associate members present: Jason Ward, Jane Ward, Lisa Dumicich, Paul Ellis, Corrina

Chalmers, Susie Piening, John Presant, Christine Hibma, Brett Duxbury, Marcus Van Heyst,

Susan Blockley, Ben Subban, Judy Linossier, Hans Pedersen, Christine Pedersen, Katy Pepper,

Barbara Shone, Lisa Nalder, Paula Loomes, Andy Butler, Shelly Beamish, Matt Beamish,

Lyndon Calway, Aaron Maidment, Kylie Crawford, Tammy Williamson, Kim Miller, Elise

Groenewaldt, Heather Bedford, Adrian Williams

1.3 Non-members present: Pam Lavery (CEN)

1.4 Proxies presented: Nil

1.5 Apologies received: Heather Wallace, Des Wallace, Mick Lewis, Tina Lewis, Paul Remyn,

Vicki Remyn, Michael McDonald, Noelene Power, Naomi McLean, Mark Cutchie, Shirley

Barnes, Maria Fullward, Fritha Blackwood, Gary Wentworth, Carolyn Wentworth, David McLean,

Millie McLean, Darryl Martin, Lorraine Lodge, Merron Calway, Di McAllister, Paul Eshuis, Mark

Smith, Bruce King, Julie Dean, Donna Lewis, Jason Chew, Gordon Bedford, Liz Walsh, Kerrie

Jackson, Andrew Jackson, Anthony Collier

2. Opening

2.1 Jeff Calway welcomed everyone to the meeting, thanking them for their interest and attendance,

and then opened in prayer.

2.2 Student musicians and singers from Drouin Senior School led the meeting in the singing of two

songs: How Great is Our God and Shout to the Lord.

2.3 Pam Lavery shared a devotion regarding answering difficult questions. Children often ask

questions that are hard to answer. In looking at the world around us, people are often forced to

ask, “Why do bad things happen?”

The Israelites asked why they were enduring such suffering and Moses answered: “The secret

things belong to the LORD our God, but the things revealed belong to us and to our children

forever, that we may follow all the words of this law” (Deuteronomy 29:29).

Paul asked God three times to take away his thorn in the flesh according to 2 Corinthians 12:8–

9, “But he said to me, ‘My grace is sufficient for you, for my power is made perfect in weakness.’

Therefore I will boast all the more gladly about my weaknesses, so that Christ’s power may rest

on me.”

We also should look to God and His Word as the questions raised by the society around us

become more complex. The Bible’s answers are often not straightforward replies but an offer of

relationship. In the midst of challenging or overwhelming questions in life, we must always

remember God’s love. See Romans 8:38–39.

3. General resolutions

3.1 Resolved on the motion of Tom Guilford & Michael van Leeuwen that the agenda as distributed

be adopted.

3.2 Resolved on the motion of Steve McAllister & Peter Morison that the apologies received be

accepted.

3.3 Resolved on the motion of Andrea Munn & Caroline Weatherhead that the minutes of the

Annual General Meeting held on 28 May 2015 be confirmed as a true and correct record.



~ ANNUAL GENERAL MEETING MINUTES ~


3.4 Resolved on the motion of Stephen Young & Diane Sydenham that the minutes of the General

Meeting held on 12 November 2015 be confirmed as a true and correct record.

3.5 Resolved on the motion of Sharon Bray & Leon Pedersen that the annual reports for 2015 by

the Chairman, Executive Principal and Business Manager as distributed be received.

4. Special reports

4.1 Rob Bray introduced Pam Lavery, the CEN State Executive Officer for Victoria, who reported in

relation to her visits this year to Victorian CEN schools. She commented about how she loved

the great facilities at the schoold, but that each school’s greatest asset is the people: teachers,

students, staff members and families. The great developments and art and beautiful grounds are

simply physical evidence of Christian communities committed to Christian education.

Real Christian education is based on God’s agenda, the end result being students becoming

responsive disciples. Stronks and Blomberg say that there are three things common to Christian

schools who achieve this: unwrapping students’ gifts, sharing each other’s joys and burdens,

and seeking shalom. Pam then prayed for the Chairo community.

4.2 John Presant reported in relation to recent developments within Drouin Senior School, the most

notable changes being: the introduction of VCAL; changes to the structure of Year 9 & 10; the

appointment of faculty coordinators; replacement of staff meetings with professional team

meetings; increased time in Units 3 & 4 classes; and the adoption of a whole school learning

management system (Linc). John then shared his vision for 2016.

4.3 Jeff Calway reported in relation to the recruitment of Simon Matthews as our new Executive

Principal to commence in 2017, and a short video message from Simon was shown.

4.4 Melissa Rumble announced the appointment of a new Senior Chaplain, Medon Loupis.

5. Financial reports

5.1 Financial results for 2015

Bryan Lewis reported in relation to the financial results for 2015, elaborating on a number of key

points, including: 1,226 Prep – Year 12 students (45 up on 2014, four up on budget); a cash

surplus of $2,035,036 (representing 10.7% of income); $2,038,548 spent on building; other

capital expenditure of $1,080,637; no fixed debt at the end of the year; and increased spending

on salaries of 10.7%.

5.2 Budget and projects for 2016

Bryan Lewis reported in relation to the budget and projects for 2016, highlighting: 89 students up

on 2015 (18 up on budget); completion of the design and technology centre at Pakenham;

construction of the performing arts centre at Drouin to commence soon; new playgrounds; car

park developments and other improvements planned; and borrowings in place for future

development of $5.5m.

5.3 Resolved on the motion of Chris Dean & Mark Ross that the audited annual Financial

Statements for 2015 as distributed be accepted as an accurate representation of the financial

position of the Warragul District Parent Controlled Christian School Association Inc.

5.4 Resolved on the motion of Chris Dean & Tom Guilford that Mary Winter of Crowe Horwath be

appointed as Auditor for 2016 for the Warragul District Parent Controlled Christian School

Association Inc.

6. Guest address

6.1 Alice Mustin, the CEN Curriculum Advisor in Victoria, was unable to attend due to illness.

Instead, Pam Lavery introduced a new CEN publication regarding Christian education, which

she read in conjunction with a video presentation.

7. Closure

7.1 Jane Ward closed the meeting in prayer at 9:23 pm and a time of fellowship over supper

followed.



~ GENERAL MEETING MINUTES ~

Thursday 10 November 2016, 7:30pm, Pakenham Campus Page 1 of 3

Thursday 10 November 2016, 7:30 pm, Pakenham Campus

1. Attendance

1.1 Full members present: Jeff Calway, Rob Bray, Sharon Bray, Caroline Weatherhead, Chris Dean,

Julie Dean, Bryan Lewis, Brian Tucker, Mark Cutchie, Tom Guilford, Louise Hood, Allan Piening, Michael Van Leeuwin, Sean Walsh, Justin Groenewaldt, Danielle Smith, Mark Smith, Andrea Munn, David Sollberger, Phil McCorriston, Leon Pederson, Danielle Chew, Darryl Martin, Jeanette Breaden, Millie McLean, David McLean, Jason Chew, Alan Battersby, Steve McAllister, Dianne McAllister, Kerrie Jackson, Robert Scali

1.2 Associate members present: Jane Ward, Corrina Chalmers, John Presant, Christine Hibma,

Michelle Van Heyst, Ben Subban, Judy Linossier, Hans Pedersen, Christine Pedersen, Shelly Beamish, Matt Beamish, Lyndon Calway, Aaron Maidment, Tammy Williamson, Kim Miller, Heather Bedford, Claudia Correa, Anthony Collier, Liz Walsh, Anet Van Leeuwen, Medon Loupis, Simon Langner, Julie Langner, Karen Mayall, Bronwyn Rodgers, Susan White, Karen Thorp, Peter Jeffrey, Amy Liddle, Kelly Lee, Robin Lee, Sharon Battersby, Nick McLean, Fiona Clacy, Susan Blockley, Marco Marchant, Christine van der Marel, Jo Featonby, Andrew Day, Stacey Sherwell, Tim Sherwell, Jenni Marshall, Mick Lewis, Tina Lewis, Kamya Foster, Karina Rowcroft, Rowan Walker, Janine Southern

1.3 Non-members present: Simon Matthews, Veronica Matthews, Melanie Cameron, Patrick Featonby,

Michael Walsh, Carla Sella, Lynne Schmidt, Ivana Dimitrovici, Sharon Gordon

1.4 Proxy forms received: Nil

1.5 Apologies received: Peter Wells, Graham Toohill, Sue Toohill, Andrea Williams, Adrian Williams,

Bruce King, Janet King, Noelene Power, Maria Fullwood, Alison Buttle, Tara Fullwood, Shirley Barnes, Naomi McLean, Melissa Rumble, Fritha Blackwood, Wendy Taylor, Diane Sydenham, Merron Calway, Paul Chalmers, Susie Piening, Barbara Shone, Jason Ward, Lisa Finlay, Annette Martin, Gordon Bedford, Donna Lewis, Karl Hood, Hannah Solberger, Ian Gawler

2. Welcome 7:30

2.1 Jeff Calway welcomed everyone to the meeting, including special guests Simon and Veronica Matthews from Tasmania.

3. Devotion 7:32

3.1. Medon Loupis opened the meeting in prayer and then shared a devotion. He spoke about the changing attitude to Christianity and the growing hostility in society towards teaching children the truth. In John 4:7-17, Jesus showed radical grace, love and kindness to the Samaritan woman.

Medon’s hope for the school is that students, staff members and the school community will show this deeply radical grace. This is a God-honouring response to the hostility of the world to the Christian community. Jesus exposed the Samaritan woman’s sin, but didn’t condemn her in order to show grace.

We should be teaching children about sin so that we can constantly point them to Jesus’ living water, which leads to everlasting life.

4. Musical items 7:46

4.1 Four Senior School students from the Drouin Campus presented items from this year’s production of The Sound of Music.

5. General resolutions 7:54

5.1 Resolved on the motion of Andrea Munn & Tom Guilford that the agenda as distributed be adopted.

5.2 Resolved on the motion of Julie Dean & Steve McAllister that the apologies received be accepted.

5.3 Resolved on the motion of David McLean & Michael van Leeuwen that full members Tom Guilford and Sean Walsh be appointed as scrutineers for the Board election.

6. Financial matters 7:56

6.1 Financial report





Bryan Lewis reported in relation to the financial position of the Association for 2016, noting the following key points:

1349 Prep – Year 12 students (34 above budget)

Cash surplus of $2,487,000 (11.56% of income)

Capital grants received of $372,964

Capital expenditure of $5.7m (including the new Design & Technology Centre at Pakenham; Pakenham Middle School buildings; Drouin Performing Arts Centre preparation; services upgrades; furniture and equipment; new play areas at Drouin East; IT, teaching and library resources; land purchase at Pakenham and Traralgon)

6.2 Budget introduction

Bryan Lewis reported in relation to the budget for 2017, noting the following key points:

1391 Prep – Year 12 students

Reasonable federal grant increases anticipated

General fee increases of 3.5%

Cash surplus of 9.55% expected

Salary increases of 2.5%

Much capital development with grant support

ICT strategic plan implementation continues

Preparation for Traralgon in 2018

A number of reviews to be completed as plans are implemented and updated

7. Board election 8:16

7.1 Current Board composition

7.1.1 Term expiring 31/12/16: Mark Cutchie, Louise Hood

7.1.2 Term expiring 31/12/17: Christopher Dean, Allan Piening

7.1.3 Term expiring 31/12/18: Jeff Calway, Melissa Rumble, Brian Tucker

7.2 Board nominations

7.2.1 Mark Cutchie (3 years) Nominated by Justin Groenewaldt

7.2.2 Kerrie Jackson (3 years) Nominated by Julie Dean

7.2.3 Louise Hood (3 years) Nominated by Helen Neumann

7.3 Election ballot

Jeff Calway explained the Board election process and the Board nominees briefly left the room so that any questions in relation to the nominees could be asked and addressed. The Board nominees then returned to the room and the election was conducted.

8. Guest speaker 8:22

8.1 Jeff Calway introduced and welcomed Simon Matthews, Chairo’s new Executive Principal from the start of 2017.

8.2 Simon Matthews introduced himself by providing some information regarding his family and background. He quoted David Kirk, former All Blacks captain and business leader, regarding what is required to grow and move forward, the two most important being to build on heritage and the freedom to make choices.

Chairo should show thankfulness to God for the Brays and for the heritage of our school as we look forward. We shouldn’t forget the work that’s gone before. However, we mustn’t put our faith in our forefathers, but in God. Looking forward with faith and vision is vital to moving forward to where we want to go. Ultimately, all of our works here will pass away to our eternal inheritance.

Simon outlined four areas where we need to apply our appreciation of heritage and vision for the future in order to grow:





1. Continue to nurture a clear sense of purpose – declaring the Lordship of Jesus Christ over everything in our education, the role of parents in nurturing their children is recognised.

2. Plan – being good stewards of all God has given us includes wise planning.

3. People – being a united people committed to the community for it to continue to honour God.

4. Partnership – As a school we need to pursue and engage and invest with our partners to maintain the vision: school/parents, churches/association, CEN/association.

If we forget the stories of the past, we think that the future is all about us rather than about God. Simon shared the doxology from Jude and then prayed for the school.

9. Reports 8:50

9.1 Staffing announcements

Rob Bray announced the names of staff members who will be finishing at Chairo at the end of this year, and those continuing in different roles.

Rob Bray announced the names of new staff members for 2017, and others who have started in recent months, and asked new staff members present to stand.

Louise Hood led the meeting in prayer for all new and departing staff members.

9.2 Board report regarding 2016 developments

Jeff Calway reported regarding the role of the Board and its responsibilities. Some major items the Board has dealt with this year include the Drouin Performing Arts Centre, the Pakenham Design & Technology Centre, adjoining land purchase at Pakenham, playground upgrade at Drouin East, purchase of the Traralgon campus, policy development and key staffing changes.

9.3 Pakenham Campus report

Steve McAllister presented a snapshot of the year at the Pakenham Campus, including new Middle School buildings, basketball court, Design & Technology Centre opened by Russell Broadbent, P & F twilight picnic, Early Learning Centre, Junior School production, Science evening, music program, Middle School music, French, sheep program, Senior School, camps and excursions, sport, Expo, work experience and visitors. Steve reminded us of the importance of prayer in order to keep us focused on God.

10. Board election results 9:11

10.1 Declaration of election results

Jeff Calway declared that Mark Cutchie, Kerrie Jackson and Louise Hood had each been elected to serve on the Board for three-year terms. He addressed the new and re-elected Board members, and sought and received agreement regarding their commitment to their roles.

10.2 Prayer for new Board members

Jeff Calway led the meeting in prayer for each new and re-elected Board member.

11. Special item 9.15

11.1 Jeff Calway spoke about the service of departing executive staff members, Steve McAllister and Rob Bray, to the school over many years and thanked them for their significant contributions.

12. Closure 9:30

12.1 Jeff Calway thanked everyone for their attendance at the meeting and invited those who could remain longer to stay for a time of fellowship over supper.

12.2 Chris Dean closed the meeting in prayer at 9.30 pm.

1

AnnualReport

AnnuAl RepoRts And FinAnciAl stAtements

FoR the yeAR ended 31 decembeR 2016

Warragul District Parent-Controlled Christian School Association Incorporated • abn 12 451 824 370

Board Chairman’s Report ......................................................................................... iExecutive Principal’s Report .................................................................................. iiiStatement of Financial Position ...............................................................................1

Current Assets ...................................................................................................1Non Current Assets ..........................................................................................1Total Assets ........................................................................................................1

Statement of Financial Position ...............................................................................2Current Liabilities .............................................................................................2Non Current Liabilities ....................................................................................2Total Liabilities ..................................................................................................2Net Assets ...........................................................................................................2Members Funds .................................................................................................2Accumulated Funds .........................................................................................2

Statement of Profit and Loss and Comprehensive Income .................................3Statement of Cash Flows ..........................................................................................4

Cash Flows from Operating Activities ...........................................................4Net Cash Flow from Operating Activities .....................................................4Net Cash used in Investing Activities ............................................................4Cash Flows from Financing Activities ...........................................................4Net Cash Flow from/used in Financing Activities .......................................4Net Increase/(Decrease) in Cash Held ...........................................................4Cash at End of Year ...........................................................................................4

Statement of Changes in Equity ..............................................................................5Notes to and forming part of the Financial Statements .......................................6

Note 1: Statement of Significant Accounting Policies ..................................6Note 2: Revenue ..............................................................................................12Note 3: Surplus/(Deficiency) .........................................................................12Note 4: Receivables .........................................................................................13Note 5: Capital Grants ....................................................................................13Note 6: Borrowings .........................................................................................13Note 7: Reserves ..............................................................................................14Note 8: Provisions ...........................................................................................14Note 9: Cash Flows .........................................................................................15Note 10: Related Party Transactions/Directors Benefits ............................16Note 11: Superannuation ...............................................................................16Note 12: Economic Dependency ...................................................................16Note 13: Association Details ..........................................................................16Note 14: Property, Plant & Equipment ........................................................17Note 15: Contingent Liabilities .....................................................................17Note 16: Commitments ..................................................................................17Note 17: Key Management Personnel ..........................................................18Note 18: Events After the Reporting Period ................................................18

Directors’ Declaration .............................................................................................19Independent Auditor’s Report ..............................................................................20

i

Board Chairman’s Report

In 1 Chronicles 16:23, we see this command recorded: ‘Give thanks to the Lord, for He is good! His faithful love endures forever’. We have seen this to be true, and testify loudly to God’s greatness, throughout 2016. Once again, as we have sought to glorify our God in all that we do, He has faithfully and mightily blessed us.

It’s no simple task to provide an excellent education in a world that grows in its hostility toward Christians. Nor is it an easy job to partner together in an environment that constantly pushes us to serve ourselves instead of one another. A caring Christian community is necessary to ensure these things are achieved to the very best of our ability. With thankfulness to God then, we continue to provide excellence in Christ-centred education in partnership with families within a caring Christian community (Chairo’s mission).

The 2016 calendar year saw the following full members serving as the Association’s Board of Directors: Mark Cutchie (Vice Chairman), Christopher Dean (Treasurer), Louise Hood (Secretary), Allan Piening, Melissa Rumble, Brian Tucker and myself (Board Chairman). Executive Principal Rob Bray and Business Manager Bryan Lewis completed the team, functioning as non-voting members of the Board.

Given busy lives and families, and the need for some to work around shift work, meeting attendance was exemplary. Of twelve ordinary Board meetings and two general meetings, all but three Board members attended all 12 meetings. Three members missed just one Board meeting and two missed one of the general meetings. Other meetings, training sessions and key events were also well attended.

Phil McCorriston became an Association full member during the year and his partnership with the school is greatly appreciated. Full members have the privilege of voting on important matters and therefore maintaining a healthy and vibrant membership. If you are considering applying for full membership, please contact Caroline Weatherhead at the Drouin Campus.

As is our normal practice, two important Association meetings were held during the year: the Annual General Meeting in May and another general meeting in November. At the agm, student musicians and singers from Drouin Senior School led the meeting in song. Pam Lavery, the cen State Executive Officer for Victoria, brought the devotion and introduced a new cen publication regarding Christian education, which she read in conjunction with a video presentation. John Presant, Head of Senior School (Drouin), reported on the exciting introduction of vcal and other important changes in Senior School, and the Business Manager, Bryan Lewis, presented the 2015 financial results and the 2016 budget.

ii

In November, we welcomed Simon and Veronica Matthews, as Simon prepared to take up his new role as Executive Principal from the start of 2017. Simon addressed the meeting passionately as he outlined four areas where we need to apply our appreciation of heritage, as well as a vision for the future, in order to grow: Purpose, Plan, People and Partnership. Kerrie Jackson was elected to the Board, to serve for three years from the beginning of 2017. In his final Association meeting, outgoing Executive Principal, Rob Bray, presented staff changes for the coming year. Steve McAllister, the outgoing Pakenham Campus Principal, presented an exciting snapshot of the year at the Pakenham Campus.

Some of the significant work undertaken by the Board during a busy year included:

• Finalising plans for the construction of a performing arts centre at the Drouin Campus (due for completion by approximately mid-2018)

• Construction and opening of a design and technology centre at the Pakenham Campus

• Purchase of two lots of land (each 26 hectares) next to the Pakenham Campus• Purchase of a new campus in Traralgon (previously Flinders Christian

Community College) to commence in 2018• Much progress in relation to policy development and review, with some

key government regulatory changes occurring with respect to child protection in particular

Along with the completion of Rob Bray’s tenure, some of the key staffing changes involving the Board in 2016 were the recruitment of a new Executive Principal (Simon Matthews), a new Pakenham Campus Principal (Peter Wells) and a new Senior Chaplain (Medon Loupis), who commenced mid-year.

While there were a number of rather momentous changes occurring through 2016, God sustained the entire Chairo community through them all, as we sought to fulfil His will and glorify Him in all our decisions and efforts. If we continue to maintain our focus on our marvellous Heavenly Father, and consistently seek to grow in our likeness to His excellent Son, our Lord Jesus Christ, meeting our mission and vision will continue to bring Him all the honour that is due to His name. Please continue to pray for your Board and staff members, and indeed for yourselves, as we continue to partner together in this great work of Christian education here at Chairo.

Jeff CalwayBoard Chairman

iii

Executive Principal’s Report

Jeff Calway, the Board Chairman, rightly reminds us of a command recorded early on in God’s Story, the Bible: Give thanks to the Lord, for He is good! His faithful love endures forever. A reflection on 2016 at Chairo is both a reason to give thanks to the Lord and clear evidence of His faithful love expressed to us across our community.

Rob Bray’s leadership at Chairo concluded at the end of 2016. Rob commenced at Chairo in 1996 and served with distinction as a teacher, and then as Principal and Executive Principal for thirteen years, leading the school through a tremendous phase of growth and maturity.

Rob’s ability to know, communicate with and care for so many people across Chairo is legendary, and his commitment to and service of the school (and that of his wife Sharon) is recognised as hugely significant. His legacy at the school will be a blessing to our current and future generations, and we give thanks to the Lord for Rob and Sharon Bray.

Steve McAllister also concluded in his role as Principal of the Pakenham Campus. Steve (again, faithfully supported by his wife Di) served as the leader at that campus since its inception in 1998. Anyone who has had a connection with this part of the Chairo community will very quickly talk of the meaningful ways in which Steve’s servant leadership has touched them personally. Again, we can gratefully give thanks to the Lord for Steve and Di McAllister.

Just to top things off, we also had another ‘legend’ conclude his service to the Chairo community. Graeme Lowe, the Senior Chaplain at Chairo for over nine years, served in an increasingly complex role in a growing school community with a love and care for people that is rare. The wisdom, commitment and compassion demonstrated by Graeme are a hallmark of Chairo for so many students, parents and staff members, and for this we can give thanks to the Lord.

At this time of departure by key leaders across Chairo, we have also seen clear evidence of God’s faithful love. The ability to make the wonderful new staffing appointments listed below is evidence of God’s faithfulness in abundance!

God graciously provided a new Principal for the Pakenham Campus by returning Peter Wells to our community, and also provided Medon Loupis to fill the Senior Chaplain role. Following a change to the teaching and learning leadership structure across Chairo, God allowed us to retain the skill and passion of Jane Ward to lead in this area at the Pakenham Campus, and also added Shelly Beamish (Drouin) and Christine Hibma (Leongatha) to this critical team. God also faithfully provided Sharon Gordon for the Head of Senior School role at Drouin and Robin Lee to act in the Head of Middle School role at Pakenham.

iv

In addition to blessing us with professional staff members with the necessary passion, expertise, experience and Christian commitment to enable Chairo to provide excellence in Christ-centred education, God has continued to favour us in many and varied ways—from facilities and resources to enrolment numbers and educational initiatives.

The Drouin East Campus, where it all began back in 1983 thanks to the vision and hard work of our founding families, continues to provide a wonderful foundation for Kinder to Year 4 students from the Drouin/Warragul region as they commence their educational journey.

There is much anticipation—even excitement—amongst the families and staff members at the Drouin Campus with the addition of students from the Latrobe Valley into Senior School, the introduction of a vcal program, and construction underway of the long-awaited performing arts centre.

In South Gippsland, word is gradually spreading that we are providing an excellent Christian education option at the Leongatha Campus. It has been very encouraging to see good growth in enrolment numbers and I have no doubt that the campus will go from strength-to-strength in the years to come as more families discover what Chairo has to offer.

Our quality educational programs, wonderful facilities (being constantly expanded) and location, population growth and satisfied families speaking to others are each serving to ensure that the Pakenham Campus continues to grow quickly in both student numbers and reputation.

And in a year’s time, I will be able to report regarding a fifth campus. Planning commenced in 2016 and will continue throughout 2017 as we prepare for the Traralgon Campus of Flinders Christian Community College to become Chairo Traralgon from the beginning of 2018.

So how do we respond to all of this moving forward? Well, the command we were reminded of at the beginning must continue to shape us. We need to continue to give thanks to God for his love and faithfulness. But we must also look forward to what the future holds for Chairo with faith and obedience, understanding that our God, whose faithfulness was so evident in 2016, will continue to be faithful in 2017 and beyond.

While our circumstances may change, God does not. While we may not know the future for our wonderful school, who know the God who holds the future of our school in His hands. Praise be to Him!

Simon MatthewsExecutive Principal

7

Financial Statements for the Year Ended 31 December 2016

Page 1

Warragul District Parent-Controlled Christian School Association Incorporated Chairo Christian School

ABN 12 451 824 370 Statement of Financial Position

as at 31 December 2016

Note 2016 $

2015 $

Current Assets

Cash Assets 9(a) 74,768 68,849

Receivables (Net) 4 435,661 459,119

Inventory 5,815 6,110

Prepayments 253,025 272,456 Total Current Assets 769,269 806,534

Non Current Assets

Land At Valuation 14 1,855,000 1,855,000

Land At Cost 14 1,800,000 -

3,655,000 1,855,000

Buildings and Improvements at Valuation 49,388,023 46,221,317

Less Provision for Depreciation (20,123,015) (18,784,809)

14 29,265,008 27,436,508

Plant and Equipment at Cost 7,764,384 6,938,711

Less Provision for Depreciation (4,761,629) (4,452,459)

14 3,002,755 2,486,252

Capital Works in Progress 14 822,512 1,750,930 Total Non Current Assets 36,745,275 33,528,690

Total Assets 37,514,544 34,335,224

* The accompanying notes form part of the financial statements.

8


Page 2


ABN: 12 451 824 370 Statement of Financial Position


Current Liabilities Note 2016

$ 2015

$ Creditors 220,586 173,785

Accrued Expenses 1,496,714 1,240,680

Fees Received in Advance 145,204 145,095

Borrowings 6 165,413 188,535

Provision for Employee Entitlements 8 1,647,737 1,545,359

Other 81,491 59,189

Total Current Liabilities 3,757,145 3,352,643

Non Current Liabilities

Provision for Employee Entitlements 8 259,139 233,786

Borrowings 6 2,220,370 -

Total Non-Current Liabilities 2,479,509 233,786

Total Liabilities 6,236,654 3,586,429

Net Assets 31,277,890 30,748,795

Members Funds

Accumulated Funds 15,258,805 14,589,439

Reserves 7 16,019,085 16,159,356

Total Equity 31,227,890 30,748,795


9


Page 2


ABN: 12 451 824 370 Statement of Financial Position


Current Liabilities Note 2016

$ 2015

$ Creditors 220,586 173,785

Accrued Expenses 1,496,714 1,240,680

Fees Received in Advance 145,204 145,095

Borrowings 6 165,413 188,535

Provision for Employee Entitlements 8 1,647,737 1,545,359

Other 81,491 59,189

Total Current Liabilities 3,757,145 3,352,643

Non Current Liabilities

Provision for Employee Entitlements 8 259,139 233,786

Borrowings 6 2,220,370 -

Total Non-Current Liabilities 2,479,509 233,786

Total Liabilities 6,236,654 3,586,429

Net Assets 31,277,890 30,748,795

Members Funds

Accumulated Funds 15,258,805 14,589,439

Reserves 7 16,019,085 16,159,356

Total Equity 31,227,890 30,748,795



Page 3


ABN: 12 451 824 370 Statement of Profit or Loss and Comprehensive Income

for the year ended 31 December 2016 Note 2016

$ 2015

$ Revenue 2 23,277,408 20,529,507

Employee benefits expense (16,186,468) (14,209,069)

Borrowing costs expense (24,087) (211)

Depreciation and amortisation expense (2,214,245) (2,016,470)

Transport Costs (688,483) (627,992)

Cleaning/Maintenance/Utilities Costs (1,035,015) (948,665)

Tuition/camps/excursion expenses (1,168,313) (1,041,251)

Other expenses

(1,796,354)

(1,667,283)

Surplus 164,443 18,566

Revenue from capital grants 5 372,964 230,390

Total Surplus 537,407 248,956

Total Comprehensive Income 537,407 248,956


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ABN: 12 451 824 370 Statement of Cash Flows

for the year ended 31 December 2016

Note 2016 $

2015 $

Cash Flows from Operating Activities Receipts from Student Charges 6,517,049 5,716,749 Other Income 276,593 263,313 Grants 16,442,387 14,315,059 Interest Received 17,949 56,888 Borrowing Costs Paid (24,087) (211) Payments to Suppliers and Employees (20,355,043) (18,335,378) Net Cash Flow from Operating Activities 9(b) 2,874,848 2,016,150 Cash Flows from Investing Activities Payments for Property Plant & Equipment (5,439,141) (3,119,154) Net Cash used in Investing Activities (5,439,141) (3,119,154) Cash Flows from Financing Activities Proceeds from Capital Grants 372,964 230,390 Proceeds from Loans 2,197,248 188,535 Net Cash Flow from Financing Activities 2,570,212 418,925 Net Increase/(Decrease) in Cash Held 5,919 (684,079) Cash at beginning of Year 68,849 752,928 Cash at End of Year 9(a) 74,768 68,849


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ABN: 12 451 824 370 Statement of Cash Flows


Note 2016 $

2015 $

Cash Flows from Operating Activities Receipts from Student Charges 6,517,049 5,716,749 Other Income 276,593 263,313 Grants 16,442,387 14,315,059 Interest Received 17,949 56,888 Borrowing Costs Paid (24,087) (211) Payments to Suppliers and Employees (20,355,043) (18,335,378) Net Cash Flow from Operating Activities 9(b) 2,874,848 2,016,150 Cash Flows from Investing Activities Payments for Property Plant & Equipment (5,439,141) (3,119,154) Net Cash used in Investing Activities (5,439,141) (3,119,154) Cash Flows from Financing Activities Proceeds from Capital Grants 372,964 230,390 Proceeds from Loans 2,197,248 188,535 Net Cash Flow from Financing Activities 2,570,212 418,925 Net Increase/(Decrease) in Cash Held 5,919 (684,079) Cash at beginning of Year 68,849 752,928 Cash at End of Year 9(a) 74,768 68,849



Page 5


ABN: 12 451 824 370 Statement of Changes in Equity


2016 Retained

Surplus Capital Grants Reserve

Asset Revaluation

Reserve

Total

$ $ $ $ Balance at 1 January 2016

14,589,439 6,425,356 9,734,000 30,748,795

Net Surplus 537,407 - - 537,407 Net Loss On Revaluation of Building (Note 7)

- - (8,312) (8,312)

Transfer to retained surplus for amortisation

131,959 (131,959) - -

Balance at 31 December 2016

15,258,805 6,293,397 9,725,688 31,277,890

2015 Retained

Surplus Capital Grants Reserve

Asset Revaluation

Reserve

Total

$ $ $ $ Balance at 1 January 2015

14,101,931 6,663,908 9,734,000 30,499,839

Net Surplus 248,956 - - 248,956 Net Loss On Revaluation of Building

- - - -

Transfer to retained surplus for amortisation

238,552 (238,552) - -

Balance at 31 December 2015

14,589,439 6,425,356 9,734,000 30,748,795


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ABN: 12 451 824 370 Notes to and forming part of the Financial Statements


Note 1: Statement of Significant Accounting Policies The financial statements are for Warragul District Parent-Controlled Christian School Association Inc. as an individual entity, incorporated and domiciled in Australia. The school is a not-for-profit incorporated association. Statement of Compliance These general purpose financial statements have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and Interpretations issued by the Australian Accounting Standards Board ('AASB'), the Associations Incorporation Reform Act 2012, and the Australian Charities and Not-for-profits Commission Act 2012. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial statement containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of this financial statement are presented below. They have been consistently applied unless otherwise stated. Basis of Preparation The financial statements, except the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement of fair value of selected non-current assets. Historical cost is generally based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted. Accounting Policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements, unless otherwise stated.

(a) Property, Plant and Equipment

Land and buildings Land and buildings are shown at fair value, based on periodic valuations by external independent valuers, or at cost, less subsequent depreciation and impairment for buildings. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Increases in the carrying amounts arising on revaluation of land and buildings are credited in other comprehensive income through to the revaluation surplus reserve in equity. Any revaluation decrements are initially taken in other comprehensive income through to the revaluation surplus reserve to the extent of any previous revaluation surplus of the same asset. Thereafter the decrements are taken to profit or loss.

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Note 1: Statement of Significant Accounting Policies The financial statements are for Warragul District Parent-Controlled Christian School Association Inc. as an individual entity, incorporated and domiciled in Australia. The school is a not-for-profit incorporated association. Statement of Compliance These general purpose financial statements have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and Interpretations issued by the Australian Accounting Standards Board ('AASB'), the Associations Incorporation Reform Act 2012, and the Australian Charities and Not-for-profits Commission Act 2012. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial statement containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of this financial statement are presented below. They have been consistently applied unless otherwise stated. Basis of Preparation The financial statements, except the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement of fair value of selected non-current assets. Historical cost is generally based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted. Accounting Policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements, unless otherwise stated.

(a) Property, Plant and Equipment

Land and buildings Land and buildings are shown at fair value, based on periodic valuations by external independent valuers, or at cost, less subsequent depreciation and impairment for buildings. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Increases in the carrying amounts arising on revaluation of land and buildings are credited in other comprehensive income through to the revaluation surplus reserve in equity. Any revaluation decrements are initially taken in other comprehensive income through to the revaluation surplus reserve to the extent of any previous revaluation surplus of the same asset. Thereafter the decrements are taken to profit or loss.


Page 7

Warragul District Parent-Controlled Christian School

Association Incorporated Chairo Christian School



Plant and equipment Plant and equipment are brought to account at cost less, where applicable, any accumulated depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the assets. 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 entity and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred. The carrying amount of plant and equipment is reviewed annually by the Committee to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the estimated replacement cost of the asset. The cost of plant and equipment constructed within the Association includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads.

(b) Depreciation

The depreciable amount of all fixed assets are depreciated on a straight line basis over the useful lives of the assets to the school from the time the asset is held ready for use, except for buildings and site improvements which are depreciated using the diminishing value basis with a 10% residual value. The depreciation rates used for the current and comparative year for each class of depreciable asset are:- Class of Fixed Asset Depreciation Rate Buildings & Site Improvements 20-40 years, Diminishing Value Plant and Equipment 5% - 50%

(c) Cash Cash and cash equivalents include cash on hand and deposits held at call with banks.

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(d) Revenue Revenue from tuition fees is bought to account when students are invoiced. Interest revenue is recognised on an accruals basis. Government grants are recognised when the right to receive a grant has been established. Revenue received for capital purposes is recorded as income through the statement of comprehensive income and then transferred to capital reserves. Donations are recognised as revenue when received.

(e) Employee Entitlements

Provision is made for the Association’s liability for employee benefits arising from services rendered by employees to reporting 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 the present value of the estimated future cash outflows to be made for those benefits. Contributions are made by the Association to an employee superannuation fund and are charged as expenses when incurred.

(f) Impairment of Assets

At each reporting date, the Association 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 value less costs to sell and replacement cost, 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.

(g) Critical Accounting Estimates and Judgments

The Directors evaluate estimates and judgments 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 Association.

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(d) Revenue Revenue from tuition fees is bought to account when students are invoiced. Interest revenue is recognised on an accruals basis. Government grants are recognised when the right to receive a grant has been established. Revenue received for capital purposes is recorded as income through the statement of comprehensive income and then transferred to capital reserves. Donations are recognised as revenue when received.

(e) Employee Entitlements

Provision is made for the Association’s liability for employee benefits arising from services rendered by employees to reporting 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 the present value of the estimated future cash outflows to be made for those benefits. Contributions are made by the Association to an employee superannuation fund and are charged as expenses when incurred.

(f) Impairment of Assets

At each reporting date, the Association 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 value less costs to sell and replacement cost, 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.

(g) Critical Accounting Estimates and Judgments

The Directors evaluate estimates and judgments 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 Association.


Page 9



for the year ended 31 December 2016 Key Estimates i. Impairment

The Association assesses impairment at each reporting date by evaluation of conditions and events specific to the Association that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions.

No impairment has been recognised in respect of property, plant and equipment at reporting date.

ii. Employee benefits provision

As per Note 1(e), the liability for employee benefits expected to be settled more than 12 months from the reporting date are recognised and measured at present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account.

iii. Estimation of useful lives of assets

The Association determines the useful lives and related depreciation and amortisation charges for its property, plant and equipment. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated.

iv. Bad debt provision The association evaluates the collectability of accounts receivable on an ongoing basis based on historical bad debts, customer credit-worthiness, current economic trends and changes in payment activity. A provision is created recognising likely bad debts of the association taking into account the individual factors as outlined above for each customers debt at the 31 December 2016.

(h) Current and Non-current Classification

Assets and liabilities are presented in the statement of financial position based on current and non-current classification.

An asset is current when:

i. it is expected to be realised or intended to be sold or consumed in normal operating cycle; or ii. it is held primarily for the purpose of trading; or

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for the year ended 31 December 2016 iii. it is expected to be realised within twelve months after the reporting period; or iv. the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

i. it is expected to be settled in normal operating cycle; ii. it is held primarily for the purpose of trading; it is due to be settled within twelve months after the reporting period; or iii. there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

(i) Income Tax In accordance with Section 50-5 of the Income Tax (Assessment) Act 1997, the Association is exempt from income tax.

(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. 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.

(k) Working Capital Deficiency

The financial statements have been prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. The Association believes it is a going concern for strong reasons including continuing enrolment numbers for 2017 leading directly to government grant funding which is due to be paid to the Association in the second week of January 2017 totaling an estimated $7.2 million which more than meet current liabilities, the projected timing of repayment of liabilities, the existence of an approved finance facility and significant unencumbered assets. For the year ended 31 December 2016, although the School recorded a net current asset deficiency of $2,987,877 (2015: Deficiency $2,546,110), it also recorded a surplus from operating activities of $164,443 (2015: Surplus $18,566) and positive cash inflows from operating activities of $2,874,848 (2015: $2,016,150)

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for the year ended 31 December 2016 iii. it is expected to be realised within twelve months after the reporting period; or iv. the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

i. it is expected to be settled in normal operating cycle; ii. it is held primarily for the purpose of trading; it is due to be settled within twelve months after the reporting period; or iii. there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

(i) Income Tax In accordance with Section 50-5 of the Income Tax (Assessment) Act 1997, the Association is exempt from income tax.

(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. 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.

(k) Working Capital Deficiency

The financial statements have been prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. The Association believes it is a going concern for strong reasons including continuing enrolment numbers for 2017 leading directly to government grant funding which is due to be paid to the Association in the second week of January 2017 totaling an estimated $7.2 million which more than meet current liabilities, the projected timing of repayment of liabilities, the existence of an approved finance facility and significant unencumbered assets. For the year ended 31 December 2016, although the School recorded a net current asset deficiency of $2,987,877 (2015: Deficiency $2,546,110), it also recorded a surplus from operating activities of $164,443 (2015: Surplus $18,566) and positive cash inflows from operating activities of $2,874,848 (2015: $2,016,150)


Page 11

Warragul District Parent-Controlled Christian School

Association Incorporated Chairo Christian School

ABN: 12 451 824 370 Notes to and forming part of the Financial Statements for the year ended 31

December 2016

(l) New, revised or amending Accounting Standards and Interpretations adopted

During the current year, the Association has adopted all of the new and revised Australian Accounting Standards and Interpretations applicable to its operations which became mandatory. The adoption of these standards has not significantly impacted the recognition and measurement of transactions and the presentation and disclosures of the financial statements. There are no new and revised accounting standards issued but not yet effective as at the date of signing of the financial statements which the Association has decided to early adopt.

(m) Standards and Interpretations affecting the reported results or financial position

There are no new and revised Standards and Interpretations adopted in these financial statements affecting the reporting results or financial position.

(n) Comparative Figures

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

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Note 2: Revenue

2016

2015

$ $ $ $

Fees Revenue 5,695,143 5,086,831

Government Grants:

- State 4,424,758 4,025,816

- Commonwealth 12,017,629 16,442,387 10,289,243 14,315,059

Interest Received 17,949 56,888

Student Transport 327,611 303,635

Other Income 775,798 726,460

Non Operating Activities

- Donations 18,520 40,634

23,277,408 20,529,507

Note 3: Surplus

Expenses

Educational Consumables, Expenses and Camps 1,168,313 1,041,251

Occupancy maintenance and operating expenses 1,035,015 948,665

Movement in provisions (Note 8) 127,731 211,384

Bad and doubtful debts:

- bad debts written off 27,594 25,796

- movement in provision for doubtful debts (Note 4) 19,401 46,995 29,729 55,525

Remuneration of the auditors for:

- auditing or reviewing the financial report 13,660 13,260

- other services - 13,660 - 13,260

Loss on disposal of fixed assets - 16,770

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Note 2: Revenue

2016

2015

$ $ $ $

Fees Revenue 5,695,143 5,086,831

Government Grants:

- State 4,424,758 4,025,816

- Commonwealth 12,017,629 16,442,387 10,289,243 14,315,059

Interest Received 17,949 56,888

Student Transport 327,611 303,635

Other Income 775,798 726,460

Non Operating Activities

- Donations 18,520 40,634

23,277,408 20,529,507

Note 3: Surplus

Expenses

Educational Consumables, Expenses and Camps 1,168,313 1,041,251

Occupancy maintenance and operating expenses 1,035,015 948,665

Movement in provisions (Note 8) 127,731 211,384

Bad and doubtful debts:

- bad debts written off 27,594 25,796

- movement in provision for doubtful debts (Note 4) 19,401 46,995 29,729 55,525

Remuneration of the auditors for:

- auditing or reviewing the financial report 13,660 13,260

- other services - 13,660 - 13,260

Loss on disposal of fixed assets - 16,770


Page 13


ABN: 12 451 824 370 Notes to and forming Part of the Financial Statements


2016 $

2015 $

Note 4: Receivables

Debtors – Fees 637,328 528,493

Sundry Debtors 35,351 148,243

Less Provision for Doubtful Debts (237,018) (217,617)

435,661 459,119

Note 5: Capital Grants

Block Grant Authority – Aust. Govt. 372,964 230,390

372,964 230,390

Note 6: Borrowings

Current

Bank Overdraft - 188,535

Equipment Loan 165,413 -

165,413 188,535

Non-Current Equipment Loan Bank Bill

340,370

1,880,000

-

2,220,370 -

The bank overdraft is secured by a mortgage over 585 Bald Hill Road, Nar Nar Goon, and a general security agreement over all existing and future assets, and undertakings.

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Note 7: Reserves 2016 $

2015 $

Capital Grants Reserve:

Balance at beginning of year 6,425,356 6,663,908

Transfer (from) / to Reserve (131,959) (238,552)

Balance at end of year 6,293,397 6,425,356

Asset Revaluation Reserve


Net Loss On Revaluation of Building (8,312) -


Total Reserves Balance at end of year 16,019,085 16,159,356 The capital grants reserve is held in recognition of grants received for capital purposes. The majority of these grants would need to be refunded on a pro rata basis, should the entity cease operations within a 20 year period after the receipt of the grant. The entity therefore recognises the grant as income and transfers the entire grant from retained earnings to the reserve in the year it is received and then transfers 5% from the reserve into retained earnings annually. The capital grant for the Multipurpose BER Hall built at Leongatha Campus in 2010 requires the full grant amount to be refunded if operations cease within 7 years after the receipt of the grant and then transferred from the reserve to retained earnings annually on a pro-rata basis for the next 7 years following at a rate of 14.29% per year (years 8-14 after receipt of grant). The capital grant for the Design and Technology Building built at Pakenham Campus in 2015 requires the grant to be refunded on a pro rata basis, should the entity cease operations within an 11 year period. The entity therefore transfers 9.09% from the reserve to retained earnings annually on a pro rate basis for the next 11 years. The net loss on revaluation in 2016 relates to an invoice not presented for payment until August 2016 for an asset that was revalued in July 2013.

2016

$ 2015

$ Note 8: Provisions Current Long Service Leave expected to be paid in current year 142,810 97,433 Long Service Leave not expected to be paid in current year 1,348,840 1,303,272 Annual Leave 156,087 136,333 Maternity Leave - 8,321 1,647,737 1,545,359 Non Current Long Service Leave 259,139 233,786

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Note 7: Reserves 2016 $

2015 $

Capital Grants Reserve:


Transfer (from) / to Reserve (131,959) (238,552)


Asset Revaluation Reserve


Net Loss On Revaluation of Building (8,312) -


Total Reserves Balance at end of year 16,019,085 16,159,356 The capital grants reserve is held in recognition of grants received for capital purposes. The majority of these grants would need to be refunded on a pro rata basis, should the entity cease operations within a 20 year period after the receipt of the grant. The entity therefore recognises the grant as income and transfers the entire grant from retained earnings to the reserve in the year it is received and then transfers 5% from the reserve into retained earnings annually. The capital grant for the Multipurpose BER Hall built at Leongatha Campus in 2010 requires the full grant amount to be refunded if operations cease within 7 years after the receipt of the grant and then transferred from the reserve to retained earnings annually on a pro-rata basis for the next 7 years following at a rate of 14.29% per year (years 8-14 after receipt of grant). The capital grant for the Design and Technology Building built at Pakenham Campus in 2015 requires the grant to be refunded on a pro rata basis, should the entity cease operations within an 11 year period. The entity therefore transfers 9.09% from the reserve to retained earnings annually on a pro rate basis for the next 11 years. The net loss on revaluation in 2016 relates to an invoice not presented for payment until August 2016 for an asset that was revalued in July 2013.

2016

$ 2015

$ Note 8: Provisions Current Long Service Leave expected to be paid in current year 142,810 97,433 Long Service Leave not expected to be paid in current year 1,348,840 1,303,272 Annual Leave 156,087 136,333 Maternity Leave - 8,321 1,647,737 1,545,359 Non Current Long Service Leave 259,139 233,786


Page 15



for the year ended 31 December 2016 Note 9: Cash Flows

(a) Reconciliation Of Cash

For the purpose of the Statement of Cash Flows, the entity considers cash to include cash on hand, in banks and investments in money market instruments. Cash at the end of the reporting period as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial position as follows:

2016 $

2015 $

Cash on Hand 1,950 1,600 Cash at Bank – General Account – CBA 1,518 27,411 Cash At Bank – Building Fund- Westpac 48,938 38,711 Cash At Bank – Business Acc.- Westpac 22,360 - Cash At Bank – Cash Reserve - Westpac 2 1,127 74,768 68,849

(b) Reconciliation of Net Cash Provided by Operating Activities to Operating Surplus

2016 $

2015 $

Surplus 164,443 18,566 Non Cash Flows in Operating Surplus Depreciation 2,214,245 2,016,470

Decrease/(Increase) in operating receivables 23,456 (131,083)

Decrease in inventory 295 58

Decrease/(Increase) in prepayments 19,431 (110,079)

Increase in payables & accrued expenses 325,138 1,996

Increase in fees in advance 109 8,840

Increase in provision for employee entitlements 127,731 211,383

Net Cash Provided by Operating Activities 2,874,848 2,016,151

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for the year ended 31 December 2016 Note 10: Related Party Transactions/Directors Benefits Directors: The names of Directors who have held office during the financial year are:

Christopher Dean Louise Hood Mark Cutchie Allan Piening Brian Tucker Melissa Rumble Jeff Calway

A number of directors are parents of children currently attending the school and, therefore, receive tuition and other schooling services; fees are set for and paid by the relevant directors at the published, scheduled rates.

No director, a firm of which a director is a member or an entity in which a director has a substantial financial interest, receives remuneration from services rendered to the economic entity, in accordance with the entity’s constitution. The Chairman received an honorarium of $5,000 during the financial year, as provided for in the constitution, in recognition of costs incurred personally. Note 11: Superannuation

The Association participates in employer sponsored superannuation plans, which are defined contribution plans. Benefits provided under the plans are based on accumulated contributions and earning for each employee.

The Association contributes to the plans pursuant to the Superannuation Guarantee Scheme and Superstream legislation. Note 12: Economic Dependency A significant portion of income is received by way of recurrent grants from the State and Australian Governments. Note 13: Association Details The registered office and principal place of business of the Association is 76 Balfour Road, Drouin, Victoria 3818.

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for the year ended 31 December 2016 Note 10: Related Party Transactions/Directors Benefits Directors: The names of Directors who have held office during the financial year are:

Christopher Dean Louise Hood Mark Cutchie Allan Piening Brian Tucker Melissa Rumble Jeff Calway

A number of directors are parents of children currently attending the school and, therefore, receive tuition and other schooling services; fees are set for and paid by the relevant directors at the published, scheduled rates.

No director, a firm of which a director is a member or an entity in which a director has a substantial financial interest, receives remuneration from services rendered to the economic entity, in accordance with the entity’s constitution. The Chairman received an honorarium of $5,000 during the financial year, as provided for in the constitution, in recognition of costs incurred personally. Note 11: Superannuation

The Association participates in employer sponsored superannuation plans, which are defined contribution plans. Benefits provided under the plans are based on accumulated contributions and earning for each employee.

The Association contributes to the plans pursuant to the Superannuation Guarantee Scheme and Superstream legislation. Note 12: Economic Dependency A significant portion of income is received by way of recurrent grants from the State and Australian Governments. Note 13: Association Details The registered office and principal place of business of the Association is 76 Balfour Road, Drouin, Victoria 3818.


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for the year ended 31 December 2016 Note 14: Property, Plant & Equipment This table shows the movement in the carrying amount of each class of property, plant and equipment between the beginning and the end of the current financial year.

Land $

Buildings $

Plant and Equipment

$

Work in Progress

$

Total $

Balance at Beginning of the Year

1,855,000 27,436,508 2,486,252 1,750,930 33,528,690

Transfers - 2,883,519 83,346 (2,966,865) - Additions 1,800,000 283,186 1,309,812 2,038,447 5,431,446 Disposals - - (582) - (582)

Depreciation Expense - (1,338,206) (876,073) - (2,214,279) Balance at End of the

Year 3,655,000 29,265,008 3,002,755 822,512 36,745,275

Note 15: Contingent Liabilities The Incorporated Association had no contingent liabilities as at 31 December 2016 and 31 December 2015. Note 16: Commitments As at the 31 December 2016 Chairo Christian School was committed to paying building contracts for work that had not yet been completed for Car Park, Road & Drainage Construction at the Pakenham Campus. The supplier is K & J Rees, the contract amount is $415,192 ex gst. No payments were made in 2016. As at the 31 December 2016 Chairo Christian School was committed to paying building contracts for work that had not yet been completed for Car Park, Road & Drainage Construction at the Drouin Campus. The supplier is K & J Rees, the contract amount is $298,705 ex gst and payments totaling $194,116 had been paid to the end of 2016. The balance owing is $104,589, representing 35% of the contract. During 2016 Chairo undertook with Flinders Christian Community College to transfer ownership of the Flinders Christian Community College campus at 2-10 Lansdowne Road, Traralgon, 3844 to Chairo Christian School. As agreed, ownership will pass to Chairo Christian School on the 18/12/2017, when a final amount of approximately $1,080,000 will be paid to Flinders Christian Community College.

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for the year ended 31 December 2016 Note 17: Key Management Personnel The aggregate compensation, including superannuation and allowances, made to key management personnel of the Incorporated Association is set out below: 2016 2015 $ $ Aggregate Compensation 397,762 343,945 Note 18: Events after the reporting period No matter or circumstance has arisen since 31 December 2016 that has significantly affected, or may significantly affect the Incorporated Association’s operations, the results of those operations, or the Incorporated Association’s state of affairs in future financial years.

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Page 18



for the year ended 31 December 2016 Note 17: Key Management Personnel The aggregate compensation, including superannuation and allowances, made to key management personnel of the Incorporated Association is set out below: 2016 2015 $ $ Aggregate Compensation 397,762 343,945 Note 18: Events after the reporting period No matter or circumstance has arisen since 31 December 2016 that has significantly affected, or may significantly affect the Incorporated Association’s operations, the results of those operations, or the Incorporated Association’s state of affairs in future financial years.


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Directors’ Declaration In accordance with a resolution by the Directors of Warragul District Parent-Controlled Christian School Association Incorporated, the Directors of the Association declare that:

1. The financial statements and notes, as set out on pages 1 to 18, are in accordance with the Associations Incorporation Reform Act 2012 and the Australian Charities and Not For Profits Commission Act 2012 and:

a. Comply with Australian Accounting Standards – Reduced Disclosure Requirements; and b. Give a true and fair view of the financial position of the Association as at 31 December 2016 and of its performance for the financial year ended on that date; and

2. There are reasonable grounds to believe that the Association will be able to pay its debts as and when they become due and payable.

Signed in accordance with subsection 60.15(2) of the Australian Charities and Not-for-profit Commission Regulation 2013: : Chairman Mr. Jeff Calway : Treasurer Mr. Chris Dean Dated at Drouin this day of 2017

26Crowe Horwath Vic is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees.

Crowe Horwath VicABN 27 621 602 883

Member Crowe Horwath International

Audit and Assurance Services

3 Napier Street Warragul VIC 3820 PO Box 346 Warragul VIC 3820 Australia Tel 03 5622 7500 Fax 03 5623 6948 www.crowehorwath.com.au

Independent Auditorʼs Report to the Members of Warragul District Parent Controlled Christian School Association Incorporated

Opinion

We have audited the financial report of Warragul District Parent Controlled Christian School Association Incorporated, which comprises the statement of financial position as at 31 December 2016 the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the statement by the committee.

In our opinion, the accompanying financial report of the Association has been prepared in accordance with the Associations Incorporation Reform Act 2012 and Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, including:

(a) giving a true and fair view of the Associationʼs financial position as at 31 December 2016 and of its financial performance and cash flows for the year then ended; and

(b) complying with Australian Accounting Standards to the extent described in Note 1, the Associations Incorporation Reform Act 2012 and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditorʼs Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Association in accordance with the auditor independence requirements of the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act) and the ethical requirements of the Accounting Professional and Ethical Standards Boardʼs APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information

The committee is responsible for the other information. The other information comprises the information included in the Associationʼs annual report for the year ended 31 December 2016, but does not include the financial report and our auditorʼs report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

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If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Committee of Management for the Financial Report The Committee of Management of the Association is responsible for the preparation of the financial report that gives a true and fair view and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the ACNC Act and the needs of the members. The responsibility of the Committee of Management also includes such internal control as the Committee of Management determines 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. In preparing the financial report, the Committee of Management is responsible for assessing the ability of the Association to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Committee of Management either intends to liquidate the Association or to cease operations, or have no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_files/ar3.pdf. This description forms part of our auditor’s report. CROWE HORWATH VIC MARY WINTER Partner Dated at Warragul this 3rd day of May 2017

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Crowe Horwath Vic is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees.

Crowe Horwath Vic ABN 27 621 602 883 Member Crowe Horwath International

Audit and Assurance Services

3 Napier Street Warragul VIC 3820 PO Box 346 Warragul VIC 3820 Australia

Tel 03 5622 7500 Fax 03 5623 6948 www.crowehorwath.com.au

Auditor’s Independence Declaration to the Committee of Management of Warragul District Parent Controlled Christian School Association Incorporated I declare that, in relation to our audit of the financial report of Warragul District Parent Controlled Christian School Association Incorporated for the financial year ended 31 December 2016, to the best of my knowledge and belief, there have been no contraventions of any applicable code of professional conduct in respect of the audit. CROWE HORWATH VIC MARY WINTER Partner Date: 3 May 2017