CatholicCare Archdiocese of Melbourne - Microsoft · 2019-12-02 · CatholicCare Archdiocese of Melbourne ABN: 42 795 179 778 Statement of Financial Position As At 30 June 2019 Note

CatholicCare Archdiocese of MelbourneABN: 42 795 179 778

Financial StatementsFor the Year Ended 30 June 2019


ContentsFor the Year Ended 30 June 2019

Page

Financial StatementsCatholicCare Archdiocese of Melbourne Representatives' Report 1Auditors Independence Declaration 2Statement of Profit or Loss and Other Comprehensive Income 3Statement of Financial Position 4Statement of Changes in Equity 5Statement of Cash Flows 6Notes to the Financial Statements 7Declaration by CatholicCare Representatives 18Independent Audit Report 19


Auditors Independence Declaration to the Directors of CatholicCare Archdiocese ofMelbourne

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2019, there have been:

(i) no contraventions of the auditor independence requirements as set out in Section 60.40 of the Australian Charities and Not-for-profits Commission Act 2012 in relation to the audit; and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit.

Saward Dawson

Jeffrey TulkPartner

Blackburn, VIC

Dated:

2

20 Albert Street / PO Box 256 PRINCIPALS: Bruce Saward FCA Peter Shields FCA

Blackburn Victoria 3130 Joshua Morse CA Jeff Tulk CA

T: +61 3 9894 2500 Matthew Stokes CA

F: +61 3 9894 1622 Directors: Marie Ickeringill SSA Cathy Braun CA

[email protected] Murray Nicholls CA Helen Boucher CA

Vicki Adams CA CPA CFP® www.sawarddawson.com.au Liability limited by a scheme approved under Professional Standards Legislation

A member of Russell Bedford InternationalA global network of independent professional services

firms


Statement of Profit or Loss and Other Comprehensive IncomeFor the Year Ended 30 June 2019

2019$

2018$

OPERATING REVENUESGifted income 1,386,193 1,506,309Grants 9,853,457 9,260,480Earned income 4,187,230 3,892,167Partner contributions 714,646 1,626,490

TOTAL OPERATING REVENUES 16,141,526 16,285,446

OPERATING EXPENSESEmployee benefits expense (13,133,299) (12,505,401)Program costs (1,776,293) (1,608,243)Occupancy costs (846,568) (914,824)Corporate costs (654,053) (680,815)Administration costs (509,260) (537,950)

TOTAL OPERATING EXPENSES (16,919,473) (16,247,233)

OPERATING SURPLUS (before Bequestand Assets Proceeds) (777,947) 38,213

Bequests 319,432 459,696Gain/(loss) from sale of assets 7,000 44,978

OPERATING SURPLUS (includingBequests and Assets Proceeds) (451,515) 542,887

Other comprehensive income for the year - -

Total comprehensive income for the year (451,515) 542,887


Statement of Financial PositionAs At 30 June 2019

Note2019

$2018

$

ASSETSCURRENT ASSETSCash and cash equivalents 3 12,593,399 13,398,335Trade and other receivables 4 350,132 322,528Financial assets 5 162 162Other assets 6 411,179 260,671TOTAL CURRENT ASSETS 13,354,872 13,981,696NON-CURRENT ASSETSProperty, plant and equipment 7 820,517 764,755TOTAL NON-CURRENT ASSETS 820,517 764,755TOTAL ASSETS 14,175,389 14,746,451

LIABILITIESCURRENT LIABILITIESTrade and other payables 8 535,407 486,738Short-term provisions 9 1,944,979 1,807,121Income received in advance 10 266,622 476,182TOTAL CURRENT LIABILITIES 2,747,008 2,770,041NON-CURRENT LIABILITIESLong-term provisions 9 180,723 277,237TOTAL NON-CURRENT LIABILITIES 180,723 277,237TOTAL LIABILITIES 2,927,731 3,047,278NET ASSETS 11,247,658 11,699,173

EQUITYReserves 7,160,875 7,335,281Accumulated surpluses 4,086,783 4,363,892

11,247,658 11,699,173TOTAL EQUITY 11,247,658 11,699,173

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Statement of Cash FlowsFor the Year Ended 30 June 2019

Note2019

$2018

$

CASH FLOWS FROM OPERATING ACTIVITIES:Receipts from customers & donors 16,368,517 16,416,647Interest and dividends received 239,609 288,331Payments to suppliers & employees (17,100,343) (16,441,006)Net cash provided by/(used in) operating activities 13 (492,217) 263,972

CASH FLOWS FROM INVESTING ACTIVITIES:Payment for property and equipment (319,719) (445,675)Proceeds from sale of property and equipment 7,000 786,660Net cash used by investing activities (312,719) 340,985

Net increase/(decrease) in cash and cash equivalents held (804,936) 604,957Cash and cash equivalents at beginning of year 13,398,335 12,793,378Cash and cash equivalents at end of financial year 3 12,593,399 13,398,335


Notes to the Financial StatementsFor the Year Ended 30 June 2019

The financial report covers CatholicCare Archdiocese of Melbourne as an individual entity. CatholicCare is a registered not-for-profit entity with the Australian Charities and Not-for-profits Commission.

1 Basis of Preparation

In the opinion of CatholicCare representatives, CatholicCare is not a reporting entity since there are no users dependent on ageneral purpose financial report. This special purpose financial report has been prepared to meet the reporting requirements of theAustralian Charities and Not-for-profits Commission Act 2012.

The financial statements have been prepared in accordance with the requirements of AASB 101 Presentation of FinancialStatements, AASB 107 Statement of Cash Flows, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors,AASB1048 Interpretation of standards and AASB 1054 Australian Additional Disclosures.

The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, bythe measurement at fair value of selected non-current assets, financial assets and financial liabilities.

Significant accounting policies adopted in the preparation of these financial statements are presented below and are consistent withprior reporting periods unless otherwise stated.

Summary of Significant Accounting Policies

(a) Income Tax

CatholicCare is exempt from Australian income tax being a charitable institution under Division 50 of the Income TaxAssessment Act 1997. CatholicCare is also registered with the Australian Charities and Not-for-profits Commission.

(b) Operating Leases

Leases are classified at their inception as either operating or finance leases based on the economic substance of theagreement so as to reflect the risks and benefits incidental to ownership.

Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are chargedas expenses and recognised in profit or loss in the periods in which they are incurred.

(c) Revenue Recognition

Grant revenue is recognised in the statement of profit or loss when it is controlled unless there are conditions attached togrant revenue relating to the use of those grants for specific purposes it is recognised in the statement of financial positionas a liability until such conditions are met or services provided.

Donations and bequests are recognised as revenue when received.

Investment income is brought to account as it is received or receivable.

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

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

7




(d) Income Received in Advance

CatholicCare receives grant monies to fund projects either for contracted periods of time or for specific projects. It is thepolicy of CatholicCare to treat grant monies as income received in advance in the statement of financial position whereCatholicCare is contractually obliged to provide the services in a subsequent financial period to when the grant is receivedor in the case of specific project grants where the project has not been completed.

(e) Goods and Services Tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where theamount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payable are stated inclusive of GST.

The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in thestatement of financial position.

Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising frominvesting and financing activities which is recoverable from, or payable to, the taxation authority is classified as operatingcash flows.

(f) Property, plant and equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulateddepreciation and impairment.

Land and buildings

Freehold land and buildings are measure at fair value. The carrying amount of each asset is periodically reviewed to ensurethat it does not differ materially from the asset's fair value. Where necessary, the asset is revalued to reflect its fair value.

Plant and equipment

Plant and equipment are measured using the cost model.

8




(f) Property, plant and equipment

Depreciation

Depreciation is calculated on a straight line basis so as to write off the cost of each fixed asset during its estimated usefullife from the time the asset is held ready for use. Leasehold Improvements are amortised over the period of the lease.

Leased assets and leasehold improvements are amortised over the shorter of either the unexpired period of the lease ortheir estimated useful life.

The depreciation rates used for each class of depreciable asset are shown below:Fixed asset class Depreciation rateMotor Vehicles 22.5%Plant and equipment 15 - 33%Leasehold improvements 10 - 20%

At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset isreviewed. Any revisions are accounted for prospectively as a change in estimate.

(g) Financial instruments

Recognition, initial measurement and derecognition

Financial assets and financial liabilities are recognised when CatholicCare becomes a party to the contractual provisions ofthe financial instrument, and are measured initially at fair value adjusted by transactions costs, except for those carried atfair value through profit or loss, which are measured initially at fair value. Subsequent measurement of financial assets andfinancial liabilities are described below.

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when thefinancial asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it isextinguished, discharged, cancelled or expires.

Classification and subsequent measurement of financial assets

Except for those trade receivables that do not contain a significant financing component and are measured at thetransaction price, all financial assets are initially measured at fair value adjusted for transaction costs (where applicable)

For the purpose of subsequent measurement, financial assets other than those designated and effective as hedginginstruments are classified into the following categories upon initial recognition:

amortised cost

fair value through profit or loss (FVPL)

All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs,finance income or other financial items, except for impairment of trade receivables which is presented within otherexpenses.

9





Classification and subsequent measurement of financial assets

Classifications are determined by both:

The entities business model for managing the financial asset

The contractual cash flow characteristics of the financial assets

All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs,finance income or other financial items, except for impairment of trade receivables, which is presented within otherexpenses.

Subsequent measurement financial assets

Financial assets at amortised cost

Financial assets are measured at amortised cost if the assets meet the following conditions (and are not

designated as FVPL):

they are held within a business model whose objective is to hold the financial assets and collect its contractual cashflows

the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and intereston the principal amount outstanding

After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omittedwhere the effect of discounting is immaterial. CatholicCare’s cash and cash equivalents, trade and most other receivablesfall into this category of financial instruments as well as long-term deposit that were previously classified as held-to-maturityunder AASB 139.

Financial assets at fair value through profit or loss (FVPL)

Financial assets that are held within a different business model other than ‘hold to collect’ or ‘hold to collect and sell’ arecategorised at fair value through profit and loss. Further, irrespective of business model financial assets whose contractualcash flows are not solely payments of principal and interest are accounted for at FVPL. All derivative financial instrumentsfall into this category, except for those designated and effective as hedging instruments, for which the hedge accountingrequirements apply

Impairment of Financial assets

AASB 9’s impairment requirements use more forward looking information to recognize expected credit losses - the‘expected credit losses (ECL) model’. Instruments within the scope of the new requirements included loans and other debt-type financial assets measured at amortised cost and FVOCI, trade receivables and loan commitments and some financialguarantee contracts (for the issuer) that are not measured at fair value through profit or loss.

10





Subsequent measurement financial assets

CatholicCare considers a broader range of information when assessing credit risk and measuring expected credit losses,including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of thefuture cash flows of the instrument.

In applying this forward-looking approach, a distinction is made between:

financial instruments that have not deteriorated significantly in credit quality since initial recognition or that have lowcredit risk (‘Stage 1’) and

financial instruments that have deteriorated significantly in credit quality since initial recognition and whose creditrisk is not low (‘Stage 2’).

‘Stage 3’ would cover financial assets that have objective evidence of impairment at the reporting date.

‘12-month expected credit losses’ are recognised for the first category while ‘lifetime expected credit losses’ are recognisedfor the second category.

Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over theexpected life of the financial instrument.

Trade and other receivables

CatholicCare makes use of a simplified approach in accounting for trade and other receivables and records the lossallowance at the amount equal to the expected lifetime credit losses. In using this practical expedient, CatholicCare uses itshistorical experience, external indicators and forward-looking information to calculate the expected credit losses using aprovision matrix.

CatholicCare assess impairment of trade receivables on a collective basis as they possess credit risk characteristics basedon the days past due.

Financial liabilities

CatholicCare measures all financial liabilities initially at fair value less transaction costs, subsequently financial liabilities aremeasured at amortised cost using the effective interest rate method.

The financial liabilities of CatholicCare comprise of trade payables.

(h) Comparative figures

Where required by Australian Accounting Standards, comparative figures have been adjusted to conform to changes inpresentation for the current financial year.

11




(i) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readilyconvertible to known amounts of cash and which are subject to an insignificant risk of change in value.

(j) Employee benefits

Provision is made for the entity's liability for employee benefits arising from services rendered by employees to the end ofthe reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at theamounts expected to be paid when the liability is settled. Employee benefits expected to be settled more than twelvemonths after the end of the reporting period have been measured at the present value of the estimated future cash outflowsto be made for those benefits.

2 Critical Accounting Estimates and Judgments

CatholicCare evaluates estimates and judgements incorporated into the financial report based on historical knowledge andbest available current information. Estimates assume a reasonable expectation of future events and are based on currenttrends and economic data, obtained both externally and within CatholicCare.

Income received in advance

CatholicCare receives grant monies to fund projects either for contracted periods of time or for specific projects. It is thepolicy of CatholicCare to treat grant monies as income received in advance in the statement of financial position whereCatholicCare is obliged to provide the services in a subsequent financial period to when the grant is received or in the caseof specific project grants where the project has not been completed.

12



3 Cash and Cash Equivalents2019

$2018

$Cash on hand 6,254 6,754Cash in bank 875,889 1,432,034Term deposits 11,711,256 11,959,547

12,593,399 13,398,335

4 Trade and Other ReceivablesCURRENTTrade receivables 279,655 288,415Provision for impairment (9,852) (9,852)Security Bond 80,329 43,965

Total current trade and other receivables 350,132 322,528

5 Financial AssetsCURRENTShare Investment 162 162

Total 162 162

6 Other AssetsCURRENTPrepayments 243,538 165,128Accrued income 167,641 95,543

411,179 260,671

13



7 Property, plant and equipment2019

$2018

$

Plant and equipmentAt cost 1,424,867 1,274,305Accumulated depreciation (1,171,682) (1,034,616)

Total plant and equipment 253,185 239,689

Motor vehiclesAt cost 108,667 119,369Accumulated depreciation (88,772) (99,294)

Total motor vehicles 19,895 20,075

Leasehold ImprovementsAt cost 1,561,152 1,401,994Accumulated amortisation (1,013,715) (897,003)

Total leasehold improvements 547,437 504,991

Total property, plant and equipment 820,517 764,755

14

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15



8 Trade and other payables2019

$2018

$

CurrentTrade and other payables 535,407 486,738

535,407 486,738

9 ProvisionsCurrent liabilitiesLong service leave 1,084,709 944,177Annual leave 860,270 862,944

1,944,979 1,807,121

Non-current liabilitiesLong service leave 180,723 277,237

180,723 277,237

10 Other LiabilitiesCURRENTIncome in Advance 266,622 476,182

266,622 476,182

11 Operating LeasesMinimum lease payments under non-cancellable operating leases:- not later than one year 474,512 638,625- between one year and five years 853,755 321,103- later than five years 9,697 16,970

1,337,964 976,698

Non-cancellable operating leases relate to property, motor vehicles and technology hardware leases. These are contracted for butnot capitalised and are summarised as above.

12 Contingencies

In the opinion of the Board, the CatholicCare did not have any contingencies at 30 June 2019 (30 June 2018:None).

16



13 Cash Flow Information

Reconciliation of result for the year to cashflows from operating activities

Reconciliation of net income to net cash provided by operating activities:2019

$2018

$Surplus for the year (451,515) 542,887Non-cash flows in surplus:

- depreciation 263,957 292,232 - net gain on disposal of property, plant and equipment (7,000) (44,978)

Changes in assets and liabilities - (increase)/decrease in trade and other receivables (99,702) 29,199 - (increase)/decrease in other assets (78,410) (13,943) - increase/(decrease) in trade and other payables 48,669 (316,605) - increase/(decrease) in provisions 41,344 183,243 - increase/(decrease) in income received in advanced (209,560) (408,063)

Cashflow from operations (492,217) 263,972

14 Entity's Details

The registered office and principal place of business of the entity is:CatholicCare Archdiocese of Melbourne383 Albert Street,East MelbourneVIC 3002

17


Independent Audit Report to the members of CatholicCare Archdiocese of Melbourne

Report on the Audit of the Financial Report

Opinion

We have audited the accompanying financial report, being a special purpose financial report of CatholicCare Archdiocese of Melbourne(the entity), which comprises the statement of financial position as at 30 June 2019, the statement of profit or loss and othercomprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to thefinancial statements, including a summary of significant accounting policies, and the declaration by CatholicCare representatives.

In our opinion, the accompanying financial report of the entity is in accordance with the Division 60 of the Australian Charities and Not-For-Profit Commission Act 2012 including:

(i) giving a true and fair view of the entity's financial position as at 30 June 2019 and of its financial performance for the year ended;and

(ii) complying with Australian Accounting Standards to the extent described in Note 1 and division 60 of the Australian Charities forNot-For-Profit Commission Regulations 2013.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the entity inaccordance with the auditor independence requirements of the Australian Charities and Not-For-Profit Commission Act 2012 and theethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for ProfessionalAccountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethicalresponsibilities 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.

Emphasis of Matter - Basis of Accounting

We draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared forthe purpose of fulfilling the directors' financial reporting responsibilities under the Australian Charities and Not-For-Profit Commission Act2012. As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter.

Responsibilities of Directors for the Financial Report

The directors of the entity are responsible for the preparation of the financial report that gives a true and fair view and have determinedthat the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the Australian Charitiesand Not-For-Profit Commission Act 2012 and is appropriate to meet the needs of the members. The directors' responsibility also includessuch internal control as the directors determine necessary to enable the preparation of a financial report that gives a true and fair viewand is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the the entity’s ability to continue as a going concern,disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors eitherintend to liquidate the entity or to cease operations, or have no realistic alternative but to do so.

19








firms


Independent Audit Report to the members of CatholicCare Archdiocese of Melbourne

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 ofassurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a materialmisstatement 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 the financial report.

As part of an audit in accordance with Australian Auditing Standard, we exercise professional judgement and maintain professionalscepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and performaudit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for ouropinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraudmay involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.

Evaluate the appropriateness of the entity's use of the going concern basis of accounting and, based on the audit evidenceobtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity'sability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in ourauditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditionsmay cause the entity to cease as a going concern.

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether thefinancial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant auditfindings, including any significant deficiencies in internal control that we identify during our audit.

Saward Dawson

Jeffrey TulkPartner

Blackburn, VIC

Dated:

20








firms

23 August 2019

Documents

CatholicCare Archdiocese of Melbourne - Microsoft · 2019-12-02 · CatholicCare Archdiocese of Melbourne ABN: 42 795 179 778 Statement of Financial Position As At 30 June 2019 Note