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Equipping for Life Ltd
Operating as Arethusa College ABN 53 129 945 517
Financial Report
For the year ended 31 December 2019
Equipping for Life Ltd ABN 53 129 945 517
Page 2 of 31
Table of contents Page
Directors’ Report 3
Auditor’s Declaration 8
Statement of Profit or Loss and Other Comprehensive Income 9
Statement of Financial Position 10
Statement of Changes in Equity 11
Statement of Cash Flows 12
Notes to the Financial Statements 13-29
Directors’ Declaration 30
Independent Auditor’s Report 31-32
Equipping for Life Ltd ABN 53 129 945 517
Page 3 of 31
DIRECTORS’ REPORT
Your directors present this report on The College for the financial year ended 31 December 2019.
Directors
The names of each person who has been a director during the year and to the date of this report are:
Name Date of Appointment Date of Resignation
Gerald Weatherall 14 February 2019
Michael Cross
Ernest John Brady
Kathleen Martin 22 July 2019
Robert Cavaye 23 October 2019
Janette Phelan 1 January 2020
Raymond French 18 March 2019
Cindy Wilson 09 May 2019
Directors have been in office since the start of the financial year to the date of this report unless otherwise
stated.
Principal Activities
The principal activity of the Equipping For Life Ltd Trading as Arethusa College during the financial year was
to provide an educational institution for students from years 7 to 12.
Short-term and Long-term Objectives
The College’s short-term objectives are to provide programs for students disengaged from mainstream
schooling who may have learning difficulties and/or who are not scholastic but wish to pursue practical
education opportunities.
The College’s short-term objectives are to:
– provide high quality and engaging educational programs for students disengaged from mainstream
schooling
– reflect in all our practices unconditional positive belief in students and high expectations for their futures
– create a model for the establishment of new boutique campuses around areas of passion for student e.g.
sports academy, an adventure campus.
The College’s long-term objectives are to:
– participate in the evolution of a new model for education that brings about more holistic outcomes for students in any setting
– engage in both educational research and the provision of professional development for the broader educational community
– develop staff and student leadership programs that support the mission of the College; and are recognised and valued by businesses, organisations and other schools
Strategies
To achieve its stated objectives, The College has adopted the following strategies:
Equipping for Life Ltd ABN 53 129 945 517
Page 4 of 31
DIRECTORS’ REPORT
– appointment of a more independent board;
– employment of high quality staff that align with the objectives of the Entity
– new building projects, new campus development plans and resource planning that align with the
objectives of the Entity
– New strategic plan under development
New Accounting Standards Implemented
The College has implemented three new Accounting Standards that are applicable for the current reporting
period.
AASB 15: Revenue from Contracts with Customers, AASB 1058: Income of Not-for-Profit Entities and AASB
16: Leases have been applied using the cumulative effective method; that is, by recognising the cumulative
effect of initially applying AASB 15, AASB 1058 and AASB 16 as an adjustment to the opening balance of
equity at 1 January 2019. Therefore, the comparative information has not been restated and continues to be
reported under AASB 118: Revenue, AASB 117: Leases and AASB 1004: Contributions. Also to note in
relation to AASB 16 is that The College applied the temporary relief for peppercorn leases under AASB 2018-
8 to measures the right of use assets at cost on initial recognition. Further information is provided in Note 1.
DIRECTORS’ REPORT
Information on Directors
Gerald Weatherall Chairman of the Board
Qualifications – Certificate Electronics and Communications: QIT, 1974
Diploma of Electronic Aviation Systems: DCA Training College,
1976
Certificate in Technical Training: 1980
Various Unit Courses in Business Management, Regulations and
Governance
AICD Directors Course — MAICD
Experience – Management and Senior Executive roles in Australian Public
Service, Private Industry — Australia, Singapore and UK
Private Business Owner
General Manager, Executive Director (CTO) on Board of EDMI
Limited in Singapore.
Board member Churches of Christ in Queensland (CofCQ) .
Senior Executive of CofCQ focusing on Mission Development, Capital Development and technology/building Project Management until retiring in 2019.
6 years as Board member QCOSS
Board member and chair of Equipping for Life Ltd.
Special Responsibilities – Board Chair and member of Committees
Michael Cross – Executive Director
Qualifications – Cert IV Youth Work
Cert IV TAE
Cert III Christian Ministry and Theology
Equipping for Life Ltd ABN 53 129 945 517
Page 5 of 31
DIRECTORS’ REPORT
Trade Qualification: Painting and Decorating
Experience – Owner Operator, Small Business/Painting Decorating
Youth Pastor (Pine Rivers Church of Christ/Reedy Creek Baptist)
Developer & National Coordinator - Kickstart 3D, National Youth
Leadership Development Program(Mueller College) – 10 years
Managing Director, Equipping for Life – 3 Years
Special Responsibilities – Finance & Infrastructure Committee
Governance, Risk and People Committee
Ernest John Brady – Non-Executive Director
Qualifications – Year 10.
Coach and motor body builder.
T A F E Certificates in supervision
Experience – Bus and coach line manager.
Works manager Shaftesbury.
Manual arts teacher Arethusa
Special Responsibilities – Advocacy for Equipping for Life Ltd
Kathleen Martin – Non-Executive Director
Qualifications – Bachelor of Social Work (Hons) conferred 1999
University of Queensland;
Master of Social Work conferred 2014 Monash University
Experience – Over 20 years experience working in disability, domestic and family violence and child protection sector
Special Responsibilities – Risk, Governance and People Committee
Robert Cavaye – Non-Executive Director
Qualifications – No tertiary qualifications
Experience – 30+ year career in technology provision and general management
to and of professional services firms and human services,
including external consultancy and internal management.
Senior Manager — IT Systems and Project Management.
Special Responsibilities – Finance & Infrastructure Committee
Capital Development Technical Expertise.
Janette Phelan – Non-Executive Director
Qualifications – Psychologist & Teacher
Graduate Diploma in Psychology — RMIT University
Graduate Certificate of Gifted Education — LaTrobe University
Diploma of Education — Melbourne State College
Equipping for Life Ltd ABN 53 129 945 517
Page 6 of 31
DIRECTORS’ REPORT
Bachelor of Arts — University of Melbourne
Experience – Secondary teacher: State and Independent schools in Vic & Qld
Head of Special Education Units: State and Independent
schools in Vic & Qld
Practicing psychologist in schools and private practice
Mission Action Partner with Churches of Christ in Queensland
Speaker and writer
Member, Queensland Premier ’s Domestic and Family Violence
Implementation Council 2015 – 2019
Chair, Joint Churches Domestic Violence Prevention Project
2016 - 2018
Special Responsibilities – Governance, Risk and People Committee
Meetings of Directors
During the financial year, 8 meetings of directors were held. Attendances by each director were as follows:
Directors’ Meetings
Number eligible to attend Number attended
Gerald Weatherall 7 7
Michael Cross 8 8
Earnest John Brady 8 8
Cindy Wilson 3 2
Raymond French 2 2
Kathleen Martin 4 4
Robert Cavaye 1 1
Janette Phelan - -
The College is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If The
College is wound up, the constitution states that each member is required to contribute a maximum of $50.00
each towards meeting any outstanding obligations of The College. At 31 December 2019, the total amount
that members of The College are liable to contribute if The College is wound up is $150.00 (2018: $200).
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the year ended 31 December 2019 has been received and
can be found on page 7 of the financial report.
This directors’ report is signed in accordance with a resolution of the Board of Directors.
Director
Gerald Weatherall (Chair)
Dated this 22nd day of April 2020
Equipping for Life Ltd ABN 53 129 945 517
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AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 60-40 OF THE
AUSTRALIAN CHARITIES AND NOT FOR PROFITS COMMISSION ACT 2012 TO THE DIRECTORS OF EQUIPPING FOR LIFE LTD
I declare that, to the best of my knowledge and belief, during the year ended 31 December 2019, there
have been no contraventions of:
the auditor independence requirements of the section 60-40 of the Australian Charities and Not for
Profits Commission Act 2012 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
PKF BRISBANE AUDIT CAMERON BRADLEY PARTNER
BRISBANE 22 APRIL 2020
Equipping for Life Ltd ABN 53 129 945 517
Page 8 of 31
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED
31 DECEMBER 2019
Note 2019 2018
(Restated)
$ $
Revenue 2 7,766,413 5,469,213
Other income 2 1,756,537 11,014,763
9,522,950 16,483,976
Tuition expenses 3 2,076,680 1,265,575
Administration, property & finance expenses 4 4,226,915 3,916,989
Interest expense 9,044 -
Auditor’s renumeration 5 19,490 7,950
Other expenses 2(a) - 2,661,410
Current year surplus before income tax 3,190,821 8,632,052
Income tax expense 1(k) - -
Net current year surplus 3,190,821 8,632,052
Other comprehensive income - -
Total comprehensive income for the year 3,190,821 8,632,052
Net current year surplus attributable to members of The College 3,190,821 8,632,052
Total comprehensive income attributable to members of The College 3,190,821 8,632,052
The accompanying notes form part of these financial statements.
Equipping for Life Ltd ABN 53 129 945 517
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STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019
Note
2019
2018
(Restated)
ASSETS $ $
CURRENT ASSETS
Cash and cash equivalents 6 3,513,898 1,310,493
Trade and other receivables 7 30,733 26,731
Inventories 7,638 -
Other assets 8 104,008 2,339
TOTAL CURRENT ASSETS 3,656,277 1,339,563
NON-CURRENT ASSETS
Property, plant and equipment 9 26,900,482 25,824,025
Right to use asset 10 10,387 -
TOTAL NON-CURRENT ASSETS 26,910,869 25,824,025
TOTAL ASSETS 30,567,146 27,163,588
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 11 426,976 280,808
Lease liabilities 13 9,837 -
Provisions 12 178,502 117,621
TOTAL CURRENT LIABILITIES 615,315 398,429
NON-CURRENT LIABILITIES
Lease liabilities 13 43,064 45,494
Provisions 12 23,952 25,671
TOTAL NON-CURRENT LIABILITIES 67,016 71,165
TOTAL LIABILITIES 682,331 469,594
NET ASSETS 29,884,815 26,693,994
EQUITY
Retained surplus 21,403,005 26,693,994
Reserves 15 8,481,810 -
TOTAL EQUITY 29,884,815 26,693,994
The accompanying notes form part of these financial statements.
Equipping for Life Ltd ABN 53 129 945 517
Page 10 of 31
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2019
Note Retained Surplus
Capital Grants Reserves
Total
$ $ $
Balance at 1 January 2018 18,061,942 - 18,061,942
Comprehensive income Surplus for the year attributable to members of The College
832,052
-
832,052
Adjustment on error correction 1(t) 7,800,000 - 7,800,000
Restated surplus for the year attributable to members of The College
8,632,052
-
8,632,052
Other comprehensive income for the year:
-
-
-
Total comprehensive income attributable to members of The College for the year
8,632,052
-
8,632,052
Balance at 31 December 2018 (restated)
26,693,994 - 26,693,994
Balance at 1 January 2019
26,693,994
-
26,693,994
Comprehensive income -
Surplus for the year attributable to members of The College
3,190,821
-
3,190,821
Other comprehensive income for the year:
-
-
-
Total comprehensive income attributable to members of The College for the year
3,190,821
-
3,190,821
Transfer to / (from) reserves (8,481,810) 8,481,810 -
Balance at 31 December 2019 21,403,005 8,481,810 29,884,815
The accompanying notes form part of these financial statements.
Equipping for Life Ltd ABN 53 129 945 517
Page 11 of 31
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2019
Note 2019 2018
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
Receipt of grants 9,789,153 5,939,567
Other receipts 262,671 153,674
Payments to suppliers and employees (6,383,065) (4,719,437)
Interest received 7,808 10,411
Finance costs (9,044) -
Net cash generated from operating activities 3,667,523 1,384,215
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment 955,852 -
Payment for property, plant and equipment (2,406,919) (1,168,677)
Net cash used in investing activities (1,451,067) (1,168,677)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of finance lease commitments (13,049) -
Increase in finance lease commitments - 45,494
Net cash generated by/(used in) financing activities (13,049) 45,494
Net cash increase in cash held 2,203,405 261,032
Cash and cash equivalents at beginning of financial year 1,310,493 1,049,461
Cash and cash equivalents at end of financial year 6 3,513,898 1,310,493
The accompanying notes form part of these financial statements.
Equipping for Life Ltd ABN 53 129 945 517
Page 12 of 31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
Equipping for Life Ltd trading as Arethusa College (The College) applies Australian Accounting Standards –
Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting
Standards.
The financial statements are general purpose financial statements that have been prepared in accordance with
Australian Accounting Standards – Reduced Disclosure Requirements of the Australian Accounting Standards
Board (AASB) and the Australian Charities and Not-for-profits Commission Act 2012. The College is a not-for-
profit entity for financial reporting purposes under Australian Accounting Standards.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in
financial statements containing relevant and reliable information about transactions, events and conditions.
Material accounting policies adopted in the preparation of these financial statements are presented below and
have been consistently applied unless stated otherwise.
The financial statements, except for the cash flow information, have been prepared on an accrual basis and are
based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current
assets, financial assets and financial liabilities. The amounts presented in the financial statements have been
rounded to the nearest dollar.
The financial statements were authorised for issue on 22nd April 2020 by the directors of The College.
Accounting Policies
a. Revenue
Revenue recognition
The College has applied AASB 15: Revenue from Contracts with Customers (AASB 15) and AASB 1058:
Income of Not-for-Profit Entities (AASB 1058) using the cumulative effective method of initially applying
AASB 15 and AASB 1058 as an adjustment to the opening balance of equity at 1 January 2019.
Therefore, the comparative information has not been restated and continues to be presented under AASB
118: Revenue and AASB 1004: Contributions. The details of accounting policies under AASB 118 and
AASB 1004 are disclosed separately since they are different from those under AASB 15 and AASB 1058,
and the impact of changes is disclosed in Note 1.
In the current year
Contributed assets
The College receives assets from the government and other parties for nil or nominal consideration in
order to further its objectives. These assets are recognised in accordance with the recognition
requirements of other applicable accounting standards (for example, AASB 9, AASB 16, AASB 116 and
AASB 138).
On initial recognition of an asset, The College recognises related amounts (being contributions by owners,
lease liability, financial instruments, provisions, revenue or contract liability arising from a contract with a
customer).
The College recognises income immediately in profit or loss as the difference between the initial carrying
amount of the asset and the related amount.
Operating grants, donations and bequests
When The College received operating grant revenue, donations or bequests, it assesses whether the
contract is enforceable and has sufficiently specific performance obligations in accordance with AASB 15.
When both these conditions are satisfied, The College:
- identifies each performance obligation relating to the grant
- recognises a contract liability for its obligations under the agreement
- recognises revenue as it satisfies its performance obligations.
Equipping for Life Ltd ABN 53 129 945 517
Page 13 of 31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Where the contract is not enforceable or does not have sufficiently specific performance obligations, The
College:
- recognises the asset received in accordance with the recognition requirements of other applicable
accounting standards (for example AASB 9, AASB 16, AASB 116 and AASB 138)
- recognises related amounts (being contributions by owners, lease liability, financial instruments,
provisions, revenue or contract liability arising from a contract with a customer)
- recognises income immediately in profit or loss as the difference between the initial carrying
amount of the asset and the related amount.
If a contract liability is recognised as a related amount above, The College recognises income in profit or
loss when or as it satisfies its obligations under the contract.
Capital grant
When The College receives a capital grant, it recognises a liability for the excess of the initial carrying
amount of the financial asset received over any related amounts (being contributions by owners, lease
liability, financial instruments, provisions, revenue or contract liability arising from a contract with a
customer) recognised under other Australian Accounting Standards.
The College recognises income in profit or loss when or as The College satisfies its obligations under the
terms of the grant.
Interest income
Interest income is recognised using the effective interest method.
All revenue is stated net of the amount of goods and services tax.
In the comparative period
Non-reciprocal grant revenue was recognised in profit or loss when The College obtained control of the
grant and it was probable that the economic benefits gained from the grant would flow to The College and
the amount of the grant could be measured reliably.
If conditions were attached to the grant which must be satisfied before The College was eligible to receive
the contribution, the recognition of the grant as revenue was deferred until those conditions were satisfied.
When grant revenue was received whereby The College incurred an obligation to deliver economic value
directly back to the contributor, this was considered a reciprocal transaction and the grant revenue was
recognised in the statement of financial position as a liability until the service had been delivered to the
contributor; otherwise, the grant was recognised as income on receipt.
The College received non-reciprocal contributions of assets from the government and other parties for no
or nominal value.
These assets were recognised at fair value on the date of acquisition in the statement of financial position,
with a corresponding amount of income recognised in the statement of profit or loss and other
comprehensive income.
Donations and bequests were recognised as revenue when received.
Interest revenue was recognised using the effective interest method, which for floating rate financial
assets is the rate inherent in the instrument. Dividend revenue was recognised when the right to receive a
dividend had been established. Rental income from operating leases was recognised on a straight-line
basis over the term of the relevant leases.
Revenue from the rendering of a service was recognised upon the delivery of the service to the customer.
Equipping for Life Ltd ABN 53 129 945 517
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
b. Inventories
Inventories held for sale are measured at the lower of cost and net realisable value. Inventories held for
distribution are measured at cost adjusted, when applicable, for any loss of service potential.
Inventories acquired at no cost, or for nominal consideration, are valued at the current replacement cost
as at the date of acquisition.
c. Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value as indicated, less, where
applicable, accumulated depreciation and any impairment losses.
Freehold property
Freehold land and buildings are shown at their fair value based on periodic, but at least triennial,
valuations by external independent valuers, less subsequent depreciation for buildings.
In periods when the freehold land and buildings are not subject to an independent valuation, the directors
conduct directors’ valuations to ensure the carrying amount for the land and buildings is not materially
different to the fair value.
Increases in the carrying amount arising on revaluation of land and buildings are recognised in other
comprehensive income and accumulated in the revaluation surplus in equity. Revaluation decreases that
offset previous increases of the same class of assets shall be recognised in other comprehensive income
under the heading of revaluation surplus. All other decreases are recognised in profit or loss.
Any accumulated depreciation at the date of the revaluation is eliminated against the gross carrying
amount of the asset and the net amount is restated to the revalued amount of the asset.
Freehold land and buildings that have been contributed at no cost, or for nominal cost, are initially
recognised and measured at the fair value of the asset at the date it is acquired.
Plant and equipment
Plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated
depreciation and any accumulated impairment losses. In the event the carrying amount of plant and
equipment is greater than the estimated recoverable amount, the carrying amount is written down
immediately to the estimated recoverable amount and impairment losses are recognised either in profit or
loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal
assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(f) for
details of impairment).
Plant and equipment that have been contributed at no cost, or for nominal cost, are valued and
recognised at the fair value of the asset at the date it is acquired.
Depreciation
The depreciable amount of all fixed assets, including buildings and capitalised lease assets, but excluding
freehold land, is depreciated on a straight line basis over the asset’s useful life to The College
commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over
the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset Depreciation Rate
Buildings 1%
Plant and equipment 10 – 33.33%
Leased motor vehicles 20%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
Equipping for Life Ltd ABN 53 129 945 517
Page 15 of 31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These
gains or losses are recognised in profit or loss in the period in which they arise. When revalued assets are
sold, amounts included in the revaluation surplus relating to that asset are transferred to retained
earnings.
d. Leases
The College as lessee
At inception of a contract, The College assesses if the contract contains or is a lease. If there is a lease
present, a right-of-use asset and a corresponding lease liability is recognised by The College where The
College is a lessee. However, all contracts that are classified as short-term leases (ie a lease with a
remaining lease term of 12 months or less) and leases of low-value assets are recognised as an operating
expense on a straight-line basis over the term of the lease.
Initially, the lease liability is measured at the present value of the lease payments still to be paid at
commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this
rate cannot be readily determined, The College uses the incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
- fixed lease payments less any lease incentives;
- variable lease payments that depend on an index or rate, initially measured using the index or rate
at the commencement date;
- the amount expected to be payable by the lessee under residual value guarantees;
- the exercise price of purchase options, if the lessee is reasonably certain to exercise the options;
- lease payments under extension options, if the lessee is reasonably certain to exercise the options;
and
- payments of penalties for terminating the lease, if the lease term reflects the exercise of an option
to terminate the lease
The right-of-use assets comprise the initial measurement of the corresponding lease liability as mentioned
above, any lease payments made at or before the commencement date, as well as any initial direct costs.
The subsequent measurement of the right-of-use assets is at cost less accumulated depreciation and
impairment losses.
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is
the shortest. Where a lease transfers ownership of the underlying asset, or the cost of the right-of-use
asset reflects that The College anticipates to exercise a purchase option, the specific asset is depreciated
over the useful life of the underlying asset.
Concessionary leases
For leases that have significantly below-market terms and conditions principally to enable The College to
further its objectives (commonly known as peppercorn/concessionary leases), The College has adopted
the temporary relief under AASB 2018-8 and measures the right-of-use assets at cost on initial
recognition.
The College as lessor
The College leases some rooms in their building to external parties.
Upon entering into each contract as a lessor, The College assesses if the lease is a finance or operating
lease.
The contract is classified as a finance lease when the terms of the lease transfer substantially all the risks
and rewards of ownership to the lessee. All other leases not within this definition are classified as
operating leases.
Rental income received from operating leases is recognised on a straight-line basis over the term of the
specific lease.
Equipping for Life Ltd ABN 53 129 945 517
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Initial direct costs incurred in entering into an operating lease (for example legal cost, cost to setup) are
included in the carrying amount of the leased asset and recognised as an expense on a straight-line basis
over the lease term.
Rental income due under finance leases is recognised as receivables at the amount of The College’s net
investment in the leases.
When a contract is determined to include lease and non-lease components, The College applies AASB 15
to allocate the consideration under the contract to each component.
e. Land held in trust
Land identified as Lot 981 on Plan SL12165 is held at fair value and is subject to a Deed of Grant in Trust
(DOGIT). Land identified as Lot 17 on Crown Plan B32305 is held at fair value and is subject to a Deed of
Grant in Trust (DOGIT). All the land is retained by the Crown, however the economic benefits of the land
accrue to The College and the land is administered by the College.
f. Impairment of Assets
At the end of each reporting period, The College reviews the carrying amounts of its tangible and
intangible assets to determine whether there is any indication that those assets have been impaired. If
such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value
less costs of disposal and value in use, is compared to the asset’s carrying amount. Any excess of the
asset’s carrying amount over its recoverable amount is recognised in profit or loss.
Where the assets are not held primarily for their ability to generate net cash inflows – that is, they are
specialised assets held for continuing use of their service capacity – the recoverable amounts are
expected to be materially the same as fair value.
Where it is not possible to estimate the recoverable amount of an individual asset, The College estimates
the recoverable amount of the cash-generating unit to which the asset belongs.
Where an impairment loss on a revalued individual asset is identified, this is recognised against the
revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not
exceed the amount in the revaluation surplus for that class of asset.
g. Employee Benefits
Short-term employee benefits
Provision is made for The College’s obligation for short-term employee benefits. Short-term employee
benefits are benefits (other than termination benefits) that are expected to be settled wholly within 12
months after the end of the annual reporting period in which the employees render the related service,
including wages, salaries, annual leave and sick leave. Short-term employee benefits are measured at the
(undiscounted) amounts expected to be paid when the obligation is settled.
The College’s obligations for short-term employee benefits such as wages, salaries and sick leave are
recognised as part of current trade and other payables in the statement of financial position.
Other long-term employee benefits
The College classifies employees' long service leave and annual leave entitlements as other long-term
employee benefits as they are not expected to be settled wholly within 12 months after the end of the
annual reporting period in which the employees render the related service. Provision is made for The
College’s obligation for other long-term employee benefits, which are measured at the present value of the
expected future payments to be made to employees. Expected future payments incorporate anticipated
future wage and salary levels, durations of service and employee departures, and are discounted at rates
determined by reference to market yields at the end of the reporting period on high quality corporate
bonds that have maturity dates that approximate the terms of the obligations. Any remeasurements for
changes in assumptions of obligations for other long-term employee benefits are recognised in profit or
loss in the periods in which the changes occur.
The College’s obligations for long-term employee benefits are presented as non-current liabilities in its
statement of financial position, except where The College does not have an unconditional right to defer
Equipping for Life Ltd ABN 53 129 945 517
Page 17 of 31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
settlement for at least 12 months after the end of the reporting period, in which case the obligations are
presented as current liabilities.
h. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly
liquid investments with original maturities of three months or less.
i. Trade and Other Debtors
Fee Debtors are recognised at the amounts due at the time of sale or service delivery. Unless prior
arrangements are in place, settlement of these amounts are required by the start or each relevant school
term.
The collectability of receivables is assessed periodically with provision being made for impairment. All
known bad debts were written off as 31 December 2019.
Other debtors generally arise from transactions outside the usual operating activities of the College and
are recognised at their assessed value. Terms are a maximum of 30 days, no interest is charged, and no
security is obtained.
j. Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net
amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in
the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities, which are recoverable from or payable to the ATO, are presented as operating cash
flows included in receipts from customers or payments to suppliers.
k. Income Tax
No provision for income tax has been raised as The College is exempt from income tax under Div 50 of
the Income Tax Assessment Act 1997.
l. Intangible Assets
Software
Software is initially recognised at cost. Where software is acquired at no cost, or for a nominal cost, the
cost is its fair value, as at the date of acquisition. It has a finite life and is carried at cost less any
accumulated amortisation and impairment losses. Software has an estimated useful life of between one
and three years. It is assessed annually for impairment.
m. Provisions
Provisions are recognised when The College has a legal or constructive obligation, as a result of past
events, for which it is probable that an outflow of economic benefits will result, and that outflow can be
reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the
obligation at the end of the reporting period.
n. Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes
in presentation for the current financial year.
o. Trade and Other Payables
Trade and other payables represent the liabilities for goods and services received by The College during
the reporting period that remain unpaid at the end of the reporting period. The balance is recognised as a
current liability with the amounts normally paid within 30 days of recognition of the liability.
Equipping for Life Ltd ABN 53 129 945 517
Page 18 of 31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
p. Critical Accounting Estimates and Judgements
The directors evaluate estimates and judgements incorporated into the financial statements based on
historical knowledge and best available current information. Estimates assume a reasonable expectation
of future events and are based on current trends and economic data, obtained both externally and within
The College.
Key estimates
(i) Valuation of freehold land
The freehold land was independently valued at 30 June 2018 by the Department of Natural
Resources, Mines and Energy. The valuation was based on the fair value. The critical assumptions
adopted in determining the valuation included the location of the land. The valuation resulted in a
revaluation increment of $3,600,000 for Deception Bay and $4,200,000 being recognised for the
year ended 31 December 2018.
At 31 December 2019, the directors have performed a directors’ valuation on the freehold land.
The directors have reviewed the key assumptions adopted by the valuers in 2018 and do not
believe there has been a significant change in the assumptions at 31 December 2019. The
directors therefore believe the carrying amount of the land correctly reflects the fair value at
31 December 2019.
Key judgements
(i)........ Employee benefits
For the purpose of measurement, AASB 119: Employee Benefits defines obligations for short-term
employee benefits as obligations expected to be settled wholly before 12 months after the end of
the annual reporting period in which the employees render the related service. As The College
expects that most employees will not use all of their annual leave entitlements in the same year in
which they are earned or during the 12-month period that follows (despite an informal internal
policy that requires annual leave to be used within 18 months), the directors believe that
obligations for annual leave entitlements satisfy the definition of other long-term employee benefits
and, therefore, are required to be measured at the present value of the expected future payments
to be made to employees.
q. Economic Dependence
The College is dependent on the Department of Education for the majority of its revenue used to operate
the business. At the date of this report, the Board of Directors has no reason to believe the Department
will not continue to support for the College.
r. Fair Value of Assets and Liabilities
The College measures some of its assets and liabilities at fair value on either a recurring or non-recurring
basis, depending on the requirements of the applicable Accounting Standard.
“Fair value” is the price The College would receive to sell an asset or would have to pay to transfer a
liability in an orderly (ie unforced) transaction between independent, knowledgeable and willing market
participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is
used to determine fair value. Adjustments to market values may be made having regard to the
characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded
in an active market are determined using one or more valuation techniques. These valuation techniques
maximise, to the extent possible, the use of observable market data.
To the extent possible, market information is extracted from the principal market for the asset or liability (ie
the market with the greatest volume and level of activity for the asset or liability). In the absence of such a
market, market information is extracted from the most advantageous market available to The College at
the end of the reporting period (ie the market that maximises the receipts from the sale of the asset or
minimises the payments made to transfer the liability, after taking into account transaction costs and
transport costs).
Equipping for Life Ltd ABN 53 129 945 517
Page 19 of 31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
For non-financial assets, the fair value measurement also takes into account a market participant’s ability
to use the asset in its highest and best use or to sell it to another market participant that would use the
asset in its highest and best use.
The fair value of liabilities and The College’s own equity instruments (if any) may be valued, where there
is no observable market price in relation to the transfer of such financial instruments, by reference to
observable market information where such instruments are held as assets. Where this information is not
available, other valuation techniques are adopted and, where significant, are detailed in the respective
note to the financial statements.
s. New and Amended Accounting Policies Adopted by The College
Initial application of AASB 16
The College has adopted AASB 16: Leases retrospectively with the cumulative effect of initially applying
AASB 16 recognised at 1 January 2019. In accordance with AASB 16, the comparatives for the 2018
reporting period have not been restated.
The College has recognised a lease liability and right-of-use asset for all leases (with the exception of
short-term and low-value leases) recognised as operating leases under AASB 117: Leases where The
College is the lessee.
The lease liabilities are measured at the present value of the remaining lease payments. The College's
incremental borrowing rate as at 1 January 2019 was used to discount the lease payments.
The right-of-use assets for equipment was measured at its carrying amount as if AASB 16 had been
applied since the commencement date, but discounted using The College's weighted average incremental
borrowing rate on 1 January 2019.
The right-of-use assets for the remaining leases were measured and recognised in the statement of
financial position as at 1 January 2019 by taking into consideration the lease liability and prepaid and
accrued lease payments previously recognised at 1 January 2019 (that are related to the lease).
The following practical expedients have been used by The College in applying AASB 16 for the first time:
- for a portfolio of leases that have reasonably similar characteristics, a single discount rate has
been applied.
- leases that have remaining lease term of less than 12 months as at 1 January 2019 have been
accounted for in the same way as short-term leases
- the use of hindsight to determine lease terms on contracts that have options to extend or terminate
- applying AASB 16 to leases previously identified as leases under AASB 117 and Interpretation 4:
Determining whether an arrangement contains a lease without reassessing whether they are, or
contain, a lease at the date of initial application.
- not applying AASB 16 to leases previously not identified as containing a lease under AASB 117
and Interpretation 4.
The College’s weighted average incremental borrowing rate on 1 January 2019 applied to the lease
liabilities was 6%. The discounted operating lease commitments as at 1 January 2019 was 10,847.
Initial application of AASB 15 and AASB 1058
The College has applied AASB 15: Revenue from Contracts with Customers and AASB 1058: Income of
Not-for-Profit Entities using the cumulative effective method of initially applying AASB 15 and AASB 1058
as an adjustment to the opening balance of equity at 1 January 2019. Therefore, the comparative
information has not been restated and continues to be presented under AASB 118: Revenue and AASB
1004: Contributions.
The adoption of AASB 15 and AASB 1058 did not have any material impact on The College’s financial
report.
Equipping for Life Ltd ABN 53 129 945 517
Page 20 of 31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
t. Correction of prior period error
A correction of prior period error is required in respect of the initial recognition of Land Held in Trust
measured at fair value in the 2018 financial statements. The error has been corrected by restating each
of the affected financial statement line items for the prior period, as follows:
31-Dec-18
Statement of Financial Position (Extract): Previous Amount Adjustment Restated Amount
Land held in Trust - at Fair Value $ - $7,800,000 $7,800,000
Accumulated surplus/ (losses) $832,052 $7,800,000 $8,632,052
31-Dec-18
Statement of Comprehensive income (extract): Previous Amount Adjustment Restated Amount
Other income - Land held in Trust $ - $7,800,000 $7,800,000
The change did not have an impact on Other Comprehensive Income for the period or the Company's
operating, investing and financing cashflows
Equipping for Life Ltd ABN 53 129 945 517
Page 21 of 31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
NOTE 2: REVENUE AND OTHER INCOME
Note 2019 2018
$ $
Revenue
Revenue from (non-reciprocal) government grants and other grants:
– federal government grants 6,459,385 4,573,744
– state government grants 1,099,507 645,896
– other organisations 207,521 249,572
Total revenue 7,766,413 5,469,213
Other income
– Resource levy 160,232 87,957
– Other receipts from students 39,417 22,503
– Non-refundable enrolment fees 13,471 7,226
– Gain/(Loss) on disposal of fixed assets 109,773 -
– Donations 6,000 1,127
– Donations from Shaftesbury Citizen Centre 2(a) - 3,051,256
– Land held in Trust from Shaftesbury Citizen Centre 1(e) - 7,800,000
– Rental income and contributions 1,080 4,429
– State capital grants 1,377,000 -
– Interest received 7,808 10,411
– Other income 41,756 29,854
Total other income 1,756,537 11,014,763
Total revenue and other income 9,522,950 16,483,976
2(a) In November and December 2018, The College received donation of assets from Shaftesbury Citizen
Centre at cost of $3,051,256 and Land Held in Trust at fair value of $7,800,000. The College donated
$2,661,410 of these assets to The Silver Lining Foundation Australia.
NOTE 3: TUITION EXPENSES
2019 2018
$ $
Tuition Expenses
– Salaries 1,689,875 1,045,313
– Superannuation 160,538 99,305
– Stationery and materials 103,615 41,176
– Training and welfare 40,329 32,718
– Other teaching expenses 82,323 47,063
Total tuition expenses 2,076,680 1,265,575
Equipping for Life Ltd ABN 53 129 945 517
Page 22 of 31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
NOTE 4: ADMINISTRATION, PROPERTY AND FINANCE EXPENSES
2019 2018
$ $
Administration, property and finance Expenses
– Maintenance and cleaning 312,967 260,717
– General and administration expenses 370,216 311,404
– Computer expenses 203,487 226,508
– Rental expenses - 856
– Insurances 85,059 115,877
– Transport and travel expenses 41,808 96,153
– Waste, water and power 118,199 115,725
– Depreciation 501,578 487,203
– Salaries – accounting and clerical 1,986,748 1,785,241
– Superannuation – accounting and clerical 205,825 169,195
– Provisions for annual and long service leave 347,858 234,508
– Other employment expenses 53,170 113,602
Total administration, property and finance expenses 4,226,915 3,916,989
NOTE 5: AUDITOR’S RENUMERATION
Auditor renumeration
– PKF Brisbane Audit 10,500 -
– Advance Accountants RTM 8,990 7,950
Total auditors renumeration 19,490 7,950
NOTE 6: CASH AND CASH EQUIVALENTS
Cash at bank 3,512,798 1,307,595
Cash on hand 1,100 2,898
3,513,898 1,310,493
NOTE 7: TRADE AND OTHER RECEIVABLES
Trade receivables 45,356 13,924
Less provision for doubtful debts (14,623) (4,474)
GST receivables - 17,281
Total current trade and other receivables 30,733 26,731
NOTE 8: OTHER ASSETS
Prepayments 104,008 2,339
104,008 2,339
Equipping for Life Ltd ABN 53 129 945 517
Page 23 of 31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
NOTE 9: PROPERTY, PLANT AND EQUIPMENT 2019 2018
$ $
Land held in Trust
Land held in trust at fair value 7,800,000 7,800,000
Total Land held in Trust 7,800,000 7,800,000
Freehold Buildings
Buildings at cost: 18,397,863 19,132,433
Less accumulated depreciation (2,118,058) (1,991,446)
Total Freehold Buildings 16,279,805 17,140,986
Plant and Equipment
Furniture and equipment:
At cost 235,491 171,525
Less accumulated depreciation (80,119) (60,314)
155,372 111,212
Office Equipment
At Cost 33,425 28,137
Less accumulated Depreciation (26,475) (24,533)
6,949 3,604
Computer Equipment & Software
At Cost 1,166,831 962,465
Less accumulated depreciation (908,352) (729,137)
258,479 233,327
Plant and Equipment
At Cost 82,376 65,750
Less accumulated depreciation (36,318) (21,900)
46,058 43,850
Motor Vehicles:
Motor Vehicle at cost 336,736 433,850
Less accumulated depreciation (248,104) (265,302)
88,632 168,548
Total Plant and Equipment 555,491 560,541
Total Work in Progress - Buildings 2,265,186 322,498
Total Property, Plant and Equipment
26,900,482
25,824,025
Equipping for Life Ltd ABN 53 129 945 517
Page 24 of 31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
NOTE 9: PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Movements in Carrying Amounts
Movement in the carrying amounts for each class of property, plant and equipment between the beginning
and the end of the current financial year:
Land Held in
Trust
Freehold
Buildings
Plant and
Equipment
Work in
Progress
Total
$ $ $ $ $
2019
Balance at the beginning of the
year (restated)
7,800,000
17,140,986
560,541
322,498
25,824,025
Additions at cost - 133,556 330,675 1,942,688 2,406,919
Disposals - (798,156) (31,662) - (829,818)
Depreciation expense - (196,582) (304,062) - (500,644)
Carrying amount at the end of the
year
7,800,000 16,279,805 555,491 2,265,186 26,900,482
NOTE 10: RIGHT-OF-USE ASSETS
2019
$
i) AASB 16 related amounts recognised in the balance sheet
Right of use assets
Leased building 10,847
Accumulated depreciation (460)
Total right-of-use assets 10,387
Movement in carrying amounts:
Leased buildings:
Recognised on initial application of AASB 16 (previously classified as
operating leases under AASB 117)
10,847
Depreciation expense (460)
Net carrying amount 10,387
ii) AASB 16 related amounts recognised in the statement of profit or
loss
Depreciation charge related to right-of-use assets 460
Interest expense on lease liabilities 588
Short-term leases expense -
Low-value asset leases expense 37,301
Equipping for Life Ltd ABN 53 129 945 517
Page 25 of 31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
NOTE 11: TRADE AND OTHER PAYABLES
Note 2019 2018
$ $
CURRENT
Trade payables 195,280 146,110
Other current payables 129,342 134,715
GST payable 102,354 -
426,976 280,825
NOTE 12: PROVISIONS
CURRENT
Provision for employee benefits: annual leave 178,502 117,621
NON-CURRENT
Provision for employee benefits: long service leave 23,952 25,671
202,454 143,292
Employee
Benefits
$
Analysis of total provisions
Opening balance at 1 January 2019 143,292
Additional provisions raised during year 314,415
Amounts used (255,253)
Balance at 31 December 2019 202,454
Provision for employee benefits
Provision for employee benefits represents amounts accrued for annual leave and long service leave.
The current portion for this provision includes the total amount accrued for annual leave entitlements and the
amounts accrued for long service leave entitlements that have vested due to employees having completed the
required period of service. Based on past experience, The College does not expect the full amount of annual
leave or long service leave balances classified as current liabilities to be settled within the next 12 months.
However, these amounts must be classified as current liabilities since The College does not have an
unconditional right to defer the settlement of these amounts in the event employees wish to use their leave
entitlement.
The non-current portion for this provision includes amounts accrued for long service leave entitlements that have
not yet vested in relation to those employees who have not yet completed the required period of service.
In calculating the present value of future cash flows in respect of long service leave, the probability of long
service leave being taken is based upon historical data. The measurement and recognition criteria for employee
benefits have been discussed in Note 1(g).
Equipping for Life Ltd ABN 53 129 945 517
Page 26 of 31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
NOTE 13: LEASE LIABILITIES
Note 2019 2018
$ $
CURRENT
Hire purchase loan 9,609 -
Lease liability – right of use asset 228 -
9,837 -
NON CURRENT
Hire purchase loan 32,713 45,494
Lease liability – right of use asset 10,351 -
43,064 45,494
NOTE 14: CAPITAL AND LEASING COMMITMENTS
2019 2018
$ $
a. Lease Commitments
Payable – minimum lease payments:
– not later than one year 38,003 -
– later than one year and not later than five years 44,336 -
– later than five years - -
Minimum lease payments 82,339 -
b. Motor Vehicle Hire Purchase Commitments
Payable – minimum lease payments:
– not later than one year 11,765 -
– later than one year and not later than five years 33,880 -
– later than five years - -
Minimum lease payments 45,645 -
NOTE 15: CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Pursuant to the conditions attached to Commonwealth and State Government capital grants, the College is
contingently liable to repay, based on a formula, all or part of the grants received if the project the funds are
applied ceases to be used for the purpose approved, or is sold or otherwise disposed of within 20 years of the
completion date. This value is currently recorded as $8,481,810.
A capital grants reserve is maintained to match the contingent liability balance at year end.
NOTE 16: EVENTS AFTER THE REPORTING PERIOD
Subsequent to balance date, the Board and management have commenced an assessment of the potential
impact of Coronavirus (COVID-19) which has created significant, and largely uncertain, risks both locally and
internationally. The Board and management are assessing daily the status of the virus. At this stage the Board
are not able to reliably determine or quantify either the impact of the virus on the financial position, performance
and operation of the business. No amendments have been made to the financial information or disclosures in
these financial statements as a result.
Equipping for Life Ltd ABN 53 129 945 517
Page 27 of 31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
NOTE 17: KEY MANAGEMENT PERSONNEL COMPENSATION
Any person(s) having authority and responsibility for planning, directing and controlling the activities of The
College, directly or indirectly, including any director (whether executive or otherwise) of that entity, is
considered key management personnel (KMP).
Key Management Personnel are:
Name Position
Gerald Weatherall Chairman of the Board
Michael Cross Managing Director
Lisa Coles Executive Principal
Ernest Brady Board Member
Kathleen Martin Board Member
Robert Cavaye
Raymond French
Cindy Wilson
Board Member
CFO and Director (Retired May 2019)
Exec Assistant and Director (Retired May 2019)
Jessica Oro Business Manager
The totals of remuneration paid to KMP of The College during the year are as follows:
2019 2018
$ $
– short-term employee benefits 525,615 425,139
– Superannuation paid 49,933 40,388
575,548 465,527
NOTE 18: OTHER RELATED PARTY TRANSACTIONS
Other related parties include close family members of key management personnel and entities that are
controlled or jointly controlled by those key management personnel individually or collectively with their
close family members.
Transactions between related parties are on normal commercial terms and conditions no more favourable
than those available to other parties unless otherwise stated.
During the year, there were no related party transactions.
NOTE 19: FINANCIAL RISK MANAGEMENT
The College’s financial instruments consist mainly of deposits with banks, short-term, accounts receivable
and payable, and lease liabilities.
The carrying amounts for each category of financial instruments, measured in accordance with AASB 9:
Financial Instruments as detailed in the accounting policies to these financial statements
Equipping for Life Ltd ABN 53 129 945 517
Page 28 of 31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
NOTE 20: ENTITY DETAILS
The registered office of The College is:
1-83 Deception Bay Road
Deception Bay
Qld 4508
The principal place of business is:
1-83 Deception Bay Road
Deception Bay
Qld 4508
NOTE 21: MEMBERS’ GUARANTEE
The College is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If
The College is wound up, the constitution states that each member is required to contribute a maximum of
$50 each towards meeting any outstanding obligations of The College. At 31 December 2019, the number
of members was 3.
Equipping for Life Ltd ABN 53 129 945 517
Page 29 of 31
DIRECTORS’ DECLARATION
In accordance with a resolution of the Directors of Equipping for Life Ltd, the directors of The College
declare that, in the directors' opinion:
1. The financial statements and notes, as set out on pages 9 to 29, satisfy the requirements of the
Australian Charities and Not-for-profits Commission Act 2012 and:
a. comply with Australian Accounting Standards – Reduced Disclosure Requirements applicable
to The College; and
b. give a true and fair view of the financial position of The College as at 31 December 2019 and
of its performance for the year ended on that date.
2. There are reasonable grounds to believe that The College will be able to pay its debts as and when
they become due and payable.
This declaration is signed in accordance with subs 60.15(2) of the Australian Charities and Not-for-profits
Commission Regulation 2013.
Directors Name; Gerald Weatherall Signature: ______________________
Dated this 22nd day of April 2020
Equipping for Life Ltd ABN 53 129 945 517
\ Page 30 of 31
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF EQUIPPING FOR LIFE LTD
Report on the Financial Report
Opinion
We have audited the accompanying financial report, of Equipping for Life Ltd (The College), which comprises the statement of financial position as at 31 December 2019, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration. In our opinion the financial report of The College is in accordance with the Div 60 of the Australian Charities and Not-for-profits Commission Act 2012, including:
a) Giving a true and fair view of The College’s financial position as at 31 December 2019 and of its performance for the year ended on that date; and
b) Complying with Australian Accounting Standards – Reduced Disclosure and and Div 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. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. Our responsibilities under those standards are further described in the Auditor’s Responsibility section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of The College in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s 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.
Equipping for Life Ltd ABN 53 129 945 517
\ Page 31 of 31
Directors’ Responsibilities for the Financial Report
The directors of The College are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Act 2012 and for such internal control as the directors determine 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 Directors are responsible for assessing The College’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using a going concern basis of accounting unless the Directors either intend to liquidate The College or to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our responsibility is to express an opinion on the financial report based on our audit. 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 Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individual or in 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/Home.apsx. This description forms part of our auditor’s report.
PKF BRISBANE AUDIT
CAMERON BRADLEY PARTNER BRISBANE 22 APRIL 2020