Fathering Project PKH Ltd Fathering Project PKH Fund... · 2020-03-26 · Fathering Project PKH Ltd Fathering Project PKH Fund ABN: 67 605 348 776 Directors' report Page 2 Our directors

Fathering Project PKH Ltd Fathering Project PKH Fund

Financial statements For the year ended 30 June 2019


ABN: 67 605 348 776

Contents

For the year ended 30 June 2019

Directors' report 1

Auditor’s independence declaration 3

Statement of Financial Position 4

Statement of Profit or Loss and Other Comprehensive Income 5

Statement of Changes in Equity 6

Statement of Cash Flows 7

Notes to the financial statements 8

Declaration 13

Independent auditor’s report to the members 14


ABN: 67 605 348 776

Directors' report

Page 2

Our directors present this report on the company for the financial year ended 30 June 2019. In order to comply with the provisions of the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act), the directors report as follows:

Directors

The names of each person who has been a director during the year and to the date of thisreport are:

John Bond (Chair person)

Martin Black

Craig Heatley

Kim Grist

Mimi Packer

Ian Macliver

Bruce Robinson

Peter Abery

Caro Stewart

Directors have been in office since the start of the financial year to the date of this reportunless otherwise stated.

Principal Activities

The principal activity of the company during the financial year was to provide fathering supportservices through prevention and education programs.

Review of Operations

During the year, the company continued to engage in its principal activity, the results of whichare disclosed in the attached financial statements. The net current year surplus of the company for the financial year ended 30 June 2019 amounted to $89,580 (2018: $49,176).

16 Oct


ABN: 67 605 348 776

Statement of Financial PositionFor the year ended 30 June 2019

The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report of Armada Accountants & Advisors Accountants.

Page 4

2019 2018 $ $

Current assetsCash at bank - Trading 74,587 25,799Cash at Bank - PKH Fund 2,043,339 833,950Cash at Bank - UWA 997 997Cash at Bank - Paypal - 305Clearing Account 5,500 -Trade Debtors 89,849 17,940Provision for bad debts (23,540) -Inventory on hand 23,875 7,845

Total current assets 2,214,607 886,836

Total assets 2,214,607 886,836

Current liabilitiesAccounts Payable 18,674 32,690PAYG Withheld 14,776 9,152Superannuation Payable 21,414 -GST Collected 150,284 18,110GST Paid (26,933) (19,298)Prepaid Revenue 18,182 14,545Grant Received in Advance 1,246,112 165,000Annual Leave Accrued 33,538 17,657

Total current liabilities 1,476,047 237,856

Total liabilities 1,476,047 237,856

Net assets 738,560 648,980Equity

Retained earnings 738,560 648,980

Total equity 738,560 648,980


ABN: 67 605 348 776

Statement of Profit and Loss and Other Comprehensive IncomeFor the year ended 30 June 2019


Page 5

2019 2018 $ $

Income Community & Corporate Income 31,514 4,500PKH Fund DGR Donations 649,997 374,499Events income 147,207 96,770Fundraising 407 350Grants 458,516 332,273DSS Funding 82,638 -Interest Income - 369Sales 3,266 3,086Schools Income 94,687 18,385Sponsorship 14,545 114,545

1,482,777 944,777

Expenses Changes in Inventories (16,030) (7,845)Accounting & Audit 2,260 5,882Employment Expenses 907,384 560,898Events 47,334 27,770Grants Acquittals 148,448 137,401Other Expenses 97,773 8,285Program Fees 100,169 78,762Research 59,500 50,000Website costs 46,359 34,448

1,393,197 895,601

Net profit 89,580 49,176


ABN: 67 605 348 776

Statement of changes in equityFor the year ended 30 June 2019


Page 6

Retained Earnings

Total

Balance at 1 July 2017 562,156 562,156 Merged retained profit from FPL 37,648 37,648 Comprehensive Income for the period 49,176 49,176 Balance as 30 June 2018 648,980 648,980 Balance at 1 July 2018 648,980 648,980 Comprehensive Income for the period 89,580 89,580 Balance as 30 June 2019 738,560 738,560


ABN: 67 605 348 776

Statement of cash flowsFor the year ended 30 June 2019


Page 7

2019 2018 $ $ Inflows/

(Outflows) Inflows/

(Outflows)Cash flows from operating activities Donation received 649,997 374,499 Grants received 1,543,264 497,273 Payments to suppliers and employees (1,496,449) (910,881)Interest received - 369 Other receipts/(costs) 561,060 346,847

Net cash provided by (used in) operating activities

1,257,871 308,106

Net increase in cash held 1,257,871 308,106 Cash at beginning of year 861,051 552,945 Cash at end of year 2,118,922 861,051


ABN: 67 605 348 776

Notes to the financial statements


These notes should be read in conjunction with the attached compilation report of Armada Accountants & Advisors Accountants.

Page 8

The financial statements cover Fathering Project PKH Ltd as an individual entity, incorporated and domiciled in Australia. Fathering Project PKH Ltd Fathering Project PKHFund is Not For Profit company limited by guarantee. The financial statements were authorised for issue on 14 October 2019 by the directors of the company.

1 Basis of preparation The directors have prepared the financial statements on the basis that the Company is anon-reporting entity because there are no users dependent on general purpose financial statements. These financial statements are therefore special purpose financial statementsthat have been prepared in order to meet the requirements of the Australian Charities and Not-for-profits Commission Act 2012. The company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. The financial statements have been prepared in accordance with the mandatoryAustralian Accounting Standards including the recognition and measurement of applicable to entities reporting under the Australian Charities and Not-for-profits Commission Act 2012, the basis of accounting specified by all Australian Accounting Standards andInterpretations, and the disclosure requirements of Accounting Standards: - AASB 101: Presentation of Financial Statements - AASB 107: Cash Flow Statements - AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors - AASB 1048 Interpretation of Standards - AASB 1054: Australian Additional Disclosures The financial statements, except for the cash flow information, have been prepared on anaccrual basis and are based on historical costs unless otherwise stated in the notes.Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise. Theamounts presented in the financial statements have been rounded to the nearest dollar. Significant accounting policies adopted in the preparation of these financial statementsare presented below and are consistent with prior reporting periods unless otherwisestated.


ABN: 67 605 348 776




Page 9

2 Summary of significant accounting policies

Revenue and Other Income Non-reciprocal grant revenue is recognised in the profit or loss when the entity obtains control of the grant and it is probable that the economic benefits gained from the grantwill flow to the entity and the amount of the grant can be measured reliably. If conditionsare attached to the grant which must be satisfied before the entity is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until thoseconditions are satisfied. When grant revenue is received whereby the entity incurs an obligation to delivereconomic value directly back to the contributor, this is considered a reciprocal transactionand the grant revenue is recognised in the statement of financial position as a liabilityuntil the service has been delivered to the contributor; otherwise the grant is recognised as income on receipt. Donations and bequests are recognised as revenue when received. Revenue from the sale of goods is recognised at the point of delivery as this correspondsto the transfer of significant risks and rewards of ownership of the goods and cessation of all involvement in those goods. Interest revenue is recognised as it accrues using the effective interest method, which forfloating rate financial assets is the rate inherent in the instrument. Dividend revenue isrecognised when the right to receive a dividend has been established. Revenue from the rendering of a service is recognised upon the delivery of the service tothe customer. All revenue is stated net of the amount of goods and services tax (GST).

Other Other income is recognised on an accruals basis when the company is entitled to it.


ABN: 67 605 348 776




Page 10

Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except wherethe amount of GST incurred is not recoverable from the Australian Tax Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of theasset or as part of an item of the expense. Receivables and payables in the balance sheetare shown inclusive of GST.

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

Employee benefits Provision is made for the company’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that areexpected to be settled wholly before 12 months after the end of the annual reportingperiod in which the employees render the related service, including wages, salaries andsick leave. Short-term employee benefits are measured at the (undiscounted) amountsexpected to be paid when the obligation is settled. The company’s obligations for short-term employee benefits such as wages, salaries andsick leave are recognised as part of accounts payable and other payables in thestatement of financial position. Contributions are made by the entity to an employee superannuation fund and arecharged as expenses when incurred.

Provisions Provisions are recognised when the company has a legal or constructive obligation, as aresult of past events, for which it is probable that an outflow of economic benefits willresult and that outflow can be reliably measured.


ABN: 67 605 348 776




Page 11

Accounts receivable and other debtors Accounts receivable and other debtors include amounts due from donors and any outstanding grant receipts. Receivables expected to be collected within 12 months ofthe end of the reporting period are classified as current assets. All other receivables areclassified as non-current assets.

Accounts payable and other payables Accounts payable and other payables represent the liability outstanding at the end of thereporting period for goods and services received by the company during the reportingperiod which remain unpaid. The balance is recognised as a current liability with the amount being normally paid within 30 days of recognition of the liability.

Comparative figures Where required by Accounting Standards, comparative figures have been adjusted to conform with changes in presentation for the current financial year. Where the company retrospectively applies an accounting policy, makes a retrospectiverestatement or reclassifies items in its financial statements, a third statement of financial position as at the beginning of the preceding period in addition to the minimumcomparative financial statements must be presented. The comparative figures stated in the financial report was for 12 months activitiesundertaken by Fathering Project PKH Limited prior to the merge with Fathering ProjectLimited.

New Standards Effective 1 July 2018 Financial Instruments - AASB 9 Financial Instruments came into effect on 1 July 2018. The adoption of AASB 9 has resulted in changes in accounting policies and disclosures in the financial statements but has had no significant impact on the financial statements. The Company applied the standard effective 1 July 2018 being the date of initial application hence there was no restatements to the prior period financial statements. The Company’s financial instruments include Cash at Bank, Trade Debtors and Trade Payables. These financial instruments are measured and reported at amortised cost under AASB 9. There is no change to the classification and measurement of these instruments from the previous AASB 139 Financial Instruments.


ABN: 67 605 348 776




Page 12

New Standards Not Yet Effective: AASB 15 Revenue from Contracts with Customers & AASB 1058 Income for Not-for-Profit Entities AASB has issued a new standard for the recognition of revenue. This will replace AASB118 which covers contracts for goods and services and AASB 111 which coversconstruction contracts. The new standard is based on the principle that revenue isrecognised when control of a good or service transfers to a customer – so the notion of control replaces the existing notion of risks and rewards. The standard permits amodified retrospective approach for the adoption. Under this approach entities willrecognise transitional adjustments in retained earnings on the date of initial applicationi.e. without restating the comparative period. They will only need to apply the new rulesto contracts that are not completed as of the date of initial application. \AASB 15 is mandatory for financial years commencing on or after 1 January 2019 (1 January 2019for Not-for-Profit entities). In addition, the AASB issued a new standard AASB 1058Income of Not-for-profit Entities. AASB 1058 provides additional implementationguidance on applying the principles in AASB 15 to not-for-profit entities as well as replacing the requirements in AASB 1004 Contributions. This Standard applies to annualreporting periods beginning on or after 1 January 2019. Earlier application is permitted, provided entities also apply AASB 15 Revenue from Contracts with Customers to thesame period. The application of AASB 15 & AASB 1058 may have a material impact onthe Company’s’ revenue recognition policies as disclosed in Note 2 to the financial report. Management are assessing the accounting impact of the new standard.

AASB 16 Leases AASB 16 replaces AASB 117 Leases and sets out the principles for the recognition,measurement, presentation and disclosure of leases. AASB 16 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leaseswith a term of more than 12 months, unless the underlying asset is of low value. A lesseeis required to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligations to make lease payments. Alessee measures right-of-use assets similarly to other non-financial assets (such as property, plant and equipment) and lease liabilities similarly to other financial liabilities. As a consequence, a lessee recognises depreciation of the right-of-use asset and interest on the lease liability, and also classifies cash repayments of the lease liability into aprincipal portion and an interest portion and presents them in the statement of cash flowsapplying AASB 107 Statement of Cash Flows. AASB 16 substantially carries forward the lessor accounting requirements in AASB 117 Leases. Early application is permittedprovided the entity also applies AASB 15 Revenue from Contracts with Customers at orbefore the same date. Management is currently assessing the impact of this standard on the Company’sfinancial report.


ABN: 67 605 348 776

Director's declaration

Page 13

The director has determined that the company is not a reporting entity and that this special purpose financial report should be prepared in accordance with the accounting policies described in Note 2 to the financial statements.

The director of the company declares that:

1. The financial statements and notes present fairly the company's financial position as at 30 June 2019 and its performance for the year ended on that date in accordance with the accounting policies described in Note 2 to the financial statements; 2. In the director's opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. 3. This declaration is signed in accordance with subs 60.15(2) of the Australian Charities and Not-for-profits Commission Regulation 2013.

This declaration is made in accordance with a resolution of the director.

Director ______________________________________ Mr John Bond

Dated

16 October 2019

Australian Charities and Not-for-profits Commission Act 2012

Australian Charities and Not-for-profits Commission Regulation 2013.

Auditor’s Responsibilities for the Audit of the Financial Report

Australian Charities and Not-for-profits Commission Act 2012 Code of Ethics for

Professional Accountants


Emphasis of Matter – Basis of Accounting



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Fathering Project PKH Ltd Fathering Project PKH Fund... · 2020-03-26 · Fathering Project PKH Ltd Fathering Project PKH Fund ABN: 67 605 348 776 Directors' report Page 2 Our directors