Financial Report - Spinal

Financial Reportfor the year ended 30 June 2011

This page is left intentionally blank

ContentsStatement by the Committee 4

Independent Auditor’s Report 5

Statement of Comprehensive Income 7

Balance Sheet 8

Statement of Changes in Members’ Funds 9

Cash Flow Statement 10

Notes to the Financial Statements 11

Spinal Injuries Association

Financial Report 2011

3

As stated in Note 1(c) to the financial statements, in the committee members’ opinion, the Association is not a reporting entity because there are no users dependent on general purpose financial reports. This special purpose financial report has been prepared for distribution to the members for the purpose of fulfilling the committee members financial reporting requirements under the Association’s Constitution and the Associations Incorporations Act (QLD) 1981.

The financial report has been prepared in accordance with applicable Australian Accounting Standards and other mandatory professional reporting requirements to the extent described in Note 1.

In the opinion of the Committee:-

(a) the financial statements are drawn up so as to give a true and fair view of the state of affairs of the Association having regard to the disclosures contained in Note 1 (c) of the financial statements as at 30th June 2011 and the deficit for the year ended on that date; and

(b) at the date of this statement there are reasonable grounds to believe that the Association will be able to pay its debts as and when they fall due.

D. RILEY P. HALL President Committee member

Date: 14 October 2011 Date: 14 October 2011

Statement by the CommitteeFor the year ended 30 June 2011



4

Auditor’s ReportFor The Year Ended 30 June 2011

Independent auditor’s report to the members of Spinal Injuries Association IncReport on the financial report

We have audited the accompanying financial report, being a special purpose financial report, of Spinal Injuries Association Inc (the association), which comprises the balance sheet as at 30 June 2011, the statement of comprehensive income, the statement of changes in member funds and the cash flow statement for the year then ended, a summary of significant accounting policies, other explanatory notes and the statement by the committee.

Audit and risk committee and management responsibility for the financial report

The audit and risk committee and management of the association are responsible for the preparation of the financial report and have determined that the basis of preparation described in Note 1 to the financial statements, which forms part of the financial report, is appropriate to meet the requirements of the Constitution and the Associations Incorporations Act (QLD) 1981 and is appropriate to meet the needs of the members.


The audit and risk committee and management of the association’s responsibility also includes such internal control as the audit and risk committee and management determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the association’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the association’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management of the association, as well as evaluating the overall presentation of the financial report.

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

PricewaterhouseCoopers, ABN 52 780 433 757Riverside Centre, 123 Eagle Street, BRISBANE QLD 4000, GPO Box 150, BRISBANE QLD 4001DX 77 Brisbane, AustraliaT: +61 7 3257 5000, F: +61 7 3257 5999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation



5

Auditor’s opinion

In our opinion, the financial report presents fairly, in all material respects, the financial position of Spinal Injuries Association Inc as of 30 June 2011 and its financial performance for the year then ended in accordance with the accounting policies described in Note 1 to the financial statements.

Basis of Accounting and Restriction on Distribution and Use

Without modifying our opinion, we draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared by the audit and risk committee and management for the members of the association. The financial report has been prepared to assist Spinal Injuries Association Inc to meet the requirements of its Constitution and Associations Incorporations Act (QLD) 1981. As a result, the financial report may not be suitable for another purpose. Our report is intended solely for the members of Spinal Injuries Association Inc.

PricewaterhouseCoopers

T A Mahony Partner

Brisbane 17 October 2011




6

Statement Of Comprehensive IncomeFor The Year Ended 30 June 2011

Notes 2011 2010 $ $

REVENUE 3 26,955,962 21,790,742

EXPENSES

Salaries and on-costs 4 22,539,157 17,703,314Staff related costs 1,131,432 654,604Client support costs 1,470,445 633,598Depreciation and amortisation 4 499,603 506,242Finance costs 4 69,902 68,719IT&T expenses 377,156 328,813Motor vehicle expenses 95,991 90,129Occupancy costs 321,991 219,907Other expenses 1,072,432 895,636 27,578,109 21,100,962

NET OPERATING (DEFICIT)/SURPLUS (622,147) 689,780

OTHER INCOME OR (EXPENSE)Net profit (loss) on sale of assets 20,620 17,824Capital grants received 6,000 -

NET (DEFICIT)/SURPLUS FOR THE YEAR (595,527) 707,604

Other comprehensive income - -

NET (DEFICIT)/SURPLUS and OTHERCOMPREHENSIVE INCOME FOR THE YEAR (595,527) 707,604

The above statement of comprehensive income should be read in conjunction with the accompanying notes.



7

Balance SheetAs at 30 June 2011

Notes 2011 2010 $ $

ASSETSCURRENT ASSETS

Cash and cash equivalents 14(b) 2,829,693 7,100,280Trade and other receivables 5 480,567 678,556Other current assets 6 678,086 364,225

TOTAL CURRENT ASSETS 3,988,346 8,143,061

NON-CURRENT ASSETS

Property, plant and equipment 7 6,550,832 6,212,664Intangible assets 8 297,361 383,453

TOTAL NON-CURRENT ASSETS 6,848,193 6,596,117

TOTAL ASSETS 10,836,539 14,739,178

LIABILITIESCURRENT LIABILITIES

Trade and other payables 9 1,651,078 2,157,563Interest-bearing loans and borrowings 10 156,915 156,915Unexpended grant funds 36,252 3,126,352Provisions 12 682,160 584,809

TOTAL CURRENT LIABILITIES 2,526,405 6,025,639

NON-CURRENT LIABILITIES

Interest-bearing loans and borrowings 11 404,327 550,080Provisions 13 561,418 223,543

TOTAL NON-CURRENT LIABILITIES 965,745 773,623

TOTAL LIABILITIES 3,492,150 6,799,262

NET ASSETS 7,344,389 7,939,916

MEMBERS’ FUNDS 7,344,389 7,939,916

The above balance sheet should be read in conjunction with the accompanying notes.



8

Statement Of Changes in Members’ FundsFor The Year Ended 30 June 2011

Notes $

Balance at 30 June 2008 6,763,736Surplus for the year 468,576

Balance at 30 June 2009 7,232,312Surplus for the year 707,604

Balance at 30 June 2010 7,939,916Deficit for the year (595,527)

Balance at 30 June 2011 7,344,389

The above statement of changes in member’s funds should be read in conjunction with the accompanying notes.



9

Cash Flow StatementFor the year ended 30 June 2011

Notes 2011 2010 $ $

CASH FLOWS FROM OPERATINGACTIVITIESReceipts from customers/government 24,928,024 23,492,845Payments to suppliers and employees (26,789,133) (19,901,902)GST paid (1,711,337) (1,590,805)Interest received 248,573 257,919Borrowing costs (69,902) (68,719)

NET CASH FLOWS (USED IN)/FROM OPERATING ACTIVITIES 14(a) (3,393,775) 2,189,338

CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sale of property, plant and equipment 61,590 62,375Capital Grant - -Purchase of property, plant and equipment (745,998) (327,095)Purchase of intangible assets (46,651) (58,385)

NET CASH FLOWS (USED IN)/FROM INVESTING ACTIVITIES (731,059) (323,105)

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from borrowings - -Repayment of borrowings – other (145,753) (143,111)

NET CASH FLOWS (USED IN)/FROM FINANCING ACTIVITIES (145,753) (143,111)

NET (DECREASE)/INCREASE IN CASH HELD (4,270,587) 1,723,122

Add opening cash brought forward 7,100,280 5,377,158

CLOSING CASH CARRIED FORWARD 14(b) 2,829,693 7,100,280

The above statement of cash flows should be read in conjunction with the accompanying notes.



10

Notes to the Financial StatementsFor The Year Ended 30 June 2011

1. Summary of significant accounting policies

(a) Corporate information

The Spinal Injuries Association (‘the Association’) is an association that is incorporated and domiciled in Australia.

The registered office of Spinal Injuries Association is:109 Logan RoadWoolloongabba, Brisbane Qld 4102

The principal activities of the Association are personal care support, employment assistance for people with a physical disability, information and spinal advisory services, member networks coordination, injury prevention programs, peer support programs and fundraising activities.

(b) New accounting standards and interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2011 reporting periods. The Association’s assessment of the impact of these new standards and interpretations is set out below:

AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements (effective 1 July 2013)

On 30 June 2010 the AASB officially introduced a revised differential reporting framework in Australia. Under this framework, a two-tier differential reporting regime applies to all entities that prepare general purpose financial statements. Spinal Injuries Association is not a reporting entity and is preparing a special purpose financial report as explained in note 1(c). At this stage, the new regime will not affect Spinal Injuries Association’s financial statements.

AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income (effective 1 July 2012)

In September 2011, the AASB made an amendment to AASB 101 Presentation of Financial Statements which requires entities to separate items presented in other comprehensive income into two groups, based on whether they may be recycled to profit or loss in the future. This will not affect the measurement of any of the items recognised in the balance sheet or the profit or loss in the current period. The Spinal Injuries Association intends to adopt the new standard from 1 July 2012.

(c) Basis of Preparation

(i) Special purpose financial report

This special purpose financial report has been prepared for distribution to the members to fulfil the Committee’s financial reporting requirements under the Constitution and the Association’s Incorporations Act (QLD) 1981.

The accounting policies used in the preparation of this report, as described below, are consistent with the financial reporting requirements of the Association’s constitution and with previous years. They have been prepared in accordance with the recognition and measurement principles of Australian Accounting Standards and other mandatory professional requirements in Australia. It contains only those disclosures considered necessary by the committee to meet the needs of the members.

The financial statements have been prepared on an accrual basis of accounting including the historical cost convention and the going concern assumption.

The financial report is presented in Australian dollars.



11


1. Summary of significant accounting policies (continued)

(c) Basis of Preparation (continued)

(i) Special purpose financial report (continued)

The committee members of Spinal Injuries Association Inc are members of PQ Lifestyles Limited on behalf of Spinal Injuries Association. Under Accounting Standards AASB 127: Consolidated and Separate Financial Statements, an entity is required to prepare consolidated financial statements if control exists.

Consolidated financial statements have not been prepared for the Spinal Injuries Association because neither the Association nor the group is a reporting entity and the committee members have decided not to comply with AASB 127 Consolidated and Separate Financial Statements. This is consistent with prior years.

(ii) Critical accounting estimates

The preparation of financial statements requires management to exercise its judgement in the process of applying the Association’s accounting policies. The areas where estimates are significant to the financial statements are disclosed in Note 2.

(d) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

For the purposes of the Cash Flow Statement, cash includes cash on hand and in banks, and money market investments readily convertible into cash within 2 working days, net of outstanding bank overdrafts.

(e) Trade and other receivables

Trade and other receivables, which generally have 14 day terms, are recognised and carried at the original invoice amount less an allowance for any uncollectible amounts.

An impairment provision is made when there is objective evidence that the Association will not be able to collect the debts. Bad debts are written off when identified.

(f) Property, plant and equipment

Property, plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses. Such cost includes the cost of replacing parts that are eligible for capitalization when the cost of replacing the parts is incurred. Similarly, when each major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement only if it is eligible for capitalization. All other repairs and maintenance are recognised in the profit and loss as incurred.

Depreciation

Depreciation is provided on a straight-line basis on all buildings, plant and equipment and owned motor vehicles at rates calculated to allocate the cost against revenue over the useful lives of the assets as follows:

Major depreciation periods are: 2011 2010

Buildings 40 years 40 yearsFurniture and Equipment 3-7 years 3-7 yearsMotor Vehicles 4-5 years 4-5 years

The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end.



12



(f) Property, plant and equipment (continued)

Impairment

The carrying values of property, plant and equipment are reviewed for impairment at each reporting date, with the recoverable amount being estimated when events or changes in circumstances indicate that the carrying value may be impaired.

The recoverable amount of property, plant and equipment is the depreciated replacement cost of the asset when the asset’s future economic benefit does not depend primarily on its ability to generate cash inflows, and if deprived of the asset the organisation would replace it.

An impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount.

For property, plant and equipment, impairment losses are recognised in the statement of comprehensive income in the depreciation line item.

(g) Intangibles

Intangibles, including software acquired, are stated at cost less accumulated amortisation and any impairment in value.

Amortisation

Amortisation is provided on a straight-line basis on all intangible assets at rates calculated to allocate the cost against revenue over the useful lives of the assets, which have presently been assessed at 5 years. The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end.

(h) Leases

Association as Lessee

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

Operating leases

The minimum lease payments of operating leases, where the lessor effectively retains substantially all of the risks and benefits of ownership of the leased item, are recognised as an expense on a straightline basis.

Finance leases

Leases which effectively transfer substantially all of the risk and benefits incidental to ownership of the leased item to the Association are capitalised at the present value of the minimum lease payments and disclosed as property, plant and equipment under lease. A lease liability of equal value is also recognised.

Capitalised lease assets are depreciated over the shorter of the estimated useful life of the assets and the lease term. Minimum lease payments are allocated between interest expense and reduction of the lease liability with the interest expense calculated using the interest rate implicit in the lease and charged directly to the Statement of Comprehensive Income.

Association as Lessor

Leases in which the Association retains substantially all the risks and benefits of ownership of the leased asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised as an expense over the lease term on the same basis as rental income.



13



(i) Trade and other payables

Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services provided to the Association prior to the end of the financial year that are unpaid and arise when the Association becomes obliged to make future payments in respect of the purchase of these goods and services.

The amounts are unsecured and are usually paid within 60 days of recognition.

(j) Interest-bearing loans and borrowings

All loans and borrowings are initially recognised at cost, being the fair value of the consideration received net of issue costs associated with the borrowing.

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any issue costs, and any discount or premium on settlement.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

(k) Borrowing costs

Borrowing costs are recognised as an expense when incurred. The Association does not currently hold qualifying assets but, if it did, the borrowing costs directly associated with this asset would be capitalised (including any other associated costs directly attributable to the borrowing and temporary investment income earned on the borrowing).

(l) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Association and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

(i) Sale of goods

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer and can be measured reliably. Risks and rewards are considered passed to the buyer at the time of delivery of the goods to the customer.

(ii) Rendering of services

Where the contract outcome can be reliably measured, control of a right to be compensated for the services has been attained and the stage of completion can be reliably measured. Revenue is recognised by reference to total labour hours incurred in the period.

(iii) Interest Income

Revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.



14


(l) Revenue recognition (continued)

(iv) Rental Revenue

Rental revenue from investment properties is accounted for on a straight-line basis over the lease term. Contingent rental income is recognised as income in the periods in which it is earned. Lease incentives granted are recognised as an integral part of the total rental income.

(v) Government Grants and Subsidies

Government grants are recognised at their fair value where there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. Operating Subsidies and Grants are received for specific operating expenditure of the Association’s Member Networks, High Support Needs Projects, Employment Options, Personal Support Service, Temporary Assistance, Spinal Advisory Service, Equipment Hire Service and Peer Support Program.

Grant monies received that have not been expended and are repayable are included under Grant liabilities in the balance sheet.

When the grant relates to an expense item, it is recognised as income over the periods necessary to match the grant on a systematic basis to the costs that it is intended to compensate.

Gifted assets acquired at a nominal value are recognised in the statement of comprehensive income and balance sheet at their fair value at the date the entity obtains control over the asset.

Capital grants received are recognised as a liability until such time as all significant conditions of the grant have been met, at which time, the grant is recognised as revenue.


(m) Employee benefits

Short term obligations

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in provisions in respect of employees’ services up to the reporting date. They are measured at the amounts expected to be paid when liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable. The liability for annual leave and accumulated sick leave is recognised in the provision for employee benefits. All other short term employee benefit obligations are presented as payables.

Long service leave

The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms of maturity and currencies that match, as closely as possible, the estimated future cash outflows.



15



(n) Income Tax

The Association is exempt from Income Tax under paragraph 23(e) of the Income Tax Assessment Act.

(o) Goods and Services Tax

Revenues, expenses and assets and liabilities are recognised net of the amount of GST except:

• Where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and

• Receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.

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

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.



16

3. REVENUE

Notes 2011 2010 $ $

Grants and subsidies 21,864,479 16,969,681 Fundraising - Gifts 221,569 192,534 Fundraising - Contributions 90,083 55,106 Trading / Operating activities 3,848,080 3,901,343 Interest income 248,573 257,919 Rental income 522,861 348,198 Other income 160,317 65,961 Total Revenue 26,955,962 21,790,742

2. Critical accounting estimates

Management has identified the following critical accounting policies for which significant judgements, estimates and assumptions are used. Actual results may differ from these estimates and under different assumptions and conditions.

Estimation of long service leave provision

The estimation of long service leave provision includes probability factors based on historical experience. Adjustments to probability factors are made when considered necessary.




17

5. TRADE AND OTHER RECEIVABLES (CURRENT)

Notes 2011 2010 $ $

Trade debtors 489,644 687,945 Allowance for impairment loss (9,077) (9,389) 480,567 678,556 Other - - Total receivables (current) 480,567 678,556

Movement in allowance for impairment loss Beginning balance (9,389) (9,389) Provision during the year - - Write-offs 312 - Ending balance (9,077) (9,389)

6. OTHER CURRENT ASSETS

Prepaid expenses 67,315 (8,943) Accrued income 201,005 354,490 Other debtors 409,766 18,678 Total other current assets 678,086 364,225

4. EXPENSES

Notes 2011 2010 $ $

Depreciation expense Buildings 111,487 109,874 Furniture and equipment 150,597 164,449 Motor vehicles 104,776 109,241 Total depreciation expense 366,860 383,564

Amortisation expense Software development costs 132,743 122,678 Total depreciation and amortisation 499,603 506,242

Borrowing costs expensed Interest expense 69,902 68,719 Total borrowing costs expensed 69,902 68,719

Salaries and on-costs Salaries and wages 18,673,072 15,313,347 Superannuation 1,699,067 1,450,557 Other benefits 2,167,018 939,410 22,539,157 17,703,314




18


7. PROPERTY, PLANT AND EQUIPMENT (Continued)

Notes 2011 2010 $ $

Reconciliations: Land and Buildings Carrying amount at beginning 5,497,049 5,597,895 Additions 390,825 9,028 Disposals - - Depreciation expense (111,487) (109,874) 5,776,387 5,497,049

Furniture and Equipment Carrying amount at beginning 459,900 398,538 Additions 171,423 239,587 Disposals - (13,776) Depreciation expense (150,597) (164,449) 480,726 459,900

Motor vehicles Carrying amount at beginning 255,715 316,375 Additions 172,410 79,355 Disposals (40,970) (30,774) Depreciation expense (104,776) (109,241) 282,379 255,715

Assets under construction Carrying amount at beginning - 875 Additions 11,340 - Completed and transferred to other asset categories (875) 11,340 -

7. PROPERTY, PLANT AND EQUIPMENT

Notes 2011 2010 $ $

Land and Buildings At cost 6,582,758 6,191,932 Accumulated depreciation (806,371) (694,883) 5,776,387 5,497,049

Furniture and equipment At cost 1,452,406 1,280,983 Accumulated depreciation (971,680) (821,083) 480,726 459,900

Motor vehicles At cost 482,239 469,777 Accumulated depreciation (199,860) (214,062) 282,379 255,715

Assets under construction At cost 11,340 -

Total property, plant and equipment 6,550,832 6,212,664



19


8. INTANGIBLE ASSETS

Notes 2011 2010 $ $

Software Development Costs At cost 654,176 627,812 Accumulated amortisation (377,102) (244,359) 277,074 383,453

Assets under construction At cost 20,287 -

Total intangible assets 297,361 383,453

(a Reconciliations: Software Development Costs Carrying amount at beginning 383,453 420,338 Additions 26,364 58,385 Transfers from assets under construction - 27,408 Disposals - - Amortisation expense (132,743) (122,678) 277,074 383,453

Assets under construction Carrying amount at beginning - 27,408 Additions 20,287 - Completed and transferred to other asset categories - (27,408) 20,287 -

9. TRADE AND OTHER PAYABLES (CURRENT)

Notes 2011 2010 $ $

Trade creditors 591,716 317,877 Other creditors 902,726 1,316,512 Revenue in advance 156,636 523,174 Total trade and other payables 1,651,078 2,157,563

10. INTEREST BEARING LIABILITIES (CURRENT)

Borrowings secured by property 156,915 156,915

Details of security and other information are set out in Note 11

11. INTEREST BEARING LIABILITIES (NON CURRENT)

Borrowings secured by property 404,327 550,080

The bank loans are secured by a first equitable mortgage over properties in Woolloongabba and (See Note 7).

12. PROVISIONS (CURRENT)

Employee benefits 15 682,160 584,809

13. PROVISIONS (NON CURRENT)

Employee benefits 15 561,418 223,543



20


15. EMPLOYEE BENEFITS

Notes 2011 2010 $ $

Accrual for payroll costs in trade and other payables included in Note 9 330,143 696,729

The aggregate employee entitlement liability is comprised of: Provisions (current) 12 682,160 584,809 Provisions (non current) 13 561,418 223,543 1,243,578 808,352 1,573,721 1,505,081

16. AUDITOR’S REMUNERATION

During the year, the following fees were paid or payable for services provided to the auditor of the Association, its related practices and non-related audit firms:

(a) PwC Australia - audit of the financial report 43,000 - - other services 4,500 - Total Auditor’s Remuneration 47,500 - (b) Non PwC Audit firms - audit of the financial report - 86,000 - other services - - Total Auditor’s Remuneration - 86,000

(In 2010, as part of the engagement, the Ernst & Young Foundation agreed to make a donation of $40,000 to the Association, such that the net auditor’s remuneration amounts to $46,000.)

14. CASH FLOW INFORMATION

Notes 2011 2010 $ $

a) Reconciliation of the (deficit)/surplus to the net cash flows from operations

(Deficit)/Surplus for the year (595,527) 707,604

Adjustments for: Depreciation & amortisation 499,603 506,242 Net (profit)/loss on disposal of property, plant and equipment (20,620) (17,824)

Changes in assets and liabilities Decrease/(Increase) in trade and other receivables 197,989 (383,372) (Increase)/decrease in other current assets (313,861) (25,238) (Decrease)/increase in trade and other payables and unexpended grant funds (3,596,585) 1,274,520 Increase/(Decrease) in employee entitlements 435,226 127,406

Net cash flow (used)/from operating activities (3,393,775) 2,189,338

b) Reconciliation of cash and cash equivalents

Cash balance comprises: - Cash at bank 2,829,693 7,100,280 2,829,693 7,100,280



21


17. COMMITMENTS

The Association did not have any capital or other commitments as at 30 June 2011 (2010: $Nil).

18. CONTINGENT LIABILITIES

The Association, in the normal course of business, receives grants from government for capital outlays and operating costs and is required to submit documentation for the acquittal of these funds. These acquittals are subject to independent audit by the Associations’ auditors and subsequent review by government. The terms of grant funding normally include provisions that can require repayment of grants and unspent monies, in whole or in part, should the terms of such grants not be observed by the Association or consent for alternative use not obtained.

a) During the year ended 30 June 2011 the Association expended previously acquitted surplus operating grant funding carried forward from prior years of $3.1m on the provision of services to eligible qualifying clients, in ordinary course of business. The Association has made full disclosure of the use of these surplus funds as part of its continuous reporting obligations to the relevant government departments. This included reporting over the 3 year period in which the surplus has arisen and the utilisation of the surplus in the year. At the date of this report the Association had not received any request for the repayment of such funding and has no present belief that a request will be received.

b) The Association received capital grants amounting to a total of $502,995, as of 30 June 2011 (2010: $502,995) for capital expenditure on an IT system and implementation which occurred in 2008. The term of the agreement is 5 years, which will expire on 28 February 2012. During this term, the capital grant would be refundable to the Department should the Association cease trading and either sell the assets or not pass on the assets to an organisation with the same objectives. The likelihood of this event occurring is considered remote.

On this basis, no liability has been recognised in the financial statements for the repayment of either of the grants, in whole or in part.



22

This page is left intentionally blank

109 Logan Road WOOLLOONGABBA Qld 4102

PO Box 5651 WEST END Qld 4101

T: 07 3391 2044 F: 07 3391 2088

[email protected]

488 Ross River Road CRANBROOK Qld 4814

PO Box 618 AITKENVALE BC Qld 4814

T: 07 4755 1755 F: 07 4723 8677

[email protected]

www.spinal.com.au

Documents

Financial Report - Spinal