HeartKids Limited€¦ · personal tax assistance to high net wealth individuals and expatriates. Rohan is a HeartKid. Samantha Glastonbury Experience Samantha Glastonbury is a Marketing

HeartKids LimitedABN: 22-613-854-336

Financial Statements

For the Period Ended 30 June 2019

HeartKids Limited

ABN: 22-613-854-336

ContentsFor the Period Ended 30 June 2019

Page

Financial StatementsDirectors' Report 1Auditor's Independence Declaration 12Statement of Profit or Loss and Other Comprehensive Income 13Statement of Financial Position 14Statement of Changes in Equity 15Statement of Cash Flows 16Notes to the Financial Statements 17Directors' Declaration 30Independent Audit Report 31

HeartKids Limited

ABN: 22-613-854-336

Directors' ReportFor the Period Ended 30 June 2019

The directors present their report on HeartKids Limited for the financial period ended 30 June 2019.

Directors

The names of the directors in office at any time during, or since the end of, the period are:

Names

Janette McClelland

Beverley Barber

Jayne Blake

Jared Brotherston

David Celermajer

Rohan Geddes

Samantha Glastonbury

Anthony Mahady

Ruth Salom

Lisa Selbie

Matthew Tognini

Stuart Dinnis

Ken Murphy

Simone Wright

Position

Director / Chairperson

Director

Director

Director

Director

Director

Director

Director

Director

Director

Director

Director

Director

Director

Appointed / Resigned

08/11/16 (Chairperson - 21/09/16)

08/11/16

25/07/16

25/07/16

08/11/16

08/11/16

08/11/16

08/11/16 (Resigned - 01/10/18)

08/11/16 (Resigned - 01/10/18)

27/07/16

08/11/16

13/02/18 (Resigned - 06/08/18)

14/01/19

14/01/19

Directors have been in office since the start of the financial period to the date of this report unless otherwise stated.

1

HeartKids Limited

ABN: 22-613-854-336


Information on directors

The names, qualifications, experience and special responsibilities of each person who has been a director during theperiod and to the date of this report are:

Janette McClelland

Experience Janette McClelland AM is a company director with more than 15years’ governance experience as chair and non-executive director ingovernment, commercial, industry association and not for profitenterprises across a range of industry sectors.

Janette is a former Director-General of the NSW Department ofEducation and Training and Managing Director of TAFE NSW. She iscurrently Deputy Chancellor and Council Member of the University ofNew England, Chair of the Superannuation industry’s GatewayNetwork Governance Body and a Director of Stewart HousePreventorium. She is also a member of the Board of the CircularEconomy Innovation Network, Local Government NSW Audit andRisk Committee and the NSW Judicial Commission Audit and RiskCommittee.

Janette was awarded a Member of the Order of Australia in the 2015Australia Day Honours for significant service to a range of education,business, social welfare and community organisations, and to publicadministration.

Beverley Barber

Experience Beverley Barber is an experienced Executive and Non-ExecutiveDirector with a background spanning a range of industry sectorsincluding the private sector. Beverley is a Director with Deloitte andthroughout her career has worked across State, Federal and LocalGovernments. She has worked with ASX listed companies and smallto medium enterprises and was a Board member on the HeartKidsAustralia Board and more recently also on the South AustralianBoard.

In addition to experience in business transformation, organisationaldesign, leadership and culture, Beverley holds qualifications inmanagement and public policy and has significant public policy andgovernance proficiency and a wealth of knowledge and experience inpolitics and Government Relations. Beverley is committed to thedevelopment and growth of HeartKids Ltd and has worked with manybusinesses to help them resolve the most complex issues andachieve success. Beverley is also a member of the Finance andAudit Committee.

2

HeartKids Limited

ABN: 22-613-854-336



Jayne Blake

Experience Jayne has been a Director of HeartKids since 2011, previously in theroles of Chair of HeartKids Australia, Chair HeartKids New SouthWales and has also been Chair of the Audit, Risk and ComplianceCommittee and Chair of the Alignment and Engagement Committeeof Heart Kids Australia. In June 2015, Jayne was appointed asCaretaker Chief Executive Officer of HeartKids Australia and led theintegration process from the HeartKids federated structure toHeartKids Ltd. Jayne is now a Director of HeartKids and Chair of theDevelopment Advisory Committee.

Jayne is an experienced company director, with broad industry andcross functional expertise including key Executive roles CEO, SalesDirector and CFO. In addition to the HeartKids Board, Jayne is alsoChair of the Board of Fitness Australia since 2018. In her corporatecareer, Jayne worked for Vodafone Group in various GeneralManager roles in both the UK and Australia, in Finance, Commercialand Customer Service functions, until becoming Sales Director in2004. Bringing all this experience together Jayne established JBCInternational, a coaching and consulting business in 2009,specialising in assisting other organisations to effectively plan for anddrive sustainable business growth.

Jared Brotherston

Experience Jared has over 15 years' experience as a director and companysecretary in both Australia and New Zealand. A construction barristerby training, Jared has held company secretarial and seniormanagement roles in postal services, construction and transport andlogistics. He has consulted to numerous resources and oil and gasmega projects in and around Australia. More recently, Jared heldsenior commercial roles in contracting and procurement and supplychain management for major mining entities.

Currently, Jared is Commercial Manager of the Southern PortsAuthority, with responsibility for Bunbury, Albany and EsperancePorts.

3

HeartKids Limited

ABN: 22-613-854-336



David Celermajer

Experience David Celermajer AO is the Scandrett Professor of Cardiology at TheUniversity of Sydney, Director of Echocardiography in the CardiologyDepartment as well as Director of Adult Congenital Heart Services atthe Royal Prince Alfred Hospital and Clinical Director at The HeartResearch Institute.

Some of David’s major achievements include; NSW Health Minister’sAward for Lifetime Achievement in Cardiovascular Research in 2012,Simon Dack Award for excellence in cardiology in 2010, Fellow of theAustralian Academy of Science since 2006 and CommonwealthHealth Minister’s Award for Excellence in Health and MedicalResearch, for outstanding lifetime contribution in 2002.

Prof Celermajer has extensive experience as a Board director in thenot for profit sector. He has been on the Board of HeartKids Australiasince 2016. He was on the Board of the Menzies School of HealthResearch from 2009 to 2017 inc. He serves as a Trustee for the SirZelman Cowen Universities Fund. He also has extensive experiencein medical research administration, having been the FoundationDirector of Research at RPA Hospital in Sydney and the Chairman ofthe Research Committee for the Heart Foundation of Australia from2005-2011.

Rohan Geddes

Experience Rohan has over 25 years' experience in personal and employmentrelated tax matters, specialising in FBT, payroll tax, Superannuation,employment termination and redundancy arrangements and PAYG.

He is a Partner at PricewaterhouseCoopers, where he leads theEmployment Taxes and Payroll Consulting Practices. In these roles,he provides proactive advice to employers, assisting them with theprocesses and policies used to help manage the tax andadministrative impacts of remunerating their employees and theircontractors. He has also worked in Australia and the US, providingpersonal tax assistance to high net wealth individuals andexpatriates.

Rohan is a HeartKid.

Samantha Glastonbury

Experience Samantha Glastonbury is a Marketing professional with experiencenationally across several industries with more recently taking a keenfocus on consulting to the Food and Health industries.

Samantha is also a Heartmum to Francis who was born with acongenital heart disease and also has special needs. Since the birthof her son, Samantha has developed a passion for consumeradvocacy and health reform.

Samantha and her family have been actively involved in fundraisingand awareness for Heartkids and has now sat as a non-executivedirector on the state and now national board. Samantha is honouredto be contributing to HeartKids Limited and is dedicated to raisingnational awareness for HeartKids to support families and theirjourneys.

4

HeartKids Limited

ABN: 22-613-854-336



Anthony Mahady

Experience Anthony is an experienced lawyer, having practiced in both Australiaand the UK, primarily in financial services law.

He is currently responsible for managing the prudential regulatory riskof a major Australian financial institution.

In addition to his legal qualifications Anthony also holds a Master ofApplied Finance.

Anthony has three young children, one of which suffers from acongenital heart condition.

Anthony is also a member of the Programs and Services AdvisoryCommittee.

Ruth Salom

Experience Professor Ruth Salom AM is a medical graduate, specialistpathologist, with more than 30 years’ experience in health, medicaleducation, research and health management.

Ruth is currently Professor / Director of Pathology at MonashUniversity. Ruth is a former Non Executive director of MelbourneHealth and Peninsula Health as well as former Director NationalHealth KPMG, Executive Director of SA Pathology and Head ofIntegrated Solutions at Telstra Health.

Ruth holds a Bachelor of Medicine Bachelor of Surgery from MonashUniversity, Bachelor of Medical Science from Monash University,Doctor of Medicine from Monash University, Master of BusinessAdministration from Melbourne University, Fellowship from the RoyalCollege of Pathologists Australasia and is a Fellow of the AustralianInstitute of Company Directors.

Lisa Selbie

Experience Lisa Selbie received her Ph.D. in Molecular and Cell Biology fromNorthwestern University and has experience in cardiovascularresearch, project management, consulting and teaching.

Dr Selbie held research positions at the Garvan Institute of MedicalResearch and Queens Medical Centre, Nottingham as a WelcomeTrust Research Fellow studying cardiac neuropeptide receptors, andwas involved in consultancy reviews of national research fundingprocesses. Dr Selbie is a lecturer with Johns Hopkins UniversityMS/MBA Biotechnology Program developing and delivering on-ground and online courses, serves on the NSW AusBiotechCommittee, and previously was Chair of HeartKids Australia and theResearch Advisory Committee.

5

HeartKids Limited

ABN: 22-613-854-336



Matthew Tognini

Experience Matthew has a passion for helping businesses achieve their potential.Throughout his career as a chartered accountant he has workedclosely with his clients to help them not only achieve financialindependence but to also help them to optimise their businessstructures and operations.

In his business career Matthew has worked and specialised in SMEbusiness clients. He has overseen taxation compliance, strategicplanning, restructuring and human resources issues for a variety ofclients.

Matthew came to HeartKids through the diagnosis of his daughter,before birth, with a complex congenital heart condition.

Stuart Dinnis

Experience Stuart Dinnis is a Fellow of CPA Australia, Member of the AICD andstarted his career in audit and risk management. For the pastdecade, he has held senior roles within Virgin Airline businesses inAustralia and the USA and was the Managing Director of theFrequent Flyer program. Stuart was responsible for some of the firstever airline partnerships with the likes of Uber and AirBnB, lead thelaunch of the world first Visa Velocity travel card and significantlyinvolved in the strategy to re-position Virgin Australia. His career alsoincludes General Manager roles in Telecommunications andProperty.

Stuart is heart dad to one of his twins.

Ken Murphy

Experience The father of a HeartKid boy (2018 Toowoomba Ambassador - TwoFeet & a Heartbeat), Ken Murphy joined the Board of HeartKids inJanuary 2019.

Ken has over 20 years of experience as a qualified CompanyDirector/Chairman across multiple industries including Health andCommunity Services in both the Not For Profit and Private sectors. Complemented by over 25 years of Chief Executive and ManagingDirector level experience in the Not For Profit, Commercial, andGovernment-Funded sectors across multiple industries, Ken is also acurrent/past member of various Government, Business, andCommunity Committees and Taskforces. He brings capability withCorporate Governance, Finance, Risk Management, Strategic andOperational Development, Human Resource Management, CompanyRestructures, Mergers & Acquisitions, Project Management,Community and Stakeholder Engagement, Funding, Problem Solving,Innovation, and Change Management.

Ken is a Fellow of the Australian Institute of Company Directors,Fellow of the Institute of Management & Leaders (Aust. & NewZealand), Certified Practicing Member of the Australian HumanResources Institute, and a Member of the Safety Institute of Australia.

6

HeartKids Limited

ABN: 22-613-854-336



Simone Wright

Experience Simone Wright is a Director with Pearson Australia Group and is anexperienced Executive Director with a background in High TechManufacturing, Fast Moving Consumer Goods, Architecture,Financial Services, Publishing and Education sectors.

Simone has worked in many different organisation types including co-operatives, partnerships and high profile public organisations withglobally based teams.

She has worked extensively in reporting to Boards on matters of riskand compliance and was a member of the Heart Kids SteeringCommittee for the Government Action Plan.

In addition to experience in strategic human resources management,organisational design, leadership capability, employee experience,wellness and skills development, Simone has post graduatequalifications in business management and the new world of work.

As a parent of a heart child Simone is committed to the purpose ofHeart Kids and ensuring a successful HeartKids Ltd.

Directors have been in office since the start of the financial period to the date of this report unless otherwise stated.

Company secretary

The following person held the position of Company secretary at the end of the financial period:

Jared Brotherston (Director).

Review of operations

The deficit of the Company for the financial period amounted to $ (96,442) (2018: Deficit $483,757).

Significant changes in state of affairs

During the current financial period the Company operated activities as described below for a full twelve months.

No significant changes in the Company's state of affairs occurred during the financial period.

Principal activities

The principal activity of HeartKids Limited during the financial period was to improve the lives and future of thoseaffected by congenital/childhood heart disease (CHD).

During the 2018 period HeartKids Limited operated for the first time for the entire year as a national organisationdelivering programs and services to improve the lives and future of those affected by CHD. No significant changes inthe nature of the Company's activity occurred during the financial period.

7

HeartKids Limited

ABN: 22-613-854-336


Short term objectives

The Company's short-term objectives are to:

secure government endorsement and funding for implementation of the National Congenital / Childhood Heart

Disease Action Plan;

ensure HeartKids Limited receives funding necessary to provide support services across Australia for people with

CHD and their families and carers;

conduct, in consultation with specialist clinicians and services providers, ongoing awareness and information

campaigns to create a greater understanding of CHD;

implement the Australia and New Zealand Congenital Heart Disease Registry;

fund in hospital care programs at each major Australian cardiac care hub including employing CHD Support

Workers and HeartKids Liaison Workers;

implement the Parents as Mentors program training volunteers as skilled peer-to-peer educators;

demonstrate best practice governance, including effective risk management, human resources and financial

management frameworks and clear, transparent policies and procedures for program and service delivery.

Long term objectives

The Company's long-term objectives are to:

provide services and support to those affected CHD;

promote research into CHD;

develop and advance knowledge and understanding of CHD issues;

promote, develop and further the education of those affected by CHD;

promote, develop and further the education of clinicians and health professionals involved in the care of children

and adults with CHD;

promote and contribute to the development of Australian standards of care and clinical practice guidelines for

CHD to ensure consistency of whole-of-life care for people with CHD;

advocate for recognition and improved resources for those affected by CHD;

promote community awareness of the incidence of CHD and the need for further funding for research;

collect, research and disseminate information and resource material for families;

raise funds to facilitate delivery of programs and services for people affected by CHD; and

collaborate with other entities to further interests of those affected by CHD.

8

HeartKids Limited

ABN: 22-613-854-336


Strategy for achieving the objectives

To achieve these objectives, the Company has adopted the following strategies:

ADVOCACY

HeartKids Limited is the national peak CHD organisation and the voice of people impacted by the disease. As aleading consumer health advocate, we will strive to:

promote government awareness of the incidence and impact of CHD;

secure government support for implementation of the National Congenital Heart Disease Action Plan;

secure government investment in research into CHD disease; and

gain equitable access to government assistance and support for people impacted by CHD.

INFORMATION

As the only charity that supports over 65,000 Australian babies, children, adults and families affected by CHD, we will:

continue to be recognised as the leading source of evidence based and up-to-date information for people living

with or caring for someone with CHD;

establish an Australia wide CHD referral program connecting people to partners and stakeholders best suited to

assist and provide support;

conduct education days focussed on topics requested by and relevant to our HeartKids community; and

enhance our reach by tailoring information to meet people's needs and circumstances using both technology and

face-to-face support.

RESEARCH

HeartKids will be a strategic enabler of high-quality research into new and improved treatments for and managementof CHD in children, young people and adults. We will:

continue to work with clinicians and researchers in securing government and other support for CHD research;

provide support and coordinate consumer input into CHD research proposals, to be funded by the Medical

Research Futures Fund;

continue to partner with the Congenital Heart Alliance of Australia and New Zealand (CHAANZ) in implementing

the bi-national Congenital Heart Disease Registry which will inform clinical best practice and provide guidance on

how to reduce the burden of the disease.

9

HeartKids Limited

ABN: 22-613-854-336


Strategy for achieving the objectives

SUPPORT

HeartKids is committed to providing services that meet the varying needs of babies, children, teenagers and adultswith CHD. We will deliver appropriate, accessible and affordable support to those living with and impacted by CHDregardless of age, through an integrated suite of services which are outcomes focused and culturally sensitive. We willwork with clinicians, health professionals, federal, state and territory governments, other organisations and consumersto:

implement the recommendations of the National Congenital Heart Disease Action Plan;

enhance the Hospital Family Support Program which provides in-hospital support for families, teens and adults;

enhance the Family Support Program which provides ongoing support for heart kids, parents of heart kids and

heart angels at different stages of their lives;

conduct Teen Camps, which provide peer support for teens with CHD and deliver programs aimed at building

confidence, leadership and peer support skills, as well as establishing ongoing support networks;

provide practical support including care bags, heart beads and financial assistance in case of hardship to families

impacted by CHD;

connect families whose children have similar conditions to provide peer support;

facilitate family activities which provide families and children with an opportunity to connect and share

experiences;

provide support for adolescents transitioning from paediatric to adult care through programs such as Project

Compass, a network of health professionals and peer-to-peer HeartKids Parent Mentors in each of the ten major

cardiac hospitals and key regional centres with an emphasis on support at pivotal points of diagnosis, treatment

and transition from adolescence to adulthood; and

continue to provide and explore new ways of assisting heart angel parents, siblings and care givers.

BEST PRACTICE GOVERNANCE

HeartKids is committed to best practices in governance, risk and financial management in order to comply with alllegislative and regulatory requirements and to manage our valuable funding and resources responsibly. During theperiod under report, HeartKids has made a number of changes and will continue to adapt as further opportunities areidentified, these changes include:

employed a new CEO to deliver on the next phase of the strategy after full integration was complete. Rob Lutter is

a heart parent and has had a number of years successfully growing HeartKids in New Zealand;

made a number of other senior staff changes and savings, to direct more funds to the delivery of programs and

services.

10

HeartKids Limited

ABN: 22-613-854-336

Directors' Report For the Period Ended 30 June 2019

11

Members' guarantee

HeartKids Limited is a company limited by guarantee. In the event of, and for the purpose of winding up of the company, the amount capable of being called up from each member and any person or association who ceased to be a member in the period prior to the winding up, is limited to $ 10, subject to the provisions of the company's constitution.

Events after the reporting date

No matters or circumstances have arisen since the end of the financial period which significantly affected or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.

Meetings of directors

During the financial period, 12 meetings of directors (including committees of directors) were held. Attendances by each director during the period were as follows:

Directors' Meetings

Number eligible to

attend Number attended

Janette McClelland AM 12 12

Beverley Barber 12 11

Jayne Blake 12 10

Jared Brotherston 12 10

David Celermajer 12 8

Rohan Geddes 12 10

Samantha Glastonbury 12 11

Anthony Mahady 2 2

Ruth Salom 2 -

Lisa Selbie 12 11

Matthew Tognini 12 7

Ken Murphy 5 4

Simone Wright 5 5

Auditor's independence declaration

The auditor's independence declaration in accordance with Australian Charities and Not-for-profit Commission Act 2012 for the period ended 30 June 2019 has been received and can be found on page 12 of the financial report.

Signed in accordance with a resolution of the Board of Directors:

Director: ................................................................................................................................................

Dated this .............................. day of ................................. 2019

12

HeartKids Limited ABN: 22-613-854-336

Auditor's Independence Declaration under Australian Charities and Not-for-profit Commission Act 2012 to the Directors of HeartKids Limited

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

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

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

PKF SCOTT TOBUTT PARTNER

17 DECEMBER 2019

SYDNEY, NSW

PKF(NS) Audit & Assurance Limited Partnership is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms.

For office locations visit www.pkf.com.au

Sydney

Level 8, 1 O’Connell StreetSydney NSW 2000 Australia GPO Box 5446 Sydney NSW 2001

p +61 2 8346 6000 f +61 2 8346 6099

PKF(NS) Audit & Assurance Limited Partnership

ABN 91 850 861 839

Liability limited by a scheme

approved under Professional

Standards Legislation

Newcastle

755 Hunter Street Newcastle West NSW 2302 Australia PO Box 2368 Dangar NSW 2309

p +61 2 4962 2688 f +61 2 4962 3245

HeartKids Limited

ABN: 22-613-854-336

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

Note

2019

$

2018

$

Revenue earned 4 4,321,827 4,983,711

Other income 31,950 48,435

Fundraising expenses (717,752) (673,510)

Program, research, grants and supportexpenses (744,729) (1,295,535)

Salary and wages (2,423,459) (2,686,448)

Finance costs (95,228) (124,856)

Other expenses (469,051) (735,554)

(Deficit) for the period (96,442) (483,757)

Total comprehensive income for theperiod (96,442) (483,757)

The accompanying notes form part of these financial statements.13

HeartKids Limited

ABN: 22-613-854-336

Statement of Financial PositionAs At 30 June 2019

Note

2019

$

2018

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 5 875,452 1,308,726

Trade and other receivables 6 140,817 390,020

TOTAL CURRENT ASSETS 1,016,269 1,698,746

NON-CURRENT ASSETS

Plant and equipment 7 31,978 53,791

Intangible assets 8 - 10,926

TOTAL NON-CURRENT ASSETS 31,978 64,717

TOTAL ASSETS 1,048,247 1,763,463

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 9 166,724 332,983

Employee benefits 11 133,987 167,315

Deferred income 10 748,480 1,165,582

TOTAL CURRENT LIABILITIES 1,049,191 1,665,880

NON-CURRENT LIABILITIES

Employee benefits 11 26,568 28,653

TOTAL NON-CURRENT LIABILITIES 26,568 28,653

TOTAL LIABILITIES 1,075,759 1,694,533

NET (LIABILITIES) / ASSETS (27,512) 68,930

EQUITY

Accumulated (deficit)/surplus (27,512) 68,930

TOTAL EQUITY (27,512) 68,930


HeartKids LimitedABN: 22-613-854-336

Statement of Changes in EquityFor the Period Ended 30 June 2019

Accumulated(deficit)/surplus

$

Total

$

Balance at 1 July 2018 68,930 68,930

Deficit attributable to members of the entity (96,442) (96,442)

Balance at 30 June 2019 (27,512) (27,512)

Balance at 1 July 2017 552,687 552,687

Deficit attributable to members of the entity (483,757) (483,757)

Balance at 30 June 2018 68,930 68,930


HeartKids Limited

ABN: 22-613-854-336

Statement of Cash FlowsFor the Period Ended 30 June 2019

Note

2019

$

2018

$

CASH FLOWS FROM OPERATINGACTIVITIES:

Receipts from donations 2,369,852 2,842,429

Receipts from grants 1,211,413 1,043,763

Receipts from fundraising 507,553 393,480

Receipts from sponsorships 90,270 126,260

Receipts from interest earned 6,790 32,094

Payments to suppliers andemployees (3,874,381) (4,231,983)

Payments for research (744,729) (1,295,535)

Net cash (used in) operatingactivities (433,232) (1,089,492)

CASH FLOWS FROM INVESTINGACTIVITIES:

Purchase of plant and equipment (42) (56,988)

Net cash (used in) investing activities (42) (56,988)

Net (decrease) in cash and cashequivalents held (433,274) (1,146,480)

Cash and cash equivalents atbeginning of period 1,308,726 2,455,206

Cash and cash equivalents at endof the period 5 875,452 1,308,726


HeartKids Limited

ABN: 22-613-854-336

Notes to the Financial StatementsFor the Period Ended 30 June 2019

The financial report covers HeartKids Limited as an individual entity. HeartKids Limited is a not-for-for profit Company,registered and domiciled in Australia.

The principal activities of the Company for the period ended 30 June 2019 were operating a national profit for purposecharity dedicated to supporting children, teens and adults affected by congenital/childhood heart disease all acrossAustralia.

The functional and presentation currency of HeartKids Limited is Australian dollars.

The financial report was authorised for issue by the Directors on 12 December 2019.

Comparatives are consistent with prior years, unless otherwise stated.

1 Basis of Preparation

The financial statements are general purpose financial statements that have been prepared in accordance with theAustralian Accounting Standards - Reduced Disclosure Requirements and the Australian Charities and Not-for-profitCommission Act 2012.

During the current financial period the Company operated activities as described below for a full twelve months.

2 Summary of Significant Accounting Policies

(a) Going concern

Notwithstanding the Company's deficiency in net assets, the financial report has been prepared on the goingconcern basis. This basis has been adopted as the Company has received committed grant revenue of$750,000 per year up to 2022, and continues to follow its approved Budget designed to achieve a sustainableposition in the subsequent financial year.

In response, the Company, working with external advisors has entered into a remediation plan to restructure theCompany's operating structure, imposing stringent spending restrictions and cash flow updates. The Board hasmonitored adherence to these actions on a monthly basis.

(b) Changes in significant accounting policies

The aggregate effect of the changes in accounting policies on the annual financial statements for the yearended 30 June 2019 is as follows:

New standards applicable for the current year

AASB 9 Financial Instruments

AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement. Itmakes major change to the previous guidance on the classification and measurement of financial assets andintroduces an ‘expected credit loss’ model for impairment of financial assets.

When adopting AASB 9, the Company has applied transitional relief and opted not to restate prior periods.There have been no differences arising from the adoption of AASB 9 in relation to classification, measurement,and impairment as at 1 July 2018.

The adoption of AASB 9 has impacted the classification and measurement of the Company's financial assets.

17

HeartKids Limited

ABN: 22-613-854-336



(b) Changes in significant accounting policies

AASB 9 allows for three categories of classification of financial assets:

amortised cost;

FVOCI (Fair Value through Other Comprehensive Income); and

FVPL (Fair Value through Profit and Loss).

Classification is based on the business model in which a financial asset is managed and the related contractualcashflows. AASB 9 eliminates previous categories of held to maturity, loans and receivables and available forsale. Classification of financial liabilities is largely unchanged. Refer to the below table for a reconciliation ofchanges in classification and measurement of financial instruments on adoption of AASB 9.

Impairment of financial assets

Financial assets carried at amortised cost and those carried at fair value through other comprehensive income(FVOCI) are subject to AASB 9’s new three-stage expected credit loss model. Loss allowances are measuredat an amount equal to lifetime expected credit losses (ECL), except for the following, which are measured as 12months ECL:

debt investment securities that are determined to have a low credit risk at the reporting date; and

other financial instruments on which credit risk has not significantly increased since initial recognition.

There have been no impacts on the adoption of AASB 9 at 1 July 2018.

The move to the expected credit loss model under AASB 9 did not result in an increase of the provision forimpaired receivables as at the adoption date.

AASB 9 contains exemptions from full retrospective application for the classification and measurementrequirements of the new standard, including impairment. These include an exception from the requirement torestate comparative information. Because the Company has elected not to restate comparatives, differentaccounting policies apply to financial assets and liabilities pre and post adoption of the standard. Therefore,both the pre and post adoption accounting policies for financial instruments are disclosed in the note below.

(c) Leases

Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor,are charged as expenses on a straight-line basis over the life of the lease term.

(d) Revenue and other income

Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economicbenefits associated with the transaction will flow to the Company and specific criteria relating to the type ofrevenue as noted below, has been satisfied.

Revenue is measured at the fair value of the consideration received or receivable and is presented net ofreturns, discounts and rebates.

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

18

HeartKids Limited

ABN: 22-613-854-336



(d) Revenue and other income

Grant revenue

Grant revenue is recognised in the statement of profit or loss and other comprehensive income when the entityobtains control of the grant, it is probable that the economic benefits gained from the grant will flow to the entityand the amount of the grant can be measured reliably.

Donations

Donations and bequests are recognised as revenue when received.

Interest revenue

Interest is recognised using the effective interest method.

Fundraising income

Fundraising income is recognised in the period which the event that it relates to takes place.

Other income

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

(e) Goods and services tax (GST)

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

Receivables and payable are stated inclusive of GST.

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

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

(f) Plant and equipment

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

Items of property, plant and equipment acquired for nil or nominal consideration have been recorded at theacquisition date fair value.

Where the cost model is used, the asset is carried at its cost less any accumulated depreciation and anyimpairment losses. Costs include purchase price, other directly attributable costs and the initial estimate of thecosts of dismantling and restoring the asset, where applicable.

19

HeartKids Limited

ABN: 22-613-854-336



(f) Plant and equipment

Plant and equipment

Plant and equipment are measured using the cost model.

Depreciation

Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assetsuseful life to the Company, commencing when the asset is ready for use.

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

(g) Financial instruments

Financial instruments are recognised initially on the date that the Company becomes party to the contractualprovisions of the instrument.

On initial recognition, all financial instruments are measured at fair value plus transaction costs (except forinstruments measured at fair value through profit or loss where transaction costs are expensed as incurred).

Financial Assets

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value,depending on the classification of the financial assets.

Classification

On initial recognition, the Company classifies its financial assets into the following categories, those measuredat:

amortised cost

fair value through profit or loss - FVTPL

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes itsbusiness model for managing financial assets.

Amortised cost

Assets measured at amortised cost are financial assets where:

the business model is to hold assets to collect contractual cash flows; and

the contractual terms give rise on specified dates to cash flows are solely payments of principal and

interest on the principal amount outstanding.

The Company's financial assets measured at amortised cost comprise trade and other receivables and cashand cash equivalents in the statement of financial position.

Subsequent to initial recognition, these assets are carried at amortised cost using the effective interest ratemethod less provision for impairment.

20

HeartKids Limited

ABN: 22-613-854-336




Interest income, foreign exchange gains or losses and impairment are recognised in profit or loss. Gain or losson derecognition is recognised in profit or loss.

Impairment of financial assets

Impairment of financial assets is recognised on an expected credit loss (ECL) basis for financial assetsmeasured at amortised cost.

When determining whether the credit risk of a financial assets has increased significant since initial recognitionand when estimating ECL, the Company considers reasonable and supportable information that is relevant andavailable without undue cost or effort. This includes both quantitative and qualitative information and analysisbased on the Company's historical experience and informed credit assessment and including forward lookinginformation.

The Company uses the presumption that an asset which is more than 30 days past due has seen a significantincrease in credit risk.

The Company uses the presumption that a financial asset is in default when:

the other party is unlikely to pay its credit obligations to the Company in full, without recourse to the

Company to actions such as realising security (if any is held); or

the financial assets is more than 90 days past due.

Credit losses are measured as the present value of the difference between the cash flows due to the Companyin accordance with the contract and the cash flows expected to be received. This is applied using a probabilityweighted approach.

Trade receivables

Impairment of trade receivables have been determined using the simplified approach in AASB 9 which uses anestimation of lifetime expected credit losses. The Company has determined the probability of non-payment ofthe receivable and multiplied this by the amount of the expected loss arising from default.

The amount of the impairment is recorded in a separate allowance account with the loss being recognised ininance expense. Once the receivable is determined to be uncollectable then the gross carrying amount is rittenoff against the associated allowance.

Where the Company renegotiates the terms of trade receivables due from certain customers, the new expectedcash flowa are discounted at the original effective interest rate and any resulting difference to the carrying valueis recognised in profit or loss.

Other financial assets measured at amortised cost

Impairment of other financial assets measured at amortised cost are determined using the expected credit lossmodel in AASB 9. On initial recognition of the asset, an estimate of the expected credit losses for the next 12months is recognised. Where the asset has experienced significant increase in credit risk then the lifetimelosses are estimated and recognised.

21

HeartKids Limited

ABN: 22-613-854-336




Financial liabilities

The Company measures all financial liabilities initially at fair value less transaction costs, subsequently financialliabilities are measured at amortised cost using the effective interest rate method.

The financial liabilities of the Company comprise trade payables, bank and other loans and finance leaseliabilities.

Impairment of non-financial assets

At the end of each reporting period the Company reviews the carrying values of its tangible and intangibleassets to determine whether there is any indication that those assets have been impaired. If such an indicationexists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell andvalue in use, is compared to the asset's carrying value. Value in use is either the discounted cash flows relatingto the asset or depreciated replacement cost if the criteria in AASB 136 'Impairment of Assets' are met. Anyexcess of the asset's carrying value over its recoverable amount is expensed to the statement of profit or lossand other comprehensive income.

Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates therecoverable amount of the cash-generating unit to which the asset belongs.

Where an impairment loss on a revalued asset is identified, this is debited against the revaluation surplus inrespect of the same class of asset to the extent that the impairment loss does not exceed the amount in therevaluation surplus for that same class of asset.

(h) Intangibles

Website development costs

Website development has a finite life and is carried at cost less any accumulated amortisation and impairmentlosses. It has an estimated useful life of between one and three years.

(i) Cash and cash equivalents

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

(j) Employee benefits

Provision is made for the Company's liability for employee benefits arising from services rendered byemployees to the end of the reporting period. Employee benefits that are expected to be wholly settled withinone year have been measured at the amounts expected to be paid when the liability is settled.

22

HeartKids Limited

ABN: 22-613-854-336



(k) Trade and Other Receivables

Trade and Other Receivables include amounts due from customers for goods and services performed in theordinary course of business. Receivables expected to be collected within 12 months of the end of the reportingperiod are classified as current assets.

(l) Deferred income

The Company receives monies from philanthropic funds and other third parties to fund research and otherspecific activities. Consideration received for these activities is initially deferred, included in Deferred incomeand is recognised as revenue in the period when the activity takes place.

(m) Business combinations

Business combinations are accounted for by applying the acquisition method which requires an acquiring entityto be identified in all cases. The acquisition date under this method is the date that the acquiring entity obtainscontrol over the acquired entity.

The fair value of identifiable assets and liabilities acquired are recognised in the consolidated financialstatements at the acquisition date.

Goodwill or a gain on bargain purchase may arise on the acquisition date, this is calculated by comparing theconsideration transferred and the amount of non-controlling interest in the acquiree with the fair value of the netidentifiable assets acquired. Where consideration is greater than the net assets acquired, the excess isrecorded as goodwill. Where the net assets acquired are greater than the consideration, the measurementbasis of the net assets are reassessed and then a gain from bargain purchase recognised in profit or loss.

All acquisition-related costs are recognised as expenses in the periods in which the costs are incurred exceptfor costs to issue debt or equity securities.

Any contingent consideration which forms part of the combination is recognised at fair value at the acquisitiondate. If the contingent consideration is classified as equity then it is not admeasured and the settlement isaccounted for within equity. Otherwise subsequent changes in the value of the contingent consideration liabilityare measured through profit or loss.

(n) Accounting standards issued but not yet effective

The AASB has issued new and amended Accounting Standards and Interpretations that have mandatoryapplication dates for future reporting periods. The directors have decided not to early adopt these Standards.The following summarises those future requirements, and their impact on the Company where the standard isrelevant:

AASB 15 Revenue from contracts with customers and AASB 1058 Income for Not-for-profit (NFP)entities

AASB 15: Revenue from Contracts with Customers; and AASB 1058: Income for Not-for-profit (NFP) entitiesare both applicable to the annual reporting periods beginning on or after 1 January 2019 (for NFP entities).

AASB 15 introduces a five-step process for revenue recognition with the core principle of the new standardbeing for entities to recognise revenue to depict the transfer of goods or services to customers in amounts thatreflect the consideration to which the entity expects to be entitled in exchange for those goods or services.

23

HeartKids Limited

ABN: 22-613-854-336



(n) Accounting standards issued but not yet effective

When effective, this Standard will replace the current accounting requirements applicable to revenue with asingle, principles-based model. The new standard will apply to all contracts with customers as well as non-monetary exchanges between entities in the same line of business to facilitate sales to customers and potentialcustomers.

AASB 1058 supersedes all the income recognition requirements relating to private sector NFP entities, and themajority of income recognition requirements relating to public sector NFP entities, previously in AASB 1004Contribution. The timing of income recognition depends on whether such a transaction gives rise to a liability orother performance obligation (a promise to transfer a good or service), or a contribution by owners, related toan asset (such as cash or another asset) received by an entity.

The directors anticipate that the adoption of AASB 15 and AASB 1058 will not have a material impact on thefinancial statements.

AASB 16 Leases

AASB 16: Leases; applicable to the annual reporting periods beginning on or after 1 January 2019. Wheneffective, this standard will replace the current accounting requirements applicable to leases in AASB 117.

AASB 16 introduces a single lessee accounting model that eliminates the requirements for leases to beclassified as operating or finance leases.

The main changes introduced by the Standard will be for all leases to be recognised on the balance sheet atinception of the lease with the exception of short-term leases (less than 12 months) and leases of low valueassets.

The lessee must recognise a right-of-use asset and a corresponding lease liability in the amount of the presentvalue of the lease payments. Subsequent to this initial measurement, the right of use asset is depreciated overthe lease term, whilst lease payments are separated into a principal and interest portion to wind up the leaseliability over the lease term.

The directors anticipate that the adoption of AASB 16 will not have a material impact on the financial statementsas the Group currently has operating lease commitments of $129,591 which we anticipate will be brought ontothe statement of financial position through the recognition of a right to use asset and associated lease liability.Interest and amortisation expense will increase, and rental expense will decrease in the financial year to 30June 2020.

3 Critical Accounting Estimates and Judgments

The directors evaluate estimates and judgments incorporated into the financial statements based on historicalknowledge and best available current information. Estimates assume a reasonable expectation of future events andare based on current trends and economic data, obtained both externally and within the Company. The directors didnot make any critical accounting estimates or judgments in the financial statements preparation.

24

HeartKids Limited

ABN: 22-613-854-336


4 Revenue and Other Income

Revenue from continuing operations

2019

$

2018

$

Revenue earned

- Grants 1,379,312 1,462,119

- Donations 2,369,852 3,018,193

- Fundraising activities 572,663 503,399

Total Revenue 4,321,827 4,983,711

Other Income

- Other income 31,950 48,435

5 Cash and Cash Equivalents

Cash at bank and in hand 849,458 162,403

Short-term deposits 25,994 1,146,323

875,452 1,308,726

6 Trade and Other Receivables

CURRENT

Trade receivables 40,205 177,084

Prepayments 39,496 177,407

GST receivable 38,423 -

Other receivables 22,693 35,529

Total current trade and otherreceivables 140,817 390,020

The carrying value of trade receivables is considered a reasonable approximation of fair value due to the short-termnature of the balances.

The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable in the financialstatements.

25

HeartKids Limited

ABN: 22-613-854-336


7 Plant and equipment

2019

$

2018

$

PLANT AND EQUIPMENT

Motor vehicles

At cost 19,045 19,045

Accumulated depreciation (17,592) (16,138)

Total motor vehicles 1,453 2,907

Office equipment

At cost 65,971 65,929

Accumulated depreciation (35,446) (15,045)

Total office equipment 30,525 50,884

Total property, plant andequipment 31,978 53,791

(a) Movements in Carrying Amounts

MotorVehicles

$

OfficeEquipment

$

Total

$

Period ended 30 June 2019

Balance at the beginning of period 2,907 50,884 53,791

Additions during the period - 42 42

Depreciation (1,454) (20,401) (21,855)

Balance at the end of the period 1,453 30,525 31,978

26

HeartKids Limited

ABN: 22-613-854-336


8 Intangible Assets

2019

$

2018

$

Intangible assets

Website development - Cost 38,851 38,851

Accumulated amortisation andimpairment (38,851) (27,925)

Net carrying value - 10,926

Total Intangibles - 10,926

(a) Movements in carrying amounts of intangible assets

Websitedevelopment

$

Total

$

Period ended 30 June 2019

Balance at the beginning of the period 10,926 10,926

Amortisation (10,926) (10,926)

Closing value at 30 June 2019 - -

9 Trade and Other Payables

Current

Trade payables 62,278 256,350

Sundry payables and accrued expenses 48,980 54,615

Other payables 55,466 22,018

166,724 332,983

10 Deferred income

CURRENT

Fundraising monies received in advance 5,798 68,231

Grants received in advance 742,682 1,097,351

748,480 1,165,582

27

HeartKids Limited

ABN: 22-613-854-336


11 Employee Benefits

2019

$

2018

$

Current liabilities

Provision for employee benefits 133,987 167,315

133,987 167,315

Non-current liabilities

Provision for employee benefits 26,568 28,653

26,568 28,653

12 Leasing Commitments

(a) Operating leases

Minimum lease payments under non-cancelable operating leases:

- not later than one year 105,035 107,678

- between one year and five years 24,556 77,398

129,591 185,076

13 Financial Risk Management

The main risks the Company is exposed to through its financial instruments are credit risk, liquidity risk and market riskconsisting of interest rate and equity price risk.

The Company's financial instruments consist mainly of deposits with banks, short-term investments, accountsreceivable and payable, and leases.

The totals for each category of financial instruments, measured with AASB139 as detailed in the accounting policies tothese financial statements, are as follows:

Financial assets at amortised cost 25,994 1,146,323

Loans and receivables 140,817 390,020

Financial liabilities at amortisedcost (909,406) (1,430,334)

(742,595) 106,009

14 Key Management Personnel Remuneration

The total remuneration paid to key management personnel of the Company is $ 464,930 (2018: $537,673).

15 Contingencies

In the opinion of the Directors, the Company did not have any contingencies at 30 June 2019.

28

HeartKids Limited

ABN: 22-613-854-336


16 Related Parties

The Company's related parties include its key management personnel.

Key management personnel - refer to Note 14.

Unless otherwise stated, none of the transactions recorded during the period incorporate special terms and conditionsand no guarantees were given or received to any related parties.

17 Events after the end of the Reporting Period

The financial report was authorised for issue on 25 November 2019 by the Board of Directors.

No matters or circumstances have arisen since the end of the financial period which significantly affected or maysignificantly affect the operations of the Company, the results of those operations or the state of affairs of the Companyin future financial years.

18 Statutory Information

The registered office of and principal place of business of thecompany is:

HeartKids Limited

Level 2, 39 Hume Street

CROWS NEST, NSW 2065

29

HeartKids Limited

ABN: 22-613-854-336

Directors' Declaration

30

The directors of the Company declare that: 1. The financial statements and notes, as set out on pages 13 to 29, are in accordance with the Australian Charities and

Not-for-profit Commission Act 2012 and:

a. comply with Australian Accounting Standards - Reduced Disclosure Requirements; and

b. give a true and fair view of the financial position as at 30 June 2019 and of the performance for the period ended on that date of the Company.

2. In the directors 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 with the continuing support of creditors.

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

Director ................................................................................................................................................

Dated this .............................. day of .............................. 2019

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF HEARTKIDS LIMITED

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of HeartKids Limited (the Company), which comprises the statement of financial position as at 30 June 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, and notes to the financial statements, including a summary of significant accounting policies, and the responsible persons' declaration.

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

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

(ii) complying with Australian Accounting Standards - Reduced Disclosure Requirements and the AustralianCharities and Not-for-profit Commission Regulation 2013.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of Division 60 of the Australian Charities and Not-for-profit Commission Act 2012 and 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.

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

Emphasis of Matter

Without modifying our opinion, we draw attention to Note 2 (a) in the financial report which indicates that the Company generated a loss of $96,442 during the year ended 30 June 2019 and, as of that date, the Company's current liabilities exceeded its total assets by $27,512.

In response, the Company, working with external advisors has entered into a remediation plan to restructure the Company's operating structure, imposing stringent spending restrictions and cash flow updates. The Board has monitored adherence to these actions on a monthly basis.

The ability of the Company to continue as a going concern and its ability to pay its debts as and when they become due and payable will be dependent on continued secured sources of funding and strict adherence with approved Budgets designed to generate a profit into the future. Should the Company not achieve this, there is significant uncertainty whether the Company will be able to continue as a going concern or pay its debts as and when they become due and payable and realise its assets and extinguish its liabilities in the normal course of business at the amounts stated in the financial report.

Responsibilities of Directors and Those Charged with Governance

The directors of the Company 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 Division 60 of the Australian Charities and Not-for-profit 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 the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations or have no realistic alternative but to do so.

PKF(NS) Audit & Assurance Limited Partnership is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms.

For office locations visit www.pkf.com.au

Sydney

Level 8, 1 O’Connell StreetSydney NSW 2000 Australia GPO Box 5446 Sydney NSW 2001

p +61 2 8346 6000 f +61 2 8346 6099

PKF(NS) Audit & Assurance Limited Partnership

ABN 91 850 861 839

Liability limited by a scheme

approved under Professional

Standards Legislation

Newcastle

755 Hunter Street Newcastle West NSW 2302 Australia PO Box 2368 Dangar NSW 2309

p +61 2 4962 2688 f +61 2 4962 3245

31

32

Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.

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

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

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

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

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

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

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

PKF SCOTT TOBUTT PARTNER

17 DECEMBER 2019

SYDNEY, NSW

Documents

HeartKids Limited€¦ · personal tax assistance to high net wealth individuals and expatriates. Rohan is a HeartKid. Samantha Glastonbury Experience Samantha Glastonbury is a Marketing