pARt 4: finAnciAl infoRmAtion - 2018 Annual Reviewannualreview.humehousing.com.au/wp-content/uploads/2019/10/Hu… · Dip. mgmt, grad Dip. HR, mAicD Robert Vine has served 14 years

52|HumeCommunityHousing AnnualReport2019

the Directors present their report, together with the financial statements, on Hume community Housing Association co ltd (referred to hereafter as ‘registered entity’ or ‘Hume’) for the year ended 30 june 2019.

Directors

ThefollowingpersonswereDirectorsoftheregisteredentityduringthewholeofthefinancialyearanduptothedateofthisreport,unlessotherwisestated:

RobertVineSusanHollidayTrueSwainlarraineEddyPhillipHepburnJaysonbricknellNathanReesRobynParker(appointed26February2019)

objectives and strategy for achieving the objectivesTheregisteredentityhasastrategicplan(2018-2021).Theobjectivesofthestrategicplanaretoconsolidateanddeepenourfootprint,maximisesocialimpactthroughneighbourhoodplanningandcustomerdrivenservicesandcontinuetogrowaprogressiveandhighachievingorganisation.

Theregisteredentity’sactivitiesresultedinthecontinuationoftheregisteredentity’sTier1registrationbytheNRSCHandproducedasurplusthatwillbeusedtofurthertheregisteredentity’slong-termobjectives.

principal activitiesDuringthefinancialyeartheprincipalcontinuingactivitiesoftheregisteredentitywastheprovisionoftenancyandpropertymanagementservices,aswellasawiderangeofhousingoptionsandsupportservicestoimprovehousingsecurityandreducehomelessness.

performance measuresTheregisteredentitymeasuresitsperformancebymeetingtheobjectivesestablishedintheannualbusinessplananddepartmentalservicedeliveryplanstodeliverthestrategicobjectives.keyperformanceindicatorsarealsoestablishedandmonitoredbothinternallyandasacomparisontoexternalbenchmarks.Hume’sfinancialperformancefor2019isreportedinthe2019AnnualReport.

Hume community Housing Association co ltd Directors’ report30 june 2019

pARt 4:

finAnciAl infoRmAtion

HumeCommunityHousing AnnualReport2019|53

information on Directors

RoBeRt vinechairman, member of Audit and Risk subcommittee and Recruitment and Remuneration subcommitteeDip. mgmt, grad Dip. HR, mAicD

RobertVinehasserved14yearsontheHumeboardincludingatwoyearspellasChairmanbeforebeingappointedagaintotheDirectorpositionin2012afterathreeyearbreak.

Roberthasbeeninvolvedin“NotforProfits”managementsince1972culminatinginretirementasCEOofoneoftheState’slargestgroupsofCo-operativeHousingSocieties.

WithtertiaryqualificationsinManagement,HumanResourcePlanning,AccountingandFinancialmanagementbobbringstoHumeanall-roundraftofexperience.StillservingontheNSWGovernmentCo-operativesAdvisoryboardheisactivelyinvolvedintheprovisionofaffordablehousing.

susAn HolliDAyDeputy chair, member of Recruitment and Remuneration subcommittee and the Development subcommitteefpiA, cpp, gAicD, BA (economics), mphil (town and country planning)

ProfessorSueHollidayisaCityPlannerandEconomist.SheisProfessorofPlanningPracticeatuNSW,andwastheManagingDirector,StrategiesforChange,anurbanstrategyconsultancyuntil30thJune2019

Suehadalongcareerinthepublicserviceandhasdemonstratedanoutstandingcommitmenttoaffordablehousing.ShewasDirectorGeneralofPlanninginNSWfrom1997to2003.WhilstworkingastheDirectorGeneral,thepolicyarmofNSWHousingandlandcom(priortocommercialisation)wasadirectreport.ShewasinstrumentalinestablishingtheCityWestHousingCompanytoachieveongoingaffordabilityoptionsinPyrmontandultimo.

ShewasappointedamemberoftheNationalHousingSupplyCouncilfromitsinceptiontoitsclosurein2013.Suehasheldvariousboardrolessince1997.ShewasaDirectoroftheTransportInfrastructureDevelopmentCorporationfrom2004-10.ShewaspresidentoftheNSWbuildingProfessionalsboarduntilJune2013.SuewaselectedtotheHumeboardinApril2014.

lARRAine eDDyDirector, member of Audit and Risk subcommittee

larraineEddyholdsaCertificateinWelfareaswellasanAdvancedCertificateinWorkingwithOlderPeople.larrainehasover21yearsexperienceworkingwitholderpeopleandforthelast16yearshasbeenadvocatinghousingissuesfortheagedcommunitythroughthe“AssistancewithCareandHousingfortheAged”PrograminNSW.

larrainehasheldapositionontheHumeboardsince2005(larrainepreviouslyheldapositionontheHumeboardfrom1998-2003)andisanactivememberoftheAuditandRisksubcommittee.


PART4:FINANCIAlINFORMATION

tRue sWAinDirector, chair of Development subcommitteejD, mBA, m. pro Dev, B. cpm, gAicD

TrueSwainisanexperiencedseniorexecutivemanageranddirector,whohasawealthofprofessionalskillsinpropertydevelopment,constructionprojectmanagement,strategicplanning,riskmanagement,corporategovernanceandstakeholderengagement,inboththepublicandprivatesectors.

InhiscurrentpositionasaseniorexecutivemanageratTarongaZooConservationSociety,Trueisaccountablefora$300millioncapitalpropertydevelopmentprogramacrossbothmetropolitanandregionalsites.Thispositionisresponsibleforleadingamulti-disciplinaryprofessionalpropertyteaminthedeliveryofadiverserangeofpropertydevelopmentprojects,withincomplexliveoperationalenvironments.

Theaboveprofessionalexperienceisunderpinnedbymultipletertiaryqualifications,includingJurisDoctor,MasterofbusinessAdministration,MastersofPropertyDevelopment,GraduateCertificateinCommercialArbitration,bachelorofConstructionProjectManagementandGraduateofAustraliaInstituteofCompanyDirectorscourse.TruewaselectedtotheHumeboardinMarch2014.

pHillip HepBuRnDirector, member of Development subcommittee and Audit and Risk subcommitteeB ec, llB, llm, grad Dip company secretarial practice

Philliphasextensiveexperienceinsettinguplegal,governanceandcompliancefunctions,advisingboardsonallaspectsoflegalandcomplianceissues.PhillipwaspreviouslyGeneralCounselandGroupSecretaryatStocklandwherehisrolealsoincludedprovidingcommercialandlegaladviceonbusinessandpropertyacquisitionsandsales,andonallaspectsofpropertydevelopmentandcapitalmanagementactivitiesundertakenbytheorganisation.Philliphasbeenadirectorofsubsidiaryboardsandhasextensiveexperienceinmanagementacrosstheproperty,banking,retailandagriculturalsectors.Philliphasastronginterestintheareasofboardgovernance,riskandcompliance.PhillipwaselectedtotheHumeboardinFebruary2016.

tHe Hon. nAtHAn ReesDirector, member of Development subcommittee and the Audit and Risk subcommitteeNathanReeshaslivedhislifeinWesternSydneyandhas26yearsexperienceinpublicadministration.Aftercompletingahorticultureapprenticeship,heundertookanHonoursdegreeinEnglishliteratureatSydneyuniversity.

NathanservedintheNSWparliament2007-2015,includingasPremierofNSW,MinisterforWater,MinisterfortheArts,MinisterfortheCentralCoastandMinisterforEmergencyServices.HewasthememberfortheWesternSydneyseatofToongabbie.HehasapassionforWesternSydneyandsocialjustice.

NathanwaselectedtotheHumeboardinFebruary2017.


jAyson BRicknellDirector, chair of Audit and Risk subcommittee and member of Recruitment and Remuneration subcommittee B ec, gAicDJaysonisanexperiencedFinancialServicesexecutivewithbroadbusinessexperienceacrossanumberofdisciplines.Hehasspecificexpertiseandaproventrackrecordincustomerexperience,programandprojectmanagementforsystemdeliveries,stakeholderengagement,transformationprograms,operationalperformanceimprovement,growthandstrategydefinitionandexecution(includingmergersandacquisitions).

Hisexperienceincludes8yearswithWestpac/bTFinancialGroup,2yearswithThirdHorizonConsulting,15yearswithMacquariebankandover5yearswithArthurAndersen&CoandPricewaterhouseCoopers.InhiscurrentrolewithWestpacasaDirector,ProductandServiceDevelopment,heisresponsiblefordesigninganddeliveringtheemployeeexperienceonalargeHomeOwnershiptransformationprogram.

JaysonwaselectedtotheHumeboardinMarch2017.

tHe Hon. RoByn pARkeR Director, member of Development subcommitteegAicD, jpThroughoutherlife,RobynParkerhasworkedtosupport,developandstrengthenindividuals,familiesandcommunities.Robynhasover30yearsofpublicsectorexperiencewhichincludedrolesinChildandFamilyServices,asaTAFEteacher,andasCEOofAgeingandDisabilityServices.

RobynservedintheNSWParliamentfortwelveyearsservingfirstasaMemberofthelegislativeCouncil,followedbyfouryearsastheMemberforMaitland.RobynchairedmanyParliamentaryInquiriesandwastheNSWMinisterfortheEnvironmentandMinisterforHeritage(2011-2014).

Sinceleavingpolitics,Robynhasbeenappointedasanon-executiveDirectortoanumberofenvironment,educationandfor-purposeorganisations.

Commerciallyfocusedandcommunitydriven,RobynbringstoHumein-demandcapabilitiesofleadingtransformationandapplyingtherightlevelofstrategicthinkingrequiredastheorganisationembarksonaboldfuture

Inparticular,asalong-termresidentRobynhasaunique,strongandwell-establishednetworkofcontactsandrelationshipscoupledwithadeepunderstandingoftheMaitlandandPortStephenslGAsandtheirpeoplewhichwillbeinvaluableasHumetransitionstomanageover2,000homesundertheNSWFACSSocialHousingManagementTransferprogram.

RobynwaselectedtotheHumeboardinFebruary2019.



meetings of Directors

Thenumberofmeetingsoftheregisteredentity’sboardofDirectors(‘theboard’)andofeachboardcommitteeheldduringtheyearended30June2019,andthenumberofmeetingsattendedbyeachdirectorwere:

BoARD meeting(inc. speciAl BoARD meetings)

AuDit & Risk suB committee

RecRuitment & Rem suB

committee

Development suB committee

Held Attended Held Attended Held Attended Held Attended

larraine eddy 7 5 6 4 - - - -

Robert vine 7 7 6 6 2 2 9 8

susan Holliday 7 7 - - 2 2 9 8

true swain 7 7 - - - - 9 9

nathan Rees 7 6 2 1 2 2 9 8

phillip Hepburn 7 7 4 4 - - 9 9

jayson Bricknell 7 7 6 6 2 2 - -

Robyn parker 3 3 - - - - 1 1

Held: represents the number of meetings held during the time the director held office or was a member of the relevant committee.

contributions on winding upIntheeventoftheregisteredentitybeingwoundup,ordinarymembersarerequiredtocontributeamaximumof$20each.Honorarymembersarenotrequiredtocontribute.

Thetotalamountthatmembersoftheregisteredentityareliabletocontributeiftheregisteredentityiswoundupis$420,basedon21currentordinarymembers.

ThisreportismadeinaccordancewitharesolutionofDirectors.

OnbehalfoftheDirectors

RobertVine JaysonbricknellDirector Director

19September2019 19September2019Sydney Sydney


Hume community Housing AssociAtion co ltD stAtement of pRofit oR loss AnD otHeR compReHensive income Fortheyearended30June2019

note 2019$

2018$

Revenue 2 32,526,280 31,564,243

Otherincome 2 1,077,153 2,073,660

expenses

Tenancyandpropertymanagementexpenses 3 (15,128,427) (16,792,745)

Employeebenefitexpenses 3 (8,624,591) (8,047,405)

Depreciation 8 (392,082) (125,258)

Financecosts 3 (2,045,708) (932,780)

Administrationexpenses 3 (3,676,491) (3,790,841)

Projectcosts 3 (1,238,922) (105,142)

surplus before income tax expense and fair value movements on investment properties

2,497,212 3,843,732

Fairvaluemovementoninvestmentproperties 9 (481,637) (7,883,167)

surplus/(deficit) before income tax expense after fair value movement on investment property

2,015,575 (4,039,435)

Incometaxexpense 1 - -

surplus/(deficit) after income tax expense for the year attributable to the members of Hume community Housing Association co ltd

2,015,575 (4,039,435)

Othercomprehensiveincomefortheyear,netoftax - -

total comprehensive income for the year attributable to the members of Hume community Housing Association co ltd

2,015,575 (4,039,435)

Theabovestatementofprofitorlossandothercomprehensiveincomeshouldbereadinconjunctionwiththeaccompanyingnotes.



Hume community Housing AssociAtion co ltD stAtement of finAnciAl position Asat30June2019

note 2019$

2018$

Assets

current assets

Cashandcashequivalents 4 9,085,817 13,748,879

Otherfinancialassets 5 12,000,000 -

Tradeandotherreceivables 6 4,842,831 6,382,510

Otherassets 7 1,058,950 899,606

Totalcurrentassets 26,987,598 21,030,995

non-current assets

Property,plantandequipment 8 2,163,820 2,407,193Investmentproperties 9 103,386,177 100,661,715Otherassets 7 2,010,260 1,906,639

Totalnon-currentassets 107,560,257 104,975,547

total assets 134,547,855 126,006,542

liabilities

current liabilities

Tradeandotherpayables 10 7,890,811 10,451,844

borrowings 11 - 870,700

Employeebenefits 12 813,551 653,578

Totalcurrentliabilities 8,704,362 11,976,122

non-current liabilities

borrowings 11 35,000,000 25,250,700

Employeebenefits 12 237,163 188,965

Totalnon-currentliabilities 35,237,163 25,439,665

total liabilities 43,941,525 37,415,787

net assets 90,606,330 88,590,755

equity

Retainedsurplus 90,606,330 88,590,755

total equity 90,606,330 88,590,755

Theabovestatementoffinancialpositionshouldbereadinconjunctionwiththeaccompanyingnotes.


Hume community Housing AssociAtion co ltD stAtement of cHAnges in eQuity Fortheyearended30June2019

Retained surplus

$

total equity$

Balance at 1 july 2017 92,630,190 92,630,190

Deficitafterincometaxexpensefortheyear (4,039,435) (4,039,435)


Totalcomprehensiveincomefortheyear (4,039,435) (4,039,435)

Balance at 30 june 2018 88,590,755 88,590,755

Retained surplus

$

total equity$

Balance at 1 july 2018 88,590,755 88,590,755

Surplusafterincometaxexpensefortheyear 2,015,575 2,015,575


Totalcomprehensiveincomefortheyear 2,015,575 2,015,575

Balance at 30 june 2019 90,606,330 90,606,330

Theabovestatementofchangesinequityshouldbereadinconjunctionwiththeaccompanyingnotes.



Hume community Housing AssociAtion co ltD stAtement of cAsH floWs Fortheyearended30June2019

note 2019$

2018$

cash flows from operating activities

Receiptsfromcustomers(inclusiveofGST) 28,470,318 27,611,922

Paymentstosuppliers(inclusiveofGST) (33,255,329) (28,281,130)

Grantsreceived(inclusiveofGST) 5,165,054 5,191,478

Interestreceived 285,553 210,381

Otherborrowingcostspaid (1,336,517) (932,781)

Netcash(usedin)/fromoperatingactivities (670,921) 3,799,870

cash flows from investing activities

Paymentsforinvestmentproperties (603,780) (10,564,782)

Paymentsforplantandequipment (267,461) (794,260)

Proceedsfromdisposalsofplantandequipment 500 -

Investmentsinfinancialassets (12,000,000) -

Netcashusedininvestingactivities (12,870,741) (11,359,042)

cash flows from financing activities

Proceedsfromborrowings 35,000,000 9,658,223

Repaymentofborrowings (26,121,400) -

Netcashfromfinancingactivities 8,878,600 9,658,223

Net(decrease)/increaseincashandcashequivalents (4,663,062) 2,099,051

Cashandcashequivalentsatthebeginningofthefinancialyear 13,748,879 11,649,828

Cashandcashequivalentsattheendofthefinancialyear 4 9,085,817 13,748,879

Theabovestatementofcashflowsshouldbereadinconjunctionwiththeaccompanyingnotes.


Hume community Housing AssociAtion co ltD notes to tHe finAnciAl stAtements Fortheyearended30June2019

note 1. summARy of significAnt Accounting policies

Theprincipalaccountingpoliciesadoptedinthepreparationofthefinancialstatementsaresetoutbelow.Thesepolicieshavebeenconsistentlyappliedtoalltheyearspresented,unlessotherwisestated.

Basis of preparationThesegeneralpurposefinancialstatementshavebeenpreparedinaccordancewithAustralianAccountingStandards–ReducedDisclosureRequirementsandInterpretationsissuedbytheAustralianAccountingStandardsboard(‘AASb’)andtheAustralian Charities and not-for-profits Commission Act 2012,asappropriatefornot-for-profitorientedentities.

Thefinancialstatements,exceptforthecashflowinformation,havebeenpreparedonanaccrualbasisandarebasedonhistoricalcosts,modified,whereapplicable,bythemeasurementatfairvalueofselectednon-currentassets,financialassetsandfinancialliabilities.Theamountspresentedinthefinancialstatementshavebeenroundedtothenearestdollar.

new, revised or amending Accounting standards and interpretations adoptedTheregisteredentityhasadoptedallofthenew,revisedoramendingAccountingStandardsandInterpretationsissuedbytheAustralianAccountingStandardsboard(‘AASb’)thataremandatoryforthecurrentreportingperiod.Thesearediscussedbelow:

AASB 9 Financial InstrumentsThestandardintroducednewclassificationandmeasurementmodelsforfinancialassets:cashandcashequivalentsandtradeandotherreceivablesthatwereclassifiedasloansandreceivablesunderAASb139andarenowclassifiedasatamortisedcost.

Newimpairmentrequirementsusean‘expectedcreditloss’(‘ECl’)modeltorecogniseanallowanceagainstthefinancialassetsmeasuredatamortisedcost.Impairmentismeasuredusinga12-monthEClmethodunlessthecreditriskonafinancialinstrumenthasincreasedsignificantlysinceinitialrecognitioninwhichcasethelifetimeEClmethodisadopted.Forreceivables,asimplifiedapproachtomeasuringexpectedcreditlossesusingalifetimeexpectedlossallowanceisavailable.

AASb9didnothaveanyothersignificantimpactontheResponsibleEntity’saccountingpolicies.

AASb9wasadoptedusingtheretrospectiveapproachwithoutadjustingcomparatives.Therewasnoimpactofadoptiononopeningretainedprofitsasat1July2018andthereforenoadjustmentisreflected.

Anynew,revisedoramendingAccountingStandardsorInterpretationsthatarenotyetmandatoryhavenotbeenearlyadopted.Accountingstandardsissuedthathavenotyetbeenearlyadoptedarediscussedbelow:

AASB 16 – LeasesAASb16–leasesnowbringsmostleasesoflesseesonbalancesheet,eliminatingthedistinctionbetweenoperatingandfinanceleases.ThisstandardsupersedesAASb117–leasesandisapplicabletoannualreportingperiodsbeginningonorafter1January2019,withearlyadoptionpermittedforentitiesthatapplyAASb15–RevenuefromContractswithCustomersatorbeforetheinitialdateofapplicationofthisstandard.

HumeCommunityHousingAssociationColtdisamemberof‘PowerHousingAustralia’,whohavebeendrivinganindustrywidereviewoftheimpactofAASb15andAASb16onthecommunityhousingsector.Todate,thegrouphaveidentifiedthatimplementationofthenewaccountingstandardswillprimarilyaffectthefollowingareasforcommunityhousingproviders:

• Agreementsinrespectofpropertiesrentedtoprovideaffordablehousing,motorvehiclesandrentalofofficespacewillbeaccountedforunderAASb16whichwillresultintheseleasesbeingbroughtontothebalancesheet.Itisexpectedthattheresultingimpactwillbeanincreaseinnon-currentassetsandacorrelatingincreaseincurrentandnon-currentliabilities.Additionally,itisanticipatedthattherewillbeanadditionalimpactonthetimingofexpensesrelatingtotheleaseswiththeadoptionofAASb16withreducedprofitsexpectedinthebeginningyearsofthelease.




note 1. summary of significant Accounting policies (continued)

• AgreementsinrespecttosocialhousingandthemorerecentSocialHousingManagementTransfer(‘SHMT’)propertiesareconsideredtobeoutsideofthescopeofAASb16giventhattheyarepropertiesownedandcontrolledbythegovernmentandthereforeconsideredtobeserviceconcessionarrangementsaccountedforunderIFRIC12.Withtheadoptionofthenewaccountingstandards,itisanticipatedthattheimpactwillbeanincreaseintheassetvaluesastheimplementationcostsoftheSHMTpropertiesareabletobecapitalisedunderAASb15.

• AgreementsinrespecttoownedpropertiesthatareamixofsocialandaffordablehousingwillbeaccountedforinaccordancewithAASb15.Itisanticipatedthattherewillbenomaterialimpactontheadoptionofthisstandardinrespecttotheseagreements.

• IthasbeendeterminedthatrevenuesandgrantsforcommunityhousingproviderswillbeaccountedforunderAASb15andAASb1058inrespecttocontractswithcustomersandresidualincomevaluesofgrants.

HumeCommunityHousingColtdiscurrentlyupdatingthepoliciesandproceduresoftheregisteredentityanddeterminingtheexactimpactthenewaccountingstandardswillhavefortheyearended30June2020whenadopted.

AASB 15 – Revenue from Contracts with CustomersAASb15-RevenuefromContractswithCustomersspecifieshowandwhenrevenueshouldberecognisedaswellasrequiringmoreinformativeandrelevantdisclosures.Thestandardalsorequiresadditionaldisclosuresinrespectofthenature,amount,timinganduncertaintyofrevenueandcashflowsarisingfromcustomercontracts.Thisstandardwillbeimplementedwithtwosupplementarynot-for-profitspecificstandards,AASb2016-8AustralianImplementationGuidanceforNot-for-ProfitEntitiesandAASb1058IncomeofNot-for-ProfitEntities.ThesestandardssupersedeAASb118–Revenue,AASb1004Contributionsandanumberofotherrevenue-relatedinterpretations.AASb15,AASb2016-8andAASb1058mustbeappliedforallperiodsbeginningonorafter1January2019,withearlyapplicationpermitted.Anentitymayadoptthestandardonafullyretrospectivebasisoronamodifiedretrospectivebasis.

HumeCommunityHousingColtdiscurrentlyupdatingthepoliciesandproceduresoftheregisteredentityanddeterminingtheexactimpactthenewaccountingstandardswillhavefortheyearended30June2020whenadopted.

critical accounting judgements, estimates and assumptionsThepreparationofthefinancialstatementsrequiresmanagementtomakejudgements,estimatesandassumptionsthataffectthereportedamountsinthefinancialstatements.Managementcontinuallyevaluatesitsjudgementsandestimatesinrelationtoassets,liabilities,contingentliabilities,revenueandexpenses.Managementbasesitsjudgements,estimatesandassumptionsonhistoricalexperienceandonothervariousfactors,includingexpectationsoffutureevents,managementbelievestobereasonableunderthecircumstances.Theresultingaccountingjudgementsandestimateswillseldomequaltherelatedactualresults.Thejudgements,estimatesandassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow.

estimation of useful lives of assetsTheregisteredentitydeterminestheestimatedusefullivesandrelateddepreciationandamortisationchargesforitsproperty,plantandequipmentandfinitelifeintangibleassets.Theusefullivescouldchangesignificantlyasaresultoftechnicalinnovationsorsomeotherevent.Thedepreciationandamortisationchargewillincreasewheretheusefullivesarelessthanpreviouslyestimatedlives,ortechnicallyobsoleteornon-strategicassetsthathavebeenabandonedorsoldwillbewrittenofforwrittendown.

employee benefits provisionTheliabilityforemployeebenefitsexpectedtobesettledmorethan12monthsfromthereportingdatearerecognisedandmeasuredatthepresentvalueoftheestimatedfuturecashflowstobemadeinrespectofallemployeesatthereportingdate.Indeterminingthepresentvalueoftheliability,estimatesofattritionratesandpayincreasesthroughpromotionandinflationhavebeentakenintoaccount.



note 1. summary of significant Accounting policies (continued)

fair value of investment propertiesCriticalestimatesaremadebytheDirectorsinrespectofthefairvalueofinvestmentproperties.ThefairvalueoftheseinvestmentsarereviewedregularlybyDirectorswithreferencestoindependentpropertyvaluationsandmarketconditionsexistingatreportingdate,usinggenerallyacceptedmarketpractices.

employee benefits

short-term employee benefitsliabilitiesforwagesandsalaries,includingnon-monetarybenefits,annualleaveandlongserviceleaveexpectedtobesettledwithin12monthsofthereportingdatearemeasuredattheamountsexpectedtobepaidwhentheliabilitiesaresettled.

other long-term employee benefitsTheliabilityforannualleaveandlongserviceleavenotexpectedtobesettledwithin12monthsofthereportingdatearemeasuredasthepresentvalueofexpectedfuturepaymentstobemadeinrespectofservicesprovidedbyemployeesuptothereportingdateusingtheprojectedunitcreditmethod.Considerationisgiventoexpectedfuturewageandsalarylevels,experienceofemployeedeparturesandperiodsofservice.Expectedfuturepaymentsarediscountedusingmarketyieldsatthereportingdateonnationalgovernmentbondswithtermstomaturityandcurrencythatmatch,ascloselyaspossible,theestimatedfuturecashoutflows.

Defined contribution superannuation expenseContributionstodefinedcontributionsuperannuationplansareexpensedintheperiodinwhichtheyareincurred.

goods and services tax (‘gst’) and other similar taxesRevenues,expensesandassetsarerecognisednetoftheamountofassociatedGST,unlesstheGSTincurredisnotrecoverablefromthetaxauthority.Inthiscaseitisrecognisedaspartofthecostoftheacquisitionoftheassetoraspartoftheexpense.

ReceivablesandpayablesarestatedinclusiveoftheamountofGSTreceivableorpayable.ThenetamountofGSTrecoverablefrom,orpayableto,thetaxauthorityisincludedinotherreceivablesorotherpayablesinthestatementoffinancialposition.

Cashflowsarepresentedonagrossbasis.TheGSTcomponentsofcashflowsarisingfrominvestingorfinancingactivitieswhicharerecoverablefrom,orpayabletothetaxauthority,arepresentedasoperatingcashflows.

CommitmentsandcontingenciesaredisclosednetoftheamountofGSTrecoverablefrom,orpayableto,thetaxauthority.

current and non-current classificationAssetsandliabilitiesarepresentedinthestatementoffinancialpositionbasedoncurrentandnon-currentclassification.

Anassetisclassifiedascurrentwhen:itiseitherexpectedtoberealisedorintendedtobesoldorconsumedinnormaloperatingcycle;itisheldprimarilyforthepurposeoftrading;itisexpectedtoberealisedwithin12monthsafterthereportingperiod;ortheassetiscashorcashequivalentunlessrestrictedfrombeingexchangedorusedtosettlealiabilityforatleast12monthsafterthereportingperiod.Allotherassetsareclassifiedasnon-current.

Aliabilityisclassifiedascurrentwhen:itiseitherexpectedtobesettledinnormaloperatingcycle;itisheldprimarilyforthepurposeoftrading;itisduetobesettledwithin12monthsafterthereportingperiod;orthereisnounconditionalrighttodeferthesettlementoftheliabilityforatleast12monthsafterthereportingperiod.Allotherliabilitiesareclassifiedasnon-current.

income taxAstheregisteredentityisacharitableinstitutionintermsofsubsection50-5oftheIncomeTaxAssessmentAct1997,asamended,itisexemptfrompayingincometax.




note 2. Revenue AnD otHeR income

2019$

2018$

RevenueRentalrevenue 21,529,946 21,914,785

Grantrevenue 4,711,739 4,507,272

NRASincentives 2,869,815 2,421,895

Feeforservicerevenue 3,414,780 2,720,291

32,526,280 31,564,243

other income

Interestincome 308,184 210,380Socialhousingsubsidyprograminterestincome 610,147 1,811,066

Otherincome 158,822 52,214

1,077,153 2,073,660

Recognition and measurementRevenueisrecognisedwhenitisprobablethattheeconomicbenefitwillflowtotheregisteredentityandtherevenuecanbereliablymeasured.Revenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivable.

Rental revenueRentalincomeisrecognisedonastraightlinebasisoverthetermofthelease,exceptwhenanalternativebasisismorerepresentativeofthepatternofservicesrenderedthroughtheprovisionoftheleasedpremises.

grant revenue and nRAs incentivesGrantsarerecognisedattheirfairvaluewherethereisareasonableassurancethatthegrantwillbereceivedandallattachedconditionswillbecompliedwith.

fee for service revenueIncomefromfeesreceivedforservicesisrecognisedwhentheserviceisprovided.

interest incomeInterestincomeisrecognisedasitaccruesusingtheeffectiveinterestmethod.

social housing subsidy program interest incomeSocialhousingsubsidyprograminterestincomerelatestoHume’sfinancialinterestinthiscompletedprogramandisrecognisedintheperiodswhentheyareearned.AmountsreceivableunderthisprogramweresettledbytransferringrightstopropertytitleandthishasbeenseparatelydisclosedinNote9.

other incomeOtherincomeisrecognisedwhenitisreceivedorwhentherighttoreceivepaymentisestablished.

note 3. expenses

2019$

2018$

surplus before income tax includes the following specific expenses:tenancy and property management expenses

Rentexpenses 9,700,764 10,541,252

Repairsandmaintenanceexpenses 3,382,480 2,957,119

Councilandwaterrates 1,553,793 2,286,457

Otherpropertyexpenses 491,390 1,007,917

15,128,427 16,792,745



note 3. expenses (continued)

2019$

2018$

employee benefits expenses

Superannuationexpenses 727,632 658,120

Salariesandwagesexpenses 7,602,946 6,941,216

Otheremployeebenefitsexpenses 294,013 448,068

8,624,591 8,047,404

finance costs

Writeofdeferredloancosts 766,374 -

Otherfinancecosts 1,279,334 932,780

2,045,708 932,780

Administrative expenses

Insuranceexpenses 961,874 439,900

Officeexpenses 811,338 851,707

Officerent 270,652 278,589

Auditandaccountingfees 68,832 60,255

Otheradministrativeexpenses 1,563,795 2,160,390

3,676,491 3,790,841

project expenses791,963 -Employeeexpenses

Administrativeexpenses 446,959 105,142

1,238,922 105,142

Projectexpensesrepresentsexpensesincurredinrelationto2,209propertiesbeingtransferredundertheSocialHousingManagementTransferwhichoccurredinSeptember2019.

note 4. cAsH AnD cAsH eQuivAlents

2019$

2018$

Cashonhand 634 750

Cashatbank 2,085,183 4,093,064

Cashondeposit 7,000,000 9,655,065

9,085,817 13,748,879

Cashondepositheldassecurity$7,010,045(2018:Cashamountsrestrictedandheldascashondepositassecurity$4,329,593).

Recognition and measurementCashandcashequivalentsincludescashonhand,depositsheldatcallwithfinancialinstitutions,othershort-term,highlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorlessthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.




note 5. otHeR finAnciAl costs

2019$

2018$

Termdeposits>3months 12,000,000 -

12,000,000 -

Recognition and measurementOtherfinancialassetsincludetermdepositsheldwithfinancialinstitutionswithoriginalmaturitiesofgreaterthanthreemonths.

note 6. cuRRent Assets – tRADe AnD otHeR ReceivABles

2019$

2018$

NRASreceivable 3,305,904 2,621,349

Tradereceivables 191,495 299,191

Rentalreceivables 381,506 758,556

Socialhousingsubsidyprogramreceivable - 1,811,066

Otherreceivables 1,008,296 936,718

4,887,201 6,426,880

Allowanceforexpectedcreditlosses (44,370) (44,370)

4,842,831 6,382,510

Recognition and measurementOtherreceivablesarerecognisedatamortisedcost,lessanyprovisionforimpairment.Theallowanceforexpectedcreditlossesassessmentrequiresadegreeofestimationandjudgement.Itisbasedonthelifetimeexpectedcreditloss,groupedbasedondaysoverdue,andmakesassumptionstoallocateanoverallexpectedcreditlossrateforeachgroup.Theseassumptionsincluderecentrevenueexperienceandhistoricalcollectionrates.

note 7. otHeR Assets

2019$

2018$

current

Prepayments 1,048,950 842,482

Depositsfordevelopmentprojects 10,000 57,124

1,058,950 899,606

non-current

Rentaldeposits 1,823,562 1,800,513

Depositsfordevelopmentprojects 186,698 106,126

2,010,260 1,906,639

Recognition and measurementPaymentsmadefordepositsandcostsforthedevelopmentofinvestmentpropertiesarerecognisedasotherassetswhenthepaymentshavebeenmade.



note 8. pRopeRty, plAnt AnD eQuipment

2019$

2018$

landandbuildings-atcost 1,200,241 1,286,000

less:Accumulateddepreciation (34,829) (5,360)

1,165,412 1,280,640

Plantandequipment-atcost 1,130,467 794,078


410,764 193,869

Furnitureandfittings–atcost 1,271,079 1,233,607


587,644 727,374

Assetsunderconstruction-atcost - 205,310

2,163,820 2,407,193

ReconciliationsReconciliationsofthewrittendownvaluesatthebeginningandendofthecurrentfinancialyeararesetoutbelow:

land andbuildings

plant andequipment

furniture and fittings

Assets underconstruction total

$ $ $ $ $

balanceat1July2018 1,280,640 193,869 727,374 205,310 2,407,193

Additions - 227,861 39,100 - 266,961

Disposals (85,757) (30,867) (1,628) - (118,252)

Transferstoplantandequipment - 205,310 - (205,310) -

Depreciationexpense (29,471) (185,409) (177,202) - (392,082)

Balance at 30 june 2019 1,165,412 410,764 587,644 - 2,163,820

Recognition and measurementProperty,plantandequipmentisstatedathistoricalcostlessaccumulateddepreciationandimpairment.Historicalcostincludesexpenditurethatisdirectlyattributabletotheacquisitionoftheitems.

Forassetsinthecourseofconstruction,nodepreciationisapplieduntiltheassetiscompleteandisputintousebytheregisteredentity.

Depreciationiscalculatedonastraight-linebasistowriteoffthenetcostofeachitemofproperty,plantandequipmentovertheirexpectedusefullivesusingthefollowingratesperannum:

buildings 2.5%

Plantandequipment 20%-40%

Furnitureandfittings 20%




note 8. property, plant and equipment (continued)

Theresidualvalues,usefullivesanddepreciationmethodsarereviewed,andadjustedifappropriate,ateachreportingdate.Anitemofproperty,plantandequipmentisderecognisedupondisposalorwhenthereisnofutureeconomicbenefittotheregisteredentity.Gainsandlossesbetweenthecarryingamountandthedisposalproceedsaretakentoprofitorloss.

estimation of useful lives of assetsTheregisteredentitydeterminestheestimatedusefullivesandrelateddepreciationandamortisationchargesforitsproperty,plantandequipmentandfinitelifeintangibleassets.Theusefullivescouldchangesignificantlyasaresultoftechnicalinnovationsorsomeotherevent.Thedepreciationandamortisationchargewillincreasewheretheusefullivesarelessthanpreviouslyestimatedlives,ortechnicallyobsoleteornon-strategicassetsthathavebeenabandonedorsoldwillbewrittenofforwrittendown.

note 9. investment pRopeRties

2019$

2018$

Investmentproperties-atdirectorsvaluation 103,386,177 100,661,715

103,386,177 100,661,715

Reconciliation

Reconciliationofthefairvaluesatthebeginningandtheendoftheyeararesetoutbelow:

Carryingamountatthebeginningoftheyear 100,661,715 97,980,100

TransfertocloseoutSocialHousingSubsidyProgram 2,575,000 -

Otheradditionsanddevelopmentcosts 631,099 10,384,586

Transfersfromproperty,plantandequipment - 180,196

Revaluation(decrement) (2,890,583) (4,283,167)

Otherrevaluationincrement/(decrement)relatingtoprovisionforremediationwork*

2,408,946 (3,600,000)

carrying amount at the end of the year 103,386,177 100,661,715

*InDecember2017,theNSWGovernmentstrengthenedthefiresafetylawswiththeintroductionofthebuildingProducts(Safety)act2017.During2018,theregisteredentityundertookafireriskassessmentofitsinvestmentpropertyportfoliowhichidentifiedcertainnon-compliance.Thedirector’svaluationtakesintoaccounttheestimatedcostsofremediationlessanyexpectedrecoveriesfromthirdpartiesindeterminingfairvalueandassuchthenetprovisionforremediationworkshasbeenrecognisedasafairvaluedecrementtothevaluation.



note 9. investment properties (continued)

Recognition and measurementInvestmentpropertiesprincipallycomprisefreeholdlandandbuildingsheldforlong-termrentalandcapitalappreciationthatarenotoccupiedbytheregisteredentity.Investmentpropertiesareinitiallyrecognisedatcost,includingtransactioncostsandcostsoffinance,andaresubsequentlyremeasuredannuallyatfairvalue.Movementsinfairvaluearerecogniseddirectlytoprofitorloss.

Thebasisofthevaluationofinvestmentpropertiesisfairvalue,beingtheamountsforwhichthepropertiescouldbeexchangedbetweenwillingpartiesinanarm’slengthtransaction,basedoncurrentpricesinanactivemarketforsimilarpropertiesinthesamelocationandcondition,subjecttosimilarleasesandtakesintoconsiderationoccupancyratesandreturnsoninvestment.

DuringtheyeartheinvestmentpropertieswereindependentlyvaluedbyJoneslanglaSalle.Thevaluationwasbasedonthefairvaluelesscostsofdisposal.Thevaluationresultedinarevaluationdecrementof$2,890,583beingrecognisedfortheyearended30June2019(2018:$4,283,167).

fair value of investment properties

fair value hierarchyThefollowingtablesdetailtheregisteredentity’sassetsandliabilities,measuredordisclosedatfairvalue,usingathreelevelhierarchy,basedonthelowestlevelofinputthatissignificanttotheentirefairvaluemeasurement,being:

level 1: Quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilitiesthattheentitycanaccessatthemeasurementdate

level 2: Inputsotherthanquotedpricesincludedwithinlevel1thatareobservablefortheassetorliability,eitherdirectlyorindirectly

level 3: unobservableinputsfortheassetorliability

30June2019level 1

$level 2

$level 3

$total

$

AssetsInvestmentproperties - - 103,386,177 103,386,177

total assets - - 103,386,177 103,386,177

30June2018level 1

$level 2

$level 3

$total

$

AssetsInvestmentproperties - - 100,661,715 100,661,715

total assets - - 100,661,715 100,661,715

Therewerenotransfersbetweenlevelsduringthefinancialyear.




note 9. investment properties (continued)

Thecarryingamountsoftradeandotherreceivablesandtradeandotherpayablesareassumedtoapproximatetheirfairvaluesduetotheirshort-termnature.

Thefairvalueoffinancialliabilitiesisestimatedbydiscountingtheremainingcontractualmaturitiesatthecurrentmarketinterestratethatisavailableforsimilarfinancialliabilities.

Whenanassetorliability,financialornon-financial,ismeasuredatfairvalueforrecognitionordisclosurepurposes,thefairvalueisbasedonthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate;andassumesthatthetransactionwilltakeplaceeither:intheprincipalmarket;orintheabsenceofaprincipalmarket,inthemostadvantageousmarket.

Fairvalueismeasuredusingtheassumptionsthatmarketparticipantswouldusewhenpricingtheassetorliability,assumingtheyactintheireconomicbestinterests.Fornon-financialassets,thefairvaluemeasurementisbasedonitshighestandbestuse.Valuationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataareavailabletomeasurefairvalue,areused,maximisingtheuseofrelevantobservableinputsandminimisingtheuseofunobservableinputs.

note 10. tRADe AnD otHeR pAyABles

2019$

2018$

Tradecreditors 706,074 15,693

Othercreditors 1,985,778 2,262,726

Rentsinadvance 431,342 930,175

Grantsinadvance 328,207 344,442

Grantstoberefunded 182,742 182,742

Propertyrelatedaccruals 1,712,606 1,724,306

Retentionpayable 44,000 447,375

Accrualsfordevelopmentprojects - 1,104,371

Employeesalaryaccruals 489,499 393,992

Otheraccruals 904,210 1,702,504

Otherdeferredincome 1,106,353 1,343,518

7,890,811 10,451,844

Recognition and measurementTheseamountsrepresentliabilitiesforgoodsandservicesprovidedtotheregisteredentitypriortotheendofthefinancialyearandwhichareunpaid.Duetotheirshort-termnaturetheyaremeasuredatamortisedcostandarenotdiscounted.Theamountsareunsecuredandareusuallypaidwithin30daysofrecognition.



note 11. BoRRoWings

2019$

2018$

current bankborrowings - 870,700

- 870,700

non-currentbankborrowings 35,000,000 25,250,700

35,000,000 25,250,700

Recognition and measurementloansandborrowingsareinitiallyrecognisedatthefairvalueoftheconsiderationreceived,netoftransactioncosts.Theyaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.

On19March2019thecompanyenteredinto$35mloanfacilityagreementwithNationalHousingFinanceandInvestmentCorporationunderAffordableHousingbondAggregator(AbHA).Thefacilityhas10termexpiringon19March2029withinterestonlypayablemonthly.Theinterestrateisfixedat2.93%.

Thebankborrowingsaresecuredbyfirstmortgagesovertheregisteredentity’slandandbuildings.Theloanbalancemustnotexceed45%ofthesecuredpropertyvalue.

note 12. pRovisions

2019$

2018$

current

Annualleaveandlongserviceleave 813,551 653,578

813,551 653,578

non-current

longserviceleave 237,163 188,965

237,163 188,965

note 13. contingent liABilities

Therearethreesecuritydepositguaranteesinrespectofpropertiesmanagedortenantedbytheentity:$65,294inrespectoftheParramattaoffice(2018:$47,000),$97,000inrespectofthePembrokeStreetboardingHouse(2018:$45,000)and$12,567inrespectoftheMerrylandsproperty(2018:nil).

Asat30June2019HumeCommunityHousingAssociationColtdhascapitalcommitmentsof$1.5moutstandinginrespectoftherectificationofcladdingatitsTelopeaproperties(2018:nil).




note 14. commitments

lease commitments 2019$

2018$

Committedatthereportingdatebutnotrecognisedasliabilities,payable:Withinoneyear 361,706 40,797

Onetofiveyears 1,107,374 -

Morethanfiveyears 675,000 -

2,144,080 40,797

note 15. RelAteD pARty tRAnsActions

key management personnel

compensationTheaggregatecompensationmadetodirectorsandexecutivesaskeymanagementpersonneloftheregisteredentityissetoutbelow:

2019$

2018$

Aggregate compensation 1,305,016 1,346,187

note 16. finAnciAl Risk mAnAgement

Themainriskstheentityisexposedtothroughitsfinancialinstrumentsincludecreditriskandliquidityrisk.

Theentity’sfinancialinstrumentsconsistmainlyofdepositswithbanks,localmoneymarketinstruments,short-termandlong-terminvestments,accountsreceivableandpayable,andleaseliabilities.

financial assets 2019$

2018$

Cashandcashequivalents 9,085,817 13,748,879

Tradeandotherreceivables 4,842,831 6,382,510

Otherfinancialasset 12,000,000 -

total financial Assets 25,928,648 20,131,389

financial liabilities

Tradeandotherpayables 7,890,811 10,451,844

bankloans 35,000,000 26,121,400

total financial liabilities 42,890,811 36,573,244



note 16. financial Risk management (continued)

credit RiskCreditriskistheriskthattheotherpartytoafinancialinstrumentwillfailtodischargetheirobligationresultingintheRegisteredentityincurringafinancialloss.ThisusuallyoccurswhendebtorsfailtosettletheirobligationsowingtotheRegisteredentity.Thereisnoconcentrationofcreditriskwithrespecttocurrentreceivables.Themaximumexposuretocreditriskatbalancesheetdateisthecarryingvalueoftheseassets,netofanyprovisionforimpairment,asdisclosedbelow:

2019$

2018$

Cashandcashequivalents 9,085,817 13,748,879

Tradeandotherreceivables 4,842,831 6,382,510

liquidity RiskliquidityriskistheriskthattheRegisteredentitymayencounterdifficultiesraisingfundstomeetcommitmentsassociatedwithfinancialinstruments.

TheRegisteredentityisnotsignificantlyexposedtothisrisk,asithas$9,085,817(2018:$13,748,879)ofcashandcashequivalentstomeettheseobligationsastheyfalldue.

TheRegisteredentitymanagesliquidityriskbymonitoringcashflowsandensuringithassufficientcashreservesandavailableborrowingstobeabletopaydebtsasandwhentheybecomedueandpayable.

maturities of financial liabilitiesThetablesbelowanalysetheRegisteredentity’sfinancialliabilitiesintorelevantmaturitygroupingsbasedontheremainingperiodatthereportingdatetothecontractualmaturitydate.

30June2019

less than 12 months

$

Between 1-3 years

$

over 3 years

$

total$

non-derivative financial liabilities

Tradeandotherpayables 7,890,811 - - -borrowings - - 35,000,000 42,890,811

7,890,811 - 35,000,000 42,890,811

30June2018

less than 12 months

$

Between 1-3 years

$

over 3 years

$

total$

non-derivative financial liabilitiesTradeandotherpayables 10,451,844 - - 10,451,844

borrowings 870,000 - 25,250,700 26,120,700

11,321,844 - 25,250,700 26,571,544




note 17. events AfteR tHe RepoRting peRioD

On2September2019,HumeCommunityHousingtookovermanagementofadditional2,209propertiesbasedintheHunterRegionthroughtheSocialHousingManagementTransferprogram.

Exceptfortheabove,nomattersorcircumstanceshavearisensince30June2019thathavesignificantlyaffected,ormaysignificantlyaffecttheregisteredentity’soperations,theresultsofthoseoperations,ortheregisteredentity’sstateofaffairsinfuturefinancialyears.

note 18. economic DepenDency

TheregisteredentityiseconomicallydependentontheNSWStateGovernmentandtheFederalGovernmentforsignificantfinancialsupportintheformofsubsidiesandgrantstoassistinthedeliveryofaffordableandsocialhousingtothecommunity.

note 19. memBeRs’ guARAntee

TheregisteredentityisincorporatedundertheAustralianCharitiesandNot-for-profitsCommissionAct2012andisanentitylimitedbyguarantee.Iftheregisteredentityiswoundup,theconstitutionstatesthateachmemberisrequiredtocontributeamaximumof$20eachtowardsmeetinganyoutstandingandobligationsoftheentity.At30June2019thenumberofmemberswas21(2018:20).


Hume community Housing AssociAtion co ltD DiRectoRs’ DeclARAtion 30June2019

IntheDirectors’opinion:

• theattachedfinancialstatementsandnotescomplywiththeAustralian Charities and not-for-profits Commission Act 2012,theAustralianAccountingStandards-ReducedDisclosureRequirements,theAustralianCharitiesandnot-for-profits Commission Regulation 2013andothermandatoryprofessionalreportingrequirements;

• theattachedfinancialstatementsandnotesgiveatrueandfairviewoftheregisteredentity’sfinancialpositionasat30June2019andofitsperformanceforthefinancialyearendedonthatdate;and

• therearereasonablegroundstobelievethattheregisteredentitywillbeabletopayitsdebtsasandwhentheybecomedueandpayable.

SignedinaccordancewitharesolutionofDirectors.

OnbehalfoftheDirectors

RobertVine JaysonbricknellDirector Director19September2019 19September2019Sydney Sydney



inDepenDent AuDitoR’s RepoRtto the members of Hume community Housing Association co ltd

RepoRt on tHe AuDit of tHe finAnciAl RepoRt

opinionWehaveauditedthefinancialreportofHumeCommunityHousingAssociationColtd,whichcomprisesthestatementoffinancialpositionasat30June2019,thestatementofprofitorlossandothercomprehensiveincome,thestatementofchangesinequityandthestatementofcashflowsfortheyearthenended,andnotestothefinancialreport,includingasummaryofsignificantaccountingpolicies,andtheresponsibleentities’declaration.

InouropiniontheaccompanyingfinancialreportofHumeCommunityHousingAssociationColtd,isinaccordancewithDivision60oftheAustralian Charities and not-for-profits Commission Act 2012,including:

• Givingatrueandfairviewoftheregisteredentity’sfinancialpositionasat30June2019andofitsfinancialperformancefortheyearthenended;and

• ComplyingwithAustralianAccountingStandards–ReducedDisclosureRequirementsandDivision60oftheAustralian Charities and not-for-profits Commission Regulation 2013.

Basis for opinionWeconductedourauditinaccordancewithAustralianAuditingStandards.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sresponsibilitiesfortheauditoftheFinancialReportsectionofourreport.WeareindependentoftheregisteredentityinaccordancewiththeauditorindependencerequirementsoftheAustralian Charities and not-for-profits Commission Act 2012 (ACnC Act) andtheethicalrequirementsoftheAccountingProfessionalandEthicalStandardsboard’sAPES110Code of ethics for Professional Accountants (theCode)thatarerelevanttoourauditofthefinancialreportinAustralia.WehavealsofulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

other informationThosechargedwithgovernanceareresponsiblefortheotherinformation.Theotherinformationobtainedatthedateofthisauditor’sreportisinformationincludedintheHumeCommunityHousingAssociationColtd’sannualreport,butdoesnotincludethefinancialreportandourauditor’sreportthereon.

Ouropiniononthefinancialreportdoesnotcovertheotherinformationandaccordinglywedonotexpressanyformofassuranceconclusionthereon.

Inconnectionwithourauditofthefinancialreport,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialreportorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.

If,basedontheworkwehaveperformedontheotherinformationobtainedpriortothedateofthisauditor’sreport,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.

Tel:+61292514100Fax:+61292409821

www.bdo.com.au

level11,1MargaretStSydneyNSW2000Australia


bDOEastCoastPartnershipAbN83236985726isamemberofanationalassociationofindependententitieswhichareallmembersofbDOAustralialtdAbN77050110275,anAustraliancompanylimitedbyguarantee.bDOEastCoastPartnershipandbDOAustralialtdaremembersofbDOInternationalltd,aukcompanylimitedbyguarantee,andformpartoftheinternationalbDOnetworkofindependentmemberfirms.liabilitylimitedbyaschemeapproved.

Responsibilities of responsible entities for the financial ReportTheresponsibleentitiesoftheregisteredentityareresponsibleforthepreparationandfairpresentationofthefinancialreportinaccordancewithAustralianAccountingStandards–ReducedDisclosureRequirementsandtheACNCAct,andforsuchinternalcontrolastheresponsibleentitiesdetermineisnecessarytoenablethepreparationofthefinancialreportthatisfreefrommaterialmisstatement,whetherduetofraudorerror.

Inpreparingthefinancialreport,responsibleentitiesareresponsibleforassessingtheregisteredentity’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlesstheresponsibleentitieseitherintendstoliquidatetheregisteredentityortoceaseoperations,orhasnorealisticalternativebuttodoso.

Thosechargedwithgovernanceareresponsibleforoverseeingtheregisteredentity’sfinancialreportingprocess.

Auditor’s responsibilities for the audit of the financial ReportOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialreportasawholeisfreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewiththeAustralianAuditingStandardswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthisfinancialreport.

AfurtherdescriptionofourresponsibilitiesfortheauditofthefinancialreportislocatedattheAuditingandAssuranceStandardsboardwebsite(http://www.auasb.gov.au/Home.aspx)at:http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf

Thisdescriptionformspartofourauditor’sreport.

bDOEastCoastPartnershipIanHooperPartnerSydney,19September2019

Documents

pARt 4: finAnciAl infoRmAtion - 2018 Annual Reviewannualreview.humehousing.com.au/wp-content/uploads/2019/10/Hu… · Dip. mgmt, grad Dip. HR, mAicD Robert Vine has served 14 years