Sophia Education Ministries Ltd - Microsoft... · 2020-03-18 · Current liabilities Provision for employee benefits 1,402 - 1,402 - 8 Auditors' Remuneration Remuneration of the auditor

Sophia Education Ministries LtdABN 84 621 589 731

Financial Statements

For the Year Ended 31 December 2019

Sophia Education Ministries Ltd

ABN 84 621 589 731

ContentsFor the Year Ended 31 December 2019

Page

Financial StatementsDirectors' Report 1Auditor's Independence Declaration 4Statement of Surplus or Deficit 5Statement of Financial Position 6Statement of Changes in Equity 7Statement of Cash Flows 8Notes to the Financial Statements 9Directors' Declaration 13Independent Audit Report 14


ABN 84 621 589 731

Directors' ReportFor the Year Ended 31 December 2019

The directors present their report on Sophia Education Ministries Ltd for the financial year ended 31 December 2019.

Directors

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

Sr Rita Carroll rscj

Qualifications Religious of the Sacred Heart

Experience Extensive Educational and Chaplaincy experience.

Dr Marie Leech

Qualifications Education and Teaching. H.Dip.Ed., Ph.D.

Experience Extensive Educational and General Management experience, plussignificant experience on not-for-profit and government boards andcommittees.

Ms Elizabeth McClintock

Qualifications Early Childhood Specialist

Experience Extensive experience in teacher training, educational audits of schoolsand Principals Advisory Councils.

Mr David O’Donnell

Qualifications Lawyer

Experience Over 40 years experience, and over 15 years on not-for-profit boardsand committees.

Mr Peter Pritchard (Chair)

Qualifications Retired Banker and Accountant, B Comm, M Comm (Hons), FCPA, FFin

Experience 40 years banking experience, and over 12 years on not-for-profitboards and committees.

Ms Jacquie Shanahan

Qualifications Lawyer

Experience Over 30 years corporate governance and commercial law experienceworking with listed and unlisted companies and boards.

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

Company secretary

The following persons held the position of company secretary at the end of the financial year:

Jacquie Shanahan and Melanie Keating.

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ABN 84 621 589 731

Directors' ReportFor the Year Ended 31 December 2019

Principal activities

The principal activities of Sophia Education Ministries Ltd during the financial year were:

1. Responsible for the governance of the Schools of the Society of the Sacred Heart in Australia.

2. Ensure that these Schools continue to embody the vision, mission, spirituality and charism of the Society.

3. Directors of Sophia Education Ministries will continue to undertake a strong, dynamic and continuous formation in the charism of St Madeline Sophie Barat.

No significant changes in the nature of the Company's activity occurred during the financial year.

Member's guarantee

Sophia Education Ministries Ltd is a company limited by guarantee. In the event of, and for the purpose of winding up of thecompany, the amount capable of being called up from each member and any person or association who ceased to be amember in the year prior to the winding up, is limited to $100 subject to the provisions of the company's constitution.

At 31 December 2019 the collective liability of members was $ 100 (2018: $ 100).

Meetings of directors

During the financial year, 8 meetings of directors (including committees of directors) were held. Attendances by each directorduring the year were as follows:

Directors' Meetings

Number eligible toattend Number attended

Sr Rita Carroll rscj 8 7

Dr Marie Leech 8 6

Ms Elizabeth McClintock 8 8

Mr David O’Donnell 8 8

Mr Peter Pritchard (Chair) 8 8

Ms Jacquie Shanahan 8 8

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4

Sophia Education Ministries Ltd ABN 84 621 589 731

Auditor's Independence Declaration to the Directors of Sophia Education Ministries Ltd

In accordance with the requirements of section 60-40 of the Australian Charities and Not-for-profits Commission Act 2012, as auditor for Sophia Education Ministries Ltd for the year ended 31 December 2019, I declare that, to the best of my knowledge and belief, there have been:

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

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

Nexia Sydney Audit Pty Limited

Brett Hanger Director

Dated this 20th day of February 2020


ABN 84 621 589 731

Statement of Surplus or DeficitFor the Year Ended 31 December 2019

Note

2019

$

2018

$

Revenue 2 374,535 -

Employee benefits expense (21,088) -

Travel (25,765) -

Subscriptions (4,268) -

Insurance (4,576) -

Legal costs (5,421) -

Consulting and professional fees (49,766) -

IT expenses (4,362) -

Meeting related expenses (2,001) -

Other operating expenses (6,714) -

Surplus before income tax 250,574 -

Income tax expense - -

Surplus for the year 250,574 -

Other comprehensive income

Other comprehensive income for the year, net of tax - -

Total comprehensive income for the year 250,574 -

The accompanying notes form part of these financial statements.5


ABN 84 621 589 731

Statement of Financial PositionAs At 31 December 2019

Note

2019

$

2018

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 3 270,375 -

Trade and other receivables 4 756 -

Other assets 5 5,028 -

TOTAL CURRENT ASSETS 276,159 -

NON-CURRENT ASSETS

TOTAL ASSETS 276,159 -

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 6 24,183 -

Employee benefits 7 1,402 -

TOTAL CURRENT LIABILITIES 25,585 -

NON-CURRENT LIABILITIES

TOTAL LIABILITIES 25,585 -

NET ASSETS 250,574 -

EQUITY

Retained earnings 250,574 -

TOTAL EQUITY 250,574 -



ABN 84 621 589 731

Statement of Changes in EquityFor the Year Ended 31 December 2019

2019

RetainedEarnings

$

Total

$

Balance at 1 January 2019 - -

Surplus for the year 250,574 250,574

Balance at 31 December 2019 250,574 250,574

2018

RetainedEarnings

$

Total

$

Balance at 1 January 2018 - -

Surplus for the year - -

Balance at 31 December 2018 - -



ABN 84 621 589 731

Statement of Cash FlowsFor the Year Ended 31 December 2019

Note

2019

$

2018

$

CASH FLOWS FROM OPERATING ACTIVITIES:

Gifts and school lease revenue 373,779 -

Payments to suppliers and employees (103,404) -

Net cash provided by/(used in) operating activities 10 270,375 -

CASH FLOWS FROM INVESTING ACTIVITIES:

Net cash provided by/(used in) investing activities - -

CASH FLOWS FROM FINANCING ACTIVITIES:

Net cash provided by/(used in) financing activities - -

Net increase/(decrease) in cash and cash equivalents held 270,375 -

Cash and cash equivalents at beginning of year - -

Cash and cash equivalents at end of financial year 3 270,375 -



ABN 84 621 589 731

Notes to the Financial StatementsFor the Year Ended 31 December 2019

1 Summary of Significant Accounting Policies

Reporting Basis and Conventions

The directors have prepared the financial statements on the basis that the company is a non-reporting entity becausethere are no users dependent on general purpose financial reports. This financial report is therefore a special purposefinancial report that has been prepared in order to meet the requirements of the Australian Charities and Not-for-profitsCommission Act 2012. The company is a not-for-profit entity for financial reporting purposes under AustralianAccounting Standards.

The financial statements have been prepared in accordance with the mandatory Australian Accounting Standardsapplicable to entities reporting under the Australian Charities and Not-for-profits Commission Act 2012 and thesignificant accounting policies disclosed below, which the directors have determined are appropriate to meet the needsof members. Such accounting policies are consistent with the previous period unless stated otherwise.

The financial statements have been prepared on an accruals basis and are based on historical costs unless otherwisestated in the notes. The material accounting policies that have been adopted in the preparation of this report are asfollows:

(a) Income Tax

No provision for income tax has been raised as the company is exempt from income tax under Division 50 of theIncome Tax Assessment Act 1997.

(b) 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.

Rental income

Investment property revenue is recognised on a straight-line basis over a period of the lease term so as to reflecta constant periodic rate of return on the net investment.

Other income

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

(c) Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GSTincurred is not recoverable from the Tax Office. In these circumstances the GST is recognised as part of the costof acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement offinancial position are shown inclusive of GST.

Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component ofinvesting and financing activities, which are disclosed as operating cash flows.

9


ABN 84 621 589 731


1 Summary of Significant Accounting Policies

(d) 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.

(e) Trade and other receivables

Other receivables are recognised at amortised cost, less allowance for expected credit losses..

(f) Employee benefits

Provision is made for the Company's liability for employee benefits arising from services rendered by employeesto the end of the reporting period. Employee benefits have been measured at the amounts expected to be paidwhen the liability is settled.

(g) Trade and other payables

These amounts represent liabilities for goods and services provided to the company prior to the end of thefinancial yearand which are unpaid.

2 Revenue from Ordinary Activities

2019

$

2018

$

- School lease income 324,535 -

- Gifts 50,000 -

Total Revenue 374,535 -

3 Cash and Cash Equivalents

Cash at bank 270,375 -

270,375 -

4 Trade and Other Receivables

CURRENT

GST receivable 756 -

756 -

5 Other Assets

CURRENT

Prepayments 5,028 -

5,028 -

10


ABN 84 621 589 731


6 Trade and Other Payables

2019

$

2018

$

CURRENT

Sundry payables and accrued expenses 24,183 -

24,183 -

7 Employee Benefit

Current liabilities

Provision for employee benefits 1,402 -

1,402 -

8 Auditors' Remuneration

Remuneration of the auditor

- Audit of the financial statements 5,000 -

Total 5,000 -

9 Contingent Liabilities

In the opinion of the Directors, the Company did not have any contingencies at 31 December 2019(31 December 2018: None).

10 Cash Flow Information

Reconciliation of Cash Flow from Operations with Surplus

2019

$

2018

$

Surplus for the year 250,574 -

Non-cash flows in surplus for the year:

Changes in assets and liabilities:

- (increase)/decrease in receivables (756) -

- (increase)/decrease in prepayments (5,028) -

- increase/(decrease) in provisions 1,402 -

- increase/(decrease) in payables 24,183 -

Cashflows from operations 270,375 -

11


ABN 84 621 589 731


11 Company Details

The registered office of the company is:


Suite 7.01 Aero 247, 247 Coward Street

Mascot NSW 2020

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14


Independent Audit Report to the members of Sophia Education Ministries Ltd

Report on the Audit of the Financial Report

Opinion

We have audited the accompanying financial report, being a special purpose financial report of Sophia Education Ministries Ltd (the Company), which comprises the statement of financial position as at 31 December 2019, the statement of surplus or deficit, 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 directors' declaration.

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

(i) giving a true and fair view of the Company's financial position as at 31 December 2019 and of its financial performance for the year ended; and

(ii) complying with Australian Accounting Standards to the extent described in Note 1 and the Australian Charities and Not-for-profits 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 under the Australian Charities and Not-for-profits 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 confirm that the independence declaration required by the Australian Charities and Not-for-profits Commission Act 2012, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report.

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

Basis of Accounting

We draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the directors' financial reporting responsibilities under the Australian Charities and Not-for-profits Commission Act 2012. As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter.



Responsibilities of Directors for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the Australian Charities and Not-for-profits Commission Act 2012 and is appropriate to meet the needs of the members. The directors' responsibility also includes such internal control as the directors determine necessary to enable the preparation of a 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 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.

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.

Nexia Sydney Audit Pty Limited

Brett Hanger Director

Dated this 28th day of February 2020

Documents

Sophia Education Ministries Ltd - Microsoft... · 2020-03-18 · Current liabilities Provision for employee benefits 1,402 - 1,402 - 8 Auditors' Remuneration Remuneration of the auditor