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ANNUAL FINANCIAL STATEMENTS 2017

APEX FOUNDATION ANNUAL FINANCIAL STATEMENTS 2017 ABN 58 001 347 8971

APEX FOUNDATION LIMITEDPatrons: The Honourable John Howard • Jim Hughes AM

AON Tower, Level 5, 201 Kent Street Sydney NSW 2000 • Telephone 02 9253 7775 • Fax 02 9253 7117Website: www.apexfoundation.org.au • Email: [email protected] • ABN 58 001 347 897

Annual Financial Statements Year Ended June 30th 2017

Contents

Contents Directors’ Report Directors’ Declaration Auditor’s Independence Declaration Statement of Profit and Loss and Other Comprehensive Income Statement of Financial Position Statement of Cash Flows

Page 1 Pages 2 to 7 Page 8 Page 9 Page 10 to 11 Page 12 Page 13 Page 14 Statement of Changes in Equity 2016/2017 Page 15 Statement of Changes in Equity 2015/2016 (Comparative) Pages 16 to 24 Note 1: Significant Accounting Policies 5 Note 2 to the Accounts Page 26 Note 3 to the Accounts Pages 27 to 28 Independent Auditor’s Report

ANNUAL FINANCIAL STATEMENTSYEAR ENDED JUNE 30TH 2017

APEX FOUNDATION LIMITEDPatrons: The Honourable John Howard • Jim Hughes AM

AON Tower, Level 5, 201 Kent Street Sydney NSW 2000 • Telephone 02 9253 7775 • Fax 02 9253 7117Website: www.apexfoundation.org.au • Email: [email protected] • ABN 58 001 347 897

Annual Financial Statements Year Ended June 30th 2017

Contents

Contents Directors’ Report Directors’ Declaration Auditor’s Independence Declaration Statement of Profit and Loss and Other Comprehensive Income Statement of Financial Position Statement of Cash Flows

Page 1 Pages 2 to 7 Page 8 Page 9 Page 10 to 11 Page 12 Page 13 Page 14 Statement of Changes in Equity 2016/2017 Page 15 Statement of Changes in Equity 2015/2016 (Comparative) Pages 16 to 24 Note 1: Significant Accounting Policies Page 25 Note 2 to the Accounts Page 26 Note 3 to the Accounts Pages 27 to 28 Independent Auditor’s Report


APEX FOUNDATION ABN 58 001 347 897

Directors’ Report ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Your Directors have pleasure in presenting their report on Apex Foundation for the year ended June 30th 2017.

Directors

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

Stephen Linneo Bigarelli Philip Andrew Pregnell Peter Michael Fitze Brian William Powe Anthony John Wilshire Phillip Thornton Taylor Jamie Darren Vincent Lindsay Murray Carthew James Eyre McNall (Resigned July 22nd 2016) Mathew James O’Donnell (Appointed July 22nd 2016, Resigned July 14th 2017)Robert George Abraham (Appointed July 14th 2017)

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

Principal Activities

Apex Foundation acts as the sole trustee for the following operational trusts:

Apex Foundation Charitable Trust The Trustee for Apex Underprivileged Childrens Trust The Trustee for Apex Necessitous Circumstances Trust Apex Association of Civilian Widows – New South Wales Civilian Widows of Queensland Foundation Association of Civilian Widows Trust of Western Australia Cowled Foundation Trust Apex Fine Arts Scholarship Trust Apex Australia Reserve Trusts (Five trusts) Apex Hoppers Crossing Reserve Trust Apex Northern & Southern Clubs Trusts (Two trusts)

As sole trustee, the Foundation controls and continually monitors the performance of an investment portfolio in order to generate and then distribute funds to trusts, and then to make specific grant distributions from appropriate trusts in accordance with the rules of those trusts. The Foundation then ensures the effective utilisation of these distributions by grant recipients.

The Foundation acts as sole trustee for the Apex Underprivileged Childrens Trust, which operates three facilities that provide such underprivileged children and their parents and carers with respite. These facilities are the Chalet at Smiggin Holes in New South Wales, the Shoalhaven Heads Apex Cottages for Kids (The Shack) at Shoalhaven Heads on the south coast of New South Wales, and a three-cabin retreat in the North Beach Tourist Park on the Copper Coast at Wallaroo on South Australia’s Yorke Peninsula.

No significant changes in the nature of the Foundation’s activities occurred during the year.

DIRECTORS’ REPORT



Directors’ Report

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Apex Foundation Objectives Consequent to the above, the objectives of the Foundation are:

a) To achieve prudential long term returns from, and to actively manage the corpus of, investments under the Foundation’s control.

b) To distribute these returns into the various trusts of which the Foundation is sole trustee. c) To make, and perpetuate the ability to make, grant distributions out of trusts to beneficiaries. d) To administer the operations of, to maintain the assets of, and to invest in additional assets of and for the

Apex Underprivileged Childrens Trust’s respite and recreational facilities.

Strategies Strategies used to achieve the objectives a) through c) are the use of an independent fund manager and the constant review of the performance of the investment portfolio to ensure that the funds are invested appropriately. The primary strategy used to achieve objective d) is the maintenance of active committees that monitor the day to day operations of the facilities, that recognise required maintenance issues and who facilitate appropriate remedial actions.

Key Performance Measures The key performance measures lie in optimum management of the trusts for which the company acts as sole trustee.

The Year in Summary

2017 $

2016 $

Opening Balance of Trusts 9,186,454 9,471,936 Distributed Surpluses/(Deficits) 282,956 (108,898) Trust Fund Deposits 176,439 129,336 Trust Fund Withdrawals (61,207) (66,366) Grants Made (178,078) (192,749) Capital Expenditure - (46,805) Asset Revaluation 593,947 - Closing Balance of Trusts 10,000,511 9,186,454

The Foundation’s abovementioned results were either reallocated to, or distributed to the trusts for which it acts as sole trustee.

Highlights of the Year – Funding movements in Trust Accounts The deposits into trusts (or sub-trusts), and the withdrawals from trusts (or sub-trusts), are as follows:

Particulars Deposits $

Withdrawals $

Carthew Family Trust Donation received and preserved for 2018/2019 Chalet Operations

40,000

Apex Postie Bike Ride Donations received and preserved for future Capital Works

136,439

Carthew Family Trust preserved Donation for 2016/2017 Chalet Operations taken to Revenue

40,000

Carthew Family preserved Donation for Shack Capital Programs taken to Revenue

21,207

Totals 176,439 61,207

DIRECTORS’ REPORT



Directors’ Report

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Information on Directors

Stephen Linneo Bigarelli Chairman Qualifications CPA Experience Apexian for 16 years (retired) National Treasurer of Association of Apex Clubs of Australia (2002) Board Member since 2004 Special Responsibilities Member of the Executive Committee

Ex Officio member of all other committees Philip Andrew Pregnell Deputy Chairman Qualifications Dip Eng (Electronics), Dip FS (Super), Grad Cert Management, JP Experience Retired Life Member of Apex after 27 years’ service National President of Association of Apex Clubs of Australia 2007 Board Member 2006, 2007, 2009, 2010 to 2017 Special Responsibilities Director for Investments Member of the Executive Committee Member of the Board Audit Risk Committee (BARC) Peter Michael Fitze Company Secretary (throughout the year and as at the date of this report) Qualifications BA (Social Science), RN, JP Experience Apexian for 11 years (retired), Honorary Life Member of Apex Foundation Board member since 1988 Special Responsibilities Director for the Underprivileged Childrens Trust’s Copper Coast Account Director for the Apex Necessitous Circumstances Trust Director for Administration and Staffing Member of the Executive Committee Member of the Board Audit Risk Committee (BARC) Member of the Corporate Governance Committee Brian William Powe Director of Finance (Treasurer) Qualifications FCPA (Retired) Experience Apexian 14 years (Retired)

Board Member since 2010 Special Responsibilities Member of the Executive Committee

Director for the Underprivileged Childrens Trust’s Shack Account Director for the Apex Foundation Charitable Trust’s Autism Account, to

November 21st 2016 Chairman of Board Audit Risk Committee (BARC) Member of Governance Committee Member of the Marketing and Membership Committee Anthony John Wilshire Director Qualifications Retired Banker of 43 years Experience Life Member of Apex 1993 Honorary Life Member of Apex Foundation Board member since 1998 Special Responsibilities Member of the Executive Committee

Director for the Queensland Civilian Widows Trust Director for the NSW/ACT Civilian Widows Trust Director for the Western Australian Civilian Widows Trust Director for the Cowled Foundation Trust Director for the Fine Arts Trust

DIRECTORS’ REPORT



Directors’ Report

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Phillip Thornton Taylor External Director Qualifications BA LLB Experience Lawyer and adviser to Apex Foundation for over eleven years Special Responsibilities Director for the Apex Foundation Charitable Trust’s Children’s Cancer and

Leukaemia Account (from April 1st 2015) Director for the Apex Foundation Charitable Trust’s Diabetes Mellitus Account

(from April 1st 2015) Advisor to the Board on Legal and Compliance matters Member of Board Audit Risk Committee (BARC) Chairman of Governance Committee

Jamie Darren Vincent Director Qualifications Certificate III in Disabilities Experience Apex National Membership Director Apexian for 27 years Special Responsibilities Director for the Underprivileged Children’s Trust’s Chalet account Member of the Marketing and Membership Committee

Director for the Apex Foundation Charitable Trust’s Autism Account, from November 21st 2016

Lindsay Murray Carthew Director Qualifications BEc, MBA, FSIA, Snr Associate of ABA Experience Apexian Unley Apex Club 1983 to 1994 (President 1987-1988) District Governor Adelaide 1990-1991 Apex Foundation Board Member 1991-1992 (Chairman 1993-1994) Special Responsibilities Director for the Apex Foundation Charitable Trust’s Cranio-Facial Account Director for the Apex Foundation Charitable Trust’s Melanoma Account Member of the Board Audit Risk Committee (BARC) Member of the Marketing and Membership Committee James Eyre McNall Association Director (Appointed July 26th 2015, Resigned July 22nd 2016) Qualifications Diploma in Frontline Management Experience Apex Queensland State President 2012/2013 Apex Australia National Board Member 2012 to 2015 Apex Australia National President 2015/2016 Special Responsibilities Apex Association Director (From July 26th 2015 to July 22nd 2016) Mathew James O’Donnell Association Director (Appointed July 22nd 2016, Resigned July 14th 2017) Qualifications Diploma in Occupational Health & Safety Diploma of Business & Management Experience Apex Member for 9 years

Apex Australia National President 2016 / 2017 Apex Australia National Treasurer 2015 / 2016 Underprivileged Childrens Trust Chalet Committee Member 2014 / Current Apex Australia National Board Director 2014 / 2015 Apex Australia Regional Communicator 2013 / 2015 Hoppers Crossing Apex Club President 2013 / 2014

Special Responsibilities Apex Association Director (from July 22nd 2016)

DIRECTORS’ REPORT



Directors’ Report

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Robert George Abraham Apex Association Director (Appointed July 14th 2017) Qualifications Associate Diploma Agricultural Science (Agricultural Production) Registered Certified Motor Dealer and Auctioneer Experience Apex Australia National President 2017-2018 Apex Australia National Board Regional Communicator Director 2015-2017 Apex Australia Regional Communicator 2014-2015 Apex Chinchilla Club President 2011-2012 Apex Member for 14 years Special Responsibilities Apex Association Director (from July 14th 2017)

Meetings of Directors

During the year, three face to face meetings of the Directors were held. These were in Sydney on July 22nd/23rd 2016, in Sydney on November 18th/19th 2016, and in Blacktown on April 7th/8th 2017. Attendances were:

Director Eligible to Attend

Attended

Stephen Linneo Bigarelli 3 2

Philip Andrew Pregnell 3 2

Peter Michael Fitze 3 2

Brian William Powe 3 3

Anthony John Wilshire 3 2

Phillip Thornton Taylor 3 3

Jamie Darren Vincent 3 3

Lindsay Murray Carthew 3 3

James Eyre McNall 1 1

Mathew James O’Donnell 3 2

Robert George Abraham - -

Committees

The Foundation has six committees as listed below. Unless noted otherwise, these committees rarely meet on a face-to-face basis, but the members are in constant communication with each other via various methods. The committees and their members, excluding the Foundation’s Chairman Stephen Bigarelli where he is an ex-officio member of all committees, are:

Executive Committee Members of this committee are, or have been, Stephen Bigarelli, Philip Pregnell, Michael Fitze, Brian Powe, and Anthony Wilshire

Board Audit Risk Committee (BARC). Members of this committee are, or have been, Phillip Pregnell, Michael Fitze, Brian Powe, Phillip Taylor, and Lindsay Carthew.

Governance Committee. Members of this committee are Michael Fitze, Brian Powe, and Phillip Taylor.

Chalet Committee

This committee consists of two directors, being Jamie Vincent and Michael Fitze, along with community volunteers. This committee meets quarterly.

DIRECTORS’ REPORT



Directors’ Report ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Shack Committee

This committee consists of one director, being Brian Powe, two staff members, and community volunteers.

Marketing and Membership Committee This committee consists of three directors, being Lindsay Carthew, Jamie Vincent and Brian Powe, and a volunteer.

Membership of the Company

The Foundation is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the Foundation is wound up, its Memorandum of Association states that each member is required to contribute a maximum of $50 towards meeting any outstanding obligations of the Foundation. At June 30th 2017, the total amount that members of the company are liable to contribute if the company is wound up is $12,150, there being 243 members (2016 $11,400 with 228 members).

Auditor’s Independence Declaration

The auditor’s independence declaration for the year ended June 30th 2017 has been received and can be found on page 9 of the financial report.

This director’s report is signed in accordance with a resolution of the Board of Directors:

DIRECTOR _________________________________________________

DIRECTOR _________________________________________________

DATED this Tenth day of October 2017

DIRECTORS’ REPORT



Directors’ Declaration

The Directors of the Company declare that: 1. The financial statements and notes, as set out on pages 10 through 26 are in accordance with the Corporations Act 2001

and the Australian Charities and Not-For-Profit Commission Act 2012, and:

a) Comply with Australian Accounting Standards – Reduced Disclosure Requirements, and the Australian Charities and Not-For-Profit Commission Regulations 2013, and:

b) Give a true and fair view of the financial position at June 30th 2017 and of the performance for the year ended on

that date of the company.

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

DIRECTOR ___________________________________________________________

DIRECTOR ____________________________________________________________ DATED this Tenth day of October 2017

DIRECTORS’ DECLARATION


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED JUNE 30TH 2017

Apex FoundationABN 58 001 347 897

Statement of Profit or Loss and Other Comprehensive IncomeFor the year ended June 30th 2017

2017 2016$ $

Income Received by the Foundation on Behalf of

The Trusts for which it is Sole Trustee

- Income from Managed Investments distributed to all trusts

- Dividends 319,198 294,212 - Interest 10,977 13,110 - Imputation Credits 52,352 57,222

382,527 364,544 - Donations distributed to specific trusts

- Apex Foundation Charitable Trust 6,545 3,802 - Apex Underprivileged Childrens Trust 93,440 111,303 - Apex Necessitous Circumstances Trust 3,325 3,425 - Apex Fine Arts Scholarship Trust 50 180

103,360 118,710 - Other Income distributed to specific trusts

- Apex Underprivileged Childrens Trust, Facility Hiring Fees 42,003 39,713

Total Income 527,890 522,967 Amount distributed to trusts (527,890) (522,967)

Income after Distribution to Trusts - -

Expenses incurred by the Foundation on Behalf of

The Trusts for which it is Sole Trustee:

- Expenses Distributed to all trusts

- Staffing Costs (112,560) (114,787) - Auditors, Remuneration (13,000) (13,000) - Auditors, Other Financial Services (3,185) - - Office Running Expenses (13,091) (17,803) - Board Meeting Expenses (16,131) (18,985) - Insurances (19,878) (20,080) - Board Programs (18,289) (17,135) - Depreciation - (333) - Bank Charges & Other Sundry Expenses (1,679) (1,295) - Add back Membership Fees 7,227 10,581

(190,586) (192,837)

- Expenses Allocated to specific trusts

- To Apex Charitable Trust, Board Expenses (456) - - To Civilian Widows Trust of Western Australia, Board Expenses - (1,777) - To Apex Underprivileged Childrens Trust - Staffing Costs (27,727) (27,121) - Depreciation (44,535) (58,058) - Asset Adjustments (5) (219,060) - Operating Expenses (80,085) (74,525)

(152,808) (380,541)

Total Expenses (343,394) (573,378) Amount Reimbursed by Trusts 343,394 573,378

Expenses after Reimbursement by Trusts - -

Continued on page 11The accompanying notes form part of these financial statements



2017 2016$ $

Income Received by the Foundation on Behalf of

The Trusts for which it is Sole Trustee

- Income from Managed Investments distributed to all trusts

- Dividends 319,198 294,212 - Interest 10,977 13,110 - Imputation Credits 52,352 57,222

382,527 364,544 - Donations distributed to specific trusts

- Apex Foundation Charitable Trust 6,545 3,802 - Apex Underprivileged Childrens Trust 93,440 111,303 - Apex Necessitous Circumstances Trust 3,325 3,425 - Apex Fine Arts Scholarship Trust 50 180

103,360 118,710 - Other Income distributed to specific trusts

- Apex Underprivileged Childrens Trust, Facility Hiring Fees 42,003 39,713

Total Income 527,890 522,967 Amount distributed to trusts (527,890) (522,967)

Income after Distribution to Trusts - -

Expenses incurred by the Foundation on Behalf of

The Trusts for which it is Sole Trustee:

- Expenses Distributed to all trusts

- Staffing Costs (112,560) (114,787) - Auditors, Remuneration (13,000) (13,000) - Auditors, Other Financial Services (3,185) - - Office Running Expenses (13,091) (17,803) - Board Meeting Expenses (16,131) (18,985) - Insurances (19,878) (20,080) - Board Programs (18,289) (17,135) - Depreciation - (333) - Bank Charges & Other Sundry Expenses (1,679) (1,295) - Add back Membership Fees 7,227 10,581

(190,586) (192,837)

- Expenses Allocated to specific trusts

- To Apex Charitable Trust, Board Expenses (456) - - To Civilian Widows Trust of Western Australia, Board Expenses - (1,777) - To Apex Underprivileged Childrens Trust - Staffing Costs (27,727) (27,121) - Depreciation (44,535) (58,058) - Asset Adjustments (5) (219,060) - Operating Expenses (80,085) (74,525)

(152,808) (380,541)

Total Expenses (343,394) (573,378) Amount Reimbursed by Trusts 343,394 573,378

Expenses after Reimbursement by Trusts - -

Continued on page 11The accompanying notes form part of these financial statements




2017 2016$ $

Continued from page 10

Other Comprehensive Income of the Foundation

on behalf of the Trusts for which it is sole Trustee

- Net Gain (or loss) on revaluation of Non Current Financial Assets held by the Foundation on behalf of the trusts for which it is sole trustee (233,505) 26,817

- Net Gain or (Loss) on disposal of Non Current Financial Assets held by the Foundation on behalf of the trusts for which it is sole trustee 331,965 (85,343)

Total Other Comprehensive Income 98,460 (58,526)

Amount reimbursed by Trusts - 58,526 Amount Distributed to Trusts (98,460) -

Other Comprehensive Income after distribution to (or Reimbursed by) Trusts - -

The net amount distributed to or (reimbursed by) trusts of which the Foundation is sole trustee 282,956 (108,937)

The accompanying notes form part of these financial statements

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED JUNE 30TH 2017



Statement of Financial Position as at June 30th 2017

2017 2016$ $

Assets Note

Current Assets controlled by the Foundation - Cash & Cash Equivalents 2(a) 482,459 694,002 - Trade & Other Receivables 2(b) 390,129 58,683 - Other Current Assets 2(c) 55,012 33,751

Total Current Assets controlled by the Foundation 927,600 786,436 Less Current Assets the ownership of which is vested in trusts for which the Foundation is sole trustee (871,430) (737,390) Total Current Assets in which the Foundation has a right of indemnity 56,170 49,046

Non Current Assets controlled by the Foundation - Financial Assets 2(d) 7,277,534 7,145,887 - Property, Plant & Equipment 2(e) 1,851,547 1,303,177

Total Non Current Assets controlled by the Foundation 9,129,081 8,449,064 Less Non Current Assets the ownership of which is vested in trusts for which the Foundation is sole trustee (9,129,081) (8,449,064)

Total Non Current Assets in which the Foundation has a right of indemnity - -

Total Assets in which the company has a right of indemnity 56,170 49,046

Liabilities

Current Liabilities incurred by the Foundation - Trade & Other Payables 2(g) 36,030 29,954 - Provisions 2(h) 5,935 5,742

Total Current Liabilities incurred by the Foundation 41,965 35,696 Less Current Liabilites of trusts the responsibility of which is vested in trusts for which the Foundation is sole trustee - - Total Current Liabilities 41,965 35,696

Non Current Liabilities incurred by the Foundation - Trade & Other Payables 2(i) 11,100 13,350 - Provisions 2(j) 3,105 -

Total Current Liabilities incurred by the Foundation 14,205 13,350 Less Current Liabilites of trusts the responsibility of which is vested in trusts for which the Foundation is sole trustee - - Total Current Liabilities 14,205 13,350

Total Liabilities 56,170 49,046

Net Assets - - Equity

- Equity controlled by the Foundation on behalf of the Trusts for which it is sole Trustee 10,000,511 9,186,454 Less Equity owned by those Trusts (10,000,511) (9,186,454) Total Equity - -


STATEMENT OF FINANCIAL POSITION AS AT JUNE 30TH 2017



Statement of Cash Flows for the Year Ended June 30th 2017

2017 2016$ $

The following cash flows resulted from operations by the Foundation on behalf of the trusts for which it is sole trustee

Cash flows from operating activities

- Dividends Received 318,120 388,825 - Imputation Credits Received 57,385 65,823 - Interest Received 11,665 13,110 - Other Receipts 72,635 81,269 - Payments to suppliers and employees (341,220) (361,148) - Grants made (178,078) (192,749)

Net cash generated from (used in) operating activities (59,493) (4,870) Cash flows from investing activities

- Proceeds from sale of available-for-sale investments 4,426,595 1,351,992 - Payment for available-for-sale investments (4,724,482) (1,224,033) - Fixed asset purchases (19,179) (46,802)

Net cash generated from (used in) investing activities (317,066) 81,157 Cash flows from financing activities

- Trust fund deposits 165,016 169,295 - Trust Fund withdrawals and closures - (66,370)

Net cash generated from financing activities 165,016 102,925

Net increase/(decrease) in cash held by the Foundation onbehalf of the trusts for which the Foundation is sole trustee (211,543) 179,212

Cash and Cash equivalents held by the Foundation on behalf of trusts for which the Foundation is sole trustee - Opening Balance 694,002 514,790 - Net increase (decrease) as above (211,543) 179,212 - Closing Balance 482,459 694,002 Less cash owned by trusts for which the Foundation is sole trustee (482,459) (694,002)

Cash held by the Foundation in its own right - -


STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30TH 2017


Apex Foundation ABN 58 001 347 897

Statement of Changes in Equity for the Year ended June 30th 2017

Opening Income from Donations Direct Other Direct Trust Grants Trust Trust Capital Asset ClosingBalance Managed taken to Trust Comprehensive Trust Management Made Deposits Withdrawals Expenditure Revaluation Balance

of Investments Income Income Income/(Expense) Expenses Charge from External to External ofTrusts Sources Sources Trusts

$ $ $ $ $ $ $ $ $ $ $ $ $July 2016 2016/2017 2016/2017 2016/2017 2016/2017 2016/2017 2016/2017 2016/2017 2016/2017 2016/2017 2016/2017 2016/2017 June 2017

Apex Foundation Charitable Trust 1,530,265 71,569 6,545 - 18,203 (456) (34,649) (67,000) - - - - 1,524,477 The Trustee for Apex Underprivileged Childrens Trust 2,109,858 48,044 93,440 42,003 13,127 (152,352) (59,771) - 176,439 (61,207) - 593,947 2,803,528 The Trustee for Apex Neccessitous Circumstances Trust 381,540 18,303 3,325 - 4,602 - (8,853) (2,000) - - - - 396,917 Apex Foundation Association of Civilian Widows - NSW 387,343 18,064 - - 4,441 - (8,725) (18,496) - - - - 382,627 Civilian Widows of Queensland Foundation 892,588 41,903 - - 10,585 - (20,275) (25,712) - - - - 899,089 Association of Civilian Widows Trust of Western Australia 1,452,965 69,091 - - 17,670 - (33,487) (12,570) - - - - 1,493,669 Apex Fine Arts Scholarship Trust 24,801 1,151 50 - 356 - (559) (2,500) - - - - 23,299 Cowled Foundation Trust 962,716 45,437 - - 11,992 - 5,884 (49,800) - - - - 976,229

Total ACNC Registered Charitable Trusts 7,742,076 313,562 103,360 42,003 80,976 (152,808) (160,435) (178,078) 176,439 (61,207) - 593,947 8,499,835

Apex Charitable Reserve 196,090 9,355 - - 2,372 - (4,534) - - - - - 203,283 Apex Overseas Relief Reserve 42,905 2,047 - - 519 - (992) - - - - - 44,479 Apex General Reserve 93,543 4,462 - - 1,131 - (2,163) - - - - - 96,973 Apex Mascot Reserve 840,401 40,088 - - 10,168 - (19,431) - - - - - 871,226 Apex Western Australia Reserve 69,666 3,323 - - 843 - (1,611) - - - - - 72,221 Apex Hoppers Crossing Reserve 61,409 2,929 - - 743 - (1,420) - - - - - 63,661 Apex Northern Clubs Reserve 110,726 5,189 - - 1,348 - - - - - - - 117,263 Apex Southern Clubs Reserve 29,638 1,572 - - 360 - - - - - - - 31,570

Total Apex Reserve and Clubs Trusts 1,444,378 68,965 - - 17,484 - (30,151) - - - - - 1,500,676

Total Equity in Trusts 9,186,454 382,527 103,360 42,003 98,460 (152,808) (190,586) (178,078) 176,439 (61,207) - 593,947 10,000,511

Less Equity owned by Trusts (9,186,454) (382,527) (103,360) (42,003) (98,460) 152,808 190,586 178,078 (176,439) 61,207 - (593,947) (10,000,511)

Apex Foundation Equity - - - - - - - - - - - - -

The accompanying notes form part of these financial statementsThis statement covers the current 2016/2017 Financial Year. A comparative shedule for the (last) 2015/2016 Financial Year is on the following page.

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED JUNE 30TH 2017


Apex Foundation ABN 58 001 347 897

Statement of Changes in Equity for the Year ended June 30th 2016

Opening Income from Donations Direct Other Direct Trust Grants Trust Trust Capital Asset ClosingBalance Managed taken to Trust Comprehensive Trust Management Made Deposits Withdrawals Expenditure Revaluation Balance

of Investments Income Income Income/(Expense) Expenses Charge from External to External ofTrusts Sources Sources Trusts

$ $ $ $ $ $ $ $ $ $ $ $ $July 2015 2015/2016 2015/2016 2015/2016 2015/2016 2015/2016 2015/2016 2015/2016 2015/2016 2015/2016 2015/2016 2015/2016 June 2016

Apex Foundation Charitable Trust 1,570,158 69,025 3,802 - (10,113) - (32,607) (70,000) - - - - 1,530,265 The Trustee for Apex Underprivileged Childrens Trust 2,284,203 39,035 111,303 39,713 (6,336) (378,726) (46,865) - 114,336 - (46,805) - 2,109,858 The Trustee for Apex Neccessitous Circumstances Trust 371,502 17,262 3,427 - (2,813) - (7,838) - - - - - 381,540 Apex Foundation Association of Civilian Widows - NSW 380,626 17,587 - - (2,856) - (8,014) - - - - - 387,343 Civilian Widows of Queensland Foundation 932,272 44,500 - - (8,858) (962) (18,868) (55,496) - - - - 892,588 Association of Civilian Widows Trust of Western Australia 1,440,662 66,381 - - (10,866) (816) (30,198) (12,198) - - - - 1,452,965 Apex Fine Arts Scholarship Trust 29,040 1,567 180 - (423) - (563) (5,000) - - - - 24,801 Cowled Foundation Trust 995,382 45,376 - - (7,176) - (20,811) (50,055) - - - - 962,716

Total ACNC Registered Charitable Trusts 8,003,845 300,733 118,712 39,713 (49,441) (380,504) (165,764) (192,749) 114,336 - (46,805) - 7,742,076

Apex Charitable Reserve 192,690 8,904 - - (1,446) - (4,058) - - - - - 196,090 Apex Overseas Relief Reserve 42,161 1,946 - - (315) - (887) - - - - - 42,905 Apex General Reserve 91,921 4,246 - - (689) - (1,935) - - - - - 93,543 Apex Mascot Reserve 825,828 38,154 - - (6,194) - (17,387) - - - - - 840,401 Apex Western Australia Reserve 73,292 3,623 - - (712) - (1,537) - - (5,000) - - 69,666 Apex Hoppers Crossing Reserve 60,341 2,793 - - (456) - (1,269) - - - - - 61,409 Apex Northern Clubs Reserve 154,203 3,623 - - 484 - - - - (47,584) - - 110,726 Apex Southern Clubs Reserve 27,655 522 - - 243 - - - 15,000 (13,782) - - 29,638

Total Apex Reserve and Clubs Trusts 1,468,091 63,811 - - (9,085) - (27,073) - 15,000 (66,366) - - 1,444,378

Total Equity in Trusts 9,471,936 364,544 118,712 39,713 (58,526) (380,504) (192,837) (192,749) 129,336 (66,366) (46,805) - 9,186,454

Less Equity owned by Trusts (9,471,936) (364,544) (118,712) (39,713) 58,526 380,504 192,837 192,749 (129,336) 66,366 46,805 - (9,186,454)

Apex Foundation Equity - - - - - - - - - - - - -

The accompanying notes form part of these financial statementsThis statement covers the (last) 2015/2016 Financial Year. The statement for the current 2016/2017 Financial Year is on the previous page.

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED JUNE 30TH 2016



Note 1: Significant Accounting Policies

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A. Introduction & Overview

I. Apex Foundation and the trusts for which it is sole trustee

Apex Foundation (hereafter called “The Foundation”):

a. Acts as sole trustee for sixteen (16) legally separate trusts. b. Trades on behalf of these trusts, and distributes its net surpluses to these trusts, or recovers its

net deficits from these trusts. c. Maintains all assets and liabilities on behalf of these trusts. d. Holds a member’s guarantee regarding contributions upon wind-up, and also holds a right of

indemnity for any liabilities that it may incur on behalf of the trusts for which it acts as sole trustee.

These financial statements are a consolidation of the Foundation’s activities on behalf of the sixteen (16) trusts. The Foundation is incorporated under the Corporations Act 2001 as a company limited by guarantee.

II. Compliance – Australian Charities & Not-For-Profits Commission

Eight (8) of the sixteen (16) trusts are registered with, and reportable to, the Australian Charities and Not-For-Profits Commission as charitable trusts under the Australian Charities and Not-For-Profits Commission Act 2012. These trusts, with their registered names and Australian Business Numbers are:

a. Apex Foundation Charitable Trust (ABN25055756519) b. The Trustee for Apex Underprivileged Childrens Trust (ABN 31014983452) c. The Trustee for Apex Necessitous Circumstances Trust (ABN 12974150769) d. Apex Foundation Association of Civilian Widows - New South Wales (ABN 61301930876) e. Civilian Widows of Queensland Foundation (ABN 67109739633) f. Association of Civilian Widows Trust of Western Australia (ABN 35800618346) g. Cowled Foundation Trust (ABN 73967006390) h. Apex Fine Arts Scholarship Trust (ABN 24676726821)

III. Compliance – Public and Private Ancillary Trusts

The Apex Foundation Charitable Trust (a) is a Public Ancillary Trust, and the Cowled Foundation Trust (g) is a Private Ancillary Trust. They are registered with, and are reportable to, the Australian Taxation Office.

B. Basis of Preparation

The financial statements are prepared on the basis of illustrating the values of the elements that the Foundation controls in its role as sole trustee, less the value of those elements whose ownership is vested in the trusts administered. The effect of this is the Foundation, in its own right, has no net surplus or deficit or net assets.

The Foundation applies Australian Accounting Standards – Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards.

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES



Note 1: Significant Accounting Policies ----------------------------------------------------------------------------------------------------------------------------------------------

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB), the Corporations Act 2001, and the Australian Charities and Not-For-Profits Commission Act 2012. The Foundation is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise.

The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar.

The financial statements were authorised for issue on the tenth day of October 2017 by the directors of the Foundation.

C. Income

I. Income from Managed Investments

Income from managed investments is received by the Foundation on behalf of the trusts for which it is sole trustee. It is recognised in the Statement of Profit and Loss and Comprehensive Income in accordance with the following parameters:

a. Dividend revenues are recognised when they are declared.b. Related imputation credits are recognised when the dividend to which they are

related, are declared.c. Interest revenue is recognised when received.

II. Gifts in Kind

Gifts of non-capitalised goods and services are not recognised in the Statement of Profit and Loss and Comprehensive Income. This is a change in accounting procedure, and the prior year’s comparative figures have been adjusted accordingly.

It is noted that AON Insurance have again donated office space for Apex Foundation’s office on Level 5, AON Tower, 201 Kent Street, Sydney NSW 2000. This is valued at $49,350 per annum.

Maintenance and improvement projects at the Underprivileged Childrens Trusts’ three facilities that have been carried out in the financial year have not been recognised in the financial statements. The Foundation here notes the continuing tireless efforts of many Apexians and Apex Clubs.

III. Donations

When each donation is received, the trust, the purpose, and the timing of use of each donation is usually specified by the donor. If not, the Foundation makes the determination, with the Foundation’s Directors resolving that the default is the Apex Foundation Charitable Trust.

Donations are defined as either being “Non-Preserved” or “Preserved”. Non-preserved donations are taken to income in the period in which they are received. Preserved donations are put directly to the appropriate trust account. When either the specified timing of, or the specified expenditure of, each such defined donation occurs, the donation is then taken to income.





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IV. Membership Fees

Membership fees are no longer recognised in the Statement of Profit and Loss as income, but as a reduction in Board Program expense in the period in which they are received. The expenses that the Foundation recovers from all trusts is consequently reduced. This is a change in accounting procedure, and the prior year’s comparative figures have been reclassified accordingly. The amounts are $10,581 for 2015/2016 and $7,227 for 2016/2017.

V. Other Income

These are the Foundation’s receipts on behalf of the Apex Underprivileged Childrens Trust for the hiring of its facilities at Shoalhaven Heads NSW (the Shack), Smiggin Holes NSW (the Chalet), and at Wallaroo SA (the Copper Coast), and are taken to income in the period of the occupancy. The Chalet’s facilities are quite often booked for the same times years in advance. Hiring-fee receipts for accommodation in the 2017/2018 year are held under current liabilities on the Foundation’s Statement of Financial Position, and brought to revenue as the occupancy occurs. Hiring-fee receipts for accommodation in the subsequent years are held under non-current liabilities on the Foundation’s Statement of Financial Position, to be brought to revenue as the occupancy occurs in those years. Bond deposits are required to cover any damage to the premises caused by the hirer. These receipts are held in the Foundation’s Statement of Financial Position as a provision under non-current liabilities. These deposits are returned to the hirer when that hirer has ceased use of the facilities. The Apex Underprivileged Childrens Trust’s facility at South Australia’s “Copper Coast” primarily caters for underprivileged children and their parents and carers. Any revenue associated with this usage of the retreats is taken by The Cancer Council of South Australia, through whom the accommodation reservations are made. When the facility is not occupied by persons as defined above, the facility is available for normal tourist park rental. Consequent receipts are taken to income in the period of receipt, as it is presumed to also be the period of occupancy.

D. Expenses Initially, all expenses are paid by the Foundation on behalf of the trusts for which it is sole trustee. These expenses are recognised in the Statement of Profit and Loss and Comprehensive Income in two groups:

a. Expenditure that is not specific to the operations of a specific trust or trusts, but is applicable to all trusts, is defined as being “distributed” to all trusts. This distribution is on a pro-rata based on the ratio that each trust’s equity (excluding the written down value of property, improvements and equipment) bears to the total of the equity of all trusts (excluding the written down value of property, improvements, and equipment).

b. Expenditure that is specific to a particular trust or trusts, is defined as being “allocated”

to that trust or trusts.





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E. Property, Improvements, & Equipment

I. General

The Foundation carries each class of property, plant and equipment at cost or fair value as indicated, less, where applicable, accumulated depreciation and any impairment losses. In periods where the freehold land and buildings are not subject to an independent valuation, director’s valuations are conducted to ensure the carrying amount for the land and buildings is not materially different to the fair value.

II. Freehold Property – The Shack at Shoalhaven Heads NSW

On behalf of the Apex Underprivileged Childrens Trust, the Foundation carries freehold land and buildings of the Shack at Shoalhaven Heads. These land and buildings are shown at their fair value based on periodic valuations by external independent valuers, less subsequent accumulated depreciation for buildings. The Foundation’s directors commissioned a valuation by an independent licensed valuer in September 2016. This resulted in a valuation of $1.600,000. An entry to revalue the Shack property was accordingly put through in September 2016. The net of adjustments to property cost and property accumulated depreciation was $592,905.

III. Leasehold Property – The Chalet at Smiggin Holes NSW On behalf of the Apex Underprivileged Childrens Trust, the Foundation‘s Chalet facility at Smiggin Holes was held under a lease from the NSW government through their Office of Environment and Heritage. The renewal of this lease has been the subject of protracted negotiations. In February 29th2016, in cognizance of the fact that the Apex Underprivileged Childrens trust does not hold a formal lease for the Chalet, the Directors confirmed the carrying of the Chalet in the Foundation’s statement of financial position at a written down value of one dollar.

IV. Leasehold Property – The Copper Coast Retreats in Wallaroo SA

The Apex Underprivileged Childrens Trust’s Copper Coast Retreat facility consists of three retreats in the North Beach Tourist Park in Wallaroo South Australia. This tourist park is owned by, and managed under the auspices of, the District Council of the Copper Coast in Kadina South Australia. Each of the three retreats is leased from the Council for five years to June 30th 2018, with an option to renew for a further five years. The facility is carried in the Foundation’s statement of financial position at the purchase or construction cost less accumulated depreciation.

V. Improvements to Properties

The treatment of improvements to the properties of the Apex Underprivileged Childrens Trust in the Foundation’s accounts are considered on a case-by-case basis. This is due to:

a) The normal contribution of free labour by Apex Clubs and Apexians to the improvement project. (See section C (ii): Income: Gifts in Kind).

b) The question as to whether the improvement project increases the value of the property, or whether the project is deemed to be maintenance.

c) The Chalet being held in the Foundation’s statement of financial position at the written down value of one dollar.




Note 1: Significant Accounting Policies ---------------------------------------------------------------------------------------------------------------------------------------------- Where it is resolved to carry an improvement in the Foundation’s statement of financial position, it is measured on the cost basis less accumulated depreciation and any accumulated impairment losses.

Where it is resolved to not carry the improvement in the Foundations’ statement of financial position, any costs associated with the improvement are expensed in the Foundation’s statement of profit and loss.

In the event that the carrying amount of improvements to properties is greater than its estimated recoverable amount, the carrying amount is written down immediately to that estimated recoverable amount, and impairment losses are recognised either in profit or loss as depreciation or as an asset adjustment or as a devaluation if the impairment losses relate to a revalued asset. A formal assessment of recoverable amounts is made when impairment indicators are present.

VI. Plant and Equipment

Plant and equipment items are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. Plant and equipment items that have been contributed at no cost, or for nominal cost, are valued and recognised at the fair value of the asset at the date it is acquired (see section C: Income: Gifts in Kind).

In the event that the carrying amount of plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses are recognised either in profit or loss as depreciation or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amounts is made when impairment indicators are present.

VII. Depreciation

The depreciable amount of all fixed assets, including buildings and capitalised lease assets but excluding freehold land is depreciated on a straight-line basis over the asset’s useful life to the entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

In the case of the Apex Underprivileged Childrens Trust’s Chalet facility, where no formal lease exists, in the previous financial year all property, improvements and equipment were was down to the value of one dollar per class. In the case of its Shack facility, improvements have been similarly written down to the value of one dollar per class.

The depreciation rates used for each class of depreciable asset are:

Class of Fixed Asset Est Life (Years) Depreciation Rate Buildings (Shack) 40 2.50% Buildings (Copper Coast) 32 3.125% Improvements (Copper Coast) 10 10.0% Equipment (Shack) 5 to 10 10.00% to 20.00% Equipment (Copper Coast) 3 33.33%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are recognised in profit or loss in the period in which they arise. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained earnings.




Note 1: Significant Accounting Policies ----------------------------------------------------------------------------------------------------------------------------------------------

VIII. Impairment of Properties, Improvements, or Equipment

At the end of each reporting period, the Foundation assesses whether there is any indication that an asset may be impaired. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another standard. Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other standard. Where it is not possible to estimate the recoverable amount of an individual asset, the entity estimates the recoverable amount of the cash-generating unit to which the asset belongs.

F. Investments and Other Financial Assets

Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. They are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on the purpose of the acquisition and subsequent reclassification to other categories is restricted.

Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Foundation has transferred substantially all the risks and rewards of ownership.

I. Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are carried at amortised cost using the effective interest rate method. Gains and losses are recognised in profit or loss when the asset is derecognised or impaired.

II. Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are either: (i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit; or (ii) designated as such upon initial recognition, where they are managed on a fair value basis or to eliminate or significantly reduce an accounting mismatch. Fair value movements are recognised in profit or loss.

The fair value of unlisted Australian unit trusts is the redemption price of those securities at the reporting date.

III. Impairment of financial assets

The Foundation assesses at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes significant financial difficulty of the issuer or obligor; a breach of contract such as default or delinquency in payments; the lender granting to a borrower concessions due to economic or legal reasons that the lender would not otherwise do; it becomes probable that the borrower will enter bankruptcy or other financial reorganisation; the disappearance of an active market for the financial asset; or observable data indicating that there is a measurable decrease in estimated future cash flows.

The amount of the impairment allowance for loans and receivables carried at amortised cost is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate.





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If there is a reversal of impairment, the reversal cannot exceed the amortised cost that would have been recognised had the impairment not been made and is reversed to profit or loss.

The amount of the impairment allowance for financial assets carried at cost is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the current market rate of return for similar financial assets.

G. Employee Benefits

I. Short-term Employee Benefits

Provision is made for the Foundation’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service, including wages, salaries and the attached Superannuation Guarantee Levy. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled. The Foundation’s obligations for short-term employee benefits such as wages, salaries, the attached Superannuation Guarantee Levy, and annual leave are recognised as a part of Provisions within Current Liabilities incurred by the Foundation in the statement of financial position.

II. Long-term Employee Benefits

The Foundation classifies employees’ long service leave and annual leave entitlements as other long-term employee benefits where they are not expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. Provision is made for the Foundation’s obligation for other long-term employee benefits, which are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures, and are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Upon the re-measurement of obligations for other long-term employee benefits, the net change in the obligation is recognised in profit or loss classified under staffing costs expense. The Foundation’s obligations for long-term employee benefits are presented as non-current liabilities in its statement of financial position, except where the Foundation does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the obligations are presented as current liabilities.

III. Retirement benefit obligations

Defined contribution superannuation benefits

All employees and deemed employees of the Foundation receive defined contribution superannuation entitlements, for which the Foundation pays the fixed superannuation guarantee contribution (currently 9.5% of the employee’s average ordinary salary) to the employee’s superannuation fund of choice.





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All contributions in respect of employees’ defined contribution entitlements are recognised as an expense when they become payable. The Foundation’s obligation with respect to employees’ defined contribution entitlements is limited to its obligation for any unpaid superannuation guarantee contributions at the end of the reporting period. All obligations for unpaid superannuation guarantee contributions are measured at the (undiscounted) amounts expected to be paid when the obligation is settled and are presented as current liabilities in the Foundation’s statement of financial position.

The Superannuation Guarantee Levy expense in the 2016/2017 year was $11,752 and in the 2015/2016 year was $11,960.

H. Cash & Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the Foundation’s statement of financial position.

I. Goods & Services Tax

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the Foundation’s statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.

J. Income Tax

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

K. Provisions

Provisions are recognised when the Foundation has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognise and represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.

L. Comparative Figures

Comparative figures have been reclassified to conform to changes in presentation for the current financial year.

M. Trade & Other Payables

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





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N. Critical Accounting Estimates & Judgements

I. Introduction

The Foundation’s directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Foundation.

II. Key Estimates

The freehold land and buildings (known as The Shack) were independently valued in September 2016 by Walsh and Monaghan. The valuation was based on the fair value less costs of disposal. The critical assumptions adopted in determining the valuation included the location of the land and buildings, the demand for land and buildings in the area and sales data for similar properties.

O. Fair Value Measurement

When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement.

For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data.

(End of Note 1)



NOTE 2: TO THE ACCOUNTS


Note 2 To the Accounts

This note supports the Statement of Financial Position 2017 2016$ $

(a) Cash and Cash Equivalents - Operational Cash with Westpac 67,321 86,617 - Interest Bearing Cash with Macquarie Bank 415,138 607,385

Total Cash and Cash Equivalents 482,459 694,002 (b) Trade and Other Receivables - Imputation Credits Receivable 52,352 57,222 - GST Refunds Receivable 5,157 1,461 - Unsettled Transactions due from investment manager 332,620 -

Total Trade and Other Receivables 390,129 58,683 (c) Other Current Assets - Prepayments 7,820 8,560 - Dividend Income Receivable 35,235 24,646 - Accomodation Income Receivable 768 545 - Donations Receivable 11,189 -

Total Other Current Assets 55,012 33,751 (d) Financial Assets - Australian Listed Securities 3,968,491 2,995,156 - Managed Investments 3,309,043 - - Fixed Interest - 2,961,486 - International Equities - 694,130 - Property - 495,115

Total Financial Assets 7,277,534 7,145,887 (e) Property, Plant and Equipment - Leasehold Land and Buildings (Chalet), at Cost 149,001 149,001 - Freehold Land and Buildings (Shack), at independent valuation 1,600,000 1,106,000 - Leasehold Land and Buildings (Copper Coast), at cost 260,854 260,854 - Accumulated Depreciation (190,869) (261,353)

Total Property 1,818,986 1,254,502

- Improvements to Properties, at Cost 323,324 323,330 - Accumulated Depreciation (316,917) (316,102)

Total Improvements 6,407 7,228

- Plant and Equipment, at Cost 159,800 159,803 - Accumulated Depreciation (133,646) (118,356)

Total Plant and Equipment 26,154 41,447

Total Property, Plant and Equipment 1,851,547 1,303,177 (f) Movements in carrying amountsMovements in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year.

Land and Improvements Plant and TotalBuildings Equipment

$ $ $ $ $

Balance at the beginning of the year (July 1st 2016) 1,254,502 7,228 41,447 1,303,177 Depreciation Expense (28,421) (821) (15,293) (44,535) Revaluation of Shack Property 592,905 - - 592,905 Balance at the end of the year (June 30th 2017) 1,818,986 6,407 26,154 1,851,547

(g) Current Liabilities - Trade and Other Payables - Accrued Expenses 27,680 23,804 - Chalet Hiring-Fees received in advance 8,350 6,150

36,030 29,954 (h) Current Liabilities - Provisions - Short Term Employee Benefits 5,935 5,742

(i) Non-Current Liabilities - Trade and Other Payables - Chalet Hiring-Fees received in advance 6,050 8,900 - Chalet Bond Deposits 5,050 4,450

11,100 13,350 (j) Non-Current Liabilities - Provisions - Employee Entitlements 3,105 -



This note supports the Statement of Financial Position 2017 2016$ $

(a) Cash and Cash Equivalents - Operational Cash with Westpac 67,321 86,617 - Interest Bearing Cash with Macquarie Bank 415,138 607,385

Total Cash and Cash Equivalents 482,459 694,002 (b) Trade and Other Receivables - Imputation Credits Receivable 52,352 57,222 - GST Refunds Receivable 5,157 1,461 - Unsettled Transactions due from investment manager 332,620 -

Total Trade and Other Receivables 390,129 58,683 (c) Other Current Assets - Prepayments 7,820 8,560 - Dividend Income Receivable 35,235 24,646 - Accomodation Income Receivable 768 545 - Donations Receivable 11,189 -

Total Other Current Assets 55,012 33,751 (d) Financial Assets - Australian Listed Securities 3,968,491 2,995,156 - Managed Investments 3,309,043 - - Fixed Interest - 2,961,486 - International Equities - 694,130 - Property - 495,115

Total Financial Assets 7,277,534 7,145,887 (e) Property, Plant and Equipment - Leasehold Land and Buildings (Chalet), at Cost 149,001 149,001 - Freehold Land and Buildings (Shack), at independent valuation 1,600,000 1,106,000 - Leasehold Land and Buildings (Copper Coast), at cost 260,854 260,854 - Accumulated Depreciation (190,869) (261,353)

Total Property 1,818,986 1,254,502

- Improvements to Properties, at Cost 323,324 323,330 - Accumulated Depreciation (316,917) (316,102)

Total Improvements 6,407 7,228

- Plant and Equipment, at Cost 159,800 159,803 - Accumulated Depreciation (133,646) (118,356)

Total Plant and Equipment 26,154 41,447

Total Property, Plant and Equipment 1,851,547 1,303,177 (f) Movements in carrying amountsMovements in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year.

Land and Improvements Plant and TotalBuildings Equipment

$ $ $ $ $

Balance at the beginning of the year (July 1st 2016) 1,254,502 7,228 41,447 1,303,177 Depreciation Expense (28,421) (821) (15,293) (44,535) Revaluation of Shack Property 592,905 - - 592,905 Balance at the end of the year (June 30th 2017) 1,818,986 6,407 26,154 1,851,547

(g) Current Liabilities - Trade and Other Payables - Accrued Expenses 27,680 23,804 - Chalet Hiring-Fees received in advance 8,350 6,150

36,030 29,954 (h) Current Liabilities - Provisions - Short Term Employee Benefits 5,935 5,742

(i) Non-Current Liabilities - Trade and Other Payables - Chalet Hiring-Fees received in advance 6,050 8,900 - Chalet Bond Deposits 5,050 4,450

11,100 13,350 (j) Non-Current Liabilities - Provisions - Employee Entitlements 3,105 -




Note 3(a): Fair Value Measurement

Fair Value Hierarchy

The following tables detail the Foundation's assets and liabilities, measured or disclosed

at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the

entire fair value measurement, being:

- Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity

can access at the measurement date.

- Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or

liability, either directly or indirectly.

- Level 3: Unobservable inputs for the asset or liability.

Level 1 Level 2 Level 3 Total2017 $'000 $'000 $'000 $'000

Assets

Instruments at fair value through profit or loss - 7,277,534 - 7,277,534

Land and Buildings - - 1,600,000 1,600,000 Total assets - 7,277,534 1,600,000 8,877,534

2016

Assets

Instruments at fair value through profit or loss - 7,145,887 - 7,145,887

Land and Buildings - - 1,106,000 1,106,000 Total assets - - 1,106,000 8,251,887

- Assets and liabilities held for sale are measured at fair value on a non-recurring basis.

- There were no transfers between levels during the financial year.

- The carrying amounts of trade and other receivables and trade and other payables are assumed to

approximate their fair values due to their short-term nature.

Note 3(b): Committments

The directors believe that the commitments under non-cancellable operating leases are immaterial.

Note 3(c): Subsequent Events

. The directors are not aware of any material subsequent events.

NOTE 3: TO THE ACCOUNTS

annual financial statements 2017 - apex …...1 ape foundation annual financial statements 2017 an...

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