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Annual Report
2013
Badu Island Foundation Ltd
2
Contents
Chairman’s Address Page 2
Chief Executives Report Page 3
Directors and Executive Profile Page 4,5
Organisational Structure Page 5
Business Operations Page 6,7,8
Directors Report Page 9,10
Financial Statements Pages 11—21
Chairman’s Address
This financial year 2012-
2013, is the second year
BIF has been in full con-
trol of all the enterprises
divested from Torres
Strait Island Regional and
it has been the toughest
year for the company to date, forcing us to re-
structure and look at the businesses from a dif-
ferent angle.
The overall economic climate in the outer Torres
Strait has been very slow and this has impacted
on the company greatly challenging the board to
look at the company operations very closely and
make critical decisions. The challenges ahead
will challenge the board in its decision making
and I encourage the future board to understand
business and make decisions in the best interest
of the company.
Quarrying is an important operation for the
company and its performance affects the overall
performance of the company. This year has been
the perfect example where sales were below ex-
pectation. This raises an important question,
company life after quarry closure. We know that
there will be a time when quarry will close possi-
bly within 20yrs depending on demand.
The company continues to strive to look at ave-
nues to create jobs and improve the service de-
livery of our existing businesses. In saying that,
the company needs to create a replacement en-
terprise/s soon for Badu to be fully autonomous.
I believe there are opportunities out there and
our location is the ideal location for these opportu-
nities. The challenge to grasp these opportunities is
neither with the government nor organisations that
are out there but are with the Badu people. Think
positively and make informed decisions is what we
must do to grasp these opportunities.
The company’s objective has always been to create
jobs and services on the island and it continues to
strive to achieve these by working closing with Mu-
ra Badulgal Corporation, Torres Strait Regional
Authority and Torres Strait Island Regional Coun-
cil and community organisations through Inter-
agency Committee. We need to understand that
the opportunities we are creating are for our chil-
dren and the future so they don’t feel the isolation
like our fathers and now we experience today. I
have every faith that economic conditions in the
Torres Strait will improve next year and the com-
pany will be in better position this time next year.
However, between now and then are many chal-
lenges but nothing is impossible.
Lastly, I thank the CEO Peter Gadsby and all his
staff, our business advisor Mr Gordon Longland,
Auditor Peter McGrath and all the board, Directors
Mr Peo Ahmat Chair Mura Badulgal Corporation
RNTBC, Ms Wariba Seriat, Mr Troy Laza and Mr
James Yorkston who have made time available for
the very important board meetings.
Ngai nithamuniyahgarbalbami ah iudikaimelmaba-kalumak mina ngalpunika ah ngalpun-kazikainangalpangadhapaliminngalpunrangadhwara AGM-ka. Koeyma Esso
Manuel Nomoa, Chair
Head Office:
Room 6 Badu Business Centre
199 Nona Street, PO Box 198 BADU ISLAND QLD 4875
Badu Island Foundation Ltd Annual Report 2013
3
Welcome to the 2013
annual meeting being the
third reporting year of the
company’s operations.
The company has suffered
a poor trading result for
2013, recording a loss of
($227,613). A sum of $183,054 for depreciation
has been recorded in the accounts. Full financial
statements appear in the second part of this An-
nual Report.
The loss reflects significant expenditure at our
quarry business, addressing equipment and plant
repairs, extraction of quarry material and compli-
ance with safety inspection notices. Anticipated
quarry orders to outer islands during the second
half of the year fell well below expectation, and
the resulting loss of sales had the quarry record a
loss of $120,000.
The Badu Caltex Service Station, and Badu Hotel
achieved modest results whilst the Tama Mudh
Motel performed well with its limited capacity.
Highlights during the year:-
• A grant from Torres Strait Regional Au-
thority (Economic Development) to take a
concept plan of extending the Tama Mudh
Motel to a 25 room facility with additional
infrastructure for a guest reception/
managers quarters and meeting room. This
design and cost estimate has been complet-
ed with the next step to fund the project.
(Several other projects were planned but
relied on grant funding, these applications
were not approved so further projects will
be shelved until funds can be sourced).
• Successfully applied for a loan facility for
working capital in the quarry operation, no
draw down had occurred to the reporting
date.
• Extracting approximately 11,500m3 of ma-
terial at the quarry for crushing.
• Developed a Traffic Management Plan for a
safer access to the quarry site, including
installation of a culvert and roadway to en-
able product to be delivered to the wharf
hardstand area without the need to access
the public road way.
• Establish the Sea Swift freight agency for
Badu.
The year has proved difficult, especially as the full
cost of running the various businesses are being
recognized in a true commercial sense as they no
longer have supportive recurrent government
funding grants (as was the case while these enter-
prises were administered by the former Badu Is-
land council and more recently by Torres Strait
Island Regional council) following divestment to
our company in June 2011.
The year ahead will be equally difficult but we
anticipate costs to repairs and maintenance of
plant and equipment will level off and the expan-
sion works at the quarry will bring financial re-
ward with large product orders returning much
needed revenue to the company.
In conclusion, I would like to acknowledge the
invaluable assistance from your Chairman, Ma-
nuel Nomoa, fellow directors, managers and staff
for their contribution.
Peter Gadsby, ceo
Badu Island Foundation Ltd Annual Report 2013
Chief Executive Officers Report
Badu Quarry - working in partnership with Sea Swift for temporary barge ramp modifications to unload
the tug barge “Cronus” of the new childcare centre prefabricated buildings, November 2012
4
Badu Island Foundation Ltd Annual Report 2013
...about Badu Island Foundation
Directors and Executive Profile
Manual Nomoa, 49 Chairman
Chairman since incorporation 29th January 2008, former Badu
Island Councillor. Mr Nomoa was also appointed as Business
Manager for the company in November 2011 to overseer the
running of our current businesses and develop new business
opportunities.
Peo Ahmat, 46 Mura Badulgal (Torres Strait Islander) Corpora-
tion RNTBC
The BIF constitution requires the current Chair of Mura Badul-
gal to hold an automatic seat on the Board. A Memorandum of
Understanding between the two entities enforces the working
relationship between the two organisation and separation of
responsibilities to each.
Troy Laza, 35 Honorary Treasurer
Troy was first appointed a director on 23rd September 2010.
After 4 years as senior ranger for Badu, Troy is a Ranger Super-
visor where his role now is supervision and implementation of
projects for Merian gesep a gur keparem le rangers, rangers
Murray Island group.
Wariba Seriat, 31 Non Executive Director
Wariba was first elected to the board on 16th November 2011.
Wariba is manager “Strait Start” child early learning centre, lo-
cated at the Tagai Badu campus.
James Yorkston, 49 Vice chairman
James was first elected to the board at the 2012 AGM and also
holds a board position with Mura Badulgal (TSI) Corporation
RNTBC.
James is a plumber contracted to Torres Strait Island Regional
Council.
5
Organisation Structure
Badu Island Foundation Ltd Annual Report 2013
Chief Executive
Officer
Peter Gadsby
Quarry
Quarry Leading
Hand
Missipele Nona
Quarry Assistant
John wosomo
Tama Mudh Motel
Motel Supervisor
Eddie Nona
Caltex Badu Service Station
Service Station
Manager
David Nona
Badu Hotel
Hotel Manager
Shelita Nona
Duty Manager
Daniel Nona
Casual Staff
Bar/Cleaning
Freight Agency
Freight/General
Hand
Stephen Buia
Business Manager
Manuel NomoaAdmin Assistant
Christine Yorkston
Trainee Bookkeeper
Danielle Morseu
...about Badu Island Foundation
Directors and Executive Profile continued
Peter Gadsby, 60 Chief Executive Officer from April 2010
Prior to coming to Badu, Peter worked extensively for local gov-
ernments in remote indigenous councils and rural shires in
North West and Far North Queensland.
Holding the dual role as Executive Officer for Mura Badulgal
(PBC) under the Memorandum of Understanding between the
Badu PBC and BIF makes for a busy office.
6
Business Operations
Badu Island Foundation Ltd Annual Report 2013
...about Badu Island Foundation
Badu Hotel
2013
$
Sales 868,787
Other Income 64,173
932,960
Cost of Goods Sold
Opening stock 14,336
Purchases 679,973
Freight 86,018
682,347
Gross Profit 250,613
Expenses
Deprecia7on 18,307
Repairs & Maintenance 5,946
Employee Costs 202,404
Other 65,491
292,148
Net Profit (Loss) (41,535)
Less closing stocks 97,980
Badu Hotel main bar
Badu Caltex Service
Sta-on 2013
$
Sales 772,627
Grant Funding forward 19,090
791,717
Cost of Goods Sold
Opening stock 41,109
Purchases 515,050
Freight 171,347
Less closing stocks 46,117
681,389
Gross Profit 110,328
Less Expenses
Deprecia7on 17,309
Repairs & Upgrade works 24,570
Employee Costs 69,763
Other 20,446
132,088
Net Profit (Loss) (21,760) Transferring a fuel delivery to bulk tanks
David Nona
Service Station
Manager
Shelita Nona
Badu Hotel Manager
2012
$
812,282
60,907
873,188
64,653
536,983
79,159
14,336
565,825
307,363
29,317
11,475
185,944
42,208
268,943
38,420
2012
$
745,969
19,090
765,059
76,224
487,717
143,849
41,109
596,451
168,608
17,677
163,109
54,672
28,732
264,190
(95,582)
7
Badu Island Foundation Ltd Annual Report 2013
Badu Quarry
2013
$
Sales 494,226
Grant Funding forward 282,000
776,226
Less Cost of Goods Sold
Add Opening stock 82,280
Purchases/Blas7ng 214,989
Freight 173,742
Less closing stocks 359,881
111,130
Gross Profit 665,096
Less Expenses
Deprecia7on 51,335
Repairs & Maintenance 90,408
Employee/Contactors 234,416
Other 193,081
569,240
Net Profit (Loss) 95,856
Badu Nursery 2013
$
Sales 4,724
Other Income
Grant Funding forward 3,266
7,990
Less Cost of Goods Sold
Add Opening stock 1,772
Purchases
Closing stocks 1,470
302
Gross Profit 7,688
Less Expenses
Deprecia7on 35,558
Repairs & Maintenance
Employee Costs 62,371
Other 9,347
107,276
Net Profit (Loss) (99,588)
Crushing Badu Quarry
2012
$
904,108
291,100
1,195,208
113,064
114,464
173,984
82,280
257,664
937,544
32,493
62,649
101,432
78,367
274,941
662,603
...about Badu Island Foundation
2012
$
11,736
25,372
33,863
70,971
8,231
251
1,772
6,208
64,763
34,314
31,215
77,543
11,470
154,542
(89,779)
Nursery Shade house
Business Operations continued
At the writing of this report the company re-
grettably announced the closure of the nurse-
ry/ landscaping business in a company re-
structure to reduce trading losses.
Bulk bags of pre-mix aggregate
awaiting shipment
8
Badu Island Foundation Ltd Annual Report 2013
...about Badu Island Foundation
Tama Mudh Motel
2013
$
Sales 108,245
Grant Funding forward 2,619
110,864
Expenses
Deprecia7on 13,181
Repairs & Maintenance 9,903
Employee Costs 47,456
Other 26,900
97,440
Net Profit (Loss) 13,424
Tama Mudh Motel
Cargo day—freight handling
Eddie Nona
Manager
2012
$
103,112
28,000
141,112
12,780
13,318
61,320
19,149
106,567
34,545
Badu Sea Swi2 Freight
Agency 2013
$
Sales 63,024
63,024
Less Expenses
Deprecia7on 1,849
Employee Costs 17,410
Other 4,733
23,992
Net Profit (Loss) 39,032
2012
$
18,622
18,622
0
6,131
0
6,131
12,491
Badu Business Centre 2013
$
Rents 33,275
Grant Funding forward
33,275
Less Expenses
Deprecia7on 34,475
Repairs & Maintenance 21,571
Employee/Contractors 4,508
Other 16,661
77,215
Net Profit (Loss) (43,940)
2012
$
39,766
16,364
56,130
4,870
434
13,235
49,989
11,141
26,450
Badu Business Centre
Business Operations continued
9
Badu Island Foundation Ltd Annual Report 2013
Your directors present their report on the company for the financial year ended 30 June 2013.
1. General Information a. Directors
The names of the directors in office at any time during, or since the end of, the year are:
Manual Nomoa (Appointed: 29th January 2008)
Peo Ahmat (Reappointed: 24th February 2011)
Troy Paiwan Laza (Appointed: 23rd September 2010)
Wariba Danagai Seriat (Appointed:16th November 2011)
James Karim Yorkston (Appointed: 30th November 2012)
b. Principal Activities
The principle activities of Badu Island Foundation Ltd during the financial year were the operation of the following listed business and activities to raise funds for the benefit and welfare for the Community of Badu Island:
Badu Hotel
Badu Quarry
Badu Caltex Service Station
Tama Mudh Motel
Badu Nursery & Landscaping
Seaswift Freight Agency
Management of commercial premises known as the Badu Business Centre.
This is the second full year of operation for the above businesses with the exception of the Badu Hotel which operations were taken over in January 2010.
2. Business Review
a. Distribution of Profits
No distributions were paid or declared during the financial year.
b. Operating Results
The Net Loss for the year of Badu Island Foundation Ltd after providing for income tax amounted to $227,613.
c. Review of Operations
A review of the operations of the company during the financial year and the results of those operations show the company continued to engage in its various trading activities, the results of which are disclosed in the attached financial statements.
Badu Island Foundation Ltd
ACN129 423 310
Directors Report
30 June 2013
10
Badu Island Foundation Ltd Annual Report 2013
3. Other Items
a. Auditors’ Independence Declaration
A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out at page 3.
b. Significant Changes in State of Affairs
The only significant change in the nature of the company’s activities that occurred during the financial year was that the Company expanded its quarry business.
c. Significant Event
Except as noted above there was no significant event effecting the Company operations.
d. Environmental Issues
The company’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth of a State or Territory.
4. Indemnifying Officers
During or since the end of the financial year the company has entered into an agreement to Indemnify Directors and Officers and has agreed to pay insurance premiums thereon.
5. Options
No options over issued shares or interest in the company were granted during or since the end of the financial year and there were no options outstanding at the date of this report. Signed in accordance with a resolution of the Board of Directors:
Dated: 9th September 2013
Badu Island Foundation Ltd
ACN129 423 310
Directors Report
30 June 2013
11
FINANCIAL STATEMENTS
CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2013
Note 2013 2012
$ $
Cash Flows from Operating Activities
Receipts From Customers 2,765,817 2,746,648
Dividends Received - -
Interest Received 3,803 -
Payments to Suppliers and Employees (3,318,030) (2,236,101)
Interest Paid - -
Net Cash Provided by / (Used in) Operating Activities: 21 548,410 510,547
Cash Flows From Investing Activities
Proceeds from Sale of Property, Plant & Equipment - -
Acquisitions of Property, Plant & Equipment (26,167) (198,340)
Net Cash Provided by (Used In) Investing Activities: (26,167) (198,340)
Cash Flows from Financing Activities
Loan Proceeds - -
Loan Repaid - -
Net Cash Provided by Financing Activities - -
Net Increase (decrease) in Cash: (26,167) 312,207
Cash at Beginning of Year 756,279 444,072
Cash at End of Year 9 730,112 756,279
Badu Island Foundation Ltd Annual Report 2013
STATEMENT OF FINANCIAL PERFORMANCE
FOR THE YEAR ENDED 30 JUNE 2013
Note 2013 2012
$ $
Revenue 2 2,410,728 2,655,236
Cost of sales 3 1,480,779 1,662,601
Gross Profit 929,948 992,635
Other revenues 4 417,975 282,882
Total income 1,347,924 1,275,518
Administration expenses 5 (658,818) (402,475)
Depreciation expense 6 (183,054) (134,819)
Employee Costs 7 (693,529) (642,651)
Other Expenses 8 (32,093) (20,267)
Profit (loss) before income tax expense (219,570) 75,305
Income tax expense - -
Profit from operations (219,570) 75,305
12
Badu Island Foundation Ltd Annual Report 2013
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2013
Note 2013 2012
$ $
CURRENT ASSETS
Cash assets 9 181,702 756,279
Receivables 10 148,808 207,891
Stock on Hand 11 505,448 144,827
TOTAL CURRENT ASSETS 835,957 1,108,997
NON-CURRENT ASSETS
Property Plant & Equipment 12 4,110,238 4,267,124
TOTAL NON-CURRENT ASSETS 4,110,238 4,267,124
TOTAL ASSETS 4,946,195 5,376,121
CURRENT LIABILITIES
Trade and other payables 13 417,865 616,030
Interest Bearing Liabilities - -
TOTAL CURRENT LIABILITIES 417,865 616,030
NON-CURRENT LIABILITIES
Trade and other payables 14 23,287 35,479
TOTAL NON-CURRENT LIABILITIES 23,287 35,479
TOTAL LIABILITIES 441,153 651,509
NET ASSETS 4,505,042 4,724,612
EQUITY
Issued capital 16 - -
Asset Revaluation Reserve 17 4,232,207 4,232,207
Retained Earnings 18 272,835 492,405
TOTAL EQUITY 4,505,042 4,724,612
13
Badu Island Foundation Ltd Annual Report 2013
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2013
Issued Capital
Ordinary
Asset
Retained Revaluation
2011-2012 year Note Earnings Reserve Total
$ $ $ $
Balance at 1 July 2011 - 417,100 3,026,146
3,443,246
Profit attributable to members - 75,305 -
75,305
Transfers to and from
reserves
- Asset Revaluation Reserve 18
- - 1,206,061
1,206,061
Sub-total - 492,405 4,232,207
4,724,612
Dividends paid or provided for
- - - -
Balance at 30 June 2012
- 492,405 4,232,207
4,724,612
2012-2013 year
Balance at 1 July 2012 492,405 4,232,207
4,724,612
Profit (Loss) attributable to
members - (219,570) -
(219,570)
Transfers to and from
retained earnings - -
Transfers to and from
reserves
- Asset Revaluation Reserve 18
- - - -
Sub-total - 272,835 4,232,207
4,505,042
Dividends paid or provided for
- - - -
Balance at 30 June 2013
- 272,835 4,232,207 4,505,042
14
Badu Island Foundation Ltd Annual Report 2013
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
Note 1 - Statement of Significant Accounting Policies
The significant policies that have been adopted in the preparation of this financial report are:
a) Basis of Preparation
The Company is not a reporting entity because there are no users dependent on general purpose
financial reports.
This is a special purpose financial report that has been prepared by Badu Island Foundation Ltd for the
sole purpose of satisfying the requirements of the directors and members.
As such, the financial report may not comply with all International Financial Reporting Standards
The financial report has been prepared in accordance with the requirements of the following
Australian Accounting Standards:
AASB 1031 Materiality
AASB 101 Presentation of Financial Statements
AASB 107 Cash Flow Statements
AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors
AASB 110 Events after the Balance Sheet Date
AASB 1048 Interpretation and Application of Standards
The accounting policies adopted are considered appropriate to meet the needs of the members.
The financial report has been prepared on an accruals basis and the basis of historical cost except for the
revaluation of certain non-current assets.
The financial report is for the entity Badu Island Foundation Ltd as an individual entity. The Badu Island
Foundation Ltd is a company limited by guarantee, incorporated and domiciled in Australia.
The following specific accounting policies, which are consistent with the previous period
unless otherwise stated, have been adopted in the preparation of this report:
b) Property Plant & Equipment
The company has adopted AASB116 for Property Plant & Equipment in the
preparation of the financial statements for the year ended 30 June 2013.
c) Income Tax
The company is, by virtue of Section 50-25 5.1 (Income Tax Assessment Act 1997)
exempt from the liability to pay company income tax.
d) Property, Plant and Equipment
Property, Plant and Equipment are brought to account at cost or Director's value, less where
applicable, any accumulated depreciation or impairment losses. The carrying amount of property,
plant and equipment is reviewed annually by Directors to ensure it is not in excess of the recoverable
amount from those assets. The expected net cash flows have not been discounted to present values in
determining recoverable amount.
15
Badu Island Foundation Ltd Annual Report 2013
e) Leases
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor,
are charged as expenses in the periods in which they are incurred.
f) Revenue Recognition
Sales revenue is recognised when control has passed to the buyer.
g) Cash
For the statement of cash flows, cash includes cash on hand net of bank overdrafts.
h) Investments
Valuation of investments is determined by multiplying the number of shares held by the market price
of each share at balance date. Increments or decrements are included in the revenue statement.
Note 1 - Statement of Significant Accounting Policies continued
Acquisitions of assets
Acquisitions of assets are initially recorded at cost. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition, including freight in, architect's fees and engineer-ing design fees and all other establishment costs.
Valuation
All buildings and improvements and major plant were valued as at 30 June 2012 by Asset Advance, Mr Neil Teves AAPI, Certified Practising Valuer qld Registration No. 382.
Other plant and equipment is at the Directors' valuation or measured at cost.
Non-current physical assets measured at fair value are re-valued where required so that the carrying amount of each class of asset does not materially differ from its fair value at the reporting date.
Any revaluation increment or decrement arising on the revaluation of an asset has been credited to the asset revaluation reserve.
Depreciation
Land is not depreciated as it has an unlimited useful life. Depreciation on other property, plant and equipment is calculated so as to write-off the net cost or re-valued amount of each depreciable asset, less its estimated residual value, progressively over its estimated useful life to the company.
Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from the time an asset is completed and ready for use.
The depreciable amounts of all fixed assets including buildings but excluding freehold land, are
depreciated on a diminishing value basis or prime cost basis over their estimated useful lives
commencing from the time the asset is held ready for use.
Ranges of useful lives of each separate class of asset are disclosed in Note 12.
between the carrying amount of the asset at the time of the disposal and the proceeds of disposal and
is included in the operating profit of the Company in the year of disposal.
The gain or loss on disposal of all fixed assets including re-valued assets is determined as the difference
16
Badu Island Foundation Ltd Annual Report 2013
Note 1 - Statement of Significant Accounting Policies (Continued)
i) Goods and Services Tax
Goods and services tax is not included in revenue and expenses but is included in receivables, payables, and
receipts and payments to customers.
j) Impairment of Assets
At each reporting date, the entity reviews the carrying values of its tangible and intangible assets to
determine whether there is any indication that those assets have been impaired. If such an indication exists,
the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in
use, is compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable
amount is expensed to the income statement.
k)
Provision is made for the company's liability for employee benefits arising from services rendered by
employees to balance date. Provisions were recognised for both Long Service and Annual Leave.
Employee Benefits
2013 2012
$ $
Note 2 - Revenue
Sales 2,410,728 2,655,236
2,410,728 2,655,236
Note 3 - Cost of sales
Opening Stock 144,827 273,072
Purchases 1,403,455 1,137,365
Freight 437,945 396,991
Closing Stock (505,448) (144,827)
1,480,779 1,662,601
Note 4 - Other Revenues
Grant Funding 374,873 171,456
CDEP Wage Reimbursement - 89,436
Miscellaneous Income 39,300 20,494
Sale of Assets - 1,495
417,975 282,882
Note 5 - Administration Expenses
Accounting Fees 1,000 1,500
Audit Fees 11,000 11,350
Auspice Payments 36,114 20,000
Advertising 1,227 32
Bad Debts (7,126) 14,415
Bank Charges 5,229 3,945
Computer Expenses 1,458 9,133
Consultancy 107,776 31,416
Electricity and Gas 43,024 44,117
Freight (Non-Stock) 49,294 33,070
Insurance 31,589 27,596
Internet and Web 1,706 1,674
Landscaping & Gardens 3,978 8,783
17
Badu Island Foundation Ltd Annual Report 2013
Note 5 - Administration Expenses (Continued) 2013 2012
$ $
Motor Vehicle Expenses 86,599 28,810
Mura Badulgal Office Expenses - 7,446
Postage 367 512
Printing and Office Supplies 5,787 4,209
Registrations & Licenses 10,979 11,880
Repairs and Maintenance - Buildings 38,481 35,570
Repairs and Maintenance - Plant and Equipment 107,799 80,453
Telephone and Fax 18,348 10,531
Water Usage 17,288 -
402,475 402,475
Note 6 - Depreciation Expense
Buildings 122,425 96,072
Motor Vehicles 25,482 23,089
Plant and Equipment 32,934 13,468
Furniture and Fittings 2,213 2,190
183,054 134,819
Note 7 - Employee Costs
Staff Amenities & Uniforms 952 2,279
Staff Training 783 2,588
Superannuation 55,557 50,788
Wages and Salaries 636,237 586,996
693,529 642,651
Note 8 - Other Expenses
Other Expenses 32,093 20,267
32,093 20,267
Note 9 - Cash Assets
Cash at Bank - Cheque Account 60,077 347,102
Cash at Bank - Grants Account 42,736 377,089
Cash Float 4,600 10,600
ATM Safe Float 67,087 14,318
Cashcard ATM 1,740 7,170
181,702 756,279
Note 10 - Receivables
Deposits Paid 2,000 2,000
Trade Debtors 154,468 198,917
Less Provision for Bad Debts (5,660) (12,746)
Prepaid Insurance - 19,720
148,808 207,891
Rates & Service Charges 30,150 -
Travel and Accommodation 21,093 16,033
Cash at Bank - Investment Account 5,461 -
Note 11 - Stock on Hand
Stocks on Hand - at Cost
Hotel 87,440 14,336
Quarry 359,881 82,280
Service Station 46,117 41,109
Nursery 1,470 1,772
Power Cards 10,540 5,330
505,488 144,827
18
Note 12 - Property, Plant and Equipment
(a) Year Ended 30 June 2013
Buildings and Improvements
Motor Vehicles
Plant and Equipment
Furniture and Fittings
Total
Basis of measurement
Revaluation & Cost
Revaluation Revaluation & Cost
Revaluation & Cost
Asset Values 2013 2013 2013 2013 2013
Balance at beginning of financial year 5,409,420 155,184 286,148 15,720 5,866,472
Additions at Cost - - 24,672 1,495 26167
Disposals - - - - -
Balance at end of financial year 5,409,420 155,184 310,820 17,215 5,892,638
Accumulated Depreciation
Balance at beginning of financial year 1,549,520 27,772 17,113 4,943 1,599,348
Depreciation provided in period 122,425 25,482 32,934 2,213 183,054
Disposals - - - - -
Balance at end of financial year 1,671,945 53,255 50,046 7,156 1,782402
Total Written down value at period end 3,737,476 101,929 269,774 10,059 4,110,238
The Company has used the following rates of depreciation to measure the useful life of fixed assets
Buildings & Improvements Range 2% - 10% Prime cost method
Motor Vehicles 20% Deminishing value method
Plant & Equipment Range 10% - 33.3% Deminishing value method
Furnitues & Fittings 20% Deminishing value method
Items under $1000 are fully expensed in the year of purchase.
(b) Year Ended 30 June 2012
Buildings and Improvements
Motor Vehicles
Plant and Equipment
Furniture and Fittings
Total
Basis of measurement
Revaluation Revaluation Revaluation & Cost
Revaluation
Asset Values 2012 2012 2012 2012 2012
Balance at beginning of financial year 696,823 16,052 12,759 5,000 730,633
Additions at Cost 2,810 - 4,415 7,723 14,948
Disposals - - - - -
Revaluation by Directors 2,216,661 87,764 - - 2,304,424
Balance at end of financial year 2,916,293 103,815 17,174 12,723 3,050,005
Accumulated Depreciation
Balance at beginning of financial year 41,382 4,683 3,645 2,753 52,463
Depreciation provided in period 96,072 23,089 13,468 2,190 31,277
Disposals - - - - -
Revaluation adjustment: 1,412,066 - - - -
Balance at end of financial year 1,549,520 27,772 17,113 4,943 1,412,066
Total Written down value at period end 3,859,900 127,412 269,035 10,777 4,267,124
Badu Island Foundation Ltd Annual Report 2013
19
Badu Island Foundation Ltd Annual Report 2013
Notes to Financial Statements (Continued) 2013 2012
$ $
Note 13 - Current Liabilities: Trade and other payables
Trade Creditors 298,265 120,028
Visa Corporate Card 2,889 2,826
Goods and Services Tax Payable (4,034) 48,099
Employee Wages 1,085 605
PAYG Withholding 13,096 13,222
Provision for Annual Leave 21,385 32,776
Unspent Grant Funding 71,428 381,129
Accrued Charges 13,750 17,345
417,865 616,030
Note 14 - Non-Current Liabilities: Trade and other payables
Provision for Long Service Leave 23,287 35,479
23,287 35,479
Note 15 - Contingent Liabilities
There are no known contingent liabilities of a significant nature
at balance date.
Note 16 - Issued Capital
No Issued Capital as the Company is Limited by guarantee.
Note 17 - Asset Revaluation Reserve
Opening Asset Revaluation Reserve 4,232,207 3,026,146
Increments - 1,206,061
Decrements - -
Closing Asset Revaluation Reserve 4,232,207 4,232,207
Note 18 - Retained Earnings
Opening Retained Earnings 492,405 417,100
Increments (Decrements)
Net profit (loss) attributable to members of the company (219,570) 75,305
Closing Retained Earnings 272,835 492,405
Note 19 - Commitments
Except tied grant funding, there are no known commitments of a
significant nature at balance date.
Note 20 - Auditors' Remuneration
Amounts received or due and receivable by auditors for
Auditing Services 11,000 11,000
Other Services 1,000 1,500
Total 12,000 12,500
20
Badu Island Foundation Ltd Annual Report 2013 2013 2012
$ $
Note 22 - Directors' Remuneration
Income paid or payable or otherwise made available in respect of the financial year to each director of
the Badu Island Foundation Ltd directly or indirectly from the entity or any related entity.
Manual Nomoa - -
Peo Ahmat - -
Wariba Seriat - -
Troy Stow - -
James Yorkston - -
- -
Note 23 - Financial Instruments
(a) Terms, conditions and accounting policies.
The company's accounting policies, including the terms and conditions of each class of financial
asset, financial liability and equity instrument, both recognised and unrecognised at the balance
date, are as follows:
Trade Receivables and Payables - Carried at nominal amounts due less any provision for doubtful
debts.
Credit sales/purchases are on 30 day terms.
(b) Interest rate risk.
The company is not exposed to interest rate risks as at balance date
(c) Net fair values.
No exposure to risk as at balance date.
(d) Credit risk exposures.
The company has no exposure to credit risk at balance date in relation to each class of
recognised financial asset. The carrying amount of those assets is at historical cost.
Both assets and liabilities are stated at actual value.
Notes to Financial Statements continued
Note 21 - Reconciliation of Cash Flow from Operating Activities with Operating Profit after Income Tax
Operating Profit (219,570) 75,305
Non Cash Flows in Operating Profit :
Depreciation of Property, Plant and Equipment 183,054 134,819
Loss on Sale of Non-Current Assets - -
Change in market Value of Investments - -
Changes in Assets and Liabilities
Decrease (Increase) in Trade Debtors 59,083 (178,767)
Decrease (Increase) in Other Receivables - (12,701)
(Increase) / decrease in Accrued Income - -
(Increase) / decrease in Stock on Hand (306,621) 128,245
Increase (Decrease) in Unearned Revenue - -
Increase (Decrease) In Inputs Tax Liability (51,133) 45,020
Increase (Decrease) in Payables (134,640) 316,695
Increase (Decrease) in Provision - Other (23,583) 1,930
Net Cash Provided by / (used in) Operating Activities (548,410) 510,547
21
Notes to Financial Statements continued
Badu Island Foundation Ltd Annual Report 2013
Note 24 - Events after the Balance Sheet Date
Note 25 - Company Details
The Registered Office of the Company is:-
c/- Bottoms English Lawyers
Cairns QLD 4870
The principal place of business of the company is:
Badu Business Centre, RM 6
Badu Island QLD 4875
The principal activities of the company are to run the various enterprises on
Badu Island for the benefit and welfare of the community of Badu Island.
These enterprises include the Badu Island Hotel, Badu Quarry, Badu Caltex
Service Station, Tama Mudh Motel, Badu Nursery and Landscaping and
Seaswift Freight Agency.
There are no material adjusting events after the balance sheet date.
22
Independence
I am independent of the company, and have complied with the independence requirements of the Corpora-tions Act 2001. In addition to my audit of the financial report, I was engaged to undertake the services dis-closed in the notes to the financial statements. The provision of these services has not impaired our independ-ence.
Auditor’s Opinion In my opinion, the financial report of Badu Island Foundation Ltd is in accordance with the Corporations Act 2001, including:
(a) giving a true and fair view of the company’s financial position as at 30 June 2013 and of its perfor-mance for the year ended on that date in accordance with the accounting policies described in Note 1; and
(b) complying with Accounting Standards in Australia to the extent described in Note 1 and complying with the Corporations Regulation 2001.
Dated 9th September 2013
Peter F. McGrath FNTAA,
Company Auditor
Registration No 6112
I have audited the accompanying financial report, being a special purpose financial report, of Badu Island
Foundation Ltd for the year ended 30 June 2013. The financial report comprises the statement of financial
performance, statement of financial position as at 30 June 2013, statement of changes in equity, cash flow
statement, summary of significant accounting policies and other explanatory notes and the directors’ declara-
tion for the year then ended
Directors’ Responsibility for the Financial Report
The directors of the company are responsible for the preparation and fair presentation of the financial report and have determined that the accounting policies described in Note 1 to the financial statements which form part of the financial report are appropriate to meet the financial reporting requirements of the Corporations Act 2001 and are appropriate to meet the needs of the members. The directors’ responsibility also includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and ap-plying appropriate accounting policies; and making accounting estimates that are reasonable in the circum-stances.
Auditor's Responsibility
My responsibility is to express an opinion on the financial report based on our audit. No opinion is expressed as to whether the accounting policies used, as described in Note 1, are appropriate to meet the needs of the members. I have conducted my audit in accordance with Auditing standards in Australia. Those standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk as-sessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.
The financial report has been prepared for distribution to members for the purpose of fulfilling the directors’ financial reporting responsibilities under the Corporations Act 2001. I disclaim any assumption of responsibility for any reliance on this report or on the financial report to which it relates to any person other than the mem-bers, or for any purpose other than that for which it was prepared.
I believe that the audit evidence that I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Independent Audit Report on the Financial Report to Members of Badu Island Foundation Ltd