rudolf steiner organisation supporting individuals living ... · rudolf steiner, founder of...

Inala

Inala

A Rudolf Steiner organisation supporting individuals living with disabilities

A.B.N. 22 000 434 364

Castle Hill Road Cherrybrook NSW 2126

AUSTRALIA

PATRON BLANCHE d’ALPUGET BOARD OF DIRECTORS CHAIRMAN MR W BEST TREASURER MR A THORNTON MR R GIBB AM MR J HOLDEN MRS J HOWARD MR K NICHOLAS MRS S J WHITLAM MR I HYMAN MR J WILSHIRE MRS K HOLDEN MR J RUMPLER HON. SOLICITORS Messrs. PATTERSON, HOUEN & COMMINS AUDITORS NEXIA COURT & CO EXECUTIVE COUNCIL CHIEF EXECUTIVE OFFICER (to 20th October 2014) TONY ANDERSON CHIEF EXECUTIVE OFFICER (from 21st October 2014) RICK LAWFORD PROPERTY & MAINTENANCE MANAGER MARIO BORG MAIN HOME MANAGER KIM CLINCH DAY SERVICES MANAGER MARTIN PORTEOUS GROUP HOMES MANAGER REBECCA VAN BILSEN FUNDRAISING MANAGER SERA KUMEROA FINANCE & ADMINISTRATION MANAGER CHRIS WEIGAND

INALA SOCIETY

LIFE MEMBERS

Honoured in Grateful Recognition of Outstanding Service

To the Inala Community

BARRETT, Joyce BLACK, Marie

BROWN, Barbara DUNLOP, Raymond

EVANS, Lesley GALE, Betty

GALL, Norma GALLAGHER, Angela

GIBB, Richard AM HAMMOND, Joan HOLDEN, John

HOUEN, Tony AM MORROW, Jim MORROW, Joy

NEMES, Madeleine NYHOLM, Alan RILEY, Wilma

RYAN, Mick AM RYAN, Heather

SIMS, Roy STACH, Anita STUBY, Susan

TENUKEST, Inessa WATTS, Jean WAUGH, Marj

WILSHIRE, John

Inala ABN: 22 000 434 364

30 June 2014

CONTENTS

Page

Financial Report Directors' Report 4 Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 7 Independent Audit Report 8 Directors' Declaration 11 Statement of Profit or Loss and Other Comprehensive Income 12 Statement of Financial Position 13 Statement of Changes in Equity 14 Statement of Cash Flows 15 Notes to the Financial Statements 16

Inala | Financial Report Page | 3

Inala ABN: 22 000 434 364 Directors' Report

30 June 2014

Your directors present their report on the company for the financial year ended 30 June 2014.

1. General information

(a) Directors

The names of the directors in office at any time during, or since the end of, the year are: Names Appointed/Resigned Mr W Best Appointed 15 September 1997 Mr R Gibb Appointed 13 September 1982 Mr J Holden Appointed 11 October 2000 Mrs J Howard Appointed 28 October 1998 Mr I Hyman Appointed 22 October 2012 Mr K Nicholas Appointed 18 November 1995 Mr A Thornton Appointed 1 July 2010 Mrs J Whitlam Appointed 21 November 1994 Mr J Wilshire Mrs K Holden

Appointed 28 February 2013 Appointed 19 August 2013

Mr J Rumpler Appointed 16 June 2014

(b) Principal Activities

The principal activity of Inala during the financial year was to operate a comprehensive facility for the provision of services to people with disabilities in accordance with the principles and methods as evolved by the late Dr. Rudolf Steiner.

No significant change in the nature of these activities occurred during the year.

(c) Vision and Mission

Inala’s work is based on the principles of Curative Education and Social Therapy first developed by Rudolf Steiner, founder of Anthroposophy, which he described as awareness of one’s humanity. Steiner’s many insights have been successfully applied in many fields including psychology, education, agriculture, the arts, medicine, physical therapies, social sciences and architecture.

Vision

Inala’s vision is for a community which is conscious of all its members, and where each individual makes their unique contribution.

Mission

Inala’s mission is to provide the highest quality human centred services recognising the abilities and supporting the aspirations and development of individuals living with disabilities.



30 June 2014

1. General information (continued)

Core Values Love Empathy and compassion Respect for the individual Integrity Creativity and innovation

Inala measures its own performance through a number of financial and non-financial benchmarks; including analysis against the authorised yearly budget. The benchmarks are used by the directors to assess the financial performance and sustainability of the company and whether the company’s vision and mission are being achieved.

(d) Members guarantee

Inala is incorporated under the Corporations Act 2001 and is a company limited by guarantee. In the event of, and for the purpose of winding up of the company, the amount capable of being called up from each member and any person or association who ceased to be a member in the year prior to the winding up is $20.

At 30 June 2014 the collective liability of members was $2,100 (2013: $2,075).

2. Director Information

(a) Information on Directors Mr W Best Director Qualifications LLB, B Comm, M Comm Experience Director since 1997, Honorary Treasurer from 2008 to 2011 Special responsibilities Chairman from 2012

Mr R Gibb Director Qualifications B Ec Experience Retired Chartered Accountant, Director since 1982, Chairman from

1991 to 1996 and from 1998 to 2005, Treasurer from 1984 to 1991 Special responsibilities None

Mr J Holden Director Qualifications BSc ( Chem Eng) Experience Director from 1995 to 1997 and from 2000 Special responsibilities Chairman of Building Committee

Mrs J Howard

Director

Qualifications Fellow of the Institute of Chartered Secretaries Experience Director since 1998 Special responsibilities Anthroposophical Representative, Anthroposophical Committee and

Finance Committee



30 June 2014

2. Director Information (continued) Mr I Hyman

Director

Qualifications Chartered Accountant Experience Director since 2012 Special responsibilities None Mr K Nicholas Director Qualifications B Econ (Hons), MBA Experience Director since 1996, Honorary Treasurer from 1996 to 2005, Chairman

from 2005 to 2011 Special responsibilities None Mr A Thornton Director Qualifications B Bus, LLB, MBA Experience Director since 2010 Special responsibilities Finance Committee, Honorary Treasurer from 2011 Mrs J Whitlam Director Qualifications O Levels Experience Director since 1994 Special responsibilities Anthroposophical Committee Mr J Wilshire Director Qualifications B Comm Experience Director since 2013 Special responsibilities None Mrs K Holden Director Qualifications M Econ (Hons), MBA Experience Director since 2013 Special responsibilities None Mr J Rumpler Director Qualifications F Fin Experience Director since 2014, previously Director from 1996 to 2009

Honorary Treasurer from 2003 to 2009 Special responsibilities None



30 June 2014


Inala ABN: 22 000 434 364

Independent Audit Report to the members of Inala


Inala ABN: 22 000 434 364

Statement of Profit or Loss and Other Comprehensive Income

For the Year Ended 30 June 2014

:

The accompanying notes form part of these financial statements. Inala | Financial Report Page | 11

Inala ABN: 22 000 434 364

Statement of Profit or Loss and Other Comprehensive Income


Note 2014 2013

$ $

Revenue 3(a) 15,237,109 13,474,751 Other income 3(b) 244,696 140,623

15,481,805 13,615,374

Employee benefits expense

11,772,807 10,377,138 Depreciation expense

473,692 502,745

Premises expense

460,408 461,000 Consumables expense

486,056 476,839

Motor vehicle expense

356,169 316,272 Repairs and maintenance expense

304,932 250,861

Other expenses

1,550,182 1,202,243

15,404,246 13,587,098

Finance income

149,525 184,432 Finance expense

- -

149,525 184,432 Surplus for the year

227,084 212,708

Other comprehensive income Total comprehensive income for the year attributable to members 227,084 212,708


Inala ABN: 22 000 434 364

Statement of Financial Position

As At 30 June 2014

Note 2014 2013

$ $

ASSETS Current assets Cash and cash equivalents 5 2,088,444 2,268,141

Financial assets 8 2,052,500 2,016,920 Trade and other receivables 6 591,578 401,153 Total current assets

4,732,522 4,686,214

Non-current assets Property, plant and equipment 7 13,670,727 13,227,067

Financial assets 8 556,002 536,125 Total non-current assets

14,226,729 13,763,192

TOTAL ASSETS

18,959,251 18,449,406 LIABILITIES

Current liabilities Trade and other payables 9 500,470 313,527

Other current liabilities 10 1,400,149 1,326,313 Employee benefits 11 1,900,346 1,862,003 Provisions 12 0 19,470 Financial liabilities 13 248,612 281,447 Total current liabilities

4,049,577 3,802,760

Non-current liabilities Financial liabilities 13 660,723 597,835

Non-interest bearing liabilities 14 556,002 536,125 Employee benefits 11 203,039 249,860 Total non-current liabilities

1,419,764 1,383,820

TOTAL LIABILITIES

5,469,341 5,186,580 NET ASSETS

13,489,910 13,262,826

EQUITY Reserves 15 3,788,905 6,615,976

Accumulated funds

9,701,005 6,646,850 TOTAL EQUITY

13,489,910 13,262,826

The accompanying notes form part of these financial statements.


Inala ABN: 22 000 434 364

Statement of Changes in Equity


Retained Earnings Reserves Total

$ $ $

Balance at 1 July 2012 6,658,763 6,391,355 13,050,118 Total comprehensive income for the year

Surplus for the year attributable to members 212,708 - 212,708 Total comprehensive income for the year attributable to members 212,708 - 212,708 Transactions with owners, in their capacity as owners, and other transfers

Transfer to accumulated funds - - - Transfer to/(from) reserves (224,621) 224,621 - Total transactions with owners and other transfers - - - Balance at 30 June 2013 6,646,850 6,615,976 13,262,826

Total comprehensive income for the year Surplus for the year attributable to members 227,084 - 227,084

Total comprehensive income for the year attributable to members 227,084 - 227,084 Transactions with owners, in their capacity as owners, and other transfers

Transfer to/(from) Reserves 2,827,071 (2,827,071) - Total transactions with owners and other transfers - - - Balance at 30 June 2014 9,701,005 3,788,905 13,489,910



Inala ABN: 22 000 434 364

Statement of Cash Flows


Note 2014 2013

$ $

Cash from operating activities: Receipts from government grants

12,882,355 12,400,143

Receipts from other sources

3,162,293 2,431,284 Payments to suppliers and employees

(15,604,767) (14,652,924)

Interest received

97,064 184,432 Net cash from operating activities

536,945 362,935

Cash flows from investing activities: Proceeds from sale of property, plant and equipment

209,934 131,718

Acquisition of property, plant and equipment

(1,090,643) (731,864) Receipts from other sources

169,594 134,622

Net cash from investing activities

(711,115) (465,524)

Cash flows from financing activities: Increase in borrowings

307,317 - Repayment of borrowings

(277,264) (110,293)

Net cash from financing activities

30,053 (110,293)

Net cash increase in cash and cash equivalents

(144,117) (212,882) Cash and cash equivalents at beginning of year

4,285,061 4,497,943

Cash and cash equivalents at end of year 5 4,140,944 4,285,061


Inala ABN: 22 000 434 364

Notes to the Financial Statements


1 Reporting Entity

Inala (the ‘company’) is a company domiciled in Australia. The address of the company’s registered office is 160 Caste Hill Road, Cherrybrook NSW 2126. The company operates a comprehensive facility for the provision of services to people with disabilities.

The financial report covers Inala as an individual entity and was authorised for issue on 20 October 2014 by the directors of the company. The company has the power to amend and reissue the financial report.

2 Summary of Significant Accounting Policies

(a) Basis of Preparation

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and Interpretations of the Australian Accounting Standards Board and the Corporations Act 2001. The company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. These financial statements do not comply with International Financial Reporting Standards as issued by the International Accounting Standards Board (‘IASB’).

Australian Accounting Standards set out accounting policies that the Australia Accounting Standards Board (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 otherwise stated.

The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs.

Comparatives have been reclassified to conform with the current year’s presentation (where applicable).

(i) Presentation currency

These financial statements are presented in Australian dollars which is the company’s functional currency.

(ii) Significant accounting judgements, estimates and assumptions

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results could differ from those estimates and may have impact on future periods.


Inala ABN: 22 000 434 364



2 Summary of Significant Accounting Policies (continued)

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. Significant accounting judgements, estimates and assumptions are described below:

Provision for employee benefits Provisions for employee benefits payable after 12 months from the reporting date are based on future wage and salary levels, experience of employee departures and periods of service, as discussed in Note 2(l). The amount of these provisions would change should any of these factors change in the next 12 months. Provision for impairment of trade receivables The value of the provision for impairment of receivables is estimated by considering the ageing of receivables, communication with the debtors and prior history.

(b) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of return, trade allowances and duties and tax paid. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities as described below. All revenue is stated net of the amount of goods and services tax (GST).

(i) Donations Donations are recognised as revenue when the company gains control or right to receive, economic benefits are probable, and the amount of the donation or bequest can be measured reliably.

(ii) Grants

Grant revenue is recognised when the company obtains control or right to receive the grant, it is probable that the economic benefits gained from the grant will flow to the company, and the amount of the grant can be measured reliably. Grants received on the condition that specified services are delivered, or conditions are fulfilled, are initially recognised as a liability and revenue is recognised as services are performed or conditions fulfilled.

(iii) Interest revenue Interest income is accrued on a time basis, based on the principal outstanding and at the effective interest rate applicable.

(iv) Other revenue

Revenue from other sources is recognised when the fee in respect of other products or services provided is receivable.


Inala ABN: 22 000 434 364




(c) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, and other short-term highly liquid investments with original maturities of three months or less.

(d) Trade and other receivables

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for impairment (doubtful debts). Trade receivables are due for settlement no more than 30-days from the date of recognition.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written-off. A provision for impairment is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised in the statement of comprehensive income.

(e) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and any impairment losses.

(i) Property, Plant and equipment

Items of property, plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. 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 in profit or loss. A formal assessment of recoverable amount is made when impairment indicators are present

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 these assets.

(ii) Depreciation

The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land, is depreciated on a diminishing value basis over their useful lives to the company commencing from the time the asset is held ready for use.


Inala ABN: 22 000 434 364




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

Class of asset

Depreciation rate (Diminishing Balance

Method)

Depreciation rate (Straight-line Method)

Buildings 2.5% 2.5% Plant and equipment 7.5% 3%-33% Motor vehicles 22.5% 20%

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 asset's carrying amount. These gains and losses are included in the statement of comprehensive income.

(f) Leases

Leases are classified as finance or operating leases. A lease that transfers substantially all of the benefits and risks incidental to the ownership of property is classified as a finance lease. At the inception of a finance lease, an asset and an obligation are recorded at an amount equal to the lesser of the present value of the minimum lease payments and the property's fair value at the beginning of the lease. Assets recorded under finance leases are amortised on a straight-line basis over the term of the lease that is the estimated useful lives of the assets. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the lease term.

Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term.

(g) Financial Instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. For financial assets, this is the equivalent to the date that the company commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transactions costs, except where the instrument is classified 'at fair value through profit or loss' in which case transaction costs are expensed to profit or loss immediately.

Classification and subsequent measurement

Financial instruments are subsequently measured at either fair value, amortised cost using the effective interest rate method, or cost. The subsequent measurement depends on the classification of the financial instrument as described below.


Inala ABN: 22 000 434 364




Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in an arm's length transaction. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

Amortised cost is calculated as: the amount at which the financial asset or financial liability is measured at initial recognition; less principal repayments; plus or minus the cumulative amortisation of the difference, if any, between the amount

initially recognised and the maturity amount calculated using the effective interest method; and

less any reduction for impairment.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss.

The classification of financial instruments depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and at the end of each reporting period for held-to-maturity assets.

(i) Financial assets at fair value through profit or loss

Financial assets are classified at ‘fair value through profit or loss’ when they are either held for trading for the purpose of short-term profit taking, derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying value being included in profit or loss.

(ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost.

Loans and receivables are included in current assets, except for those which are not expected to mature within 12 months after the end of the reporting year.

(iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is Inala’s intention to hold these investments to maturity. They are subsequently measured at amortised cost.

Held-to-maturity investments are included in non-current assets, except for those which are expected The accompanying notes form part of these financial statements.


Inala ABN: 22 000 434 364




to be realised within 12 months after the end of the reporting period, which will be classified as current assets.

If during the period the Company sold or reclassified more than an insignificant amount of the held-to-maturity investments before maturity, the entire held-to-maturity investments category would be tainted and reclassified as available-for-sale.

(iv) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

Available-for-sale financial assets are included in non-current assets, except for those which are expected to be sold within 12 months after the end of the reporting period.

(v) Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Fees payable on the establishment of loan facilities are recognised as transaction costs of the loan.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Fair value

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine fair value for all unlisted securities, including recent arm's length transactions, reference to similar instruments and option pricing models.

Impairment of financial assets

Objective evidence that a financial asset is impaired includes default by a debtor, evidence that the debtor is likely to enter bankruptcy or adverse economic conditions in the stock exchange. At the end of each reporting period, the company assesses whether there is objective evidence that a financial asset has been impaired through the occurrence of a loss event. In the case of available for sale financial instruments, a significant or prolonged decline in the value of the instrument is considered to indicate that an impairment has arisen.

Where a subsequent event causes the amount of the impairment loss to decrease (e.g. payment received), the reduction in the allowance account (provision for impairment of receivables) is taken through profit and loss.

However, any reversal in the value of an impaired available for sale asset is taken through other comprehensive income rather than profit and loss.


Inala ABN: 22 000 434 364




Impairment losses are recognised through an allowance account for loans and receivables in the statement of comprehensive income.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

When available-for-sale investments are sold, the accumulated fair value adjustments recognised in other comprehensive income are reclassified to profit or loss.

(h) Impairment of non-financial assets

At each reporting date, the company assesses whether there is an 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.

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 it belongs.

(i) Trade and other payables

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

(j) Borrowing costs

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings costs are expensed.

Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

(k) Employee Benefits

Provision is made for the company’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled


Inala ABN: 22 000 434 364




within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting requirements. Those cash outflows are discounted using market yields on Federal government bonds with terms to maturity that match the expected timing of cash flows.

(l) Provisions

Provisions are recognised when the company 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 recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.

(m) Goods and Services Tax (GST)

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. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

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

(n) Income tax

The company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

(o) Economic Dependency

The company is dependent on the ongoing receipt of grants from the following government bodies:

• NSW Government Department of Family & Community Services – Ageing Disability and Home Care;

• Commonwealth Department of Families, Housing, Community Services and Indigenous Affairs; and

• ACT Government Community Services Directorate


Inala ABN: 22 000 434 364



2014 2013

$ $

3 Revenue and other income (a) Revenue from operating activities

Fee revenue

1,516,539 1,356,008

Sale of goods and services

588,223 375,889

Government grants

11,973,027 10,905,610

Donations

40,839 130,101

Fundraising income

891,397 631,883

Capital grants

225,080 74,660

Bequest

2,004 600

15,237,109 13,474,751

(b) Other income

Members subscription

1,750 2,057

Other income

242,946 138,566

244,696 140,623

4 Expenses

Net surplus includes the following specific expenses:

Depreciation expense

473,692 502,745

Finance charges on leases

78,470 89,970

Operating lease rental expense

191,360 204,496

Loss on disposal of fixed assets

43,640 -

Transfers to/(from):

Provision for annual leave

151,157 174,729

Provision for long service leave

191,244 158,417

Provision for redundancy

21,022 (53,748)

Provision for doubtful debts

6,000 -


Inala ABN: 22 000 434 364



2014 2013

$ $ 5 Cash and Cash Equivalents CURRENT

Cash at bank – current account

807,362 422,543 Cash at bank – pensioner trust account

1,062,825 893,231

Cash on hand

9,800 9,650 Short-term deposits

208,457 942,717

2,088,444 2,268,141

CURRENT FINANCIAL ASSETS Financial Assets (see note 8) 2,052,500 2,016,920

Total 4,140,944 4,285,061

6 Trade and Other Receivables

CURRENT Note Trade receivables

524,792 319,323

Less: Provision for impairment of trade receivables 6(a) (6,000) (6,337)

518,792 312,986

Other receivables 72,786 88,167

591,578 401,153

(a) Provision for impairment of receivables

Provision for impairment at beginning of year (6,337) (6,337)

- Impairment losses recognised in the year (6,000) -

- Written off against receivables in the year 6,337 -

Provision for impairment at end of year (6,000) (6,337)


Inala ABN: 22 000 434 364



2014 2013

$ $

7 Property Plant and Equipment NON CURRENT Land At cost

3,755,090 3,755,090

Buildings At cost

10,488,322 9,949,526 Accumulated depreciation

(2,030,345) (1,856,643)

8,457,977 8,092,883

Furniture and fittings

At cost

1,493,755 1,445,366

Accumulated depreciation

(953,884) (922,035)

539,871 523,331

Motor vehicles At cost

1,935,748 1,794,753 Accumulated depreciation

(1,017,959) (938,990)

917,789 855,763

13,670,727 13,227,067 Movement in carrying value

Land Buildings Furniture & fittings

Motor vehicles Total

$ $ $ $ $

Balance at the beginning of year

3,755,090 8,092,883 523,331 855,763 13,227,067

Additions

0 661,462 64,884 364,297 1,090,643

Sales/Disposals

0 (74,833) (5,179) (93,279) (173,291)

Depreciation

0 (221,535) (43,165) (208,992) (473,692)

Carrying amount at the end of year

3,755,090 8,457,977 539,871 917,789 13,670,727

8 Financial Assets

2014 2013

$ $ CURRENT

Term deposit

2,052,500 2,016,920

NON CURRENT

Godparent fund

556,002 536,125

556,002 536,125

2,608,502 2,553,045



Inala ABN: 22 000 434 364



2014 2013

$ $

9 Trade and Other Payables

CURRENT

Trade payables and accrued expenses

500,470 313,527

10 Other Current Liabilities

CURRENT

Pensioner trust account

1,062,825 893,231

Government grants received in advance

20,740 168,303

GST and employees PAYG payable

316,584 264,779

1,400,149 1,326,313

11 Employee benefits

CURRENT

Provision for annual leave

809,480 652,540

Provision for redundancy

369,267 394,811


721,599 814,652

1,900,346 1,862,003

NON-CURRENT


203,039 249,860

Number of employees at the end of the year

257 259

12 Provisions

CURRENT

Provision for essential service upgrades

- 19,470


Inala ABN: 22 000 434 364



2014 2013

$ $

13 Financial Liabilities

CURRENT

Macquarie Leasing

248,612 281,447

248,612 281,447

(This loan was used for the acquisition of motor vehicles)

NON CURRENT

Macquarie Leasing

660,723 597,835

660,723 597,835

(This loan was used for the acquisition of motor vehicles)

14 Non Interest Bearing Liability

NON CURRENT

Godparent Fund

556,002 536,125


Inala ABN: 22 000 434 364



2014 2013

$ $

15 Reserves

Reserves have been built up from fundraising. They have been used for improvement and expansion of services. The table below reconciled the movement in each Reserve account in the period.

Accommodation Capital Reserve

Opening balance at beginning of the period

2,008,907 1,930,960

Net movement in reserve

(2,008,907) 77,947

Closing balance at end of the period

- 2,008,907

Day Services Capital Reserve


239,201 228,045


(239,201) 11,156


- 239,201

Asset Revaluation Reserve


3,506,340 3,506,340


- -


3,506,340 3,506,340

Reserve Capital Budget


423,895 404,124


(423,895) 19,771


- 423,895

Reserve Fundraising Projects


332,741 221,886


(332,741) 110,855


- 332,741

Reserve ADEs


104,892 100,000


(104,892) 4,892

Closing balance at the end of the period

- 104,892


Inala ABN: 22 000 434 364



2014 2013

$ $

15 Reserves - continued

Pool Project


- -


122,565 -


122,565 -

IT Project


- -


160,000 -


160,000 -

3,788,905 6,615,976

Outside of the Asset Revaluation Reserve which reflects the formal revaluation of the Vaucluse property prior to its merger with Miroma, all other reserve balances have been reviewed and amended to reflect current capital project allocations and/or fundraising thereto.

16 Commitments

(a) Capital commitments

There were capital commitments amounting to $318,120 as at 30 June 2014.

(b) Non-Cancellable Operating Lease Commitments

Operating leases contracted for but not recognised in the financial statements:

2014 2013

$ $

Payable - minimum lease payments:

not later than 12 months

151,640 43,500

later than 12 months but not later than five years

160,730 12,167

later than five years

- -

312,370 55,667

The Company leases IT equipment and photocopiers under non-cancellable operating leases with three-year lease terms. Increases in lease commitments may occur in line with the consumer price index (CPI).


Inala ABN: 22 000 434 364



17 Contingencies

(a) Contingent Liabilities

Grants have been advanced by federal and State Government Departments to enable Inala to construct buildings for the purpose of running specific welfare programs. If Inala chose to dispose of these properties a proportion of funds advanced may be required to be refunded.

18 Key Management Personnel Compensation Any person(s) having authority and responsibility for planning, directing and controlling the activities of the company, directly or indirectly, including any director of the company is considered key management personnel (KMP). The totals of remuneration paid to KMP of the company during the year are as follows:

2014

$ 2013

$ Total compensation paid or payable $1,022,492 1,015,422 These totals include recurring remuneration payments and the payment of entitlements on cessation of employment.

19 Other Related Party Transactions Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other persons unless otherwise stated.

20 Events After the Reporting Period The directors are not aware of any significant events since the end of the reporting period.


Inala ABN: 22 000 434 364



21 Fundraising Activities

During the year the Company received gross income from fund raising of $930,018 (2013 $756,925). The total costs incurrent in respect to fundraising were $309,976 (2013 $246,139).

The following table illustrates the allocation of funds

2014

2013

$

$

Fundraising Income

930,018

756,925 Staff Costs

(165,636)

(173,998)

Cost of fundraising

(144,340)

(72,141) Net fundraising funds

620,042

510,786

During the financial year fundraising appeals were conducted and are included in the statement of comprehensive income.

Fund raising activities (ratios)

2014 2013

$ % $ %

Total cost of fundraising

309,976 33.3% 246,139 32.5% Gross income from fundraising

930,018

756,925

Net surplus from fundraising

620,042 66.7% 510,786 67.5%

Gross income from fundraising

930,018

756,925

Total cost of services provided

144,340 46.6% 72,141 29.3%

Total expenditure

309,976

246,139

Total cost of services provided

144,340 15.5% 72,141 9.5%

Gross income from fundraising

930,018

756,925


rudolf steiner organisation supporting individuals living ... · rudolf steiner, founder of...

Documents