annual report 2014 - bendigo bank · letetia berthelsen (appointed 1 july 2013) 1,000 - 1,000 susan...

Annual Report2014

Mundubbera Community Bank®Branch

ABN 33 120 578 565

North Burnett Community Enterprises Limited

Annual report North Burnett Community Enterprises Limited 1

Contents

Chairman’s report 2

Manager’s report 3

Directors’ report 4

Auditor’s independence declaration 10

Financial statements 11

Notes to the financial statements 15

Directors’ declaration 35

Independent audit report 36

Annual report North Burnett Community Enterprises Limited2

For year ending 30 June 2014

The past 12 months has seen continued business growth in Mundubbera Community Bank® Branch, to the point

where we once again had a profitable year. Highlights in a nutshell are:

• anincreaseinthecommunitycontributionfrom$13,000to$25,000,

• adecreaseinouroverdraftof$34,000,

• aprofitof$9,661,and

• anincreasedrevenuebase(loans,depositsetc.)of$6millionto$54.8million.

AsreportedlastyearwehavechangedourcompanynametoNorthBurnettCommunityEnterprisesLimited.This

reflects our strategy to grow our business throughout the Burnett region.

Thecommunitycontributionof$25,000hasdirectlybenefitedninelocalschoolsthroughthe‘DreamandDo’

projects;theShowSociety’sofGayndah,Mundubbera,Eidsvold,andMonto;MundubberaHistoricalSociety;

patienttransport;andnumerouslocalorganisations.Thisistheprimaryreasonforthebranchexisting–tobenefit

the local community.

TheBoardhasregrettablyacceptedtheresignationsofTimothyDuggan,TaniaFraser,andGaryHarris,duringthe

year.Weappreciatethetimeandeffortofthesewillingindividualswhohavecontributedtoensureourbranchisa

success.AtthesametimetheBoardhaswelcomedJan-AdeleHotz.WecontinuetolooktorecruitnewDirectors

to the Board.

AsaBoardwestillhavetwooutstandinggoals-clearingoutstandingdebtandpayingadividendtoourvalued

shareholders.

Althoughnotyetachieved,thesetwogoalsarecomingclosertoreality.Thisisinnosmallpartduetoour

dedicatedBranchManagerandstaff,whocontinuetobethevisiblefronttothecompanyandthebranch.They

worktirelesslytoprovidethecustomerservicethatwealldesirefromabankandaproductrangeyouwould

expectfromAustralia’sfifthlargestbank.

WebelievethatMundubberaCommunity Bank®Branchwillcontinuetobenefityourtownandyourregionformany,

many,yearstocomeandIencourageeverybodytosupportit.

It is important to remember why the Mundubbera Community Bank® Branch was established in the first place, so

thatMundubberacanhaveavitalbusinesswhoseonlypurposeistobenefitourcommunity.

OnceagainIaskthatshareholderswhodonotbankwithusconsiderusintheirnextbankingdeal,orevenbetter,

transfertheirbusinesstoMundubberaCommunity Bank®Branch.Ourfriendlyandhelpfulbranchstaffwillbe

happy to assist you with all your banking needs.

Paul Dare

Chairman

Chairman’sreport


For year ending 30 June 2014

Well,thedevastatingfloodsof2013werefollowedbytheworstdroughtperiodforaverylongtimeandamajor

fallincattleprices.Asexpected,thishashadamajorimpactonthewholeregion,bothfinanciallyandsocially.

Howeverourcommunitycontinuestodemonstrateitsadmirablespiritandresilience.

Ourbranchhasfinishedtheyearwithaverystrongandpositivebankingperformance.Wehavewonseveral

regionalbankingawards,seenpleasingfootingsgrowth,andevenrankedhighlyinnationalprogrammes.Muchof

thisisduetoourdedicatedandtalentedbranchstaff.Wehavequalifiedandstablestaffwhoalwaysdomorethan

expected,bothinthebranch,andwithintheircommunity.Thedevelopmentalmaturityofourbranchstaffingdirectly

correlatestoourimprovingresults.

WealsohaveastrengtheningRuralBankportfolioandthiscontinuestobeamajorfocus,andisseenasour

majorexpansionopportunity,regionwide.

ThereisawonderfulandcooperativeworkingrelationshipwiththeBoardandtheirdedication,effortsandvision

addtoourachievements.TheDirectorscontinuetoworkhardtodevelopclearplans,tohelpthiscommunity

organisationreachitspotentialandrepayourcommunityforitssupport.

Overallthishasbeenayearofgrowthandpleasingdevelopment.Iwouldliketothankallourwonderfulcustomers

fortheirsupport,andassurethededicatedbranchstaffthattheireffortsarenoticedandvalued.

Rob Watt

Manager

Manager’sreport


Directors’reportFor the financial year ended 30 June 2014

Yourdirectorssubmitthefinancialstatementsofthecompanyforthefinancialyearended30June2014.

Directors

Thenamesanddetailsofthecompany’sdirectorswhoheldofficeduringorsincetheendofthefinancialyear:

Paul Jeffrey Dare

Chairman

Occupation: Pastor

Qualifications,experienceandexpertise:CurrentlythePastoratMundubberaBaptistChurch.Memberof

WBHHB,SecretaryofRDAWWB,MemberofMundubberaLDSMG,ChairofLocalChaplaincyCommittee.

QualificationsincludeMBA,MDiv,GradDipMinistryandBEng(Aerospace).

Specialresponsibilities:MemberHumanResources,DirectorRecruitment&AssetManagementCommittee;

andBusinessDevelopment,StrategicPlan,PublicRelations&MarketingCommittee.

Interestinshares:2,500

Alexandra Winter O’Neill

Secretary

Occupation:Grazier

Qualifications,experienceandexpertise:QualifiedasaSolicitor,workingincityandcountrypracticefor18

years.AlexhasheldpositionsonQLDLandcareCouncilandLandcareAustraliaLimitedandAgforceQLD.She

isalsoaMemberofMundubberaEnterpriseAssociationandhassignificantinvolvementincommunityevents.

AlexisaGrazierrunningbeefcattlebreedingandfinishingoperationwithherhusbandJames.

Specialresponsibilities:MemberofFinance,Governance,AuditandRiskManagementCommittee.Alexis

Secretary to the Board.

Interestinshares:50,000

Louise Newman

Director

Occupation:EnvironmentProjectOfficer

Qualifications,experienceandexpertise:Experienceinnaturalenvironmentandwildlife.Honoursdegreein

EnvironmentalManagement.MemberofMundubberaS.E.S,CentralBurnettUnitingChurchandlocalfitness

group.

Specialresponsibilities:MemberBusinessDevelopment,StrategicPlan,PublicRelations&Marketing

Committee;MediaOfficerandVice-Chairperson.

Interestinshares:Nil

John Zahl

Director

Occupation:RetailManager

Qualifications,experienceandexpertise:EmployedinQueenslandJusticeDepartment.QualifiedasaSolicitor

ofSupremeCourtofQueenslandin1982.Enteredprivatepracticebeforeretirement.Longperiodofserviceto

sporting church and school bodies. Honorary Auditor to numerous churches and community groups.

Specialresponsibilities:MemberHumanResources,DirectorRecruitment&AssetManagementCommittee;

andBusinessDevelopment,StrategicPlan,PublicRelationsandMarketingCommittee.



Directors’report(continued)

Directors (continued)

Letetia Berthelsen

Director(Appointed1July2013)

Occupation:CustomerServiceOfficer,Grazier-Commercial,Feedlot&CharolaisStud.

Qualifications,experienceandexpertise:CurrentmemberofMonty’sFoundation.LetetiaholdsaCertificateIII

inChildrenServices,&BusinessAdministration.MarriedtoMarkforthepast19yearswiththreeboys.Letetia

hasperformed7yearsofservicewiththeCommunity Bank®branchand19yearsasacommunitymember.

Specialresponsibilities:MemberFinance,Governance,Audit&RiskManagementCommittee.

Interest in shares: 1,000

Susan Mary Payne

Director(Appointed19August2013)

Occupation:Grazier

Qualifications,experienceandexpertise:Currentlypartnerfamilybeeffatteningenterprise.Susanalsoworks

forEdQueenslandasaBusinessServicesManager.SusanworkedinBankingfor10yearsandhasbeena

memberofmanycommunitygroupsandhasheldexecutivepositionsassecretaryandtreasurer(Mundubbera

community)



Jan-Adele Hotz

Director(Appointed27April2014)

Occupation:RegisteredNurse-DirectorofNursingMundubberaHospital

Qualifications,experienceandexpertise:GrowingupinMonto,Jan-Adelehasagreatunderstandingofthe

NorthBurnettcommunity.ShecompletedaBachelorofHealthScience(Nursing)in2000,andaPostGraduate

CertificateinAdvancedNursingPractice(RuralandRemote)in2009.Jan-AdelecametoMundubberain2007

andworkedatGayndah,EidsvoldandMontoHospitalsasaClinicalNurse.ShewasappointedDirectorof

NursingatMundubberaHospitalin2009andisFacilityManagerofMundubberaMHPS.Shehasinterestsin

health,includingsocialcohesionandChaplaincy.WithherhusbandNeilshehasinterestsinacattlegrazing

business.Jan-AdeleandNeilhavetwochildrenandJan-Adeleisinvolvedinlocalschoolandsportinggroups.

Specialresponsibilities:MemberBusinessDevelopment,StrategicPlan,PublicRelations&Marketing

Committee.


Timothy Gerard Duggan

Chairman(Resigned25November2013)

Occupation:Businessman,ownerofMundubberaButcheringCo.

Qualifications,experienceandexpertise:25yearsinvolvedincattlegrazing,feedlotting,dubosiaproduction

andhotelindustries.19yearsasownerandoperatorofMundubberaButcheringCo.Socialmemberofthegolf

club,bowlsclubandmemberofRotary.

Specialresponsibilities:FormerlyChairmanfor7years.




Directors (continued)

Tania Adele Fraser

Director(Resigned31March2014)

Occupation: Home Tutor

Qualifications,experienceandexpertise:AgribusinessInstructor(AustralianAgriculturalCollegeCorporation),

BachelorofAppliedScience(SystemsAgriculture),CertIVinTrainingandAssessment,CertIVinSmall

BusinessManagement.Extensivemanagementandtrainingskills.

Specialresponsibilities:MemberHumanResources,DirectorRecruitment&AssetManagementCommittee.


Gary Raymond Harris

Director(Resigned26May2014)

Occupation:ManagerofStormridgePtyLtd

Qualifications,experienceandexpertise:ManagingDirectorofStormridgePtyLtd.MemberofNorthBurnett

RegionalCouncilBusinessAdvisorygroup,memberofWideBayBurnettRegionalEconomicDevelopment

AdvisoryCommittee,QLPLAunderbay,BurnettStateCollege(VicePresident)andGayndahjuniorsoccer.



Directorswereinofficeforthisentireyearunlessotherwisestated.

Nodirectorshavematerialinterestsincontractsorproposedcontractswiththecompany.

Company Secretary

ThecompanysecretaryisAlexO’Neill.AlexwasappointedtotheroleofsecretaryinJuly2011.Shehasextensive

legalknowledgeaccumulatedduringheryearsasapracticingsolicitorandasamemberofmanycommunity

groups.

Principal Activities

TheprincipalactivitiesofthecompanyduringthefinancialyearwerefacilitatingCommunity Bank®servicesunder

managementrightstooperateafranchisedbranchofBendigoandAdelaideBankLimited.

Therehavebeennosignificantchangesinthenatureoftheseactivitiesduringtheyear.

Operating results

Operationshavecontinuedtoperforminlinewithexpectations.Theprofitofthecompanyforthefinancialyear

afterprovisionforincometaxwas:

Year ended 30 June 2014$

Year ended 30 June 2013$

9,661 29,263



Remuneration report

Transactions with directors

$

TimothyDugganreceivedremunerationforprovidingBBQmeatsduringtheperiodunder

review.Timothyreceived 220

Directors’shareholdings

Balance at start of the year

Changes during the

year

Balance at end of the year

PaulJeffreyDare - 2,500 2,500

AlexandraWinterO’Neill 50,000 - 50,000

LouiseNewman - - -

Barry John Zahl - - -

LetetiaBerthelsen(Appointed1July2013) 1,000 - 1,000

SusanMaryPayne(Appointed19August2013) 2,000 - 2,000

Jan-AdeleHotz(Appointed27April2014) - - -

TimothyGerardDuggan(Resigned25November2013) 2,001 - 2,001

TaniaAdeleFraser(Resigned31March2014) - - -

GaryRaymondHarris(Resigned26May2014) 3,000 - 3,000

Dividends

Nodividendsweredeclaredorpaidforthepreviousyearandthedirectorsrecommendthatnodividendbepaidfor

the current year.

Significant changes in the state of affairs

Intheopinionofthedirectorstherewerenosignificantchangesinthestateofaffairsofthecompanythat

occurredduringthefinancialyearunderreviewnototherwisedisclosedinthisreportorthefinancialstatements.

Events since the end of the financial year

Therearenomattersorcircumstancesthathavearisensincetheendofthefinancialyearthathavesignificantly

affectedormaysignificantlyaffecttheoperationsofthecompanytheresultsofthoseoperationsorthestateof

affairsofthecompany,infutureyears.

Likely developments

Thecompanywillcontinueitspolicyoffacilitatingbankingservicestothecommunity.

Environmental regulation

Thecompanyisnotsubjecttoanysignificantenvironmentalregulation.



Indemnification and insurance of directors and officers

Thecompanyhasindemnifiedalldirectorsandthemanagerinrespectofliabilitiestootherpersons(otherthan

thecompanyorrelatedbodycorporate)thatmayarisefromtheirpositionasdirectorsormanagerofthecompany

exceptwheretheliabilityarisesoutofconductinvolvingthelackofgoodfaith.

Disclosureofthenatureoftheliabilityandtheamountofthepremiumisprohibitedbytheconfidentialityclauseof

thecontractofinsurance.Thecompanyhasnotprovidedanyinsuranceforanauditorofthecompanyorarelated

body corporate.

Directors’ meetings

Thenumberofdirectors’meetingsattendedbyeachofthedirectorsofthecompanyduringtheyearwere:

Board Meetings Attended

Eligible Attended

PaulJeffreyDare 12 11

AlexandraWinterO’Neill 12 12

LouiseNewman 12 11

Barry John Zahl 12 12

LetetiaBerthelsen(Appointed1July2013) 12 12

SusanMaryPayne(Appointed19August2013) 11 9

Jan-AdeleHotz(Appointed27April2014) 3 3

TimothyGerardDuggan(Resigned25November2013) 5 5

TaniaAdeleFraser(Resigned31March2014) 9 5

GaryRaymondHarris(Resigned26May2014) 11 3

Theboardhasthefollowingsub-committees:Finance,Governance,Audit&RiskManagement;HumanResources,

DirectorRecruitment&AssetManagement;andBusinessDevelopment,StrategicPlan,PublicRelations&

Marketing.Thesub-committeesmetonanad-hocbasisanddonotmaintainofficialrecordsandreporttothe

boardmeetingsasrequired.

Proceedings on behalf of the company

NopersonhasappliedtotheCourtundersection237oftheCorporationsAct2001forleavetobringproceedings

onbehalfofthecompany,ortointerveneinanyproceedingstowhichthecompanyisaparty,forthepurposeof

takingresponsibilityonbehalfofthecompanyforallorpartofthoseproceedings.

NoproceedingshavebeenbroughtorintervenedinonbehalfofthecompanywithleaveoftheCourtundersection

237oftheCorporationsAct2001.

Non audit services

The company may decide to employ the auditor on assignments additional to their statutory duties where the

auditor’sexpertiseandexperiencewiththecompanyareimportant.Detailsoftheamountspaidorpayabletothe

auditor(AndrewFrewinStewart)forauditandnonauditservicesprovidedduringtheyeararesetoutinthenotes

to the accounts.



Non audit services

Theboardofdirectorshasconsideredtheposition,inaccordancewiththeadvicereceivedfromtheaudit

committeeandissatisfiedthattheprovisionofthenon-auditservicesiscompatiblewiththegeneralstandardof

independenceforauditorsimposedbytheCorporationsAct2001.

Thedirectorsaresatisfiedthattheprovisionofnon-auditservicesbytheauditor,assetoutinthenotesdidnot

compromisetheauditorindependencerequirementsoftheCorporationsAct2001forthefollowingreasons:

• allnon-auditserviceshavebeenreviewedbytheauditcommitteetoensuretheydonotimpactonthe

impartialityandobjectivityoftheauditor

• noneoftheservicesunderminethegeneralprinciplesrelatingtoauditorindependenceassetoutinAPES110

CodeofEthicsforProfessionalAccountants,includingreviewingorauditingtheauditor’sownwork,actingin

amanagementoradecision-makingcapacityforthecompany,actingasadvocateforthecompanyorjointly

sharing economic risk and rewards.

Auditor’s independence declaration

Acopyoftheauditor’sindependencedeclarationasrequiredundersection307CoftheCorporationsAct2001is

set out on page 10.

SignedinaccordancewitharesolutionoftheboardofdirectorsatMundubbera,Queenslandon3September

2014.

Paul Jeffrey Dare,

Chairman


Auditor’sindependencedeclaration


Financial statementsStatementofComprehensiveIncome fortheyearended30June2014

Note 2014 2013 $ $

Revenuefromordinaryactivities 4 512,463 491,738

Employeebenefitsexpense (264,961) (249,339)

Charitabledonations,sponsorship,advertisingandpromotion (34,493) (17,674)

Occupancyandassociatedcosts (32,094) (32,374)

Systemscosts (19,385) (19,512)

Depreciationandamortisationexpense 5 (20,932) (23,587)

Financecosts 5 (21,421) (23,840)

Generaladministrationexpenses (109,516) (96,149)

Profit before income tax expense 9,661 29,263

Incometaxexpense 6 - -

Profit after income tax expense 9,661 29,263

Total comprehensive income for the year 9,661 29,263

Earnings per share on profit attributable to the ordinary

shareholders of the company: ¢ ¢

Basicearningspershare 19 1.60 4.85

Theaccompanyingnotesformpartofthesefinancialstatements.


Financial statements (continued)

Balance Sheet as at 30 June 2014

Note 2014 2013 $ $

ASSETS

Current Assets

Tradeandotherreceivables 7 35,890 49,202

Total Current Assets 35,890 49,202

Non-Current Assets

Property,plantandequipment 8 113,631 117,964

Intangibleassets 9 32,350 46,215

Total Non-Current Assets 145,981 164,179

Total Assets 181,871 213,381

LIABILITIES

Current Liabilities

Tradeandotherpayables 10 35,402 49,710

Borrowings 11 462,889 496,205

Provisions 12 10,797 5,220

Total Current Liabilities 509,088 551,135

Non-Current Liabilities

Provisions 12 5,200 4,324

Total Non-Current Liabilities 5,200 4,324

Total Liabilities 514,288 555,459

Net Liabilities (332,417) (342,078)

Equity

Issuedcapital 13 572,563 572,563

Accumulatedlosses 14 (904,980) (914,641)

Total Equity (332,417) (342,078)




StatementofChangesinEquity fortheyearended30June2014

Issued Accumulated Total capital losses equity $ $ $

Balance at 1 July 2012 572,563 (943,904) (371,341)

Total comprehensive income for the year - 29,263 29,263

Transactions with owners in their capacity as owners:

Shares issued during period - - -

Costsofissuingshares - - -

Dividendsprovidedfororpaid - - -

Balance at 30 June 2013 572,563 (914,641) (342,078)

Balance at 1 July 2013 572,563 (914,641) (342,078)

Total comprehensive income for the year - 9,661 9,661

Transactions with owners in their capacity as owners:

Shares issued during period - - -

Costsofissuingshares - - -

Dividendsprovidedfororpaid - - -

Balance at 30 June 2014 572,563 (904,980) (332,417)




StatementofCashFlows fortheyearended30June2014

Note 2014 2013 $ $

Cash flows from operating activities

Receiptsfromcustomers 585,645 516,758

Paymentstosuppliersandemployees (512,288) (500,504)

Interestreceived - -

Interestpaid (21,421) (24,618)

Incometaxespaid -

Net cash provided by/(used in) operating activities 15 51,936 (8,364)

Cash flows from investing activities

Paymentsforproperty,plantandequipment (2,734) (1,874)

Paymentsforintangibleassets (15,886) -

Net cash provided used in investing activities (18,620) (1,874)

Cash flows from financing activities

Proceedsfromborrowings - -

Repaymentofborrowings - (10,839)

Dividendspaid - -

Net cash used in financing activities - (10,839)

Net increase/(decrease) in cash held 33,316 (21,077)

Cashandcashequivalentsatthebeginningofthefinancialyear (496,205) (475,128)

Cash and cash equivalents at the end of the financial year 11(a) (462,889) (496,205)



NotestothefinancialstatementsFor year ended 30 June 2014

Note1.Summaryofsignificantaccountingpolicies

a) Basis of preparation

ThesegeneralpurposefinancialstatementshavebeenpreparedinaccordancewithAustralianAccounting

Standards and Interpretations issued by the Australian Accounting Standard Boards and the Corporations Act

2001.Thecompanyisafor-profitentityforthepurposeofpreparingthefinancialstatements.

CompliancewithIFRS

ThesefinancialstatementsandnotescomplywithInternationalFinancialReportingStandards(IFRS)asissuedby

theInternationalAccountingStandardsBoard(IASB).

Critical accounting estimates

Thepreparationofthefinancialstatementsrequirestheuseofcertaincriticalaccountingestimates.Italso

requiresmanagementtoexerciseitsjudgementintheprocessofapplyingthecompany’saccountingpolicies.

Theseareasinvolvingahigherdegreeofjudgementorcomplexities,orareaswhereassumptionsandestimates

are significant to the financial statements are disclosed in note 3.

Historicalcostconvention

Thefinancialstatementshavebeenpreparedunderthehistoricalcostconventiononanaccrualsbasisas

modifiedbytherevaluationoffinancialassetsandliabilitiesatfairvaluethroughprofitorlossandwherestated,

currentvaluationsofnon-currentassets.Costisbasedonthefairvaluesoftheconsiderationgiveninexchange

forassets.

Comparativefigures

WhererequiredbyAustralianAccountingStandardscomparativefigureshavebeenadjustedtoconformwith

changesinpresentationforthecurrentfinancialyear.

Adoptionofnewandamendedaccountingstandards

Thecompanyadoptedthefollowingstandardsandamendments,mandatoryforthefirsttimefortheannual

reporting period commencing 1 July 2013:

• AASB2011-4AmendmentstoAustralianAccountingStandardstoRemoveIndividualKeyManagement

PersonnelDisclosureRequirements.

• AASB10ConsolidatedFinancialStatements,AASB11JointArrangements,AASB12DisclosureofInterests

inOtherEntities,AASB128InvestmentsinAssociatesandJointVentures,AASB127SeparateFinancial

StatementsandAASB2011-7AmendmentstoAustralianAccountingStandardsarisingfromtheConsolidation

and Joint Arrangements Standards.

• AASB2012-9AmendmenttoAASB1048arisingfromtheWithdrawalofAustralianInterpretation1039.

• AASB2012-10AmendmentstoAustralianAccountingStandards–TransitionGuidanceandotherAmendments

whichprovidesanexemptionfromtherequirementtodisclosetheimpactofthechangeinaccountingpolicyon

the current period.

• AASB13FairValueMeasurementandAASB2011-8AmendmentstoAustralianAccountingStandardsarising

fromAASB13.


Notestothefinancialstatements(continued)

Note1.Summaryofsignificantaccountingpolicies(continued)

a) Basis of preparation (continued)

Adoptionofnewandamendedaccountingstandards(continued)

• AASB119EmployeeBenefits(September2011)andAASB2011-10AmendmentstoAustralianAccounting

StandardsarisingfromAASB119(September2011).

• AASB2012-5AmendmentstoAustralianAccountingStandardsarisingfromAnnualImprovements2009-2011

Cycle.

• AASB2012-2AmendmentstoAustralianAccountingStandards–Disclosures–OffsettingFinancialAssetsand

FinancialLiabilities.

AASB2011-4removestheindividualkeymanagementpersonneldisclosurerequirementsinAASB124Related

PartyDisclosures.Asaresultthecompanynowonlydisclosesthekeymanagementpersonnelcompensationin

totalandforeachofthecategoriesrequiredinAASB124.Detailedkeymanagementpersonnelcompensationis

outlinedintheremunerationreport,includedaspartofthedirectors’report.

TheadoptionofrevisedstandardAASB119hasresultedinachangetotheaccountingforthecompany’sannual

leaveobligations.Astheentitydoesnotexpectallannualleavetobetakenwithin12monthsoftherespective

servicebeingprovided,annualleaveobligationsarenowclassifiedaslong-termemployeebenefitsintheirentirety.

Thischangesthemeasurementoftheseobligations,astheentireobligationisnowmeasuredonadiscounted

basisandnolongersplitintoashort-termandalong-termportion.However,theimpactofthischangeis

consideredimmaterialonthefinancialstatementsoverallasthemajorityoftheannualleaveisstillexpectedtobe

takenwithin12monthsaftertheendofthereportingperiod.

Noneoftheremainingnewstandardsandamendmentstostandardsthataremandatoryforthefirsttimeforthe

financialyearbeginning1July2013affectedanyoftheamountsrecognisedinthecurrentperiodoranyprior

periodandarenotlikelytoaffectfutureperiods.

Thecompanyhasnotelectedtoapplyanypronouncementsbeforetheirmandatoryoperativedateintheannual

reporting period beginning 1 July 2013.

Economicdependency-BendigoandAdelaideBankLimited

ThecompanyhasenteredintoafranchiseagreementwithBendigoandAdelaideBankLimitedthatgovernsthe

managementoftheCommunity Bank® branch at Mundubbera, Queensland.

ThebranchoperatesasafranchiseofBendigoandAdelaideBankLimited,usingthename“BendigoBank”and

thelogoandsystemofoperationsofBendigoandAdelaideBankLimited.ThecompanymanagestheCommunity

Bank®branchonbehalfofBendigoandAdelaideBankLimited,howeveralltransactionswithcustomersconducted

through the Community Bank®branchareeffectivelyconductedbetweenthecustomersandBendigoandAdelaide

BankLimited.

AlldepositsaremadewithBendigoandAdelaideBankLimited,andallpersonalandinvestmentproductsare

productsofBendigoandAdelaideBankLimited,withthecompanyfacilitatingtheprovisionofthoseproducts.All

loans,leasesorhirepurchasetransactions,issuesofnewcreditordebitcards,temporaryorbridgingfinanceand

anyothertransactionthatinvolvescreatinganewdebt,orincreasingorchangingthetermsofanexistingdebt

owedtoBendigoandAdelaideBankLimited,mustbeapprovedbyBendigoandAdelaideBankLimited.Allcredit

transactionsaremadewithBendigoandAdelaideBankLimited,andallcreditproductsareproductsofBendigo

andAdelaideBankLimited.

BendigoandAdelaideBankLimitedprovidessignificantassistanceinestablishingandmaintainingtheCommunity

Bank®branchfranchiseoperations.Italsocontinuestoprovideongoingmanagementandoperationalsupport

andotherassistanceandguidanceinrelationtoallaspectsofthefranchiseoperation,includingadviceinrelation

to:





Economicdependency-BendigoandAdelaideBankLimited(continued)

•adviceandassistanceinrelationtothedesign,layoutandfitoutoftheCommunity Bank® branch

•trainingforthebranchmanagerandotheremployeesinbanking,managementsystemsandinterfaceprotocol

•methodsandproceduresforthesaleofproductsandprovisionofservices

•securityandcashlogisticcontrols

•calculationofcompanyrevenueandpaymentofmanyoperatingandadministrativeexpenses

•theformulationandimplementationofadvertisingandpromotionalprograms

•salestechniquesandpropercustomerrelations.

Goingconcern

Thenetassetsofthecompanyasat30June2014were$332,417andtheprofitmadefortheyearwas$9,661,

bringingaccumulatedlossesto$904,980.

In addition: $

Total assets were 181,871

Total liabilities were 514,288

Operating cash flows were 51,936

Therewasa4%increaseinrevenuegeneratedforthefinancialyearended30June2014whencomparedtothe

prior year.

Thecompanymeetsitsdaytodayworkingcapitalrequirementsthroughanoverdraftfacilitythatisdueforrenewal

onSeptember2014.Theoverdrafthasanapprovedlimitof$600,000andwasdrawnto$462,889asat30June

2014.

Thecompany’sbusinessactivities,togetherwiththefactorslikelytoaffectitsfuturedevelopment,performance

andpositionaresetoutinthedirectors’reportonpages4to9.Thefinancialpositionofthecompany,itscash

flows,liquiditypositionandborrowingfacilitiesaredescribedinthefinancialstatements.

Thecurrenteconomicenvironmentisdifficultbutrevenuecontinuestoincreaseandthecompanyhasagain

reportedanoperatingprofitfortheyear.Thedirectorsconsiderthattheoutlookpresentssignificantchallengesin

termsofbankingbusinessvolumeandpricingaswellasforoperatingcosts.Whilstthedirectorshaveinstituted

measurestopreservecashandsecureadditionalfinance,thesecircumstancescreatematerialuncertaintiesover

futuretradingresultsandcashflows.

Thecompany’sforecastsandprojections,takingaccountofreasonablypossiblechangesintradingperformance,

showthatthecompanyshouldbeabletooperatewithinthelevelofitscurrentoverdraftfacility.

ThecompanyhashelddiscussionswithBendigoandAdelaideBankLimitedaboutitsfutureborrowingneeds.

Itislikelythatthesediscussionswillnotbecompletedforsometimebutnomattershavebeendrawntoits

attentiontosuggestthatrenewalmaynotbeforthcomingonacceptableterms.Thecompanyhasalsoobtainedan

undertakingofsupportfromBendigoandAdelaideBankLimitedthatitwillcontinuetosupportthecompanyand

itsoperationsforthe2014/15financialyear.Thissupportisprovidedonthebasisthatthecompanycontinuesto

fulfilitsobligationsunderthefranchiseagreementandcontinuestoworkcloselywithBendigoandAdelaideBank

Limitedtofurtherdevelopitsbusiness.





Goingconcern(continued)

Thedirectorshaveareasonableexpectationthatthecompanyhasadequateresourcestocontinueinoperational

existencefortheforeseeablefuture.Forthesereasons,theycontinuetoadoptthegoingconcernbasisof

accounting in preparing the annual financial statements.

Thefollowingisasummaryofthematerialaccountingpoliciesadoptedbythecompanyinthepreparationofthe

financialstatements.Theaccountingpolicieshavebeenconsistentlyapplied,unlessotherwisestated.

b) Revenue

Revenueisrecognisedwhentheamountofrevenuecanbereliablymeasured,itisprobablethatfutureeconomic

benefitswillflowtothecompanyandanyspecificcriteriahavebeenmet.Interestandfeerevenueisrecognised

whenearned.Thegainorlossondisposalofproperty,plantandequipmentisrecognisedonanetbasisandis

classifiedasincomeratherthanrevenue.AllrevenueisstatednetoftheamountofGoodsandServicesTax(GST).

Revenuecalculation

ThefranchiseagreementwithBendigoandAdelaideBankLimitedprovidesforthreetypesofrevenueearnedby

thecompany.First,thecompanyisentitledto50%ofthemonthlygrossmarginearnedbyBendigoandAdelaide

BankLimitedonproductsandservicesprovidedthroughthecompanythatareregardedas“daytoday”banking

business(i.e.‘marginbusiness’).Thisarrangementalsomeansthatifthegrossmarginreflectsaloss(thatis,the

grossmarginisanegativeamount),thecompanyeffectivelyincurs,andmustbear,50%ofthatloss.

ThesecondsourceofrevenueiscommissionpaidbyBendigoandAdelaideBankLimitedontheotherproducts

andservicesprovidedthroughthecompany(i.e.‘commissionbusiness’).Thecommissioniscurrentlypayable

onvariousspecifiedproductsandservices,includinginsurance,financialplanning,commonfund,Sandhurst

Select,superannuation,commercialloanreferrals,productsreferredbyRuralBank,leasingreferrals,fixedloans

andcertaintermdeposits(>90days).Theamountofcommissionpayablecanbevariedinaccordancewith

theFranchiseAgreement(which,insomecases,permitscommissionstobevariedatthediscretionofBendigo

andAdelaideBankLimited).Thisdiscretionhasbeenexercisedonseveraloccasionspreviously.Forexamplein

February2011andFebruary2013BendigoandAdelaideBankLimitedreducedcommissionsontwocorebanking

productstoensureamoreevendistributionofincomebetweenBendigoandAdelaideBankLimitedandits

Community Bank®partners.Therevenuesharemodelissubjecttoregularreviewtoensurethattheinterestsof

BendigoandAdelaideBankLimitedandCommunity Bank® companies remain balanced.

Thethirdsourceofrevenueisaproportionofthefeesandcharges(i.e.whatarecommonlyreferredtoas‘bank

feesandcharges’)chargedtocustomers.Thisproportion,determinedbyBendigoandAdelaideBankLimited,may

varybetweenproductsandservicesandmaybeamendedbyBendigoandAdelaideBankLimitedfromtimeto

time.

c) Income tax

Currenttax

Currenttaxiscalculatedbyreferencetotheamountofincometaxespayableorrecoverableinrespectofthe

taxableprofitorlossfortheperiod.Itiscalculatedusingtaxratesandtaxlawsthathavebeenenactedor

substantivelyenactedbyreportingdate.Currenttaxforcurrentandpriorperiodsisrecognisedasaliability(or

asset)totheextentthatitisunpaid(orrefundable).




c) Income tax (continued)

Deferredtax

Deferredtaxisaccountedforusingthebalancesheetliabilitymethodontemporarydifferencesarisingfrom

differencesbetweenthecarryingamountofassetsandliabilitiesinthefinancialstatementsandthecorresponding

taxbaseofthoseitems.

Inprinciple,deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferences.Deferredtaxassets

arerecognisedtotheextentthatitisprobablethatsufficienttaxableamountswillbeavailableagainstwhich

deductibletemporarydifferencesorunusedtaxlossesandtaxoffsetscanbeutilised.However,deferredtax

assetsandliabilitiesarenotrecognisedifthetemporarydifferencesgivingrisetothemarisefromtheinitial

recognitionofassetsandliabilities(otherthanasaresultofabusinesscombination)whichaffectsneither

taxableincomenoraccountingprofit.Furthermore,adeferredtaxliabilityisnotrecognisedinrelationtotaxable

temporarydifferencesarisingfromgoodwill.

Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiod(s)when

theassetandliabilitygivingrisetothemarerealisedorsettled,basedontaxrates(andtaxlaws)thathavebeen

enactedorsubstantivelyenactedbyreportingdate.Themeasurementofdeferredtaxliabilitiesreflectsthetax

consequencesthatwouldfollowfromthemannerinwhichtheconsolidatedentityexpects,atthereportingdate,to

recoverorsettlethecarryingamountofitsassetsandliabilities.

Deferredtaxassetsandliabilitiesareoffsetwhenthereisalegallyenforceablerighttooffsetcurrenttaxand

whenthebalancesrelatetotaxesleviedbythesametaxationauthorityandthecompanyentityintendstosettle

itstaxassetsandliabilitiesonanetbasis.

Currentanddeferredtaxfortheperiod

Currentanddeferredtaxisrecognisedasanexpenseorincomeinthestatementofcomprehensiveincome,

exceptwhenitrelatestoitemscreditedordebitedtoequity,inwhichcasethedeferredtaxisalsorecognised

directlyinequity,orwhereitarisesfrominitialaccountingforabusinesscombination,inwhichcaseitistakeninto

accountinthedeterminationofgoodwillorexcess.

d) Employee entitlements

Provisionismadeforthecompany’sliabilityforemployeebenefitsarisingfromservicesrenderedbyemployees

tobalancedate.Employeebenefitsthatareexpectedtobesettledwithinoneyearhavebeenmeasuredatthe

amountsexpectedtobepaidwhentheliabilityissettled,plusrelatedon-costs.Employeebenefitspayablelater

thanoneyearhavebeenmeasuredatthepresentvalueoftheestimatedfuturecashoutflowstobemadefor

those benefits.

Thecompanycontributestoadefinedcontributionplan.Contributionstoemployeesuperannuationfundsare

charged against income as incurred.

e) Cash and cash equivalents

Forthepurposesofthestatementofcashflows,cashincludescashonhandandinbanksandinvestmentsin

moneymarketinstruments,netofoutstandingbankoverdrafts.Bankoverdraftsareshownwithinborrowingsin

current liabilities on the balance sheet.




f) Trade receivables and payables

Receivablesarecarriedattheiramountsdue.Thecollectabilityofdebtsisassessedatbalancedateandspecific

provisionismadeforanydoubtfulaccounts.Liabilitiesfortradecreditorsandotheramountsarecarriedatcost

thatisthefairvalueoftheconsiderationtobepaidinthefutureforgoodsandservicesreceived,whetherornot

billed to the company.

g) Property, plant and equipment

Plantandequipment,leaseholdimprovementsandequipmentunderfinanceleasearestatedatcostless

accumulateddepreciationandimpairment.Costincludesexpenditurethatisdirectlyattributabletotheacquisition

oftheitem.Intheeventthatsettlementofallorpartofthepurchaseconsiderationisdeferred,costisdetermined

bydiscountingtheamountspayableinthefuturetotheirpresentvalueasatthedateofacquisition.

Depreciationisprovidedonproperty,plantandequipment,includingfreeholdbuildingsbutexcludingland.

Depreciationiscalculatedonastraightlinebasissoastowriteoffthenetcostofeachassetoveritsexpected

usefullifetoitsestimatedresidualvalue.Leaseholdimprovementsaredepreciatedattherateequivalentto

theavailablebuildingallowanceusingthestraightlinemethod.Theestimatedusefullives,residualvaluesand

depreciationmethodarereviewedattheendofeachannualreportingperiod.

Thefollowingestimatedusefullivesareusedinthecalculationofdepreciation:

-leaseholdimprovements 40 years

-plantandequipment 2.5-40years

-furnitureandfittings 4 - 40 years

h) Intangibles

ThefranchisefeepaidtoBendigoandAdelaideBankLimitedhasbeenrecordedatcostandisamortisedona

straightlinebasisoverthelifeofthefranchiseagreement.

TherenewalprocessingfeepaidtoBendigoandAdelaideBankLimitedwhenrenewingthefranchiseagreement

hasalsobeenrecordedatcostandisamortisedonastraightlinebasisoverthelifeofthefranchiseagreement.

i) Payment terms

Receivablesandpayablesarenoninterestbearingandgenerallyhavepaymenttermsofbetween30and90days.

j) Borrowings

Allloansareinitiallymeasuredattheprincipalamount.Interestisrecognisedasanexpenseasitaccrues.

k) Financial instruments

Recognitionandinitialmeasurement

Financial instruments, incorporating financial assets and financial liabilities are recognised when the entity

becomesapartytothecontractualprovisionsoftheinstrument.

Financialinstrumentsareinitiallymeasuredatfairvalueplustransactioncosts.Financialinstrumentsare

classified and measured as set out below.




k) Financial instruments (continued)

Derecognition

Financialassetsarederecognisedwherethecontractualrightstoreceiptofcashflowsexpiresortheassetis

transferredtoanotherpartywherebytheentitynolongerhasanysignificantcontinuinginvolvementintherisks

and benefits associated with the asset.

Classificationandsubsequentmeasurement

(i) Loansandreceivables

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenot

quotedinanactivemarketandaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestrate

method.

(ii) Held-to-maturityinvestments

Held-to-maturityinvestmentsarenon-derivativefinancialassetsthathavefixedmaturitiesandfixedor

determinablepayments,anditistheentity’sintentiontoholdtheseinvestmentstomaturity.Theyare

subsequentlymeasuredatamortisedcostusingtheeffectiveinterestratemethod.

(iii)Available-for-salefinancialassets

Available-for-salefinancialassetsarenon-derivativefinancialassetsthatareeithernotsuitabletobeclassified

intoothercategoriesoffinancialassetsduetotheirnature,ortheyaredesignatedassuchbymanagement.

Theycompriseinvestmentsintheequityofotherentitieswherethereisneitherafixedmaturitynorfixedor

determinable payments.

Theyaresubsequentlymeasuredatfairvaluewithchangesinsuchfairvalue(i.e.gainsorlosses)recognised

intheStatementofComprehensiveIncome.Available-for-salefinancialassetsareincludedinnon-current

assetsexceptwheretheyareexpectedtobesoldwithin12monthsaftertheendofthereportingperiod.All

other financial assets are classified as current assets.

(iv)Financialliabilities

Non-derivativefinancialliabilities(excludingfinancialguarantees)aresubsequentlymeasuredatamortisedcost

usingtheeffectiveinterestratemethod.

Impairment

Ateachreportingdate,theentityassesseswhetherthereisobjectiveevidencethatafinancialinstrumenthas

beenimpaired.Impairmentlossesarerecognisedinthestatementofcomprehensiveincome.

l) Leases

Leasesoffixedassetswheresubstantiallyalltherisksandbenefitsincidentaltotheownershipoftheasset,

butnotthelegalownershiparetransferredtothecompanyareclassifiedasfinanceleases.Financeleasesare

capitalisedbyrecordinganassetandaliabilityattheloweroftheamountsequaltothefairvalueoftheleased

propertyorthepresentvalueoftheminimumleasepayments,includinganyguaranteedresidualvalues.Lease

paymentsareallocatedbetweenthereductionoftheleaseliabilityandtheleaseinterestexpensefortheperiod.

Leasedassetsaredepreciatedonastraight-linebasisovertheshorteroftheirestimatedusefullivesorthelease

term.Leasepaymentsforoperatingleases,wheresubstantiallyalltherisksandbenefitsremainwiththelessor,

arechargedasexpensesintheperiodsinwhichtheyareincurred.Leaseincentivesunderoperatingleasesare

recognisedasaliabilityandamortisedonastraight-linebasisoverthelifeoftheleaseterm.




m) Provisions

Provisionsarerecognisedwhentheeconomicentityhasalegal,equitableorconstructiveobligationtomakea

futuresacrificeofeconomicbenefitstootherentitiesasaresultofpasttransactionsofotherpastevents,itis

probablethatafuturesacrificeofeconomicbenefitswillberequiredandareliableestimatecanbemadeofthe

amountoftheobligation.

Aprovisionfordividendsisnotrecognisedasaliabilityunlessthedividendsaredeclared,determinedorpublicly

recommendedonorbeforethereportingdate.

n) Contributed equity

Ordinarysharesarerecognisedatthefairvalueoftheconsiderationreceivedbythecompany.Anytransaction

costsarisingontheissueofordinarysharesarerecogniseddirectlyinequityasareductionoftheshareproceeds

received.

o) Earnings per share

Basicearningspershareiscalculatedbydividingtheprofitattributabletoequityholdersofthecompany,excluding

anycostsofservicingequityotherthanordinaryshares,bytheweightedaveragenumberofordinaryshares

outstandingduringthefinancialyear,adjustedforbonuselementsinordinarysharesissuedduringtheyear.

p) Goods and Services Tax

Revenues,expensesandassetsarerecognisednetoftheamountofGoodsandServicesTax(GST),exceptwhere

theamountofGSTincurredisnotrecoverablefromthetaxationauthority.Inthesecircumstances,theGSTis

recognisedaspartofthecostofacquisitionoftheassetoraspartoftheexpense.

ReceivablesandpayablesarestatedwiththeamountofGSTincluded.ThenetamountofGSTrecoverablefrom,

orpayableto,thetaxationauthorityisincludedaspartofreceivablesorpayablesinthebalancesheet.Cashflows

areincludedinthestatementofcashflowsonagrossbasis.

TheGSTcomponentsofcashflowsarisingfrominvestingandfinancingactivitieswhicharerecoverablefrom,or

payableto,thetaxationauthorityareclassifiedasoperatingcashflows.

Note2.FinancialriskmanagementThecompany’sactivitiesexposeittoalimitedvarietyoffinancialrisks:marketrisk(includingcurrencyrisk,fair

valueinterestriskandpricerisk),creditrisk,liquidityriskandcashflowinterestraterisk.Thecompany’soverall

riskmanagementprogramfocusesontheunpredictabilityoffinancialmarketsandseekstominimisepotential

adverseeffectsonthefinancialperformanceoftheentity.Theentitydoesnotusederivativeinstruments.

Riskmanagementiscarriedoutdirectlybytheboardofdirectors.

(i) Marketrisk

ThecompanyhasnoexposuretoanytransactionsdenominatedinacurrencyotherthanAustraliandollars.

(ii) Pricerisk

Thecompanyisnotexposedtoequitysecuritiespriceriskasitdoesnotholdinvestmentsforsaleoratfair

value.Thecompanyisnotexposedtocommoditypricerisk.



Note2.Financialriskmanagement(continued)

(iii)Creditrisk

Thecompanyhasnosignificantconcentrationsofcreditrisk.Ithaspoliciesinplacetoensurethatcustomers

haveanappropriatecredithistory.Thecompany’sfranchiseagreementlimitsthecompany’screditexposureto

onefinancialinstitution,beingBendigoandAdelaideBankLimited.

(iv)Liquidityrisk

Prudentliquiditymanagementimpliesmaintainingsufficientcashandmarketablesecuritiesandtheavailability

offundingfromcreditfacilities.ThecompanybelievesthatitssoundrelationshipwithBendigoandAdelaide

BankLimitedmitigatesthisrisksignificantly.

(v) Cashflowandfairvalueinterestraterisk

Interest-bearingassetsareheldwithBendigoandAdelaideBankLimitedandsubjecttomovementsinmarket

interest.Interest-rateriskcouldalsoarisefromlong-termborrowings.Borrowingsissuedatvariablerates

exposethecompanytocashflowinterest-raterisk.Thecompanybelievesthatitssoundrelationshipwith

BendigoandAdelaideBankLimitedmitigatesthisrisksignificantly.

(vi)Capitalmanagement

Theboard’spolicyistomaintainastrongcapitalbasesoastosustainfuturedevelopmentofthecompany.

Theboardofdirectorsmonitorthereturnoncapitalandthelevelofdividendstoshareholders.Capitalis

representedbytotalequityasrecordedinthebalancesheet.

Inaccordancewiththefranchiseagreement,inany12monthperiod,thefundsdistributedtoshareholders

shallnotexceedthedistributionlimit:

Thedistributionlimitisthegreaterof:

(a)20%oftheprofitorfundsofthefranchiseeotherwiseavailablefordistributiontoshareholdersinthat12

month period; and

(b) subjecttotheavailabilityofdistributableprofits,therelevantrateofreturnmultipliedbytheaveragelevelof

sharecapitalofthefranchiseeoverthat12monthperiodwheretherelevantrateofreturnisequaltothe

weightedaverageinterestrateon90daybankbillsoverthat12monthperiodplus5%.

Theboardismanagingthegrowthofthebusinessinlinewiththisrequirement.Therearenootherexternally

imposedcapitalrequirements,althoughthenatureofthecompanyissuchthatamountswillbepaidinthe

formofcharitabledonationsandsponsorship.Charitabledonationsandsponsorshippaidfortheyearended

30June2014canbeseeninthestatementofcomprehensiveincome.

Therewerenochangesinthecompany’sapproachtocapitalmanagementduringtheyear.

Note3.CriticalaccountingestimatesandjudgementsEstimatesandjudgementsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,

includingexpectationsoffutureeventsthatmayhaveafinancialimpactontheentityandthatarebelievedtobe

reasonable under the circumstances.

Thecompanymakesestimatesandassumptionsconcerningthefuture.Theresultingaccountingestimateswill,by

definition,seldomequaltherelatedactualresults.

Managementhasidentifiedthefollowingcriticalaccountingpoliciesforwhichsignificantjudgements,estimates

andassumptionsaremade.Actualresultsmaydifferfromtheseestimatesunderdifferentassumptionsand

conditionsandmaymateriallyaffectfinancialresultsorthefinancialpositionreportedinfutureperiods.



Note3.Criticalaccountingestimatesandjudgements(continued)

Furtherdetailsofthenatureoftheseassumptionsandconditionsmaybefoundintherelevantnotestothe

financial statements.

Taxation

Judgementisrequiredinassessingwhetherdeferredtaxassetsandcertaintaxliabilitiesarerecognisedon

thebalancesheet.Deferredtaxassets,includingthosearisingfromun-recoupedtaxlosses,capitallossesand

temporarydifferences,arerecognisedonlywhereitisconsideredmorelikelythannotthattheywillberecovered,

whichisdependentonthegenerationofsufficientfuturetaxableprofits.

Assumptionsaboutthegenerationoffuturetaxableprofitsdependonmanagement’sestimatesoffuturecash

flows.Thesedependonestimatesoffuturesalesvolumes,operatingcosts,capitalexpenditure,dividendsand

othercapitalmanagementtransactions.Judgementsarealsorequiredabouttheapplicationofincometax

legislation.

Thesejudgementsandassumptionsaresubjecttoriskanduncertainty.Thereisthereforeapossibilitythat

changesincircumstanceswillalterexpectations,whichmayimpacttheamountofdeferredtaxassetsand

deferredtaxliabilitiesrecognisedonthebalancesheetandtheamountofothertaxlossesandtemporary

differencesnotyetrecognised.Insuchcircumstances,someorallofthecarryingamountofrecogniseddeferred

taxassetsandliabilitiesmayrequireadjustment,resultingincorrespondingcreditorchargetothestatementof

comprehensiveincome.

Estimationofusefullivesofassets

Theestimationoftheusefullivesofassetshasbeenbasedonhistoricalexperienceandtheconditionofthe

assetisassessedatleastonceperyearandconsideredagainsttheremainingusefullife.Adjustmentstouseful

livesaremadewhenconsiderednecessary.

Goodwill

Goodwillrepresentstheexcessofthecostofanacquisitionoverthefairvalueofthecompany’sshareofthenet

identifiableassetsoftheacquiredbranch/agencyatthedateofacquisition.Goodwillonacquisitionisincludedin

intangibleassets.Goodwillisnotamortised.Instead,goodwillistestedforimpairmentannually,ormorefrequently

ifeventsorchangesincircumstancesindicatethatitmightbeimpairedandiscarriedatcostlessaccumulated

impairment losses.

Thecalculationsrequiretheuseofassumptions.

Impairmentofassets

Ateachreportingdate,thecompanyreviewsthecarryingamountsofitstangibleandintangibleassetsthathave

anindefiniteusefullifetodeterminewhetherthereisanyindicationthatthoseassetshavesufferedanimpairment

loss.Ifanysuchindicationexists,therecoverableamountoftheassetisestimatedinordertodeterminethe

extentoftheimpairmentloss(ifany).Wheretheassetdoesnotgeneratecashflowsthatareindependentfrom

otherassets,theconsolidatedentityestimatestherecoverableamountofthecash-generatingunittowhichthe

asset belongs.

Recoverableamountisthehigheroffairvaluelesscoststosellandvalueinuse.Inassessingvalueinuse,the

estimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrent

marketassessmentsofthetimevalueofmoneyandtherisksspecifictotheassetforwhichtheestimatesof

futurecashflowshavenotbeenadjusted.



Note3.Criticalaccountingestimatesandjudgements(continued)

Impairmentofassets(continued)

Iftherecoverableamountofanasset(orcash-generatingunit)isestimatedtobelessthanitscarryingamount,

thecarryingamountoftheasset(cash-generatingunit)isreducedtoitsrecoverableamount.Animpairmentloss

isrecognisedinprofitorlossimmediately,unlesstherelevantassetiscarriedatfairvalue,inwhichcasethe

impairmentlossistreatedasarevaluationdecrease.

Whereanimpairmentlosssubsequentlyreverses,thecarryingamountoftheasset(cash-generatingunit)is

increasedtotherevisedestimateofitsrecoverableamount,butonlytotheextentthattheincreasedcarrying

amountdoesnotexceedthecarryingamountthatwouldhavebeendeterminedhadnoimpairmentlossbeen

recognisedfortheasset(cash-generatingunit)inprioryears.Areversalofanimpairmentlossisrecognised

inprofitorlossimmediately,unlesstherelevantassetiscarriedatfairvalue,inwhichcasethereversalofthe

impairmentlossistreatedasarevaluationincrease.

2014 2013 $ $

Note4.RevenuefromordinaryactivitiesOperatingactivities:

-servicescommissions 508,678 491,738

-otherrevenue 3,785 -

Total revenue from operating activities 512,463 491,738

Note5.ExpensesDepreciationofnon-currentassets:

-plantandequipment 2,267 2,374

-leaseholdimprovements 4,800 7,349

Amortisationofnon-currentassets:

-franchiseagreement 2,310 2,310

-franchiserenewalfee 11,555 11,554

20,932 23,587

Finance costs:

- interest paid 21,421 23,840

Bad debts 793 2,086



Note6.Incometaxexpense/creditThecomponentsoftaxexpensecomprise:

-Movementindeferredtax (1,933) 1,236

-Recoupmentofprioryeartaxlosses 5,557 6,817

-Reductionintaxlossescarriedforward (3,624) (8,053)

- -

Theprimafacietaxonprofitfromordinaryactivitiesbeforeincometaxis

reconciledtotheincometaxexpenseasfollows:

Operatingprofit 9,661 29,263

Primafacietaxonprofitfromordinaryactivitiesat30% 2,898 3,894

Addtaxeffectof:

-non-deductibleexpenses - 4,159

-timingdifferenceexpenses 6,818 (1,236)

-otherdeductibleexpenses (4,159) -

5,557 6,817

Movementindeferredtax (1,933) 1,236

Reductionintaxlossescarriedforward (3,624) (8,053)

- -

Incometaxlosses

Openingbalance 281,902 289,955

Futureincometaxbenefitnotbroughttoaccount - -

Reductionintaxlossescarriedforward (3,624) (8,053)

Future income tax benefits arising from tax losses are not recognised at

reporting date as realisation of the benefit is not regarded as virtually

certain. Future income tax benefit carried forward is: 278,278 281,902

Note7.TradeandotherreceivablesTradereceivables 32,735 49,202

Otherreceivablesandaccruals - -

Prepayments 3,155 -

35,890 49,202

2014 2013 $ $



Note8.Property,plantandequipment Plant and equipment

Atcost 52,752 50,910

Lessaccumulateddepreciation (35,625) (33,358)

17,127 17,552

Leasehold improvements

Atcost 157,476 156,584

Lessaccumulateddepreciation (60,972) (56,172)

96,504 100,412

Total written down amount 113,631 117,964

Movements in carrying amounts:

Plant and equipment

Carryingamountatbeginning 17,552 18,052

Additions 1,842 1,874

Disposals - -

Less:depreciationexpense (2,267) (2,374)

Carrying amount at end 17,127 17,552

Leasehold improvements

Carryingamountatbeginning 100,412 107,761

Additions 892 -

Disposals - -

Less:depreciationexpense (4,800) (7,349)

Carrying amount at end 96,504 100,412


Note9.IntangibleassetsFranchise fee

Atcost 21,554 21,554

Less:accumulatedamortisation (16,162) (13,851)

5,392 7,703

2014 2013 $ $



Note9.Intangibleassets(continued)

Renewal processing fee

Atcost 57,768 57,768

Less:accumulatedamortisation (30,810) (19,256)

26,958 38,512


Note10.TradeandotherpayablesTradecreditors 19,545 35,374

Othercreditorsandaccruals 15,857 14,336

35,402 49,710

Note11.Borrowings Current:

Bankoverdrafts 462,889 496,205

462,889 496,205

Note 11.(a) Bank overdraft (462,889) (496,205)

Thecompanyhasanapprovedoverdraftfacilityof$600,000thatissubjecttoanannualreview.Theoverdraft

atBendigoBank’snormalcommercialinterestrates(currently4.695%).Theoverdraftissecuredbyafixedand

floatingchargeoverthecompany’sassets.

2014 2013 $ $

Note12.ProvisionsCurrent:

Provision for annual leave 10,797 5,220

Non-Current:

Provision for long service leave 5,200 4,324

Note13.Contributedequity603,409Ordinarysharesfullypaid(2013:603,409) 603,409 603,409

Less:equityraisingexpenses (30,846) (30,846)

572,563 572,563

2014 2013 $ $



Note13.Contributedequity(continued)

Rightsattachedtoshares

(a)Votingrights

Subjecttosomelimitedexceptions,eachmemberhastherighttovoteatageneralmeeting.

Onashowofhandsorapoll,eachmemberattendingthemeeting(whethertheyareattendingthemeeting

inpersonorbyattorney,corporaterepresentativeorproxy)hasonevote,regardlessofthenumberofshares

held.However,whereapersonattendsameetinginpersonandisentitledtovoteinmorethanonecapacity

(forexample,thepersonisamemberandhasalsobeenappointedasproxyforanothermember)thatperson

mayonlyexerciseonevoteonashowofhands.Onapoll,thatpersonmayexerciseonevoteasamemberand

onevoteforeachothermemberthatpersonrepresentsasdulyappointedattorney,corporaterepresentativeor

proxy.

Thepurposeofgivingeachmemberonlyonevote,regardlessofthenumberofsharesheld,istoreflectthe

natureofthecompanyasacommunitybasedcompany,byprovidingthatallmembersofthecommunitywho

havecontributedtotheestablishmentandongoingoperationoftheCommunity Bank®branchhavethesame

abilitytoinfluencetheoperationofthecompany.

(b)Dividends

Generally,dividendsarepayabletomembersinproportiontotheamountofthesharecapitalpaiduponthe

sharesheldbythem,subjecttoanyspecialrightsandrestrictionsforthetimebeingattachingtoshares.The

franchiseagreementwithBendigoandAdelaideBankLimitedcontainsalimitonthelevelofprofitsorfunds

thatmaybedistributedtoshareholders.Thereisalsoarestrictiononthepaymentofdividendstocertain

shareholdersiftheyhaveaprohibitedshareholdinginterest(seebelow).

(c)Transfer

Generally,ordinarysharesarefreelytransferable.However,thedirectorshaveadiscretiontorefusetoregister

atransferofshares.

Subjecttotheforegoing,shareholdersmaytransfersharesbyapropertransfereffectedinaccordancewiththe

company’sconstitutionandtheCorporationsAct2001.

Prohibited shareholding interest

Apersonmustnothaveaprohibitedshareholdinginterestinthecompany.

Insummary,apersonhasaprohibitedshareholdinginterestifanyofthefollowingapplies:

• Theycontrolorown10%ormoreofthesharesinthecompany(the“10%limit”).

• Intheopinionoftheboardtheydonothaveacloseconnectiontothecommunityorcommunitiesinwhichthe

companypredominantlycarriesonbusiness(the“closeconnectiontest”).

• Wherethepersonisashareholder,afterthetransferofsharesinthecompanytothatpersonthenumberof

shareholdersinthecompanyis(orwouldbe)lowerthanthebasenumber(the“basenumbertest”).Thebase

numberis195.Asatthedateofthisreport,thecompanyhad215shareholders.

Aswithvotingrights,thepurposeofthisprohibitedshareholdingprovisionistoreflectthecommunity-basednature

ofthecompany.

Whereapersonhasaprohibitedshareholdinginterest,thevotinganddividendrightsattachingtothesharesin

whichtheperson(andhisorherassociates)haveaprohibitedshareholdinginterest,aresuspended.



Note13.Contributedequity(continued)

Prohibitedshareholdinginterest(continued)

Theboardhasthepowertorequestinformationfromapersonwhohas(orissuspectedbytheboardofhaving)

alegalorbeneficialinterestinanysharesinthecompanyoranyvotingpowerinthecompany,forthepurposeof

determiningwhetherapersonhasaprohibitedshareholdinginterest.Iftheboardbecomesawarethatamember

hasaprohibitedshareholdinginterest,itmustserveanoticerequiringthemember(orthemember’sassociate)to

disposeofthenumberofsharestheboardconsidersnecessarytoremedythebreach.Ifapersonfailstocomply

withsuchanoticewithinaspecifiedperiod(thatmustbebetweenthreeandsixmonths),theboardisauthorised

tosellthespecifiedsharesonbehalfofthatperson.Theholderwillbeentitledtotheconsiderationfromthesale

oftheshares,lessanyexpensesincurredbytheboardinsellingorotherwisedealingwiththoseshares.

Intheconstitution,membersacknowledgeandrecognisethattheexerciseofthepowersgiventotheboardmay

causeconsiderabledisadvantagetoindividualmembers,butthatsucharesultmaybenecessarytoenforcethe

prohibition.

2014 2013 $ $

Note14.AccumulatedlossesBalanceatthebeginningofthefinancialyear (914,641) (943,904)

Netprofitfromordinaryactivitiesafterincometax 9,661 29,263

Dividendspaidorprovidedfor - -

Balance at the end of the financial year (904,980) (914,641)

Note15.Statementofcashflows Reconciliationofprofitfromordinaryactivitiesaftertaxtonetcashprovided

byoperatingactivities

Profitfromordinaryactivitiesafterincometax 9,661 29,263

Noncashitems:

-depreciation 7,067 9,723

-amortisation 13,865 13,864

Changes in assets and liabilities:

-(increase)/decreaseinreceivables 13,312 (25,936)

-increase/(decrease)inpayables 1,578 (35,085)

-increase/(decrease)inprovisions 6,453 (193)

Net cash flows provided by/(used in) operating activities 51,936 (8,364)



Note16.LeasesOperating lease commitments

Non-cancellableoperatingleasescontractedforbutnotcapitalisedinthe

financial statements

Payable - minimum lease payments:

-notlaterthan12months 22,000 22,546

-between12monthsand5years 49,500 49,236

-greaterthan5years -

71,500 71,782

Thebranchpremisesleaseisanon-cancellableleasewithafive-yearterm,withrentpayablemonthlyinadvance.

RentisincreasedannuallyinSeptemberby3%forthefirsttermofthelease.Theleaseisdueforrenewalin

September2016withafurther5yeartermavaliable.

2014 2013 $ $

Note17.Auditor’sremunerationAmountsreceivedordueandreceivablebytheauditorofthecompanyfor:

-auditandreviewservices 3,850 3,600

-shareregistryservices 1,500 1,450

-nonauditservices 3,582 2,220

8,932 7,270

Note18.DirectorandrelatedpartydisclosuresDetailedremunerationdisclosuresareprovidedintheremunerationreport,includedaspartofthedirectors’

report.

TransactionswithDirectors

2014 $

2013 $

TimothyDugganprovidedBBQmeatsduringtheperiodunderreview.He

receivedatotalof 220 -

2014 2013 $ $



Note18.Directorandrelatedpartydisclosures(continued)

KeyManagementPersonnelShareholdings

2014 2013

Ordinarysharesfullypaid 58,001 58,001

Detailedshareholdingdisclosuresareprovidedintheremunerationreport,includedaspartofthedirectors’

report.

Note19.Earningspershare

2014 $

2013 $

(a) Profitattributabletotheordinaryequityholdersofthecompanyused

in calculating earnings per share9,661 29,263

Number Number

(b) Weightedaveragenumberofordinarysharesusedasthedenominator

in calculating basic earnings per share603,409 603,409

Note20.EventsoccurringafterthereportingdateTherehavebeennoeventsaftertheendofthefinancialyearthatwouldmateriallyaffectthefinancialstatements.

Note21.ContingentliabilitiesandcontingentassetsTherewerenocontingentliabilitiesorcontingentassetsatthedateofthisreporttoaffectthefinancial

statements.

Note22.SegmentreportingTheeconomicentityoperatesintheservicesectorwhereitfacilitatesCommunity Bank®servicesinMundubbera,

QueenslandpursuanttoafranchiseagreementwithBendigoandAdelaideBankLimited.

Note23.Registeredoffice/PrincipalplaceofbusinessTheentityisacompanylimitedbyshares,incorporatedanddomiciledinAustralia.Theregisteredofficeand

principalplaceofbusinessis:

Registered Office Principal Place of Business

54LyonsStreet

MundubberaQLD4626

54LyonsStreet

MundubberaQLD4626



Note24.Financialinstruments

Financial Instrument Composition and Maturity Analysis

Thetablebelowreflectstheundiscountedcontractualsettlementtermsforallfinancialinstruments,aswellasthe

settlementperiodforinstrumentswithafixedperiodofmaturityandinterestrate.

Financial instrument

Floating interestFixed interest rate maturing in Non interest

bearingWeighted average1 year or less Over 1 to 5 years Over 5 years

2014$

2013$

2014$

2013$

2014$

2013$

2014$

2013$

2014$

2013$

2014%

2013%

Financial assets

Cash and cash equivalents

- - - - - - - - - 0.00 0.00

Receivables - - - - - - - - 35,890 32,919 N/A N/A

Financial liabilities

Interest bearing liabilities

462,889 496,205 - - - - - - - - 4.63 4.94

Payables - - - - - - - - 35,402 49,710 N/A N/A

NetFairValues

Thenetfairvaluesoffinancialassetsandliabilitiesapproximatethecarryingvaluesasdisclosedinthebalance

sheet.Thecompanydoesnothaveanyunrecognisedfinancialinstrumentsattheyearend.

CreditRisk

Themaximumexposuretocreditriskatbalancedatetorecognisedfinancialassetsisthecarryingamountof

those assets as disclosed in the balance sheet and notes to the financial statements.

Therearenomaterialcreditriskexposurestoanysingledebtororgroupofdebtorsunderfinancialinstruments

entered into by the economic entity.

InterestRateRisk

Interestrateriskreferstotheriskthatthevalueofafinancialinstrumentorcashflowsassociatedwiththe

instrumentwillfluctuateduetochangesinmarketinterestrates.Interestrateriskarisesfromtheinterestbearing

financialassetsandliabilitiesinplacesubjecttovariableinterestrates,asoutlinedabove.

SensitivityAnalysis

Thecompanyhasperformedsensitivityanalysisrelatingtoitsexposuretointerestrateriskatbalancedate.

Thissensitivityanalysisdemonstratestheeffectonthecurrentyearresultsandequitywhichcouldresultfroma

change in interest rates.



Note24.Financialinstruments(continued)

SensitivityAnalysis(continued)

Asat30June2014,theeffectonprofitandequityasaresultofchangesininterestrate,withallothervariables

remainingconstantwouldbeasfollows:

2014 $

2013 $

Changeinprofit/(loss)

Increase in interest rate by 1% (4,629) (4,962)

Decreaseininterestrateby1% (4,629) (4,962)

Changeinequity

Increase in interest rate by 1% (4,629) (4,962)

Decreaseininterestrateby1% (4,629) (4,962)


Directors’declarationInaccordancewitharesolutionofthedirectorsofMundubberaFinancialServicesLimited,westatethat:

Intheopinionofthedirectors:

(a) thefinancialstatementsandnotesofthecompanyareinaccordancewiththeCorporationsAct2001,

including:

(i) givingatrueandfairviewofthecompany’sfinancialpositionasat30June2014andofitsperformance

forthefinancialyearendedonthatdate;and

(ii) complyingwithAccountingStandards,theCorporationsRegulations2001andothermandatoryprofessional

reportingrequirements;and

(b) therearereasonablegroundstobelievethatthecompanywillbeabletopayitsdebtsasandwhenthey

become due and payable.

(c) theauditedremunerationdisclosuressetoutintheremunerationreportsectionofthedirectors’reportcomply

withAccountingStandardAASB124RelatedPartyDisclosuresandtheCorporationsRegulations2001.

Thisdeclarationismadeinaccordancewitharesolutionoftheboardofdirectors.

Paul Jeffrey Dare,

Chairman

Signedonthe3rdofSeptember2014.


Independent audit report


Independent audit report (continued)

bendigobank.com.au

Mundubbera Community Bank® Branch 54 Lyons Street, Mundubbera QLD 4626Phone: (07) 4165 3798 Fax: (07) 4165 3829

Franchisee: North Burnett Community Enterprises Limited 54 Lyons Street, Mundubbera QLD 4626Phone: (07) 4165 3798 Fax: (07) 4165 3829ABN: 33 120 578 565

www.bendigobank.com.au/mundubbera (BMPAR14075) (09/14)

annual report 2014 - bendigo bank · letetia berthelsen (appointed 1 july 2013) 1,000 - 1,000 susan...

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