annual report 2015 - bchsfinal] bch annual report...annual report working together ... (dip a ccou...

Annual Report

Working Together With Trust and Respect

2015

SERVING THE COMMUNITY



SERVING THE COMMUNITY0000YEARSYEARS

1975-20151975-2015


SERVING THE COMMUNITY000YEARS

1975-2015

Financial Report for the year ended 30 June 2015

Banyule Community Health ACN 135 660 454


Financial Statements

For the Year Ended 30 June 2015


Contents For the Year Ended 30 June 2015

Page

Financial Statements Directors' Report 1 Statement of Profit or Loss and Other Comprehensive Income 7 Statement of Financial Position 8 Statement of Changes in Equity 9 Statement of Cash Flows 10 Notes to the Financial Statements 11 Directors' Declaration 34 Independent Audit Report 35

Page

Financial Statements

Directors' Report ............................................................................................................................................1

Statement of Profit or Loss and Other Comprehensive Income ...................................................................7

Statement of Financial Position .....................................................................................................................8

Statement of Changes in Equity ....................................................................................................................9

Statement of Cash Flows ............................................................................................................................10

Notes to the Financial Statements ..............................................................................................................11

Directors' Declaration ..................................................................................................................................34

Independent Audit Report ............................................................................................................................35


Directors' Report 30 June 2015

The directors present their report on Banyule Community Health ("the Company") for the financial year ended 30 June 2015.

Information on directors

The names of each person who has been a director during the year and to the date of this report are: John Ferraro Qualifications Bachelor Science, Bachelor Orthoptics, Master Health Administration Experience John is a trained Orthoptist and has previously worked as a clinician

in the private and public sector. Previously he has also been employed in various roles within the acute health and university sectors. John is a Member of Australian Institute of Company Directors. John is a former Director of the Victorian Deaf Society. John has been a member of the Board of Directors since 2008.

Special responsibilities Chair BCH Board of Directors; Member of the Client Services and Staffing Sub Committee

Peter Ogden Experience Peter retired in 2008 after 30 years as a director of a sign

manufacturing business in West Heidelberg, and has been a member of the Board of Directors since 1990.

Special responsibilities Member of the Audit and Finance Sub Committee

Chris Deakin Qualifications Bachelor of Economics, Diploma Financial Services and Prince 2

Project Management. Experience Chris has lived in the Banyule area for over 20 years and has served

the community through terms as Treasurer and President at Heidelberg Primary School and Councillor and President at Viewbank College.

Chris’ professional career as seen over 25 years in financial services. Her current role is Manager Strategic Partnerships for First State Super and she works with the Health and Community Services sector.

Chris joined the BCH Board of Directors in October 2013.

Special responsibilities Member of the Client Services and Staffing Sub-Committee

David McKenzie Qualifications David commenced his career as a primary school teacher and has

taught at many local schools such as Watsonia, Viewbank, Greenhills, Briar Hill and Eltham. He holds a Degree in Economics.

Experience David was a foundation member of the Diamond Valley Shire Council (1964) and Shire President from 1969 to 1971. David was the Member for Diamond Valley in the House of Representatives from 1972 to 1975. He was the former Chairman of the Publications Committee of the House of Representatives and Chairman of the Joint House and Senate Publications Committee. He is the Past National President of the Association of Former Members of the Australian Parliament.

Special responsibilities Deputy Chair BCH Board of Directors; Member of the Audit and Finance Sub Committee

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2


Anthony O'Donnell Qualifications Anthony holds a Bachelor of Nursing (Honours) and a Masters of

Health Administration. Experience Anthony O'Donnell is currently a Divisional Director of Nursing and

Operations at Melbourne Health. His background is as a registered nurse specialising in oncology and haematology and he has spent most of his clinical career at Box Hill Hospital and the Austin Hospital.

Previously Anthony has been employed in a number of clinical and non-clinical roles and most recently was a project manager working on the Box Hill redevelopment.

Anthony has extensive experience working in the acute health sector both as a clinician and a health planner.

Anthony was appointed to the Board of Directors in 2011.

Special responsibilities Convenor of the Client Services and Staffing Sub-Committee

Dr Melissa Russell Qualifications PhD, Bachelor of Physiotherapy Experience Melissa's background is as a physiotherapist and she has worked in

a variety of fields of physiotherapy in Australia and overseas.

Following many years as a physiotherapist Melissa undertook her PhD through the University of Melbourne and the National Ageing Research Institute and completed it in 2008. She has since worked in public health research, focusing on the areas of healthy ageing, the benefits of physical activity and injury prevention.

She is currently employed at the University of Melbourne as a Lecturer in Epidemiology and Coordinator of the Master of Public Health course.

Special responsibilities Member of the Client Services and Staffing Sub-Committee

Craig Trenfield Qualifications Craig is a member of the Institute of Chartered Accountants and the

Australian Health Services Financial Management Association (AHSFMA) and holds a Bachelor of Business and a Graduate Diploma in Accounting.

Experience Craig joined the BCH Board of Directors on 1 April 2012.

Craig Trenfield is an experienced financial executive with expertise in the Public Health sector having begun his career in health in 1995 when he joined Royal Melbourne Hospital. He later moved to Northern Health as the Finance Manager before taking up his current role in 2006 as Director Financial Services with Eastern Health.

Prior to this, Craig spent many years as an Auditor with Coopers & Lybrand, both in Australia and Edinburgh, Scotland.

Special responsibilities Convenor of the Audit and Finance Sub-Committee; Treasurer of the BCH Board of Directors

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Anita Brown Qualifications Bachelor of Arts/Bachelor of Laws, Master of Intellectual Property

Law, legal practitioner, registered trade mark attorney, journalist Experience Anita has worked as both a journalist and a lawyer. She also has an

interest in privacy and freedom of information law and is a member of the Federal Government's Information Advisory Committee. Anita also sits on the Committee of Management for Olympic Adult Education.

Special responsibilities Member of the Audit and Finance Sub-Committee

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

Company secretary

The following person held the position of Company secretary at the end of the financial year:

Jim Pasinis (Dip Accounting, Grad Dip Health Administration, Associate Fellow Australasian College Health Service Management (ACHSM)) has been the company secretary since 16 November 2009. In addition to his role as company secretary, Jim has worked for Banyule Community Health for the past 20 years as its CEO.

Significant changes in state of affairs

On 1 July 2014, the Company obtained control of West Heidelberg Community Legal Service Inc. ("the Legal Service") via a deed of amalgamation. The Company and the Legal Service had shared premises since 1975 and had increasingly shared back of house resources. The Company and the Legal Service recognised synergies and the opportunity to provide enhanced services through amalgamation.

Principal activities

The principal activity of Banyule Community Health during the financial year was the provision of health and welfare services.

Additionally, from 1 July 2015, the Company now also provides community legal services.

Operational plan 2014-15

Area of Focus 1: Community Responsiveness Goals/Objectives:

Strategy Outcome

1. Increase reach of our programs and services - Increase Peer support Service.

- Implement the Aboriginal and Torres Strait Islander Action Plan developed in response to 2013 Cultural Audit

Two new peer support programs were established. 70% of tasks on the 2013 Cultural Audit have been completed. Aboriginal and Torres Strait Islander registration targets, set by Banyule Community Health against ABS data, have been exceeded.

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Strategy Outcome

2. Embed a client-centred approach - Increase staff capability in person centred assessment and care planning.

- There has been an increase in case conferences for complex clients & staff have received training. Improvements have been trialed and

- Establish process where new clients made to client goal directed care

3. Improve access and equity for marginalised and at risk populations

identify goals in their care.

- Improve process of identifying where clients may be benefit from joint assessments.

- Develop a consistent approach to ‘Do Not Attend’ appointments. - Improve consistency in waitlist management across the agency.

- Ensure clients from priority groups are able to access services without wait.

- Better identify and target priority groups in catchments.

- Increase the staff awareness of the experiences of priority groups and how to respond.

- Identify new program areas.

plans. Processes to notify staff of possibility for joint client assessment have been implemented.

- Following consultation it was decided that a Working Group will address Do Not Attends in conjunction with waitlist management. - A Working Group will address ‘Do Not Attends’ in conjunction with waitlist management (as above). Using ‘Do Not Attend’ appointments, high priority clients are offered an immediate appointment. The process will be reviewed by the Working Group. - Access of priority groups was benchmarked in the Department of Health and Human Services pilot of Community Health Practice Indicators. Staff were surveyed and trained in Lesbian Gay Bisexual Transsexual and/or Intersex with ‘champions’ leading workplace change. Staff training in the profile, background and experiences of people from Arab speaking countries.

Area of Focus 2: Sustainability Goals/Objectives:

1. Ensure financial sustainability Build agency capacity to respond to external conditions that impact services.

2. Effective utilisation of resources Increase efficiency through improved service planning and monitoring.

- BCH merger with West Heidelberg Legal service.

Business Continuity Plan.

- Enviso, a program to organise cascading planning systems and reporting, was purchased and all staff were trained.

3. Continuously improve our positive working culture

Area of Focus 3: Innovation and Creativity Goals/Objectives:

Implement systems to recognise and acknowledge positive staff performance.

- A monthly Key Performance Indicators Score Card was developed for routine reporting to the Board. The Performance Appraisal module of Enviso has been investigated for use. A Supervision Tool have been developed and trialed.

1. Improve our research and evaluation capacity - Develop an evaluation framework across the agency that measures client outcomes.

- Increase capacity of staff to use research in practice.

- Increase profile of research and evaluation at BCH.

An Evaluation Framework has been developed and trialed by the Allied Health Team. Tip sheets for developing a survey, oral presentation and conference poster have been developed. Conference posters and presentations are on the web and intranet.

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Strategy Outcome

2. Develop our knowledge management systems Improve management of organisational documents so that they are appropriately stored and easily retrieved.

3. Address health literacy Integration of health literacy in staff practices and organisational processes.

Staff survey of document management completed and consulted with external consultants. Intranet to be re-designed to improve current document management systems. All Executive Managers, Team Leaders, Coordinators and the CEO were trained in Health Literacy, as were 38 direct client staff. There were over 12 health literacy projects carried out in teams across the agency. Includes review of waiting rooms and client orientation pack.

77% of the initiatives in the 2014-15 Operational Plan were either completed or in significant progress over the course of the year.

Members guarantee

Banyule Community Health 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 members and any person or association who ceased to be a member in the year prior to the winding up, is limited to $ 1 for members that are corporations and $ 1 for all other members, subject to the provisions of the company's constitution.

At 30 June 2015 the collective liability of members was $ 638 (2014: $ 646).

Operating results

The surplus of the Company for the financial year amounted to $ 329,679 (2014: $ 552,067).

Meetings of directors

During the financial year, 28 meetings of directors (including committees of directors) were held. Attendances by each director during the year were as follows:

Directors' Meetings

Audit & Finance

Committee

Client Services & Staffing

Committee

Number eligible to

attend

Number attended

Number eligible to

attend

Number attended

Number eligible to

attend

Number attended

John Ferraro 11 10 - - 6 5 Peter Ogden 11 10 11 10 - - Chris Deakin 11 9 - - 6 4 David McKenzie 11 10 11 10 - - Anthony O'Donnell 11 10 - - 6 4 Dr Melissa Russell 11 9 - - 6 5 Craig Trenfield 11 10 11 10 - - Anita Brown 11 8 11 8 - -

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Auditor's independence declaration

The auditor's independence declaration for the year ended 30 June 2015 has been received from HLB Mann Judd.

Signed in accordance with a resolution of the Board of Directors:

Director: ...............................................................

John Ferraro

Director: ................................................................

Craig Trenfield

Dated this 24th day of September 2015

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Statement of Profit or Loss and Other Comprehensive Income

For the Year Ended 30 June 2015

Revenue

Note 5

2015 $

15,013,607

2014 $

13,937,324 Gain on merger with West Heidelberg Community Legal Services Inc. 7 127,383 - Gains/(losses) on financial assets (14,324) - Employee benefits expense (11,031,002) (10,163,720) Depreciation and amortisation expense 6 (211,475) (194,676) Client programs & medical expenses (1,773,931) (1,297,649) Lease expenses (106,291) (101,796) Motor vehicle & travel expenses (72,993) (80,329) Repairs & maintenance expenses (126,329) (128,976) Rental expenses (119,609) (110,563) Equipment purchases (51,049) (101,861) Consultancy fees (299,547) (268,560) Printing & stationery expenses (230,237) (210,397) Cleaning expenses (106,162) (103,798) Other expenses (659,701) (615,764) Finance costs 6 (8,661) (7,168)

Surplus/(loss) from operations 18 329,679 552,067

Other comprehensive income/(loss) Items that will not be reclassified subsequently to profit or loss

-

- Items that will be reclassified to profit or loss when specific conditions are met - -

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

Total comprehensive income/(loss) for the year 329,679 552,067

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The accompanying notes form part of these financial statements.


Statement of Financial Position As At 30 June 2015

2015

2014

Note $ $

ASSETS CURRENT ASSETS

Cash and cash equivalents 8 2,962,523 3,542,829 Trade and other receivables 9 391,883 251,187 Other financial assets 10 1,471,795 - Other assets 11 10,321 37,558 TOTAL CURRENT ASSETS 4,836,522 3,831,574 NON-CURRENT ASSETS Property, plant and equipment 12 1,963,901 2,088,849 Intangible assets 13 10,031 15,046 TOTAL NON-CURRENT ASSETS 1,973,932 2,103,895

TOTAL ASSETS 6,810,454 5,935,469

LIABILITIES CURRENT LIABILITIES

Trade and other payables 14 927,186 914,735 Borrowings 15 30,805 12,364 Employee benefits 16 1,573,671 1,421,613 Other liabilities 17 886,254 602,183 TOTAL CURRENT LIABILITIES 3,417,916 2,950,895 NON-CURRENT LIABILITIES Borrowings 15 - 30,805 Employee benefits 16 765,084 655,994 TOTAL NON-CURRENT LIABILITIES 765,084 686,799 TOTAL LIABILITIES 4,183,000 3,637,694 NET ASSETS 2,627,454 2,297,775

EQUITY Retained earnings TOTAL EQUITY

18 2,627,454 2,297,775 2,627,454 2,297,775

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Statement of Changes in Equity For the Year Ended 30 June 2015

2015

Note

Retained Earnings

$

Total $

Balance at 1 July 2014 18 2,297,775 2,297,775 Net surplus/(deficit) for the year 18 329,679 329,679

Balance at 30 June 2015 18 2,627,454 2,627,454

2014

Note

Retained Earnings

$

Total $

Balance at 1 July 2013 18 1,745,708 1,745,708 Net surplus/(deficit) for the year 18 552,067 552,067

Balance at 30 June 2014 18 2,297,775 2,297,775

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Statement of Cash Flows For the Year Ended 30 June 2015

2015

2014

Note $ $

CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from clients and government grants

15,037,803

15,434,542

Payments to suppliers and employees (14,343,902) (14,643,385) Dividends received 31,466 - Interest received 97,347 65,665 Finance costs (8,661) (7,168) Net cash provided by (used in) operating activities 21(b) 814,053 849,654

CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of plant and equipment

-

100,522 Purchase of property, plant and equipment (89,193) (585,518) Cash acquired from business combination 195,365 - Purchase of financial assets (1,488,167) - Net cash provided by/(used in) investing activities (1,381,995) (484,996)

CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of borrowings

(12,363)

(42,625) Net cash used in financing activities (12,363) (42,625)

Net increase (decrease) in cash and cash equivalents held

(580,305)

322,033 Cash and cash equivalents at beginning of financial year 3,542,829 3,220,796 Cash and cash equivalents at end of financial year 21(a) 2,962,524 3,542,829

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Notes to the Financial Statements For the Year Ended 30 June 2015

The financial report covers Banyule Community Health as an individual entity. Banyule Community Health is a not-for-profit Company limited by guarantee, incorporated and domiciled in Australia.

The functional and presentation currency of Banyule Community Health is Australian dollars.

The financial report was authorised for issue by the Directors on 24 September 2015.

Comparatives are consistent with prior years, unless otherwise stated.

1 Basis of Preparation

The financial statements are general purpose financial statements that have been prepared in accordance with the Australian Accounting Standards - Reduced Disclosure Requirements, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Australian Charities and Not-for- profits Commission Act 2012.

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

Significant accounting policies adopted in the preparation of these financial statements are presented below and are consistent with prior reporting periods unless otherwise stated.

2 Summary of Significant Accounting Policies

(a) Income Tax

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

(b) Property, Plant and Equipment

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

Where the cost model is used, the asset is carried at its cost less any accumulated depreciation and any impairment losses. Costs include purchase price, other directly attributable costs and the initial estimate of the costs of dismantling and restoring the asset, where applicable.

Land and buildings

Land and buildings are measured using the cost model.

Freehold land and buildings that have been contributed at nil or nominal consideration have been recorded at the acquisition date fair value.

Plant and equipment

Plant and equipment are measured using the cost model.

Plant and equipment that have been contributed at no cost, or for nominal cost are valued and recognised at the fair value of the asset at the date it is acquired.

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Depreciation

Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assets useful life to the Company, commencing when the asset is ready for use.

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

Fixed asset class Buildings/Leasehold Improvements

Depreciation rate 5%

Plant and Equipment 20% Furniture, Fixtures and Fittings 10% Motor Vehicles 12.5% Computer Equipment 20%

At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate.

When an asset is disposed, the gain or loss is calculated by comparing proceeds received with its carrying amount and is taken to profit or loss.

(c) Leases

Company as Lessee

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that are transferred to the Company are classified as finance leases.

Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Leased assets are depreciated on a straight-line basis over their estimated useful lives when it is likely that the Company will obtain ownership of the asset or over the term of the lease.

Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the life of 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.

(d) 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.

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Classification and subsequent measurement

Financial instruments are subsequently measured at either fair value, amortised cost using the effective interest rate method, or cost. 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:

(a) the amount at which the financial asset or financial liability is measured at initial recognition;

(b) less principal repayments;

(c) 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

(d) 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.

The Company does not designate any interest as being subject to the requirements of accounting standards specifically applicable to financial instruments.

(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 the Company's intention to hold these investments to maturity. They are subsequently measured at amortised cost.

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Held-to-maturity investments are included in non-current assets, except for those which are expected 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) 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.

Impairment of financial assets

At the end of each reporting period, the Company assesses whether there is objective evidence that a financial asset has been impaired. A financial asset (or a group of financial assets) is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a “loss event”) having occurred, which has an impact on the estimated future cash flows of the financial asset(s).

Financial assets at amortised cost

In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults.

For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial assets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance account.

When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the Company recognises the impairment for such financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered.

Derecognition

Financial assets are derecognised when the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the Company no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised when the related obligations are discharged, cancelled or have expired. The difference between the carrying amount 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.

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(e) Impairment of non-financial assets

At the end of each reporting period the Company determines whether there is any evidence of impairment for its non-financial assets.

Where this indicator exists and regardless for goodwill, indefinite life intangible assets and intangible assets not yet available for use, the recoverable amount of the asset is estimated.

Where assets do not operate independently of other assets, the recoverable amount of the relevant cash- generating unit (CGU) is estimated.

The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal and the value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or cash- generating unit.

Where the recoverable amount is less than the carrying amount, an impairment loss is recognised in profit or loss.

Reversal indicators are considered in subsequent periods for all assets which have suffered an impairment loss, except for goodwill.

(f) Employee benefits

Short-term employee benefits

Provision is made for the Company’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service, including wages and salaries. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled.

The Company’s obligations for short-term employee benefits such as wages and salaries are recognised as a part of current trade and other payables in the statement of financial position.

Other long-term employee benefits

The Company classifies employees’ long service leave and annual leave entitlements as other long-term employee benefits as they are not expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. Provision is made for the Company’s obligation for other long-term employee benefits, which are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures, and are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Upon the remeasurement of obligations for other long-term employee benefits, the net change in the obligation is recognised in profit or loss classified under employee benefits expense.

The Company’s obligations for long-term employee benefits are presented as non-current liabilities in its statement of financial position, except where the Company does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the obligations are presented as current liabilities.

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Defined contribution schemes

All employees of the Company receive defined contribution superannuation entitlements, for which the Company pays the fixed superannuation guarantee contribution (currently 9.5% of the employee’s average ordinary salary) to the employee’s superannuation fund of choice. All contributions in respect of employees’ defined contribution entitlements are recognised as an expense when they become payable. The Company’s obligation with respect to employees’ defined contribution entitlements is limited to its obligation for any unpaid superannuation guarantee contributions at the end of the reporting period. All obligations for unpaid superannuation guarantee contributions are measured at the (undiscounted) amounts expected to be paid when the obligation is settled and are presented as current liabilities in the Company’s statement of financial position.

(g) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

Bank overdrafts also form part of cash equivalents for the purpose of the statement of cash flows and are presented within current liabilities on the statement of financial position.

(h) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year, which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

(i) Goods and Services Tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payable are stated inclusive of GST.

The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the statement of financial position.

Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

(j) Revenue and other income

Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the Company and specific criteria relating to the type of revenue as noted below, has been satisfied.

Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates.

All revenue is stated net of the amount of goods and services tax (GST).

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Grant revenue

Grant revenue is recognised in the statement of profit or loss and other comprehensive income when the Company obtains control of 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.

When grant revenue is received whereby the Company incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt.

The Company receives non-reciprocal contributions of assets from the government and other parties for zero or a nominal value. These assets are recognised at fair value on the date of acquisition in the statement of financial position, with a corresponding amount of income recognised in the statement of profit or loss and other comprehensive income.

Donations/Bequests

Donations and bequests are recognised as revenue when received.

Interest revenue

Interest is recognised using the effective interest method.

Rendering of services

Revenue in relation to rendering of services is recognised depending on whether the outcome of the services can be estimated reliably. If the outcome can be estimated reliably then the stage of completion of the services is used to determine the appropriate level of revenue to be recognised in the period.

If the outcome cannot be reliably estimated then revenue is recognised to the extent of expenses recognised that are recoverable.

Rental income

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

Gain from a bargain purchase

The Company recognises a gain from a bargain purchase when the consideration transferred is less than the net of the acquisition-date fair values of the identifiable assets acquired and the liabilities assumed.

The Company recognises any gain from a bargain purchase in the period when the business combination occurs, which is the date on which it obtains control of the acquiree.

- 17 -



(k) Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities, which are not an incremental cost relating to the actual draw-down of the facility, are recognised as prepayments and amortised on a straight-line basis over the term of the facility.

Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in other income or other expenses.

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 and does not expect to settle the liability for at least 12 months after the reporting date.

(l) Economic dependence

Banyule Community Health is dependent on grant funding, the majority of which came from State, Federal and local sources to operate the business. At the date of this report the directors have no reason to believe these sources of grant funding will not continue to support Banyule Community Health.

(m) Intangible Assets

Software

Software has a finite life and is carried at cost less any accumulated amortisation and impairment losses. It is amortised at a rate of 20% per annum.

Amortisation

Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.

Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(n) Fair value of assets and liabilities

The Company measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the requirements of the applicable Accounting Standard.

“Fair value” is the price the Company would receive to sell an asset or would have to pay to transfer a liability in an orderly (ie unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.

As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.

- 18 -



To the extent possible, market information is extracted from the principal market for the asset or liability (ie the market with the greatest volume and level of activity for the asset or liability). In the absence of such a market, market information is extracted from the most advantageous market available to the Company at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability, after taking into account transaction costs and transport costs).

For non-financial assets, the fair value measurement also takes into account a market participant's ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.

The fair value of liabilities and the Company's own equity instruments (if any) may be valued, where there is no observable market price in relation to the transfer of such financial instrument, by reference to observable market information where such instruments are held as assets. Where this information is not available, other valuation techniques are adopted and where significant, are detailed in the respective note to the financial statements.

(o) Business combinations

Business combinations are accounted for by applying the acquisition method which requires an acquiring entity to be identified in all cases. The acquisition date under this method is the date that the acquiring entity obtains control over the acquired entity.

The fair value of identifiable assets and liabilities acquired are recognised in the consolidated financial statements at the acquisition date.

Goodwill or a gain on bargain purchase may arise on the acquisition date, this is calculated by comparing the consideration transferred and the amount of non-controlling interest in the acquiree with the fair value of the net identifiable assets acquired. Where consideration is greater than the net assets acquired, the excess is recorded as goodwill. Where the net assets acquired are greater than the consideration, the measurement basis of the net assets are reassessed and then a gain from bargain purchase recognised in profit or loss.

All acquisition-related costs are recognised as expenses in the periods in which the costs are incurred except for costs to issue debt or equity securities.

Any contingent consideration which forms part of the combination is recognised at fair value at the acquisition date. If the contingent consideration is classified as equity then it is not remeasured and the settlement is accounted for within equity. Otherwise subsequent changes in the value of the contingent consideration liability are measured through profit or loss.

(p) Adoption of new and revised accounting standards

During the current year, the following standards became mandatory and have been adopted retrospectively by the Company:

AASB 2012-3 Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities

Interpretation 21 Levies

AASB 2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets

AASB 2013-4 Amendments to Australian Accounting Standards – Novation of Derivatives and Continuation of Hedge Accounting

•

•

•

•

- 19 -

- 20 -



AASB 2013-5 Amendments to Australian Accounting Standards – Investment Entities

AASB 2014-1 Amendments to Australian Accounting Standards

The accounting policies have been updated to reflect changes in the recognition and measurement of assets, liabilities, income and expenses and the impact of adoption of these standards is discussed below.

AASB 2012-3 Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities

This Standard provides clarifying guidance relating to the offsetting of financial instruments and does not impact the Company's financial statements.

Interpretation 21 Levies

This Interpretation clarifies the circumstances under which a liability to pay a levy imposed by a government should be recognised, and whether that liability should be recognised in full at a specific date or progressively over a period of time. Interpretation 21 does not impact the Company's financial statements.

AASB 2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets

This Standard amends the disclosure requirements in AASB 136 Impairment of Assets pertaining to the use of fair value in impairment assessment and does not impact the Company's financial statements.

AASB 2013-4 Amendments to Australian Accounting Standards – Novation of Derivatives and Continuation of Hedge Accounting

This Standard makes amendments to AASB 139 Financial Instruments: Recognition and Measurement to permit the continuation of hedge accounting in circumstances where a derivative, which has been designated as a hedging instrument, is novated from one counterparty to a central counterparty as a consequence of laws or regulations. AASB 2013-4 does not impact the Company’s financial statements.

AASB 2013-5 Amendments to Australian Accounting Standards – Investment Entities

This Standard amends AASB 10 Consolidated Financial Statements by defining an “investment entity” and requiring that, with limited exceptions, the entity does not consolidate its subsidiaries. The unconsolidated subsidiaries must be measured at fair value through profit or loss in accordance with AASB 9 Financial Instruments. The amendments also introduce additional disclosure requirements. As the Company does not meet the definition of an investment entity, AASB 2013-5 does not impact the Company's financial statements.


Part A of this Standard makes the following significant amendments:

- revises/adds the definitions of the terms “market condition”, “performance condition” and “service condition” in AASB 2 Share-based Payment;

- clarifies that contingent considerations arising in a business combination should be accounted for as items of equity or liability and not as provisions in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets;

- requires additional disclosures when an entity aggregates its operating segments into one reportable segment in accordance with AASB 8 Operating Segments; and

•

•



- includes an entity that provides key management personnel services (a “management entity”) to a reporting entity (or a parent of the reporting entity) within the definition of a “related party” in AASB 124 Related Party Disclosures.

This part also makes other editorial corrections to various Australian Accounting Standards; however, it does not impact the Company's financial statements.

Part B of this Standard permits an entity to recognise the amount of contributions from employees or third parties in a defined benefit plan as a reduction in service cost for the period in which the related service is rendered, if the amount of contributions is independent of the number of years of service. Since the Company does not have a policy of accepting contributions from either employees or third parties, this part does not impact its financial statements.

Part C of this Standard deletes the reference to AASB 1031 Materiality in particular Australian Accounting Standards and does not impact the Company's financial statements.

(q) New Accounting Standards and Interpretations

The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods. The Company has decided not to early adopt these Standards. The following table summarises those future requirements, and their impact on the Company where the standard is relevant:

Effective date Standard Name AASB 9 Financial Instruments

for entity 30 June 2019

Requirements Impact Significant revisions to the The impact of AASB 9

AASB 2010-7 Amendments to

classification and measurement of has not yet been financial assets, reducing the number determined.

Australian Accounting Standards arising from AASB 9 (December 2009)

AASB 2012-6 Amendments to Australian Accounting Standards – Mandatory Effective Date of AASB 9 and Transitional Disclosures

AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments


of categories and simplifying the measurement choices, including the removal of impairment testing of assets measured at fair value. The amortised cost model is available for debt assets meeting both business model and cash flow characteristics tests. All investments in equity instruments using AASB 9 are to be measured at fair value.

Amends measurement rules for financial liabilities that the entity elects to measure at fair value through profit and loss. Changes in fair value attributable to changes in the entity’s own credit risk are presented in other comprehensive income.

AASB 2014–7 Amendments to Australian Accounting Standards arising from AASB 9

AASB 2014-8 Amendments to Australian Accounting Standards arising from AASB 9

Impairment of assets is now based on expected losses in AASB 9 which requires entities to measure: - the 12-month expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or - full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument.

- 21 -



3 Critical Accounting Estimates and Judgments

The directors make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances.

These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates.

The significant estimates and judgements made have been described below.

Key estimates - impairment of property, plant and equipment

The Company assesses impairment at the end of each reporting period by evaluating conditions specific to the Company that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions.

- 22 -



4 Remuneration of Auditors

2015

2014 $ $ Remuneration of the auditor of the Company, HLB Mann Judd, for: - auditing or reviewing the financial report 12,000 11,600 - other services 4,500 4,350 Total remuneration of auditor 16,500 15,950

5

Revenue and Other Income

2015 2014 Note $ $ Patient fees 2,159,968 1,912,056 Interest 5(a) 71,050 84,087 Dividend income 41,921 - Rent 139,713 124,377 Government grants 12,167,027 11,425,303 Donations 41,590 28,430 Other revenue 392,338 363,071 Total Revenue 15,013,607 13,937,324

(a) Interest Revenue

Interest revenue from: - financial institutions

71,050

84,087

6

Expenses

2015 2014 $ $ Depreciation and Amortisation Depreciation - Buildings 69,564 64,573 Depreciation - Plant and equipment 57,348 44,314 Depreciation - Furniture, fixtures and fittings 27,448 25,117 Depreciation - Motor vehicles 26,402 34,071 Depreciation - Computer equipment 25,697 21,585 Amortisation - Other intangibles 5,016 5,016 Total Depreciation and Amortisation 211,475 194,676 Write-down to recoverable amount - 2,654 Finance Costs

Financial institutions 8,661 7,168 Client programs & medical expenses 1,773,931 1,297,649 Loss on disposal of property, plant and equipment 10,258 30,187

- 23 -



7 Business Combinations

On 1 July 2014, the Company obtained control of West Heidelberg Community Legal Service Inc. ("the Legal Service") via a deed of amalgamation. The Company and the Legal Service had shared premises since 1975 and had increasingly shared back of house resources. The Company and the Legal Service recognised synergies and the opportunity to provide enhanced services through amalgamation.

The amalgamation transferred the practice of the Legal Service from the Legal Service to the Company, as well as the assets and liabilities of the Legal Service on the date of amalgamation; there was no consideration transferred as part of the amalgamation. Following the amalgamation, the Legal Service was wound up.

The following table shows the assets acquired and liabilities assumed at amalgamation date:

Assets or liabilities acquired:

Fair value $

Cash 195,365 Trade and other receivables 8,724 Plant and equipment 2,577 Trade and other payables (15,636) Provisions (25,954) Other liabilities (37,693)

Identifiable assets acquired and liabilities assumed 127,383

Gain from a bargain purchase 127,383

Significant restrictions

There are no significant restrictions on the Company's ability to alter or use assets acquired and settle the liabilities assumed.

- 24 -



8 Cash and cash equivalents

2015

2014 $ $ Cash on hand 1,620 1,610 Cash at bank 386,762 715,192 Deposits at call 2,574,141 2,826,027 Total cash and cash equivalents 2,962,523 3,542,829

9

Trade and other receivables

2015 2014 $ $

CURRENT Trade receivables

381,428

251,187

Other receivables 10,455 - Total current trade and other receivables 391,883 251,187

(a) Provision for Impairment of receivables

Current trade receivables are generally on 30 day terms. These receivables are assessed for recoverability and a provision for impairment is recognised when there is objective evidence that an individual trade receivable is impaired. There was no provision for impairment raised as at 30 June 2014 and 30 June 2015.

The carrying value of trade receivables is considered a reasonable approximation of fair value due to the short-term nature of the balances.

The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable in the financial statements.

10 Other financial assets

CURRENT

Financial assets at fair value through profit or loss

2015 $

2014 $

Listed investments (at fair value) 1,471,795 -

Total current other financial assets 1,471,795 -

11 Other assets

CURRENT

2015 $

2014 $

Prepayments 10,321 11,261 Other current assets - 26,297

Total current other assets 10,321 37,558

- 25 -



12 Property, plant and equipment

2015

2014 $ $

LAND AND BUILDINGS At cost

1,949,622

1,946,022

Accumulated depreciation (517,437) (447,873) Total land and buildings 1,432,185 1,498,149 PLANT AND EQUIPMENT

Plant and equipment At cost

290,153

277,642

Accumulated depreciation (116,731) (73,868) Total plant and equipment 173,422 203,774 Furniture, fixture and fittings

At cost

335,504

338,862 Accumulated depreciation (202,569) (185,192) Total furniture, fixture and fittings 132,935 153,670 Motor vehicles

At cost

163,822

163,822 Under lease 47,398 47,398 Accumulated depreciation (64,613) (38,211) Total motor vehicles 146,607 173,009 Computer equipment

At cost

152,625

120,482 Accumulated depreciation (73,873) (60,235) Total computer equipment 78,752 60,247

Total plant and equipment

531,716

590,700 Total property, plant and equipment 1,963,901 2,088,849

- 26 -

Ban

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Com

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Am

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Bal

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52

1,96

3,90

1

- 27 -

13 Intangible Assets

2015

2014 $ $

Other intangibles Cost

25,078

25,078

Accumulated amortisation and impairment (15,047) (10,032) Net carrying value 10,031 15,046 Total Intangibles 10,031 15,046

(a) Movements in carrying amounts of intangible assets

Year ended 30 June 2015

Other Intangibles

$

Total

$

Balance at the beginning of the year 15,046 15,046 Amortisation (5,015) (5,015)

Closing value at 30 June 2015 10,031 10,031

14 Trade and other payables

CURRENT

Unsecured liabilities

2015 $

2014 $

Trade payables 465,015 151,366 Sundry payables and accrued expenses 462,171 763,369

Total current trade and other payables 927,186 914,735

15 Borrowings

CURRENT

Secured liabilities

2015 $

2014 $

Lease liability secured 15(a) 30,805 12,364

Total current borrowings 30,805 12,364

NON-CURRENT

Secured liabilities Lease liability secured 15(a) - 30,805

Total non-current borrowings - 30,805

- 28 -

(a) Leased Liabilities

Leased liabilities are secured by the underlying leased assets.

(b) Defaults and breaches

During the current and prior year, there were no defaults or breaches on any of the loans.

16 Employee benefits

CURRENT

2015 $

2014 $

Long service leave 800,603 754,858 Annual leave 773,068 666,755

Total current employee benefits 1,573,671 1,421,613 NON-CURRENT Long service leave 765,084 655,994

Provision for employee benefits represents amounts accrued for annual leave and long service leave.

The current portion of the provision for employee benefits includes the total amount accrued for annual leave entitlements and the amounts accrued for long service leave entitlements that have vested due to employees having completed the required period of service. Based on past experience, the Company does not expect the full amount of annual leave or long service leave balances classified as current liabilities to be settled within the next 12 months. However, these amounts must be classified as current liabilities since the Company does not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlement.

The non-current portion for this provision includes amounts accrued for long service leave entitlements that have not yet vested in relation to those employees who have not yet completed the required period of service.

In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based upon historical data. The measurement and recognition criteria for employee benefits have been discussed in Note 2(f).

17 Other liabilities

CURRENT

2015 $

2014 $

Grants received in advance 886,254 602,183

Total current other liabilities 886,254 602,183

- 29 -

18 Retained Earnings

2015

2014 $ $ Retained earnings at the beginning of the financial year 2,297,775 1,745,708 Net surplus/(deficit) for the year 329,679 552,067 Retained earnings at end of the financial year 2,627,454 2,297,775

19

Financial Risk Management

The Company's financial instruments consist mainly of deposits with banks, short term investments, accounts receivable and payable, and interest bearing liabilities.

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows:

None of the Company's financial instruments are recorded at fair value subsequent to initial recognition.

Note 2015

$ 2014

$

Financial Assets Cash and cash equivalents

8

2,962,523

3,542,829

Trade and other receivables 9 391,883 251,187 Financial assets at fair value through profit or loss:

- listed investments 10 1,471,795 -

Total financial assets 4,826,201 3,794,016

Financial Liabilities Financial liabilities at amortised cost

- Trade and other payables 14 (927,186) (914,735) - Borrowings 15 (30,805) (43,169)

Total financial liabilities (957,991) (957,904)

20 Key Management Personnel Disclosures

The total remuneration paid to key management personnel of the Company is $ 540,260 (2014: $ 528,835).

Directors are not paid any remuneration; rather they are reimbursed for costs incurred in discharging their duties as directors. No services were rendered to the Company during the year (2014: Nil) by the Directors and/or their related parties (an entity in which the Director is a member/shareholder/director, or with a company in which the Director has a substantial financial interest).

- 30 -

21 Cash Flow Information

(a) Reconciliation of cash

Cash and cash equivalents at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement of financial position as follows:

Note

2015 $

2014 $

Cash and cash equivalents 8 2,962,524 3,542,829

Balance as per statement of cash flows 2,962,524 3,542,829

(b) Reconciliation of result for the year to cashflows from operating activities

Net surplus/(deficit) for the year 329,679 552,067 Non-cash flows in surplus/(deficit):

- amortisation 5,016 5,016 - depreciation 206,459 189,660 - loss on disposal of property, plant and equipment 10,258 30,187 - net (gain)/loss on merger with West Heidelberg Community

Legal Services Inc. (127,383) - - unrealised (gains)/losses on investments 16,372 -

Changes in assets and liabilities, net of the effects of acquisition:

- (increase)/decrease in trade and other receivables (131,972) 53,036 - (increase)/decrease in other assets 27,237 (12,442) - increase/(decrease) in trade and other payables (3,185) (378,093) - increase/(decrease) in grants received in advance 246,378 246,687 - increase/(decrease) in employee benefits 235,194 163,536

Cashflow from operations 814,053 849,654

(c)

Acquisition of entities

Refer to Note 7 detailing the cash acquired as part of the amalgamation with West Heidelberg Community Legal Service Inc. on 1 July 2014.

22 Members' Guarantee

The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If the Company is wound up, the constitution states that each member is required to contribute a maximum of $ 1 each towards meeting any outstandings and obligations of the Company. At 30 June 2015 the number of members was 638 (2014: 646).

23 Contingencies

In the opinion of the Directors, the Company did not have any contingencies at 30 June 2015 (30 June 2014: None

- 31 -

24 Capital and Leasing Commitments

Operating Lease Expense

Minimum lease payments under non-cancellable operating leases:

2015 $

2014 $

- not later than one year 142,515 165,837 - later than one year and not later than five years 71,275 86,728 - later than five years - 468

Total operating lease commitments - payments 213,790 253,033

The Company is party to a number of operating leases in respect of premises and motor vehicles. Increases in property lease commitments may occur in line with CPI. They all have varying terms and conditions.

Operating Lease Income Minimum lease receipts under non-cancellable operating leases:

- not later than one year 121,664 98,372 - between one year and five years 32,752 80,530

Total operating lease commitments - receipts 154,416 178,902

The Company is party to a number of sub-leases in respect of premises it currently occupies. Increases on property sub-lease income commitments may occur in line with CPI. They all have varying terms and conditions.

Finance Leases Minimum lease payments:

- not later than one year 32,802 15,603 - between one year and five years - 32,802 Minimum lease payments 32,802 48,405 Less: finance changes (1,997) (5,236) Present value of minimum lease payments 30,805 43,169

Finance lease relates to a leased motor vehicle as disclosed in Note 12. The lease concludes on 26 May 2016 with a purchase option.

25 Events Occurring After the Reporting Date

The financial report was authorised for issue on 24 September 2015 by the Board of Directors.

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.

- 32 -

- - - -

26 Fair Value Measurement

The Company has the following assets, as set out in the table below, that are measured at fair value on a recurring basis after their initial recognition. The Company does not subsequently measure any liabilities at fair value on a recurring basis and has no assets or liabilities that are measured at fair value on a non-recurring basis.

30 June 2015 Note

Recurring fair value measurements

Financial assets

Financial assets at fair value through profit or loss:

Level 1 $

Level 2 $

Level 3 $

Total $

- Investment in listed shares 10 1,471,795 - - 1,471,795

30 June 2014

Recurring fair value measurements

Financial assets

Financial assets at fair value through profit or loss:

- Investment in listed shares 10

For investments in listed shares, the fair values have been determined based on closing quoted bid prices at the end of the reporting period.

27 Company Details

The registered office of the Company is: Banyule Community Health 21 Alamein Road West Heidelberg Victoria 3081

- 33 -


Directors' Declaration

The directors of the Company declare that:

1. The financial statements and notes, as set out on pages 7 to 33, are in accordance with the Australian Charities and

Not-for-profits Commission Act 2012 and:

a. comply with Accounting Standards - Reduced Disclosure Requirements and the Australian Charities and Not-for- profits Commission Regulations 2012; and

b. give a true and fair view of the financial position as at 30 June 2015 and of the performance for the year ended on

that date of the Company.

2. In the directors' opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

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

Director .................................................................. John Ferraro

Director .................................................................. Craig Trenfield

Dated this 24th day of September 2015

- 34 -

Independent Auditor’s Report to the members of Banyule Community Health

We have audited the accompanying financial report of Banyule Community Health (“the Company”), which comprises the statement of financial position as at 30 June 2015, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration, of the Company.

Directors’ Responsibility for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Act 2012 (“the Act”) and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

Our audit did not involve an analysis of the prudence of business decisions made by directors or management.

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

Independence

In conducting our audit, we have complied with the independence requirements of the Act.

- 35 -

Opinion

In our opinion,

(a) the financial report Banyule Community Health is in accordance with Division 60 of the Australian Charities and Not-For-Profits Commission Act 2012, including:

(i) giving a true and fair view of the Company’s financial position as at 30 June 2015 and its performance for the year ended on that date; and

(ii) complying with Australian Accounting Standards – Reduced Disclosure Requirements and division 60 of the Australian Charities and Not-for-profits Commission Regulations 2013

Matters relating to the electronic presentation of the audited financial report

This auditor’s report relates to the financial report of the company for the financial year ended 30 June 2015 published in the annual report and included on the Company’s website. The Company’s directors are responsible for the integrity of the Company’s website. We have not been engaged to report on the integrity of this web site. The auditor’s report refers only to the financial report identified above. It does not provide an opinion on any other information which may have been hyperlinked to/from the financial report. If users of the financial report are concerned with the inherent risks arising from publication on a website, they are advised to refer to the hard copy of the audited financial report to confirm the information contained in this website version of the financial report.

HLB Mann Judd Jude Lau Chartered Accountants Partner

Melbourne 24 September 2015

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Contact

40 Years ofBANYULE COMMUNITY HEALTH

West Heidelberg21 Alamein Road,

West Heidelberg,

Victoria 3081

Tel: 03 9450 2000

Fax: 03 9459 5808

Greensborough Pauline Toner Centre,

3/25 Grimshaw Street,

Greensborough,

Victoria 3088

Tel: 03 9433 5111

Fax: 03 9435 8922

Email: [email protected] bchs.org.au

Banyule Community Health

ACN 135 660 454 ABN 87 776 964 889





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