grand pacific health limited€¦ · cert iv occupational health and safety cert iv front line...
TRANSCRIPT
Grand Pacific Health LimitedABN 49 062 587 071
Financial Statements
For the Year Ended 30 June 2017
Grand Pacific Health Limited
ABN 49 062 587 071
Contents
For the Year Ended 30 June 2017
Page
Financial Statements
Directors' Report 1
Auditor's Independence Declaration 6
Financial Report
Statement of Profit or Loss and Other Comprehensive Income 7
Balance Sheet 8
Statement of Changes in Equity 9
Statement of Cash Flows 10
Notes to the Financial Statements 11
Directors' Declaration 26
Independent Audit Report 27
Grand Pacific Health Limited
ABN 49 062 587 071
Directors' Report
30 June 2017
The directors present their report on Grand Pacific Health Limited for the financial year ended 30 June 2017.
Information on directors
The names of each person who has been a director during the year and to the date of this report are:
J Keast
Qualifications BComm, CPA, MBA, GAICD
Experience Management consultant; NFP Training Services Manager;
former Director of Governance & Business Planning,
Commonwealth Department of Human Services; former
Director of Governance, Risk Management and Internal Audit,
Child Support Agency.
Special responsibilities Deputy Chair
Chair, Finance, Audit & Risk Management Committee
Nominations and Evaluation Committee
D Fornasier (Resigned 22 September 2016)
Qualifications BN, RN, CDE
Experience Diabetes Educator and Nurse Practitioner (endorsed); Clinical
experience in remote rural medicine, intensive care, diabetes
and primary care.
Special responsibilities Governance and Policy Committee
D Fuller
Qualifications B. Ed., M.A, MAICD., MIAM
Experience CEO WEA Illawarra, Chairman Community Colleges
Australia
Special responsibilities Chair of the Board
Chair, Nomina ons and Evalua on Commi ee
K Manderson
Qualifications B Med Sc. MBBS (Hons), MPH, DAvMed, FRACGP, FACAsM,
GAICD
Experience Senior Lecturer University of Wollongong; Senior Aviation
Medical Officer Navy Reserve; President, Australasian Society
of Aerospace Medicine and Director, Australasian College of
Aerospace Medicine, General Practitioner
Special responsibilities Chair, Governance and Policy Committee
1.
Grand Pacific Health Limited
ABN 49 062 587 071
Directors' Report
30 June 2017
Information on directors (Continued)
B Thomson (Resigned 22 September 2016)
Qualifications MBBS (Hons), FACRRM, FARGP, FRACGP, DRANZCOG (Adv),
MAICD
Experience Clinical Associate Professor University of Wollongong; Director
Coast City Country GP Training; Member Shoalhaven Clinical
Council and NSW AMA Council; General Practitioner
Special responsibilities Finance, Audit & Risk Management Committee
B Smith
Qualifications Diploma Project Management
Cert IV Occupational Health and Safety
Cert IV Front Line Management
Cert IV Assessment and Workplace Training
Diploma, Aboriginal Health Worker
Completed the National Indigenous Leadership Program
Member Australian Institute of Company Directors MAICD
Experience Chairperson/Director Aboriginal Legal Service (NSW/ACT);
Compliance Manager, Dale & Hitchcock Civil Engineering and
Landscaping. Member of the Safety Institute of Australia.
Former Chairperson, Katungul Aboriginal Medical Service;
former Deputy Chairperson, Southern New South Wales
Medicare Local; former Australian Institute of Aboriginal &
Torres Strait Islander Studies, Ethics Committee Member
Special responsibilities Governance and Policy Committee
F Quinlan
Qualifications BA, B.Th.
Experience CEO Mental Health Australia; former Executive Director
Catholic Social Services Australia; former CIO Australian
Medical Association & Australasian Medical Publishing
Company; former Guest Lecturer ANU Master of Public Policy
program; Chair, Primary Health Network Advisory Panel;
Member, National Disability and Carer Advisory Council;
Member, Australian National Advisory Council on Alcohol and
Drugs (ANACAD)
Directors have been in office since the start of the financial year to the date of this report unless otherwise
stated.
2.
Grand Pacific Health Limited
ABN 49 062 587 071
Directors' Report
30 June 2017
Review of operations
The operating surplus of the Company for the year was $504,118 (2016: $743,035). The company is exempt
from income tax.
Vision
Grand Pacific Health Limited's vision is for all Australians to be as healthy as possible and enjoy contributing
lives.
Mission
Grand Pacific Health Limited will improve assess to high quality community based health and support services
in rural and regional areas that will assist people in the management of the physical and mental health.
Guiding Principles
Grand Pacific Health Limited's 'way of doing business' is guided by a set of principles. These principles apply to
the whole of business including, service design, service delivery, quality frameworks, governance, pursuit of
growth opportunities, collaboration, internal processes and culture. These principles are:
The people we support have input into what we do together;
Healthy communities support healthy lives;
We make a positive difference;
We work locally to deliver better health outcomes;
We are bold and try new things;
We look after our team; and
We are here for the long term.
Principal activities
The principal activities of Grand Pacific Health Limited during the financial year were those of a non profit
health promotion and community services organisation, offering a diverse range of primary health care
services.
This range of activities include the delivery of mental health services, preventative health services, health
promotion, aboriginal health services, chronic disease management and coordination services as well as
psychosocial support services.
Grand Pacific Health Limited also operates two purpose built integrated primary care clinics in the Shellharbour
and Shoalhaven municipalities. These clinics provide a full suite of team based primary care involving General
Practioners, Nurses, Exercise Physiologists, Psychologists, Dieticians and Physiotherapists.
3.
Grand Pacific Health Limited
ABN 49 062 587 071
Directors' Report
30 June 2017
Principal activities (Continued)
No significant changes in the nature of the Company's activity occurred during the financial year.
Members guarantee
Grand Pacific Health Limited 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 $5, subject to the provisions of
the company's constitution.
At 30 June 2017 the collective liability of members was $ 2,805 (2016: $ 2,800).
Future developments and results
Likely developments in the operations of the Company and the expected results of those operations in future
financial years have not been included in this report as the inclusion of such information is likely to result in
unreasonable prejudice to the Company.
4.
Grand Pacific Health Limited
ABN 49 062 587 071
Directors' Report
30 June 2017
Meetings of directors
During the financial year, 21 meetings of directors (including committees of directors) were held. Attendances
by each director during the year were as follows:
Directors'
Meetings
Finance, Audit and
Risk Management
Committee
Governance &
Policy Committee
Nominations
Committee
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
D Fornasier 2 2 1 1
D Fuller 7 7 7 7 1 1
J Keast 7 7 7 7 1 1
K Manderson 7 7 6 4
B Thomson 2 2
F Quinlan 7 6
B Smith 7 6 5 4
Auditor's independence declaration
The lead auditor's independence declaration in accordance with section 60 40 of the Australian Charities and
Not for Profits Commission Act 2012, for the year ended 30 June 2017 has been received and can be found on
page 6 of the financial report.
Signed in accordance with a resolution of the Board of Directors:
...............................................................
Jodi Keast
Director
................................................................
Bunja Smith
Director
Dated 20 September 2017
5.
Auditor's Independence Declaration under Section 60 40 of the Australian Charities
and Not for Profits Commission Act 2012 to the Directors of Grand Pacific Health
Limited
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2017, there have been:
(i) no contraventions of the auditor independence requirements as set out in the Australian Charities
and Not for Profits Commission Act 2012 in relation to the audit; and
(ii) no contraventions of any applicable code of professional conduct in relation to the audit.
Daley & Co
Chartered Accountants
Stephen Milgate
Partner
20 September 2017
Wollongong
Liability limited by a Scheme approved under Professional Standards Legislation
6.
Grand Pacific Health Limited
ABN 49 062 587 071
Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2017
Note
2017
$
2016
$
Operating grants 15,221,297 15,890,421
Capital grants 326,131 243,205
Rendering of services 3,465,120 3,721,840
Sale of goods 85,857 257,717
Donations and gifts 25,258 11,388
Other income 2 880,973 1,214,424
20,004,636 21,338,995
Employee benefits expense (11,848,727) (11,832,331)
Clinical service delivery (3,990,449) (4,835,173)
Occupancy expenses (1,285,370) (1,080,623)
Information, communications and technology expense (657,981) (1,076,595)
Depreciation and amortisation expense 6 (405,841) (384,115)
Cost of sales (81,098) (193,502)
Other expenses (1,231,052) (1,193,621)
(19,500,518) (20,595,960)
Result for the year 504,118 743,035
Other comprehensive income for the year
Total comprehensive income for the year 504,118 743,035
The accompanying notes form part of these financial statements.
7.
Grand Pacific Health Limited
ABN 49 062 587 071
Balance Sheet
As at 30 June 2017
Note
2017
$
2016
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents 4 6,661,654 5,758,891
Trade and other receivables 5 785,845 806,583
TOTAL CURRENT ASSETS 7,447,499 6,565,474
NON CURRENT ASSETS
Trade and other receivables 5 950,000 975,000
Property, plant and equipment 6 9,868,614 8,940,013
TOTAL NON CURRENT ASSETS 10,818,614 9,915,013
TOTAL ASSETS 18,266,113 16,480,487
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 7 4,029,085 3,261,775
Employee benefits 8 790,561 777,229
TOTAL CURRENT LIABILITIES 4,819,646 4,039,004
NON CURRENT LIABILITIES
Trade and other payables 7 9,206,154 8,658,014
Employee benefits 8 301,884 349,158
TOTAL NON CURRENT LIABILITIES 9,508,038 9,007,172
TOTAL LIABILITIES 14,327,684 13,046,176
NET ASSETS 3,938,429 3,434,311
EQUITY
Reserves 116,638 127,929
Retained earnings 3,821,791 3,306,382
TOTAL EQUITY 3,938,429 3,434,311
The accompanying notes form part of these financial statements.
8.
Grand Pacific Health Limited
ABN 49 062 587 071
Statement of Changes in Equity
For the Year Ended 30 June 2017
General fund
$
Donations
reserve
$
Total
$
Balance at 1 July 2016 3,306,382 127,929 3,434,311
Result for the year 504,118 504,118
Transfer to/(from) donations reserve 11,291 (11,291)
Balance at 30 June 2017 3,821,791 116,638 3,938,429
General fund
$
Donations
reserve
$
Total
$
Balance at 1 July 2015 2,563,347 127,929 2,691,276
Result for the year 743,035 743,035
Balance at 30 June 2016 3,306,382 127,929 3,434,311
The accompanying notes form part of these financial statements.
9
Grand Pacific Health Limited
ABN 49 062 587 071
Statement of Cash Flows
For the Year Ended 30 June 2017
Note
2017
$
2016
$
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from:
Receipts from customers and funding bodies 22,551,490 21,917,644
Interest received 126,412 101,270
Payments to suppliers and employees (20,408,857) (21,778,675)
Net cash provided by/(used in) operating activities 2,269,045 240,239
CASH FLOWS FROM INVESTING ACTIVITIES:
(1,334,442) (682,599)
(31,840) (15,704)
Net cash used by investing activities (1,366,282) (698,303)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net cash used by financing activities
Net increase/(decrease) in cash and cash equivalents held 902,763 (458,064)
Cash and cash equivalents at beginning of year 5,758,891 6,216,955
Cash and cash equivalents at end of financial year 4 6,661,654 5,758,891
The accompanying notes form part of these financial statements.
10.
Grand Pacific Health Limited
ABN 49 062 587 071
Notes to the Financial Statements
For the Year Ended 30 June 2017
The financial report covers Grand Pacific Health Limited as an individual entity. Grand Pacific Health Limited is
a not for profit Company limited by guarantee, incorporated and domiciled in Australia.
The functional and presentation currency of Grand Pacific Health Limited is Australian dollars.
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 and the Australian Charities
and Not for Profits Commission Act 2012.
The financial statements 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 in
Note 17 and are consistent with prior reporting periods unless otherwise stated.
2 Other income
2017
$
2016
$
Rental income 353,739 382,754
Interest income 126,412 101,270
Corporate services income 346,411 603,565
Other income 54,411 126,835
880,973 1,214,424
11.
Grand Pacific Health Limited
ABN 49 062 587 071
Notes to the Financial Statements
For the Year Ended 30 June 2017
3 Result for the Year
The result for the year includes the following expenses:
2017
$
2016
$
Superannuation contributions 976,415 1,011,411
Rental expense on operating leases
minimum lease payments 853,272 609,008
4 Cash and cash equivalents
Cash on hand 2,000 2,100
Cash at bank 6,659,654 5,756,791
6,661,654 5,758,891
5 Trade and other receivables
Current
Trade receivables 729,724 437,602
Provision for impairment (16,353) (11,607)
713,371 425,995
Prepayments 24,680 364,634
Other receivables 47,794 15,954
785,845 806,583
12.
Grand Pacific Health Limited
ABN 49 062 587 071
Notes to the Financial Statements
For the Year Ended 30 June 2017
5 Trade and other receivables (Continued)
2017
$
2016
$
Non current
Prepayments 950,000 975,000
Reconciliation of changes in the provision for impairment of receivables is as follows:
Balance as at 1 July 11,607 1,353
Additional impairment loss recognised 4,746 10,254
Balance at end of the year 16,353 11,607
13.
Grand Pacific Health Limited
ABN 49 062 587 071
Notes to the Financial Statements
For the Year Ended 30 June 2017
6 Property, plant and equipment
2017
$
2016
$
Freehold land and buildings
At cost 9,378,587 9,302,539
Accumulated depreciation (643,264) (434,747)
Impairment (200,000) (200,000)
8,535,323 8,667,792
Furniture, fixtures and fittings
At cost 1,730,455 450,379
Accumulated depreciation (433,179) (307,685)
1,297,276 142,694
Motor vehicles
At cost 23,192 23,192
Accumulated depreciation (23,192) (22,689)
503
Office equipment
At cost 97,773 97,773
Accumulated depreciation (77,783) (57,321)
19,990 40,452
Computer equipment
At cost 136,436 136,436
Accumulated depreciation (131,086) (126,147)
5,350 10,289
Computer software
At cost 396,658 396,658
Accumulated depreciation (385,983) (318,375)
10,675 78,283
Total property, plant and equipment 9,868,614 8,940,013
14.
GrandPacificHealthLimited
ABN49062587071
Notesto
theFinancialStatements
FortheYearEnded30June2017
6Property,plantandequipment(Continued)
(a)
MovementsinCarryingAmounts
Mo
vem
en
tin
the
carr
yin
gam
ou
nts
for
each
class
of
pro
pert
y,p
lan
tan
deq
uip
men
tb
etw
een
the
begin
nin
gan
dth
een
do
fth
ecu
rren
tfi
nan
cialy
ear:
Freehold
Landand
Buildings
$
Furniture,
Fixturesand
Fittings
$
Motor
Vehicles
$
Office
Equipment
$
Computer
Equipment
$
Computer
Software
$
Total
$
Yearended30June2017
Bala
nce
at
the
begin
nin
go
fye
ar
8,667,792
142,694
503
40,452
10,289
78,283
8,940,013
Ad
dit
ion
s76,048
1,258,394
1,334,442
Dep
reci
ati
on
exp
en
se(208,517)
(103,812)
(503)
(20,462)
(4,939)
(67,608)
(405,841)
Balance
attheendoftheyear
8,535,323
1,297,276
19,990
5,350
10,675
9,868,614
15
.
Grand Pacific Health Limited
ABN 49 062 587 071
Notes to the Financial Statements
For the Year Ended 30 June 2017
7 Trade and other payables
2017
$
2016
$
CURRENT
Trade payables 190,769 437,611
Accruals 1,130,840 744,011
Deferred income 2,707,476 2,080,153
4,029,085 3,261,775
NON CURRENT
Deferred income 9,206,154 8,658,014
8 Employee Benefits
Current liabilities
Provision for employee benefits 790,561 777,229
Non current liabilities
Long service leave 301,884 349,158
9 Reserves
Donations Reserve
The Donations reserve was established in 2009 by a gift from the Glenn Tobin Memorial Fund to be used
for youth mental health.
10 Capital and Leasing Commitments
(a) Operating Leases
Minimum lease payments under non
cancellable operating leases:
not later than one year 601,534 505,955
between one year and five years 227,248 71,919
828,782 577,874
16.
Grand Pacific Health Limited
ABN 49 062 587 071
Notes to the Financial Statements
For the Year Ended 30 June 2017
10 Capital and Leasing Commitments (Continued)
(a) Operating Leases (Continued)
Operating leases have been taken out for land and buildings, and office equipment. These leases
have an average life of between three and five years with an option for a further three years
included in some contracts. There are no restrictions placed upon the lessee upon entering into
these leases.
11 Financial Risk Management
The main risk Grand Pacific Health Limited is exposed to through its financial instruments are market risk
consisting of interest rate risk.
The Company's financial instruments consist mainly of deposits with banks, accounts receivable and
payable, bank loans and leases.
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:
2017
$
2016
$
Financial Assets
Cash and cash equivalents 6,661,654 5,758,891
Loans and receivables 761,165 441,949
Total financial assets 7,422,819 6,200,840
Financial Liabilities
Financial liabilities at amortised cost
Trade and other payables 1,321,609 1,181,622
12 Key Management Personnel Disclosures
The total remuneration paid to key management personnel of the Company is $ 410,531
(2016: $ 382,363).
17.
Grand Pacific Health Limited
ABN 49 062 587 071
Notes to the Financial Statements
For the Year Ended 30 June 2017
13 Contingencies
The land and buildings owned by the Company relate to GP Super Clinics in Shellharbour and Nowra were
originally funded by a combination of capital grants from the Department of Health (DoH) and bank
borrowings. The bank borrowings have been subsequently repaid. Both contracts with DoH specify capital
grants must be repaid should the Company fail to comply with any of its obligations under the contract,
including using and running the property as a GP Super Clinic. If a GP Super Clinic is closed within twenty
years proportional repayment of the Grant would be required. As at 30 June 2017 the applicable
proportional repayment for the GP Super Clinic Shellharbour would be $1,744,625 (2016: $1,869,625) and
the GP Super Clinic Nowra would be $7,127,123 (2016: $7,540,342). The Company has no plans to close
either of the GP Super Clinics.
14 Related Parties
(a) The Company's main related parties are as follows:
Key management personnel:
Any person(s) having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including any director (whether executive or otherwise)
of that entity are considered key management personnel (KMP).
For details of remuneration disclosures relating to key management personnel, refer to Note 12:
Key Management Personnel Disclosures.
Other transactions with KMP and their related entities are shown below.
(b) Transactions with related parties
Transactions between related parties are on normal commercial terms and conditions no more
favourable than those available to other parties unless otherwise stated. No amounts are payable to
or receivable from directors or director related entities at the reporting date (2016: Nil).
2017
$
2016
$
After hours practice incentive
payments provided to director
related entities 12,632
18.
Grand Pacific Health Limited
ABN 49 062 587 071
Notes to the Financial Statements
For the Year Ended 30 June 2017
15 Events after the end of the Reporting Period
The financial report was authorised for issue on 20 September 2017 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.
16 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.
Key estimates provisions
As described in the accounting policies, provisions are measured at management s best estimate of the
expenditure required to settle the obligation at the end of the reporting period. These estimates are made
taking into account a range of possible outcomes and will vary as further information is obtained.
Key estimates receivables
The receivables at reporting date have been reviewed to determine whether there is any objective
evidence that any of the receivables are impaired. An impairment provision is included for any receivable
where the entire balance is not considered collectible. The impairment provision is based on the best
information at the reporting date.
19.
Grand Pacific Health Limited
ABN 49 062 587 071
Notes to the Financial Statements
For the Year Ended 30 June 2017
17 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) Leases
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.
(c) 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).
Grant revenue
Government grants are recognised at fair value where there is reasonable assurance that the grant
will be received and all grant conditions will be met. Grants relating to expense items are recognised
as income over the periods necessary to match the grant to the costs they are compensating. Grants
relating to assets are credited to deferred income at fair value and are credited to income over the
expected useful life of the asset on a straight line basis.
Donations
Donations and bequests are recognised as revenue when received.
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.
20.
Grand Pacific Health Limited
ABN 49 062 587 071
Notes to the Financial Statements
For the Year Ended 30 June 2017
17 Summary of Significant Accounting Policies (Continued)
(c) Revenue and other income (Continued)
Rendering of services (Continued)
If the outcome cannot be reliably estimated then revenue is recognised to the extent of expenses
recognised that are recoverable.
Rental income
Rental income 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.
(d) 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 balance sheet.
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.
(e) Property, plant and equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any
accumulated depreciation and impairment.
Under cost model, 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.
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.
21.
Grand Pacific Health Limited
ABN 49 062 587 071
Notes to the Financial Statements
For the Year Ended 30 June 2017
17 Summary of Significant Accounting Policies (Continued)
(e) Property, plant and equipment (Continued)
The depreciation rates used for each class of depreciable asset are shown below:
Fixed asset class Depreciation rate
Buildings 2.5%
Furniture and Fittings 12.5% 25%
Motor Vehicles 20%
Office Equipment 20%
Computer Equipment 33%
Computer Software 33%
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.
(f) Financial instruments
Financial instruments are recognised initially using trade date accounting, i.e. on the date that the
Company becomes party to the contractual provisions of the instrument.
On initial recognition, all financial instruments are measured at fair value plus transaction costs
(except for instruments measured at fair value through profit or loss where transaction costs are
expensed as incurred).
Financial Assets
Financial assets are divided into the following categories which are described in detail below:
loans and receivables;
financial assets at fair value through profit or loss; and
held to maturity investments.
Financial assets are assigned to the different categories on initial recognition, depending on the
characteristics of the instrument and its purpose. A financial instrument s category is relevant to the
way it is measured and whether any resulting income and expenses are recognised in profit or loss
or in other comprehensive income.
All income and expenses relating to financial assets are recognised in the statement of profit or loss
and other comprehensive income in the !finance income or !finance costs line item respectively.
22.
Grand Pacific Health Limited
ABN 49 062 587 071
Notes to the Financial Statements
For the Year Ended 30 June 2017
17 Summary of Significant Accounting Policies (Continued)
(f) Financial instruments (Continued)
Loans and receivables
Loans and receivables are non derivative financial assets with fixed or determinable payments that
are not quoted in an active market. They arise principally through the provision of goods and
services to customers but also incorporate other types of contractual monetary assets.
After initial recognition these are measured at amortised cost using the effective interest method,
less provision for impairment. Any change in their value is recognised in profit or loss.
The Company s trade and other receivables fall into this category of financial instruments.
Significant receivables are considered for impairment on an individual asset basis when they are
past due at the reporting date or when objective evidence is received that a specific counterparty
will default.
The amount of the impairment is the difference between the net carrying amount and the present
value of the future expected cash flows associated with the impaired receivable.
In some circumstances, the Company renegotiates repayment terms with customers which may
lead to changes in the timing of the payments, the Company does not necessarily consider the
balance to be impaired, however assessment is made on a case by case basis.
Held to maturity investments
Held to maturity investments are non derivative financial assets with fixed or determinable
payments and fixed maturity. Investments are classified as held to maturity if it is the intention of
the Company's management to hold them until maturity.
Held to maturity investments are subsequently measured at amortised cost using the effective
interest method, with revenue recognised on an effective yield basis. In addition, if there is
objective evidence that the investment has been impaired, the financial asset is measured at the
present value of estimated cash flows. Any changes to the carrying amount of the investment are
recognised in profit or loss.
Financial liabilities
Financial liabilities are classified as either financial liabilities !at fair value through profit or loss or
other financial liabilities depending on the purpose for which the liability was acquired.
23.
Grand Pacific Health Limited
ABN 49 062 587 071
Notes to the Financial Statements
For the Year Ended 30 June 2017
17 Summary of Significant Accounting Policies (Continued)
(f) Financial instruments (Continued)
The Company!s financial liabilities include borrowings, trade and other payables, which are
measured at amortised cost using the effective interest rate method.
Impairment of financial assets
At the end of the reporting period the Company assesses whether there is any objective evidence
that a financial asset or group of financial assets is impaired.
Financial assets at amortised cost
If there is objective evidence that an impairment loss on financial assets carried at amortised cost
has been incurred, the amount of the loss is measured as the difference between the asset s
carrying amount and the present value of the estimated future cash flows discounted at the
financial assets original effective interest rate.
Impairment on loans and receivables is reduced through the use of an allowance accounts, all other
impairment losses on financial assets at amortised cost are taken directly to the asset.
Subsequent recoveries of amounts previously written off are credited against other expenses in
profit or loss.
(g) Impairment of non financial assets
At the end of each reporting period the Company determines whether there is evidence of an
impairment indicator for non financial assets.
Where this indicator exists and regardless for 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.
24.
Grand Pacific Health Limited
ABN 49 062 587 071
Notes to the Financial Statements
For the Year Ended 30 June 2017
17 Summary of Significant Accounting Policies (Continued)
(g) Impairment of non financial assets (Continued)
Reversal indicators are considered in subsequent periods for all assets which have suffered an
impairment loss.
(h) 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.
(i) Employee benefits
Provision is made for the Company's liability for employee benefits arising from services rendered
by employees to the end of the reporting period. Employee benefits that are expected to be wholly
settled within one year have been measured at the amounts expected to be paid when the liability
is settled.
Employee benefits expected to be settled more than one year after the end of the reporting period
have been measured at the present value of the estimated future cash outflows to be made for
those benefits. In determining the liability, consideration is given to employee wage increases and
the probability that the employee may satisfy vesting requirements. Cashflows are discounted using
market yields on high quality corporate bond rates incorporating bonds rated AAA or AA by credit
agencies, with terms to maturity that match the expected timing of cashflows. Changes in the
measurement of the liability are recognised in profit or loss.
(j) Economic dependence
Grand Pacific Health Limited is dependent on direct and indirect funding from the Federal
Department of Health for the majority of its revenue used to operate the business. At the date of
this report the directors have no reason to believe the Federal Department of Health will not
continue to support Grand Pacific Health Limited.
(k) Early adoption of AASB 120
During the year ended 30 June 2016 the Company changed its accounting policy relating to the
recognition and measurement of government grants through the early adoption of AASB 120
Accounting for Government Grants and Disclosure of Government Assistance.
This policy continues to be adopted in this financial report.
25.
Grand Pacific Health Limited
ABN 49 062 587 071
Directors' Declaration
The directors declare that in the directors' opinion:
there are reasonable grounds to believe that the company is able to pay all of its debts, as and when
they become due and payable; and
the financial statements and notes satisfy the requirements of the Australian Charities and Not for
profits Commission Act 2012.
Signed in accordance with subsection 60.15(2) of the Australian Charities and Not for profits Commission
Regulation 2013.
Jodi Keast
Director
Bunja Smith
Director
Dated 20 September 2017
26.
27
Independent Audit Report to the members of Grand Pacific Health Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Grand Pacific Health Limited, which comprises the balance sheet as at 30 June
2017, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of
cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting
policies, and the directors declaration.
In our opinion the financial report of Grand Pacific Health Limited has been prepared in accordance with Division 60 of the
Australian Charities and Not for profits Commission Act 2012, including:
(a) giving a true and fair view of the Company s financial position as at 30 June 2017 and of its financial performance
for the year then ended; and
(b) complying with Australian Accounting Standards and Division 60 of the Australian Charities and Not for profits
Commission Regulation 2013.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor s Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Company in accordance with the auditor independence requirements of the Australian Charities and
Not for profits Commission Act 2012 (ACNC Act) and the ethical requirements of the Accounting Professional and Ethical
Standards Board s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Information Other than the Financial Report and Auditor's Report Thereon
The directors are responsible for the other information. The other information is the directors' report accompanying the
financial report.
Our opinion on the financial report does not cover the other information and accordingly we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in
the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
28
Responsibilities of Directors for the Financial Report
The directors of the Company are responsible for the preparation and fair presentation of the financial report in accordance
with Australian Accounting Standards and the ACNC Act, and for such internal control as the directors determine is
necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or
error.
In preparing the financial report, the directors are responsible for assessing the Company s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
the directors' either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
Obtain an understanding of internal control relevant to the audit 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.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor s report to the related disclosures in the financial report or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor s report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
29
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
Daley & Co
Chartered Accountants
Stephen Milgate
Partner
20 September 2017
Wollongong
Liability limited by a Scheme approved under Professional Standards Legislation.