royal australian artillery historical...

ROYAL AUSTRALIAN ARTILLERY HISTORICAL COMPANYABN 66 084 470 539

Financial Report - for the year ended 30 June 2015

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Contents page

Directors' Report 3

Auditors' Independence Declaration 9

Statement of Comprehensive Income 10

Statement of Financial Position 11

Statement of Changes in Equity 12

Statement of Cash Flows 13

Notes to the Financial Statements 14

Independent Auditor's Report 19

Declaration by directors 21

Detailed Statement of Profit and Loss 22

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DIRECTORS' REPORT

Your directors present this report on the company for the financial year ended 30 June 2015.

DirectorsThe names of each person who has been a director during the year and to the date of this report are:

Tim Ford AO (Chairman from 22 Oct 11)Ian Ahearn Kevin Browning OAM (resigned 18 October 2014)Schon G Condon RFD, KCSJ Jason Cooke RFD John Cox AM Jon Green RFD (from 16 February 2015)Nicholas Floyd Peter Lawrence John Rehn (resigned 26 March 2015)Vincent Williams CSC

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

The company returned an operating surplus for the year ended 30 June 2015 of $1,391 (2014: $7,565).

Principal ActivitiesThe principal activities of the company during the financial year were to promote and support the heritage and history of Australian Artillery on a national basis.The company’s short-term objectives are to:

o Deliver an 18 Pounder gun team to commemorate the role of Australian Artillery in WWI, specifically by, and to participate in, the National ANZAC Day Parade at the Australian War Memorial.

o Agree with Australian Army History Unit a register of items that comprise the National Artillery Collection.

o Deliver Year 1 of the Centenary of WW1 Artillery History Seminar series.o Provide input in the creation of an Australian Army Artillery Museum.o Grow membership.

The company’s long-term objectives are to:

o Grow membership among both serving and past members of the Defence Force to enable the RAAHC to influence and sustain its operations.

o Develop cooperative arrangements with other existing regional, local and unit artillery associations.

o Encourage the Australian Defence Department to build a new Australian Army Artillery museum at Puckapunyal as a priority.

o Resolve ownership of the artillery collection held at Bandiana. o Deliver an 18 Pounder gun team to commemorate the role of Australian Artillery in WWI.

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DIRECTORS' REPORT

o Confirm the preferred future care and location of all RAAHC assets.o Develop the RAAHC library into an Artillery Resource Centre located at North Fort to assist

collection preservation and enhance accessibility.o Implement Centenary of WW1 Artillery History Seminar. o Build the relationship with Sydney Harbour Federation Trust.o Build on existing information and communication technology to improve communication

with stakeholders.o Obtain donations and grants to fund approved RAAHC activities.o Continue quality governance and management of the RAAHC.

To achieve these objectives, the company has adopted the following strategies:a. Closely engage with Sydney Harbour Federation Trust.b. Work closely with artillery organisations in each state and with the Army History unit to

build a National Artillery Collection register.c. Provide resources to maintain Australia’s Memorial Walk.d. Develop an integrated web based database to support the Sir Roden Cutler VC Research

Centre.

The company measures its performance through such key performance indicators as:a. Membership numbers.b. Delivery of projects on time and within budget.c. Ability to generate income to support displays of collection items.d. Frequency of requests for support from museums/agencies.

Volunteer HoursIt is estimated, following a survey of RAAHC Volunteers conducted in early 2015, that volunteers provide 12,850 hours (30 volunteers) of voluntary service during the past year.

Information on Directors

Tim Ford AO Chairman

Qualification BE (Elec) Syd Uni, G, AWC, JSSC, psc., Graduate Australian Institute Company Directors.

Experience 40 years’ experience in ADF and the UN, Director Artillery 1987-88, RAA Representative Colonel Commandant 2005-12. Joined the company in 1981. Chair Australian Peacekeeping Memorial Project, Chair Peace Operations Training Institute.

Special Responsibilities Chair Board of Directors, Life Governor.

Ian Ahearn Deputy Chair

Qualification Graduate Diploma – Defence Studies UNSW, Graduate of the Royal Military College, Army Command and Staff College and the Joint Services Staff College.

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DIRECTORS' REPORT

Experience 36 year career in the ADF, RAA Colonel Commandant Eastern Region, President of the RAA Association (ACT); Vice Chairman of the Australian Industry Defence Network, Board Member Federal Golf Club, President Federal Golf Club, Member RSL National Conditions of Service Committee.

Special Responsibilities Chairman, Membership Committee; Member, Governance Committee.

Kevin Browning OAM

Qualification Attended the Long Gunnery Staff Course (Locating) at the Royal School of Artillery, UK.

Experience Member of the Royal Australian Artillery Historical Company since 1985.

Special Responsibilities Memorial Walk Administration; Chairman Collections Committee;Member History Committee.

Schon G Condon RFD, KCSJ

Qualification B. Bus (Acc) UTS; Graduate Diploma Management University of Canberra; and psc(r) Australian Command and Staff College, Canberra, FCA, FCPA, FIPA, FAICD.

Experience Managing Principal Condon Associates Group; Past President of the Royal Australian Artillery Association of NSW Inc.; Former Commanding Officer 23 Field Regiment RAA; Former Chairman Western Sydney Itec Ltd; Former Chair Public Practice Committee CPA Australia; Former President Turnaround Management Association of Australia Ltd

Special Responsibilities Chairman, Governance Committee; Member, Finance Committee,Life Governor.

John Cox AM

Qualification Graduate of the Royal Military College, the Joint Services Staff College and the Australian College of Defence and Strategic Studies. Doctor of Philosophy (Physics UNSW).

Experience Chairman of the History Sub Committee of the RAA Regimental Committee; Chairman of the RAA Historical Society (3 years); Director of Royal Australian Artillery; Australian Defence/Army appointments (40 plus years); Project Director and Manager of Defence of Sydney Monument and Commemoration Event (2 years).

Special Responsibilities Chairman, History Committee, Life Governor.

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DIRECTORS' REPORT

Jason Cooke

Qualification Grad Cert in Project Management UTS, Graduate Australian Command & Staff College.

Experience Army Reserve Officer with over 30 years commencing in 1982 and currently posted to 4 BDE Headquarters as Assistant Commander - Capability and Workforce Planning. In his civilian role he is appointed within Defence Materiel Organisation as the Deputy Director Project and Sustainment.

Special Responsibilities Chair Collections Committee (from 22 Oct 2014), Member Membership Committee

Jon Green

Qualification Bachelor of Education (Secondary Mathematics)

Experience Army Reserve Officer with over 30 years commencing in January 1981. Currently posted as the SO2 Soldier Career Management at the Career Advisory Group – Eastern Region.

Special Responsibilities Honorary Treasurer, Chair of Finance and Governance Committee

Nicholas Floyd

Qualification Bachelor degree in history and post-graduate degrees in defence studies, and in history/archaeology, graduate of Command and Staff College.

Experience Regimental experience (8th/12th, 1st and 2nd/10th Regiments), Army Headquarters, and Chief of Army’s Visiting Fellow, Lowy Institute. Former Directing Staff at the Australian Command & Staff College Operational service in Iraq and Afghanistan. President of the RAA Association (ACT). Councillor of the United Services Institute (ACT).

Special Responsibilities Membership Committee, History Committee

Peter Lawrence

Qualification Bachelor of Arts and is a graduate of the Australian Army and Canadian Command and Staff Courses

Experience Australian Army for 30 years in field, operational and training appointments; and CEO of the Australian Society of Anaesthetists (not for profit society for nineyears).

Special Responsibilities Honorary and Company Secretary, Finance and Membership Committees

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DIRECTORS' REPORT

John Rehn

Qualification Bachelor of Business in Accounting, he is a fellow member of the Institute of Public Accountants and holds Chartered Tax Adviser status with the Taxation Institute of Australia.

Experience He has over 20 years’ experience in audit, business services accounting

Special Responsibilities Chairman, Finance Committee; Honorary Treasurer

Vincent Williams CSC

Qualification Master of Arts (International Relations), Postgraduate Diploma of TESOL (Teaching English to Speakers of other Languages), Graduate Diploma in Management and a Bachelor of Arts degree

Experience Served on the Committee of the Royal Australian Artillery Historical Society 1990-92 Regimental Committee’s representative to the Australian Army Artillery Museum 2008-2013.

Special Responsibilities Liaison with SHFT, Life Governor

Meetings of Directors

During the financial year, five meetings of the directors were held. Attendances by each director were as follows:

Directors Meetings

Number eligible

to attendNumber attended

Tim Ford 5 5Ian Ahearn 5 5Kevin Browning 2 1Schon Condon 5 4John Cox 5 5Jason Cooke 5 4Jon Green 2 2Nicholas Floyd 5 5Peter Lawrence 5 5John Rehn 4 2Vincent Williams 5 3

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DIRECTORS' REPORT

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 $10 each towards meeting any outstanding obligations of the entity. At 30 June 2015, the total amount that members of the company are liable to contribute if the company is wound up is $2,470 (2014: $2,320).

Auditors' Independence Declaration

A copy of the auditors' independence declaration as required under section 307C of the Corporations Act 2001 is set out on 9.

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

Director: _________________________________________________________Tim Ford

Director: ___________________________________________________Peter Lawrence

Dated this 15th day of September 2015

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Note 2015 2014$ $

Revenue 2 11,630 45,554

Grant expenditure 3 - (15,157) Australian Memorial Walk expenditure 4 (1,552) (4,690) Restoration expenditure 4 (4,928) (16,774) Other expenses (3,759) (1,366)

(10,239) (37,988)

Profit/(Loss) before income tax expense 1,391 7,566

Income tax expense - -

1,391 7,566

Other comprehensive income, net of tax - Adjustment to deferred revenue of prior periods 137 9,929 - Transfer to reserves (137) (9,929) - GST adjustments - (528)

1,391 7,038

5 1,391 7,038

The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

Total comprehensive income for the year attributable to the members of the company

Total comprehensive income for the year


Statement of Profit or Loss and Other Comprehensive Incomefor the year ended 30 June 2015

Profit/(Loss) for the year after income expense attributable to the owners of the company

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Note 2015 2014$ $

ASSETSCurrent AssetsCash and Cash Equivalents 5 158,491 62,816 Trade and Other Receivables 6 1,408 1,400 Stock 7 920 920

Total current assets 160,819 65,136

Non-current assetsMuseum Inventory - Memorabilia 8 1,117,180 1,117,180 Australian Memorial Walk 8 400,000 400,000

Total non-current assets 1,517,180 1,517,180

Total assets 1,677,999 1,582,316

LIABILITIESCurrent liabilities

Other Payables 9 - 244 Deferred Revenue 9 4,604 4,741 Unexpended Project Obligations 10 94,536 -

Total current liabilities 99,140 4,985

Total liabilities 99,140 4,985

NET ASSETS 1,578,859 1,577,331

EQUITYAsset Revaluation Reserve 1,512,364 1,512,364 Reserves Membership 10,066 9,929 Retained Earnings 56,429 55,038 Total equity 1,578,859 1,577,331

The above Statement of Financial Position should be read in conjunction with the accompanying notes

ABN 66 084 470 539

as at 30 June 2015

ROYAL AUSTRALIAN ARTILLERY HISTORICAL COMPANY

Statement of Financial Position

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NotesRetained Earnings Reserves Total

Balance at 1 July 2014 55,038 1,522,293 1,577,331

Profit for the year 1,391 - 1,391 Transfers to reserves - 137 137

Total comprehensive income for the year 1,391 137 1,528

Balance at 30 June 2015 56,429 1,522,430 1,578,859

Balance at 1 July 2013 48,000 1,512,364 1,560,364

Profit for the year 7,566 - 7,566 Other comprehensive income for the year (528) - (528) Transfers to reserves - 9,929 9,929

Total comprehensive income for the year 7,038 9,929 16,967

Balance at 30 June 2014 55,038 1,522,293 1,577,331

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes


for the year ended 30 June 2015Statement of Changes in Equity

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Notes 2015 2014$ $

Cash flows from operating activitiesReceipts from customers 9,305 43,755 Interest received 2,317 1,434 Payments to suppliers (10,483) (40,149) Net cash flows from operating activities 5 1,139 5,040

Cash flows from investing activitiesPayments for restorations (81,431) - Proceeds from grants and sponsorships 42,473 - Proceeds from donations 133,494 - Net cash flows from investing activities 94,536 -

Cash flows from financing activities- -

Net cash flows from financing activities - -

Net decrease in cash and cash equivalents 95,675 5,040

Cash and cash equivalents at the beginning of the financial year 62,816 57,776

Cash and cash equivalents at the end of the financial year 5 158,491 62,816

The above Statement of Cash Flows should be read in conjunction with the accompanying notes


Statement of Cash Flowsfor the year ended 30 June 2015

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ROYAL AUSTRALIAN HISTORICAL COMPANYABN 66 084 470 539

Notes to the Financial Statements for the year ended 30 June 2015

Note 1 – Summary of Significant Accounting Policies

The directors have prepared the financial statements on the basis that the Company is a non reporting entity because there are no users dependent on general purpose financial statements. These financial statements are therefore special purpose financial statements that have been prepared in order to meet the requirements of the Corporations Act 2001.

The financial statements have been prepared in accordance with the mandatory Australian Accounting Standards applicable to entities reporting under the Corporations Act 2001, and the significant accounting policies disclosed below with the directors have determined are appropriate to meet the needs of members. Such accounting policies are consistent with the previous period unless stated otherwise.

The financial statements have been prepared on an accruals basis and are based on historical costs unless otherwise stated in the notes. The material accounting policies that have been adopted in the preparation of these statements are as follows:

New, revised or amending Accounting Standards and Interpretations adopted

The company has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Any significant impact on the accounting policies of the company from the adoption of these Accounting Standards are disclosed in the relevant accounting policy. The adoption of these Accounting Standards and Interpretation did not have significant impact on the financial performance or position of the company.

Accounting Policies

a. Revenue recognitionRevenue is recognised when it is probable that the economic benefit will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.

Rendering of services- membership feesRendering of services revenue from membership fees is recognised when no significant uncertainty as to its collectability exists. Revenue from membership fees is apportioned to reflect amounts for current year subscriptions. Amounts paid in advance in the current and prior years, is apportioned to deferred revenue.

DonationsDonations are recognised at the time the pledge is made.

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Note 1 – Summary of Significant Accounting Policies (cont.)GrantsGrants are recognised at their fair value where there is a reasonable assurance that the grant will be received and all attached conditions will be complied with.

InterestInterest revenue is recognised as income when it is received.

Other revenueOther revenue is recognised when it is received or when the right to receive payment is established.

b. Income TaxAs the Company is a charitable institution in terms of subsection 50-5 of the Income Tax Assessment Act 1997, as amended, it is exempt from paying income tax.

c. Cash and cash equivalentsCash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

d. Trade and other receivables Other receivables are recognised at amortised cost, less any provision for impairment.

e. Memorabilia, Australian Memorial Walk and Property, Plant and EquipmentMemorabilia is carried at the directors’ estimation of realisable value. The Australian Memorial Walk is carried at estimated replacement cost. Plant and equipment is stated at historical cost and is recognised in the period it is acquired, installed ready for use.

f. Other payablesThese amounts represent liabilities for services yet to be provided to members in accordance with financial periods to which membership fees have been paid.

g. Impairment of AssetsAt the end of each reporting period, the Company reviews the carrying values of its tangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair values less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the statement of comprehensive income.

h. Goods and Services Tax (GST)Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from, or payable to, the ATO. GST refundable or payable at year end is included in receivables and payables.

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Note 1 – Summary of Significant Accounting Policies (cont.)Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.

i. New Accounting Standards and Interpretations not yet mandatory or early adopted

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the company for the annual reporting period ended 30 June 2015. The company has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.

j. Critical Accounting Estimates and JudgementsThe directors evaluate estimates and judgements incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data obtained both externally and within the company.

k. Changes to Accounting Policy – AC18 Pounder ProjectFunds raised during the year, specifically for the AC 18 Pounder Project (AC18Pdr) not fully expended during the year, have been recognised as a liability at year end. This represents a change to the accounting policy of previously recognising all donation and grant revenue as income, with corresponding outlays disclosed as expenditure in the Statement of Profit and Loss.

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Note 2. Revenue 2015 2014$ $

3,109 2,548 Revenue grant funding - GVESHO - 2,500 Revenue grant funding - NLA - 12,200 Revenue from donations 6,200 26,570 Total Revenue 9,309 43,818

Other revenueInterest revenue 2,317 1,306 Miscellaneous 4 429 Total revenue 11,630 45,554

Note 3. Grant ExpenditureThe following expenditure relates to specific grant funding - fully expended in 2015

Grant expenditure - GVESHO - 2,582 Grant expenditure - NLA - 12,576 Grant expenditure - AC18Pdr

Department of Veterans Affairs 34,473 BAE Systems 8,000

Note 4. ExpensesProfit or loss before tax includes the following specific expenses:

Library costs 1,558 12,576 Restoration costs - CA18Pdr project (change to accounting policy) - 13,140 Restoration costs - other 4,928 3,635 Australian Memorial Walk 1,552 4,690

Note 5. Cash and cash equivalents

Cash on Hand - Library Float 50 50 Cheque Account - Operations 590 1,322 Cheque Account - Gift 716 12,566 Cash Reserve Account - Operations 21,515 22,962 Cash Reserve Account - Gift 135,620 25,819 Paypal - 97

158,491 62,816

Revenue from membership fees


Notes to the Financial Statementsfor the year ended 30 June 2015

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2015 2014$ $

Note 5 a. Cashflow related disclosureReconciliation of profit/(loss) after income tax to net cash outflowfrom operating activities

Net Profit/(Loss) 1,391 7,038

Adjustments forChanges in assets and liabilities (Increase)/decrease in receivables and inventories (8) (1,400) (Decrease)/increase in creditors and accruals (244) (10,678)

Net cash flows from operating activities 1,139 (5,040)

Note 6. Trade and other receivablesOther debtors - 104 GST refundable 1,408 1,296

1,408 1,400

Note 7. Stock on handAMW Pavers 244 244 Restoration leather 676 676

920 920

Note 8. Non Current Assets Australian MuseumMemorial Walk Memorabilia Total

Gross carrying amountBalance at 1 July 2014 400,000 1,117,180 1,517,180 Revaluations / impairment - - - Balance at 30 June 2015 400,000 1,117,180 1,517,180

Net book valueAs at 30 June 2015 400,000 1,117,180 1,517,180

Note 9. Other PayablesSundry creditors - 244 Membership revenue received in advance 4,604 4,741

4,604 4,985

Note 10. AC18Pdr - Unexpended project specific funds

Grant funding received - fully expended 42,473 - Donations received - partially expended 133,494 - Total project specific revenue raised in year 175,967 -

Expenses Fodder & farrier 6,631 - Transportation 25,505 - Horse training 18,320 - Insurance and licences 3,605 - Restoration and uniforms 27,370 - Total project related expenses 81,431 -

Unexpended project specific funds raised 94,536 -

Represents a change to accounting policy effective from 1 July 2014 refer to Note 1.


Notes to the Financial Statementsfor the year ended 30 June 2015

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DIRECTORS' DECLARATION

The directors have determined that the company is not a reporting entity and that these special purpose financial statements should be prepared in accordance with the accounting policies outlined in Note 1 to the financial statements.

The directors of the company declare that:

1. The financial statements and notes are in accordance with the Corporations Act 2001 and give a true and fair view of the Company’s financial position as at 30 June 2015 and of its performance for the year ended on that date in accordance with the accounting policies described in Note 1 to the financial statements.

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 and is signed for and on behalf of the directors by:

______________________________Tim FordDirector

______________________________Peter LawrenceDirector

Sydney

Dated this 15th day of September 2015

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Note 2015 2014$ $

INCOMESubscriptions 3,109 2,548 Donations - AMW and unspecified 5,450 26,570 Donations - unspecified 750 55 Interest Income 2,317 1,434 Other Miscellaneous Income 4 247

11,630 30,854 OTHER INCOMEGrants - Australian Government GVESHO Program - 2,500 - National Library of Australia - 12,200

- 14,700 11,630 45,554

EXPENSESAdvertising 524 - Bank charges 647 359 Paypal charges 190 - Equipment expensed - 167 Insurance 1,856 1,866 Library expenses 1,558 13,034 Meeting costs 393 146 Memorial walk expenditure 1,552 4,690 Publications 56 - Repairs and maintenance - 180 Restoration costs 1,200 16,774 Supplies, postage and stationery 1,006 276 Travel costs 548 - Internet and website 709 496

10,239 37,989 Profit/(Loss) before income tax expense 1,391 7,565

The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.


Detailed Profit and Loss Statementfor the year ended 30 June 2015

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