victorian ymca youth and community services incorporated... · maria joined the ymca victoria board...

Victorian YMCA Youth and Community Services Incorporated ABN 42 858 439 742 Registration no: A0046043N Financial Report for the year ended 30 June 2019

Financial Report for the year ended 30 June 2019

Page number Committee’s report 1 Independent auditor’s report 11 Committee’s declaration 12 Statement of comprehensive income 13 Statement of financial position 14 Statement of changes in equity 15 Statement of cash flows 16 Notes to the financial statements 17

Victorian YMCA Youth and Community Services Incorporated Committee’s report

1

Committee’s report The committee members of Victorian YMCA Youth and Community Services Incorporated submit the financial report for the year ended 30 June 2019.

Committee members The below named committee members held office during the whole of the financial year and since the end of the financial year unless otherwise stated. The names of the committee members of the Association during the year and at date of this report are:

Name

Qualifications, experience and responsibilities

No. of meetings eligible

to attend

No of meetings attended

CHAIR Stephen Ellich

Company Directorship Diploma; MBA, Strategy & International Business; Graduate Diploma of Administration, Finance, Strategy & International Business; Bachelor of Electrical Engineering (Hons)

Stephen is the CEO & Managing Director with Underground Cable Systems (UCS) Pty Ltd - UCS provide design and construction of electricity networks to the property development, infrastructure and construction industries. He has a successful proven track record in governing and leading large, complex, national organisations through establishment, development and transformational change to deliver comprehensive, sustainable growth.

With his extensive business expertise, a strong focus on customer centricity, innovation, combined with astute financial acumen and international experience – Stephen brings to the YMCA an inspired, collaborative leadership aligned with a firm commitment to values, strategy, technology, safety, process and people, resulting in effective performance.

Occupation: Chief Executive (CEO) & Managing Director

Area of Specialty and Expertise: Corporate governance, business management, commercial negotiations, safety, capital investment and acquisitions.

1

1


2

Name



to attend


DEPUTY CHAIR

Peter Jordan

(Appointed 9 November 2018)

Bachelor of Business, Master of Business Administration, IPAA (Victorian Fellow), MAICD and GAICD

As Principal, First Point Consulting - Peter brings more than 30 years experience in consulting to state and Commonwealth Governments to design policy, evaluate programs, conduct economic impact assessments, manage change and develop business cases. He has also worked with boards and management of a wide variety of organisations to develop strategy, manage change and improve operations.

Peter is currently Principal of First Point Consulting, a firm he established to provide strategic advice to Government departments, growing businesses and not-for-profit organisations.

Peter brings to the YMCA skills and experience in strategic planning, change management and in working with Government agencies to support policy development and program implementation.

Occupation: Management Consultant

Area of Specialty and Expertise: Strategic planning, change management, public policy and program evaluation

1

1

Maria Lui

Masters of Law, Bachelor of Economics, Graduate Diploma in Intellectual Property Law Maria joined the YMCA Victoria Board in 2012 and brings much commercial, business and finance experience. She is a qualified lawyer and accountant. Maria is a partner in Mutual Trust Pty Ltd. Mutual Trust provides a range of strategic wealth management, investment and philanthropic services to families, charitable entities and private foundations. Maria advises and supports families to help them meet their family and wealth management objectives including governance, succession, legal structures, asset protection and managing tax risks. Maria joined Mutual Trust from The Myer Family Company Ltd when the two entities merged in November 2017. Prior to that, she was a legal and tax partner at KPMG for 18 years during which she advised clients across many industries in the private and public sectors and held a number of strategic and leadership roles. Maria also has a particular interest in and long history of working with not-for-profit entities, assisting them in achieving and managing their eligibility for tax concessions. Maria had been an integral founding member of the YMCA Bridge Project Council which provides opportunity and support for young offenders after release from custody. Occupation: Partner, Mutual Trust Pty Ltd Area of Specialty and Expertise: Business strategy, governance, taxation, finance, legal and project management.

1

1


3

Name



to attend


TREASURER Lindsay Holloway

Bachelor Business Accounting (Swinburne); Member of Chartered Accountants Australia and New Zealand; Registered Tax Agent; Member of Australian Institute of Company Directors As Managing Director of William Buck, Lindsay has responsibility for the success of the firm. Lindsay believes that the power of working as a team with unwavering commitment to the firm’s values will bring that success. Lindsay has extensive experience which includes over 30 years in accounting, taxation, superannuation, and audit within the manufacturing and professional services sector, in both small and medium enterprise (SME). He is extensively adept in consulting on strategic business reviews, board advisory and superannuation. Occupation: Managing Director Area of Specialty and Expertise: Business advisory, strategic planning and Superannuation/SMSF.

1

1

Elisabet Wreme

Doctorate in Business Administration and Master of Science in Engineering Elisabet is an experienced Executive with a passion for service and technology businesses in need of change, enabling them to successfully navigate through the “growing pains” that results from expansions and market disruptions. As the COO of the Guild Group, she is a highly professional leader with a genuine understanding of technology, Elisabet loves creating great customer experiences and strong business outcomes at the same time. She is an innovator, with a patent to her name and is also a published author. Currently a Director on the Board of BreastScreen Victoria, Elisabet has broad experience across a range of strategic and operational roles, including Board experience with technology companies as Managing Director and non-executive Director. Occupation: COO Guild Group Area of Specialty and Expertise: Strategy development & execution, digital transformation, product & market development, innovation, stakeholder management, risk management, governance and modern IT development.

1

1


4

Name



to attend


Anthea Hancocks

B.Sc in Zoology & Anthropology, Masters in Business & Anthropology, MBA - Organisational Development, FAICD Anthea is the CEO of The Scanlon Foundation. The Scanlon Foundation is a private, philanthropic organisation dedicated to social cohesion with a particular focus on the transition of migrants into Australian society. She brings an extensive background in business development, education, communications, relationship and services marketing and strategic planning. Anthea has broad, senior executive experience in private, government and non-profit organisations. She is a Fellow of the Australian Institute of Company Directors (FAICD) and an accredited mediator with the Australian Institute of Arbitrators and Mediators. Anthea is a Director on the Board of the Scanlon Foundation, Director of the Whitehorse Community Chest and Chair of Welcome to Australia. Occupation: CEO The Scanlon Foundation Area of Specialty and Expertise: Change management, strategy and leadership, organisational development and culture, education and training, marketing and business development.

1

1

Benjamin Hubbard

Bachelor of Commerce in Economics, Masters Public Policy and Management Ben is the Principal of Creswell Advisory Pty Ltd, a strategic public affairs and public policy consultancy. Until recently, he was Chief Strategy Officer of Australia’s leading social justice law firm, Maurice Blackburn Lawyers. His career has included work as a self-employed consultant, in the NFP sector, in academia, in biotechnology, and at all three levels of Government. His significant public sector roles including serving as Chief of Staff to Australia's twenty seventh Prime Minister, the Honorable Julia Gillard MP from 2011-2013. Ben was also the Chief Executive Officer of the Victoria Bushfire Reconstruction and Recovery Authority, the Government agency coordinating the recovery of communities affected by the Black Saturday bushfires between 2009 and 2011. Throughout the 1990’s Ben was a YMCA staff member and volunteer and he is currently on the National Council of the Young Men's Christian Associations of Australia as Vice President and Director. Occupation: Principle and Director Area of Specialty and Expertise: Public policy.

1

1


5

Name



to attend


Oliver Tripodi

Bachelor of Arts Degree with a double major in Islamic Studies and Domestic Politics. Currently undertaking a Masters in Public Policy. First appointed to the Board in 2015, Olly Tripodi is a respected youth advocate, currently working as a Policy Advisor to the Victorian State Government. Olly’s election to the role of Youth Premier in 2009 kick-started a career in public policy and advocacy. In just a few short years, Olly has established himself as a powerful voice for young people, focusing his efforts in the fields of public policy, community inclusion and external communications. Most recently, Olly has worked as a political staffer to Wade Noonan MP, working across a suite of infrastructure projects and policy areas. Olly has previously worked as a youth worker and national political journalist for MTV Australia and New Zealand. He is passionate about genuinely engaging young people in public policy and the civic process. Having worked extensively with young people, government and the not for profit sector, Olly is well placed to provide strategic advice in relation to how best engage young people from all walks of life. Olly’s advice has assisted countless organisations to connect meaningfully with young people. Occupation: Policy Advisor Area of Specialty and Expertise: Youth affairs, advocacy and public policy.

1

1

Margaret Gillespie

BA, LLB - History and Politics; LLM – Public International Law; Member, Australian Institute of Company Directors; Member, Association of Corporate Counsel Australia Margaret is the Executive Director Legal Risk and Compliance / Chief Legal Counsel with Parks Victoria. As an experienced in-house commercial lawyer and manager with a passion for the environment, Margaret has extensive private sector experience gained in large listed companies. Managing commercial transactions and large litigation including a Royal Commission and class action, she has a proven track record developing innovative approaches to governance and compliance strategic responses. Margaret has been involved with the public sector for more than 10 years with a firm focus on the governance of organisations including support for public sector Boards, and deep understanding of governance for public sector organisations with complex legislative frameworks. Occupation: Executive Director Legal, Risk & Compliance / Chief Legal Counsel Area of Specialty and Expertise: Risk management, corporate governance, strategic compliance, legislative framework, environment, commercial law

1

1


6

Name



to attend


Andrew Scott

Bachelor of Laws, Bachelor of Economics, Accredited Business Law Specialist Andrew is a highly experienced commercial lawyer and a sports lawyer, as well as being a nationally accredited mediator. For many years he was the main legal advisor for the AFL Players’ Association and the North Melbourne Kangaroos, and a former director of Netball Australia. He is also frequently called on to comment on sports law matters in the media. During a forty year career in the law he has worked in a top tier CBD firm, worked for ten years in country Victoria and for the past 23 years was a partner and director of Moores until 2016. He was also President of the Law Institute of Victoria in 1999, a director of Victoria’s peak regulator, the Legal Services Board, until 2005 and until 2011 was Chairman of the Victorian Liquor Licensing Panel and is a Director with Swimming Victoria. Area of Speciality and Expertise: Commercial law and sports law.

1

1

Michele Rowse (Resigned 25 July 2018)

BA, Prince2, Train the Trainer 1 & 2, OHS Management Certification Michele is a management professional with extensive experience in the health, wellness, fitness, hotel, childcare, property and aquatics industries. With over 20 years’ experience, Michele has established leading customer centric programs, workplace culture improvements, and program management offices. She has led large-scale projects, directing both local and international teams to successful outcomes, including global rebrands and design redevelopment. Experience on Boards both in the health and education industries has further established Michele as a leader focused on community outcomes. Occupation: CEO, Director and Consultant Area of Specialty and Expertise: Finance and Business Management, Project management, change management, operational management, strategic planning and leadership.

0

0


7

Name



to attend


Paul Brown

(Resigned 17 October 2018)

Bachelor of Engineering (Env) RMIT University, Member Australian and New Zealand Road Lighting Standards Paul Brown is the Managing Director of Ironbark Sustainability and has over 20 years of experience in helping organisations reduce the impacts of climate change and to save money. Since the mid-1990s Paul has established sustainability organisations including the Sustainable Living Festival, the Australian Wind Energy Association and the Australian Student Environment Network. After working in local government, Paul founded Ironbark Sustainability in 2004 to help councils deliver sustainable street lighting and building management programs. Ironbark has steadily expanded since its formation and now serves around 200 local governments each year. Paul also fulfils roles as Knowledge Partner for the annual Australian Smart Lighting Summit, has been a keynote presenter at the Middle East Smart Lighting Conference and assisted local governments as far afield as Kazakhstan and Bahrain, to plan for large scale energy efficiency programs. Paul has a broad range of knowledge and experience in his role working with all levels of government and large businesses. Paul is currently managing around $100m of energy efficiency projects as well as a growing company. This means Paul’s skills range from business and staff management to risk, governance and into the detail required for the sustainable management of large building portfolios. Occupation: Managing Director Ironbark Sustainability Area of Specialty and Expertise: Finance and business management, entrepreneurship, facilitation and negotiation, strategy, sustainability management, energy and water efficiency, street lighting.

1

1


8

Mission Victorian YMCA Youth and Community Services Inc. works from a base of Christian values, to provide opportunities for all people to grow in body, mind and spirit.

Vision 2025 Our purpose: 'We believe in the power of inspired young people' Our Vision: 'Amplify your voice. Shape our community. Challenge our world.' We will achieve this through our five priorities: 1. Young People: We will embrace and empower young people to build youth-led enterprise for young people. 2. Sustainable Y: We will build a sustainable Y by investing in ethical, economically resilient, and high growth

sectors, whilst protecting the environment 3. Community & Impact: We will help people and communities flourish, measure our impact, and make

confident, evidence based decisions. 4. Customer & Performance: We will strengthen our market positions though disruption and change, digital-

driven customer experience, and strategic partnering. 5. Y Movement: We will be an active participant, advocate and leader for our people and in the YMCA

movement locally, nationally and globally. Principal activities The principal activities of Victorian YMCA Youth and Community Services Incorporated during the year was to provide a heightened sense of connectedness, wellbeing and empowerment for disadvantaged members of the community, by increasing their access to the Association’s activities.

Review of operations The deficit from ordinary activities amounted to $236,005 (2018: deficit $339,649).

Changes in state of affairs As of 1st April 2019, YMCA Community Programming Pty Ltd and The Young Men’s Christian Association of Victoria Incorporated transferred their benevolent activity employees to a related party. Benevolent operations are also scheduled to move across as of 1st July 2019. During the last financial year there was no other significant changes in the state of affairs of the entity.

Subsequent events after balance date There has not been any matter or circumstance occurring subsequent to the end of the financial year that has significantly affected, or may significantly affect, the operations of the entity, the results of those operations, or the state of affairs of the entity in future financial years.

Future developments Victorian YMCA Youth and Community Services is seeking opportunities to expand its current operations and will review opportunities as they are identified, subject to strict investment criteria to assist in meeting its Vision 2025 objectives.

Indemnification of directors and officers During the financial year, a related party paid a premium on behalf of Victorian YMCA Youth and Community Services Inc. in respect of a contract insuring the directors of the association (as named above) against a liability incurred as such a director to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium. The association has not otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to indemnify an officer or auditor of the association or of any related body corporate against a liability incurred as such an officer or auditor.

Environmental regulations

The company’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a State or Territory.


9

Committee’s Report (continued)

Indemnification of auditors To the extent permitted by law, the association has agreed to indemnify its auditors, Ernst & Young, as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Ernst & Young during or since the financial year.

Signed in accordance with a resolution of the Members of the Committee.

On behalf of the Committee

Mr Stephen Ellich

Chair

Melbourne, 30 October 2019

Mr Lindsay Holloway

Treasurer


A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

Ernst & Young 8 Exhibition Street Melbourne VIC 3000 Australia GPO Box 67 Melbourne VIC 3001

Tel: +61 3 9288 8000 Fax: +61 3 8650 7777 ey.com/au

Independent Auditor's Report to the Members of Victorian YMCA Youth and Community Services Incorporated

Opinion

We have audited the financial report of Victorian YMCA Youth and Community Services Incorporated

(the Association), which comprises the statement of financial position as at 30 June 2018, the

statement of comprehensive income, statement of changes in equity and statement of cash flows for

the year then ended 30 June 2019, notes to the financial statements, including a summary of

significant accounting policies, and the statement by the members of the committee.

In our opinion, the accompanying financial report of the Association is in accordance with the

Associations Incorporation Reform Act (Victoria) 2012, including:

a) giving a true and fair view of the Association’s financial position as at 30 June 2019 and of its financial performance for the year ended on that date; and

b) complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Associations Incorporation Reform Act (Victoria) 2012.

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 Association in accordance with 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 members of the committee are responsible for the other information. The other information is the

committee’s 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.


Responsibilities of the Members of the Committee for the Financial Report

The members of the committee of the Association 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 Associations Incorporation Reform Act (Victoria) 2012 and for such

internal control as the members of the committee 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.

In preparing the financial report, the members of the committee are responsible for assessing the

Association’s ability to continue as a going concern, disclosing, as applicable, matters relating to going

concern and using the going concern basis of accounting unless the members of the committee either

intend to liquidate the Association or to cease operations, or have 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 the 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 this 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 Association’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the members of the committee.

• Conclude on the appropriateness of the members of the committee’s 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 Association’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 Association 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.

We communicate with the members of the committee 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.

Ernst & Young

Paul Gower

Partner

Melbourne

30 October 2019

Victorian YMCA Youth and Community Services Incorporated Committee’s declaration

11

Statement by members of the committee

In accordance with a resolution of the members of the committee, I state that in the opinion of the members:

(a) the financial statements and notes of the Association are in accordance with the Associations IncorporationReform Act 2012, including:

(i) giving a true and fair view of the Association's financial position as at 30 June 2019 and of itsperformance for the year ended on that date; and

(ii) complying with Australian Accounting Standards – Reduced Disclosure Requirements and theAssociations Incorporation Reform Act 2012; and

(b) there are reasonable grounds to believe that the Association will be able to pay its debts as and when theybecome due and payable.

This statement is made in accordance with a resolution of the Committee and is signed on behalf of the Committee by:

Mr Stephen Ellich

Chair


Mr Lindsay Holloway

Treasurer


Victorian YMCA Youth and Community Services Incorporated Statement of comprehensive income

12

Statement of comprehensive income for the year ended 30 June 2019

Notes 2019

$ 2018

$

Results from benevolent activities

Revenue – donations 715,938 766,733

Revenue – grant income 149,218 111,506

Revenue – bequests 7,569 20,389

Interest income 21,269 15,036

Benevolent expenses (888,539) (745,136)

Surplus from benevolent activities 5,455 168,528

Results from benevolent support activities

Revenue – other 107,930 123,936

Fee and other expenses (15,651) (145,081)

Depreciation (10,991) (10,855)

Finance cost (387) -

Administration expenses (101,570) (146,209)

Employee benefit expenses (220,791) (329,968)

Deficit from support activities (241,460) (508,177)

Total deficit before income tax expense (236,005) (339,649)

Income tax expense 3(c) - -

Total deficit for the year (236,005) (339,649)

Other comprehensive income - -

Total comprehensive deficit for the year (236,005) (339,649)

The above Statement of comprehensive income should be read in conjunction with the accompanying notes.

Victorian YMCA Youth and Community Services Incorporated Statement of financial position

13

Statement of financial position as at 30 June 2019

Notes 2019

$

Restated 2018

$

Current assets

Cash and cash equivalents 15(a) 1,043,373 1,092,402

Trade and other receivables 6 3,125 7,007

Other assets 7 - 55,358

Total current assets 1,046,498 1,154,767

Non-current assets

Plant and equipment 8 52,449 63,440

Total non-current assets 52,449 63,440

Total assets 1,098,947 1,218,207

Current liabilities

Trade and other payables 9 171,371 5,872

Provisions 10 337,870 5,614

Deferred income 11 359,907 2,266

Borrowings 12 83,365 822,016

Total current liabilities 952,513 835,768

Total liabilities 952,513 835,768

Net assets 146,434 382,439

Equity

Accumulated surplus 146,434 382,439

Total equity 146,434 382,439

The above Statement of financial position should be read in conjunction with the accompanying notes.

Victorian YMCA Youth and Community Services Incorporated Statement of changes in equity

14

Statement of changes in equity for the year ended 30 June 2019

The above Statement of changes in equity should be read in conjunction with the accompanying notes.

Accumulated surplus

$ Total

$

Balance at 1 July 2017 723,058 723,058

Deficit for the year (339,649) (339,649)


Balance at 30 June 2018 383,409 383,409

Correction of prior period error (970) (970)

Balance at 30 June 2018 (restated) 382,439 382,439

Deficit for the year (236,005) (236,005)


Balance at 30 June 2019 146,434 146,434

Victorian YMCA Youth and Community Services Incorporated Statement of cash flows

15

Statement of cash flows for the year ended 30 June 2019

Notes 2019

$ 2018

$

Cash flows from operating activities

Receipts from donations and bequests 1,397,535 1,147,818

Payments to suppliers and employees (1,066,664) (1,394,567)

Interest paid (387) -

Interest received 21,269 15,036

Net cash from / (used in) operating activities 15(b) 351,753 (231,713)

Cash flows from investing activities

Payment for plant and equipment - (45,246)

Net cash used in investing activities - (45,246)

Cash flows from financing activities

Net loans advanced from / (to) related parties (400,782) 489,326

Net cash from / (used in) financing activities (400,782) 489,326

Net increase / (decrease) in cash and cash equivalents (49,029) 212,367

Cash and cash equivalents at the beginning of the year 1,092,402 880,035

Cash and cash equivalents at the end of the year 15(a) 1,043,373 1,092,402

The above Statement of cash flows should be read in conjunction with the accompanying notes.

Victorian YMCA Youth and Community Services Incorporated Notes to financial statement

16

1. General informationThe financial report covers Victorian YMCA Youth and Community Services Incorporated as an individual entity. Victorian YMCA Youth and Community Services Incorporated is an entity, incorporated under the Associations Incorporation Reform Act (Victoria) 2012 and operating in Australia.

Registered office and principal place of business

Victorian YMCA Youth and Community Services Incorporated

Unit 502, 990 Whitehorse Road

Box Hill VIC 3128

2. Adoption of new and revised accounting standards

The company applied AASB 9 Financial Instruments for the first time. The nature and effect of the changes as a result of adoption of this new accounting standard are described below. The adoption of AASB 9, Financial Instruments from 1 July 2019 resulted in changes in accounting policies however there were and no adjustments to the amounts recognised in the financial statements. In accordance with transitional provisions, comparative figures have not been restated and continue to be reported in terms of the previous applicable standard of AASB 139: Financial Instruments: Recognition and Measurement.

Financial assets The table below compares the classification and measurement of the company’s financial assets under AASB 139 as compared to AASB 9. The changes in classification of the company’s financial assets under AASB 9 have not impacted their carrying values.

Financial asset

Carrying

amount

1 July 2018

Classification and measurement

AASB 139

Classification and

measurement AASB 9

Cash and cash equivalents $1,092,402 Loans and receivables measured at

amortised cost

Financial assets measured at

amortised cost

Trade and other receivables $7,007 Loans and receivables measured at

amortised cost


amortised cost

Related party receivables $0 Loans and receivables measured at

amortised cost


amortised cost

Financial liabilities The accounting requirements for the company’s financial liabilities including trade and other payables and related party loans under AASB 9 remain largely the same as AASB 139 in that all financial liabilities are measured at amortised cost.

Impairment of financial assets AASB 9 replaces the ‘incurred loss’ impairment model of AASB 139 with a new ‘expected credit loss’ (ECL) impairment model. The objective of the ECL model is to recognise debtor provisions on a forward-looking basis, rather than when there is historical evidence of an impairment occurring. The Company assessed that the impact of adopting the ECL approach to impairment and it was not material from a Company perspective.

Several other new and amended Australian Accounting Standards and AASB interpretations apply for the first time during the reporting period ended 30 June 2019. The impact of these new standards and amendments were not material


17

2. Adoption of new and revised accounting standards and interpretation (continued)

to the consolidated financial statements. Other Australian accounting standards and interpretations that have been recently been issued or amended but are not yet effective including AASB 1058 Income for Not-for-Profit Entities, AASB 15 Revenue with Contracts with Customers and AASB 16 Leases have not been adopted by the company for the reporting period ended 30 June 2019.

AASB 16 Leases – effective 1 January 2019 (Application date: 1 July 2019)

AASB 16 replaces existing lease requirements in Australian Accounting Standards (AASB 117 Leases, Interpretation 4 Determining whether an Arrangement contains a Lease, Interpretation 115 Operating Leases – Incentives, Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease).

AASB 16 Leases sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires leases to account for all leases under a single on-balance sheet model to the accounting for financial leases under AASB17.

Under AASB 16 Leases the Company will account for operating leases as a lessee by recognising a right-of-use (ROU) asset and an associated lease liability on the Consolidated Statement of Financial Position. The lease liability represents the present value of future lease payments and the corresponding right-of-use asset represents the right to use the underlying asset during the lease term. The standard includes two recognition exemptions for the lessee being low value assets and short-term leases. Leases will be required to recognise an interest expense on the lease liability and a depreciation charge for the right of use asset. The Company’s accounting for leases as a lessor remains unchanged from today’s accounting under AASB 17.

The Company is currently finalising the impact of the transition to AASB 16 which is expected to be material.

The actual impact of applying AASB 16 on the financial statements in the period of initial application will depend on the composition of the Company’s lease portfolio, the extent to which the Group chooses to use practical expedients and recognition exemptions, final discount rates used in calculating the lease liability, final determination of reasonably certain renewal options and the application of new accounting policies which are subject to change until the Company presents its financial statements that include the date of initial application.

AASB 1058 – Income of Not-For-Profit Entities – application date 1 January 2019 and AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-For-Profit Entities. – effective 1 January 2019 (Application date: 1 July 2019)

The application of AASB 1058 should also be applied in conjunction with AASB 15 Revenue from Contracts with Customers. Both standards will be applicable for the Company from 1 July 2019.

AASB 15 – Revenue from Contracts with Customers

AASB 15 supersedes AASB 118 Revenue and applies to all revenue arising from contracts with customers. The core principle of AASB 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. An entity recognises revenue in accordance with the core principle by applying the following steps:

► Step 1: Identify the contract(s) with a customer

► Step 2: Identify the performance obligations in the contract

► Step 3: Determine the transaction price

► Step 4: Allocate the transaction price to the performance obligations in the contract

► Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation.The Company currently is undertaking a project to review all revenue transactions and streams to finalise the impact of the transition on 1 July 2019.


18

3. Significant accounting policies

(a) Basis of preparation

The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the Associations Incorporation Reform Act 2012, Australian Accounting Standards – Reduced Disclosure Requirements and other authoritative pronouncements of the Australian Accounting Standards Board. The financial report has also been prepared on a historical cost basis, except for certain non-current assets and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.

(b) Statement of Compliance

The Organisation has adopted AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements for the financial year beginning on 1 July 2014.

The Organisation is a not-for-profit, private sector entity which is not publicly accountable as defined under Appendix A of AASB 1053 Application of Tiers of Australian Accounting Standards. Therefore the consolidated financial statement for the Organisation are tier 2 general purpose financial statements which have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements (AASB – RDRs) (including Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB) and the Associations Incorporation Reform Act 2012 (and is associated regulations).

The financial statements were authorised for issue by the directors on 30 October 2019.

The following significant accounting policies have been adopted in the preparation and presentation of the financial statements:

(c) Income tax

Victorian YMCA Youth and Community Services Incorporated is a tax exempt body under Section 50-5 of the Income Tax Assessment Act 1997 and therefore does not account for income tax.

(d) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, cash in banks and investments in money market instruments that are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value, net of outstanding bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position.

(e) Financial assets

Initial recognition and measurement Financial assets are classified, at initial recognition, as subsequently measured at amortised value, fair value through other comprehensive income (OCI), and fair value through profit or loss.

Financial assets are classified as follows depending on the nature and purpose of the financial assets and at the time of initial recognition. The most applicable category for the Company is amortised cost.

Subsequent Measurement Financial assets at amortised cost (debt instruments). This category is the most relevant to the Company. The Company measures financial assets at amortised cost if both of the following conditions are met: • The financial asset is held within a business model with the objective to hold financial assets in order to collect

contractual cash flowsAnd


19

3. Significant accounting policies (continued)

(e) Financial assets (continued)

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments ofprincipal and interest on the principal amount outstanding

Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. The Company’s financial assets at amortised cost includes trade receivables, and loans to associates.

Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Company’s statement of financial position) when: • The rights to receive cash flows from the asset have expiredOr• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay

the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; andeither (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company hasneither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of theasset.

(f) Plant and Equipment

Plant and equipment is stated at cost less accumulated depreciation and any impairment in value.

Depreciation Depreciation is calculated on a straight line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to the entity to its residual value, as follows:

Plant & Equipment 3-12 yearsComputer equipment 2-4 yearsProgram equipment 3-5 yearsMotor vehicles 8-15 years

(g) Impairment of assets

At each reporting date, the entity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. In respect of not-for-profit entities, where the future economic benefits of an asset are not primarily dependent on the assets ability to generate net cash inflows, the assets value in use cannot be estimated close to its fair value. In such cases the asset is tested for impairment as part of the cash generating unit for which it belongs.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised in the statement of comprehensive income immediately, unless the relevant asset is carried at fair value, in which case the impairment loss is treated as a revaluation decrease.


20


(h) Financial Liabilities

Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, or payables, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables and loans and borrowings.

Subsequent measurement The measurement of financial liabilities depends on their classification, as described below: Loans and borrowings After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss.

Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

(i) Employee benefits

Provisions made in respect of employee benefits expected to be settled within 12 months, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement, including on-costs. Provisions made in respect of employee benefits which are not expected to be settled within 12 months are measured at the present value of the estimated future cash outflows to be made for these benefits.

Levies are paid by the entity to a central long service leave fund operated by The Young Men’s Christian Association of Victoria Incorporated to cover amounts expected to be paid to employees for their entitlements to long service leave. Contributions to defined superannuation plans are expensed when employees have rendered services entitling them to the contributions.

(j) Provisions

Provisions are recognised when the entity has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably.


21


(k) Revenue recognition

Donations and bequests

Revenue from donations and bequests is recognised when the entity has received the funds. Donations from related entities are recognised on an accrual basis.

Interest revenue

Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

Government grants

Government grants are assistance by the government in the form of transfers of resources to the entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. Government grants include government assistance where there are no conditions specifically relating to the operating activities of the entity other than the requirement to operate in certain regions or industry sectors.

Government grants are not recognised until there is reasonable assurance that the entity will comply with the conditions attaching to them and the grants will be received.

Government grants, when there is a non reciprocal transfer, are recognised as income when the entity obtains control or the right to receive a contribution, it is probable that the economic benefits comprising the contribution will flow to the entity and the amount of the grant can be measured reliably.

Other revenue

Fundraising revenue is recognised as revenue when it is received.

Gifted assets

The entity from time to time is the recipient of gifted assets received for no contribution. Where an asset is acquired at no cost, or for nominal cost, the cost is its fair value as at the date of acquisition and this is recognised as other income in the year of receipt.

(l) Goods and services tax

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:

i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part ofthe cost of acquisition of an asset or as part of an item of expense; or

ii. for receivables and payables which are recognised inclusive of GST.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

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


22

3. Significant accounting policies (continued)(m) Correction of prior period errors

The following prior period error has been corrected in the financial statements:a) A shortfall in Superannuation Guarantee contributions due to an incorrect configuration in payroll for the

periods 2014 to 2018.

The statement of financial position balances as at 30 June 2018 have been restated as follows: a) Accumulated surplus has decreased by $970 to account for the superannuation shortfallb) Trade and other payables have increased by $970 to account for the superannuation shortfall

(n) Trade Payables

Trade payables are carried at amortised cost and due to their short-term nature, they are not discounted. They represent liabilities for goods and services provided to the Company prior to the end of the financial year that are unpaid and arise when the Company becomes obliged to make future payments in respect of the purchase of these goods and services. These amounts are unsecured and are usually paid within 30 to 45 days of recognition.

4. Critical accounting judgements and key sources of estimation uncertainty

In the application of the entity’s accounting policies, which are described in note 3, the committee members are required to make judgments, estimates and assumptions about carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgments. Actual results may differ from these estimates. No material accounting estimates and judgements were applied in preparing the financial statements.

5. Key management personnel remuneration

Management compensation is determined by the Committee of Members with reference to YMCA Victoria Managers Agreement employment contract and relevant not for profit sector benchmarking. Currently all management decisions are made by the parent entity YMCA Victoria Incorporated.

6. Trade and other receivables2019

$ 2018

$

Trade receivable - 1,100

Other receivables 3,125 5,907

3,125 7,007

The average credit period on sale of goods and rendering of services is 14 days. Trade and other receivables are recognised initially at fair value and subsequently measured at an amortised cost using the effective interest rate method, less an allowance for expected credit losses. The Company has elected to apply the simplified approach to measuring expected credit losses, using the lifetime expected loss allowance for all trade and other receivables. To measure the expected credit losses, receivables have been grouped based on shared credit risk characteristics and the days past due. At year-end the carrying value of receivables approximates their fair value. The entity has provided fully for all receivables over 120 days as historical experience has shown that receivables beyond 120 days are generally not recoverable. Impaired debtors are all aged in 90 days and greater category.

A credit application process is completed on all new customers to establish credibility and recognition in the market place before credit is extended.

7. Other AssetsPrepayments - 55,358


23

8. Property, plant and equipment

Plant & Equipment

Computer Equipment

Program Equipment

Motor Vehicles

Work in progress Total

Gross carrying amount

Balance as at 30 June 2018 23,670 16,490 8,000 43,266 - 91,426

Additions - - - - - -

Transfers - - - - - -

Balance as at 30 June 2019 23,670 16,490 8,000 43,266 - 91,426

Accumulated depreciation

Balance as at 30 June 2018 (4,734) (16,490) (3,049) (3,713) - (27,986)

Depreciation expense (4,734) - (2,484) (3,773) - (10,991)

Balance as at 30 June 2019 (9,468) (16,490) (5,533) (7,486) - (38,977)

Net Book Value

30 June 2018 18,936 - 4,951 39,553 - 63,440

30 June 2019 14,202 - 2,467 35,780 - 52,449


24

9. Trade and other payables2019

$

Restated 2018

$

Trade payables 40,321 -

Accrued expenses 2,395 2,922

Other liabilities 128,655 2,950

171,371 5,872 Average credit terms are 30 days. The association has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

10. ProvisionsAnnual leave (i) 337,870 5,614 (i) As of 1st April 2019, YMCA Community Programming Pty Ltd and The Young Men’s Christian Associationof Victoria Incorporated transferred their benevolent activity employees to Victorian YMCA Youth andCommunity Services Inc.

11. Deferred income

Unearned revenue - 2,266

Unearned grant 359,907 -

359,907 2,266

12. BorrowingsRelated party borrowings 83,365 822,016

The related party loan from The Young Men’s Christian Association of Victorian Inc.is at call, is unsecured and is non-interest bearing.

13. Related party transactionsDonations received from YMCA Victoria Incorporated:

- Activities donation 34,181 95,506

Donations received from YMCA Community Programming PL 175,220 168,760

Donations received from YMCA Camping Limited 10,041 260

219,442 264,526

Contribution to long service leave fund paid to YMCA Victoria Inc. $NIL (2018: $2,042)

Donations receivable from YMCA Victoria branches constitute income raised by entities as part of their fundraising activities for benevolent activities administered by the Victorian YMCA Youth and Community Services Inc. The donations receivable from YMCA Victoria Inc. covers part of the overhead operating expenses to assist other donations to be invested in benevolent work.

14. Events after the balance dateThere are no matters or circumstances that have arisen since the end of the financial year which have significantly affected or may significantly affect the operations of the entity, the results of those operations, or the state of affairs of the entity in future financial years.


25

2019 $

2018 $

15. Cash and cash equivalents(a) Reconciliation of cash and cash equivalents

For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand and in banks and investments in money market instruments. Cash and cash equivalents at the end of the year as shown in the statement of cash flows can be reconciled to the related items in the statement of financial position as follows:

Cash and bank balances 1,043,373 1,092,402

(b) Reconciliation of deficit for the year to net cash flows from operating activitiesDeficit for the year (236,005) (339,649)

Depreciation 10,991 10,855

Changes in net assets and liabilities;

Increase / (decrease) in assets:

Trade receivables 3,882 94,462

Other assets 55,358 30,490

Increase/ (decrease) in liabilities:

Trade payables 165,500 (21,926)

Provisions (5,614) (6,248)

Deferred income 357,641 303

Net cash from / (used) in operating activities 351,753 (231,713)

16. Financial InstrumentsCategories of financial instruments:Financial LiabilitiesTrade and other payables 171,371 5,872

Related party borrowings 83,365 822,016

254,736 827,888 Financial Assets Cash and cash equivalents 1,043,373 1,092,402

Trade and other receivables 3,125 7,007

1,046,498 1,099,409

(a) Fair value of financial instruments

For other assets and other liabilities the net fair value approximates their carrying value. No financial assets and financial liabilities are readily traded on organised markets in standardised form.

The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the statement of financial position and in the notes to the financial statements.

17. Remuneration of auditorsAudit of the financial statements 993 909

The auditor of Victorian YMCA Youth and Community Services Incorporated is Ernst and Young.

victorian ymca youth and community services incorporated... · maria joined the ymca victoria board...

Documents