Post on 26-Jun-2020
Australian Breastfeeding Association
ABN 64 005 081 523
Financial report for the financial year ended 30 June 2015
Australian Breastfeeding Association
Contents
Annual financial report
for the financial year ended 30 June 2015
Page
Directors’ report 1
Auditor’s independence declaration 4
Independent audit report 5
Directors’ declaration 7
Statement of profit or loss and other comprehensive income 8
Statement of financial position 9
Statement of changes in equity 10
Statement of cash flows 11
Notes to the financial statements 12
Australian Breastfeeding Association
Directors’ report
1
Directors’ report
The Directors of Australian Breastfeeding Association submit herewith the annual financial report of the company
for the financial year ended 30 June 2015. The Directors report as follows:
Company Objectives and Strategy The Australian Breastfeeding Association is a voluntary organisation established for charitable purposes, originating
in 1964 as the Nursing Mothers’ Association. The Association is a company limited by guarantee. The replaceable
rules in the Corporations Act do not apply to the Association. ABA is a registered training organisation.
Our Vision
Breastfeeding is recognised as important by all Australians and is culturally normal.
Our Mission
As Australia’s leading authority on breastfeeding, we support, educate and advocate for a breastfeeding inclusive
society.
Key Result Areas:
Breastfeeding support
Organisational viability
Training, education and resources
Advocacy
Public awareness and profile
Governance and organisational development
Principal activities All activities undertaken by the Association are determined by the objectives, priorities and measurable outcomes
identified in the 2013-2016 Strategic Plan and are fitting with the objects of the Association.
Principal activities are determined in accordance with the strategic priorities, identified for each Key Result Area and
include
Group meetings – planned, coordinated and facilitated by trained volunteers
Breastfeeding Helpline – 24 hour mum-to-mum assistance and support for breastfeeding mothers
Community Education - hospital visits, school visits, educational sessions
Breastfeeding Education Classes – evidence-based information for mums and dads to be
Training and Education for Health Professionals, including national Health Professional Seminar Series
Nationally recognised training for ABA volunteers
Breast pump hire
Local events such as feed and change tents
Breastfeeding Friendly Workplace
The Board of Directors made the decision to close the Mothers Direct retail stores and online store effective April 10
2015, and wind up the business Mothers Direct Pty Ltd.
Australian Breastfeeding Association
Directors’ report
2
Measurement of Performance The Board of Directors and Chief Executive Officer monitor progress toward achieving the Association’s objectives
through reporting to an Operational Plan. This plan links activities and services to strategic priorities and desired
outcomes of each Key Result Area and is reviewed at quarterly Board meetings.
Company Financial Performance During Year The loss of the consolidated entity for the 2015 financial year was $715,507.
(2014: profit of $72,864). This result takes into account the operations of the company (the Association National
Head Office and its Branches) and Mothers Direct Pty Ltd (“the Consolidated Entity” or “the group”). This loss was
largely attributable to Mothers Direct.
Members of the Board The names of the Directors in office at any time during or since the year end, with particulars of the qualifications,
experience and special responsibilities of each Director, are:
Director Qualifications and experience Special responsibilities
Rachel Fuller IBCLC, Cert IV TAE, Cert IV
Breastfeeding Education (Counselling),
Cert IV Breastfeeding Education
(Community), Cert III Advertising Studies
(Media)
President
Susan Day IBCLC, Diploma of Breastfeeding
Management, Cert IV TAE Cert IV
Breastfeeding Education (Counselling),
Cert IV Breastfeeding Education
(Community)
Vice President
Deborah Holtham MBA (Tech Mgt), BEng (Elec)
Honorary Secretary 1st July
2014 to
28th
November 2014
Robyn Hamilton MAppSc (Library&Info Mgt),
GradDipLibSc, BA (Hons) Musicology,
Cert IV AWT, Cert IV Breastfeeding
Education (Counselling), CertIV
Breastfeeding Education (Community)
Sarah Lowndes
BEc, MArts (Public Policy and
Management), GAICD
Honorary Treasurer
Sky Mykyta (term ended 9 December 2014)
LLM (Leg Prac), GDLP, LLB (Hons), BA
(Cultural Studies), Cert IV Breastfeeding
Education (Community)
Alicia O’Donoghue BBus, BCmn, MMktg, MBA
Nanette Shone Cert IV Breastfeeding Education
(Counselling), Cert IV Breastfeeding
Education (Community)
Hononary Secretary 29th
November
2014 to 30 June 2015
Leanne Taylor BA, Dip Ed, Grad Dip Psych, Post-grad
Dip Psych, Cert IV TAE, Cert IV
Breastfeeding Education (Counselling),
Cert IV Breastfeeding Education
(Community)
Board Liaison for Liquid Gold
Conference
Scott Williams
Exec MBA, Masters Advanced Practice
Nursing, BA Paediatric Nursing, GAICD
Australian Breastfeeding Association
Directors’ report
3
Directors’ Meetings
The names of the Directors in office at any time during or since the end of the year and the number of meetings
attended by each Director were:
Directors Eligible to Attend Attended
S Day 5 5
R Fuller 5 5
R Hamilton 5 5
D Holtham 5 3
S Lowndes 5 5
S Mykyta (term ended 9/12/2014) 2 2
A O’Donoghue 5 5
N Shone 5 3
L Taylor 5 5
S Williams 5 4
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
Membership
The Company has only 1 class of membership and on wind up each member must contribute $20 amounting to a
total contribution by members of $50,440.
Auditors’ Independence Declaration
A copy of the Auditors’ Independence Declaration as required under section 60-40 of the Australian Charities and
Not-for-profits Commission Act 2012 is set out on page 4.
Signed in accordance with a resolution of the Board of Directors.
Rachel Fuller
President
Sarah Lowndes
Treasurer
Melbourne, 30 October 2015
Australian Breastfeeding Association
Directors’ declaration
7
DECLARATION BY DIRECTORS
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 described in Note 1 to the financial
statements.
The directors of the company declare that:
1. The financial statements, comprising the statement of profit or loss and other comprehensive income,
statement of financial position, statement of cash flows, statement of changes in equity, and accompanying
notes of the consolidated entity, are in accordance with the Australian Charities and Not-for-profits
Commission Act 2012 and:
(a) comply with Accounting Standards as described in Note 1 to the financial statements and the
Australian Charities and Not-for-profits Commission Regulation 2013; and
(b) give a true and fair view of the consolidated entity’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:
Rachel Fuller
President
Sarah Lowndes
Director
Dated the 30 October 2015
Melbourne
Australian Breastfeeding Association
Statement of profit or loss and other comprehensive income
8
Statement of profit or loss and other comprehensive income
for the financial year ended 30 June 2015
Note Consolidated
2015
$
2014
$
Revenue from continuing operations 2(a) 3,892,902 3,454,167
Cost of sales (57,369) (59,648)
Employee expenses (1,385,103) (1,299,445)
Depreciation and amortisation expense (86,219) (76,359)
Occupancy expenses (127,295) (145,803)
Other expenses 2(b) (2,660,168) (1,770,900)
Profit/(Loss) before income tax (423,252) 102,012
Income tax expense 1(f) - -
Profit /(Loss) from continuing operations (423,252) 102,012
Profit/(Loss) from discontinued operations 2(c) (292,255) (29,148)
Profit/(Loss) for the year (715,507) 72,864
Other comprehensive income - -
Total comprehensive income/(loss) (715,507) 72,864
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
Australian Breastfeeding Association
Statement of financial position
9
Statement of financial position
as at 30 June 2015
Note Consolidated
30 June
2015
$
30 June
2014
$
Current assets
Cash and cash equivalents 14(a) 2,017,549 2,317,665
Trade and other receivables 4 83,200 130,482
Inventories 5 98,115 381,725
Other 6 26,843 459,659
Total current assets 2,225,707 3,289,531
Non-current assets
Intangible assets 7 98,774 163,703
Plant and equipment 8 67,068 138,484
Total non-current assets 165,842 302,187
Total assets 2,391,549 3,591,718
Current liabilities
Trade and other payables 9 361,794 821,460
Provisions 10 223,512 257,604
Other 11 886,691 1,237,234
Total current liabilities 1,471,997 2,316,298
Non-current liabilities
Provisions 12 360,281 -
Other
Total non-current liabilities
13
56,592 57,234
416,873 57,234
Total liabilities 1,888,870 2,373,532
Net assets 502,679 1,218,186
Equity
Retained earnings 502,679 1,218,186
Total equity 502,679 1,218,186
The above statement of financial position should be read in conjunction with the accompanying notes.
Australian Breastfeeding Association
Statement of changes in equity
10
Statement of changes in equity
for the year ended 30 June 2015
Consolidated
Retained
Earnings
Total Equity
$ $
Balance at 30 June 2013 1,145,322 1,145,322
Total comprehensive profit for the year 72,864 72,864
Balance at 30 June 2014 1,218,186 1,218,186
Total comprehensive loss for the year (715,507) (715,507)
Balance at 30 June 2015 502,679 502,679
The above statement of changes in equity should be read in conjunction with the accompanying notes.
Australian Breastfeeding Association
Statement of cash flows
11
Statement of cash flows
for the year ended 30 June 2015 Note Consolidated
2015
$
2014
$
Cash flows from operating activities
Receipts from members and customers 2,659,502 2,857,892
Grant receipts 1,669,604 1,684,090
Interest received 31,314 33,664
Receipts from other sources 322,930 435,778
Payments to suppliers and employees (4,977,993) (4,476,238)
Net cash provided by/(used in) operating activities 14(b) (294,643) 535,186
Cash flows from investing activities
Payment for intangible assets - (30,754)
Payment for plant and equipment (14,563) (31,838)
Proceeds from disposal of plant and equipment 645 -
Net cash used in investing activities (13,918) (62,592)
Cash flows from financing activities
Change in group closures 8,445 (2,784)
Net cash used in financing activities 8,445 (2,784)
Net increase/ (decrease) in cash and cash equivalents (300,116) 469,810
Cash and cash equivalents at the beginning of the financial year 2,317,665 1,847,855
Cash and cash equivalents at the end of the financial year 14(a) 2,017,549 2,317,665
The above statement of cash flows should be read in conjunction with the accompanying notes.
Australian Breastfeeding Association
Notes to the financial statements
12
Notes to the financial statements for the financial year
ended 30 June 2015
1. Summary of significant accounting policies
Financial reporting framework
The consolidated entity is not a reporting entity because in the opinion of the directors there are unlikely to
exist users of the financial report who are unable to command the preparation of reports tailored so as to satisfy
specifically all of their information needs. Accordingly, this ‘special purpose financial report’ has been
prepared to satisfy the directors’ reporting requirements under the Australian Charities and Not-for-profits
Commission Act 2012.
The Association is a company limited by guarantee, incorporated and domiciled in Australia.
The financial statements were authorised for issue on 30 October 2015, by the directors of the company.
Statement of compliance
The financial statements have been prepared in accordance with the Australian Charities and Not-for-profits
Commission Act 2012 and the requirements of the following Australian Accounting Standards:
AASB 101: Presentation of Financial Statements
AASB 107: Statement of Cash Flows
AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors
AASB 110: Events after the Reporting Period
AASB 1031: Materiality
AASB 1048: Interpretation of Standards
AASB 1054: Australian Additional Disclosures
No other Australian Accounting Standards or Australian Accounting Interpretations have been applied.
Basis of preparation
The financial statements have been prepared on the basis of historical cost. Cost is based on the fair values of
the consideration given in exchange for assets. Unless otherwise indicated, all amounts are presented in
Australian dollars.
In the application of the group’s accounting policies management is required to make judgments, estimates and
assumptions about carrying values 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.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised if the revision affects only that period, or in the
period of the revision and future periods if the revision affects both current and future periods.
Judgments made by management in the application of the group’s accounting policies that have significant
effects on the financial statements and estimates with a significant risk of material adjustments in the next year
are disclosed, where applicable, in the relevant notes to the financial statements.
Australian Breastfeeding Association
Notes to the financial statements
13
1. Summary of accounting policies (cont’d)
Going concern
For the year ended 30 June 2015, the entity made an operating loss of $715,507 (2014: operating profit of
$72,864) and had negative operating cash flows of $294,643 (2014: positive operating cash flows of
$535,186). Despite this the entity has a current asset surplus of $753,710 (2014: surplus of $973,233).
In addition to this, the Board of Directors is of the opinion that due to the following factors:
An overall strong balance sheet position with net assets in 2015 being $502,679
Cost saving benefits expected in 2016 due to closure of the Mothers Direct retail operations, which were
operating at a loss
A forecast surplus in 2016
the Association is a going concern and that these financial statements should be prepared on a going concern
basis.
The following significant accounting policies have been adopted in the preparation and presentation of the
financial report:
(a) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, and cash in banks.
(b) Employee benefits
Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and
long service leave when it is probable that settlement will be required and they are capable of being
measured reliably.
Provisions made in respect of employee benefits expected to be settled wholly within 12 months, are
measured at their nominal values using the remuneration rate expected to apply at the time of settlement.
Provisions made in respect of employee benefits which are not expected to be settled wholly within 12
months are measured as the present value of the estimated future cash outflows to be made by the group in
respect of services provided by employees up to reporting date.
(c) Loans and receivables
Trade receivables, loans, and other receivables are recorded at amortised cost less impairment.
(d) 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 of the 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.
Cash flows are included in the statement of cash flows on a gross basis.
Australian Breastfeeding Association
Notes to the financial statements
14
1. Summary of accounting policies (cont’d)
(e) Impairment of assets
At each reporting date, the consolidated entity reviews the carrying amounts of its 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 and where the consolidated entity would, if
deprived of the asset, replace its remaining future economic benefits, value in use is determined as the
depreciable replacement cost of an asset less, where applicable, accumulated depreciation calculated on
the basis of such cost to reflect the already consumed or expired future economic benefits of the asset. The
current replacement cost of an asset is its cost measured by reference to the lowest cost at which the gross
future economic benefits of that asset could currently be obtained in the normal course of business.
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 profit or loss
immediately.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the
revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does
not exceed the carrying amount that would have been determined had no impairment loss been recognised
for the asset in prior years. A reversal of an impairment loss is recognised in profit or loss immediately.
(f) Income tax
The Association and its controlled entity are exempt from income tax in accordance with Subdivision 50-
A (ITAA 1997).
(g) Inventories
Inventories are valued at the lower of cost and net realisable value. Costs are assigned to inventory on
hand by the method most appropriate to each particular class of inventory, with the majority being valued
on a first in first out basis. Net realisable value represents the estimated selling price and costs to be
incurred in marketing, selling and distribution.
(h) Leases
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor,
are charged as expenses in the periods in which they are incurred.
(i) Payables
Trade payables and other accounts payable are recognised when the consolidated entity becomes obliged
to make future payments resulting from the purchase of goods and services.
(j) Principles of Consolidation
The consolidated accounts comprise the accounts of the Association and its controlled entity. All inter-
entity balances and transactions have been eliminated.
Separate financial statements for Australian Breastfeeding Association as an individual entity are no
longer presented as a consequence of a change to the Corporations Act 2001, however, limited financial
information for Australian Breastfeeding Association as an individual entity is included in Note 20.
Australian Breastfeeding Association
Notes to the financial statements
15
1. Summary of accounting policies (cont’d)
(k) Plant and equipment
Plant and equipment is brought to account at cost less accumulated depreciation. The carrying amount of
plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable
amount from those assets. The depreciable amount of all fixed assets is depreciated over their useful lives
to the consolidated entity commencing from the time the asset is held ready for use.
The depreciation rates and methods used for each class of depreciable assets are:
Class of Fixed Asset Depreciation Rate and Method
Plant and Equipment 20%–40% Diminishing Value
(l) Intangible assets acquired separately
Intangible assets acquired separately are recorded at cost less accumulated amortisation and impairment.
Amortisation is charged on a straight-line basis over their estimated useful lives. Amortisation shall begin
when the assets are available for use; that is when they are in the condition of being capable of being
operated by management. The estimated useful life and amortisation method is reviewed at the end of
each annual reporting period, with any changes in these accounting estimates being accounted for on a
prospective basis. Amortisation is calculated on a straight-line basis over periods generally ranging from 3
to 5 years.
(m) Revenue recognition
Revenue from the sale of goods is recognised when the company has transferred to the buyer the
significant risks and rewards of ownership of the goods.
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on
the financial asset.
Dividend revenue is recognised when the right to receive a dividend has been established.
Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.
Revenue from members’ subscriptions is recognised on a time proportionate basis that takes into account
the period of the subscription.
Government grants are assistance by the government in the form of transfers of resources to the
consolidated entity in return for past or future compliance with certain conditions relating to its operating
activities. Government grants, when there is a non reciprocal transfer, are recognised as income when the
consolidated entity obtains control or the right to receive a contribution, it is probable that the economic
benefits comprising the contribution will flow to the group and the amount of the grant can be measured
reliably.
(n) Accounting Standards Issued Not Yet Effective
The following new accounting standards, amendments to standards and interpretations have been issued,
but are not mandatory for financial reporting years ended on 30 June 2015. They are expected to impact
the company in the period of initial application. The following is available for early adoption, but has not
been applied in preparing this financial report:
Australian Breastfeeding Association
Notes to the financial statements
16
1. Summary of accounting policies (cont’d)
(n) Accounting Standards Issued Not Yet Effective (cont’d)
Standards likely to have a financial impact
AASB
reference
Title and
Affected
Standard(s):
Nature of Change Application date: Impact on Initial
Application
AASB 9
(issued December
2010)
Financial
Instruments
AASB 9 introduces new requirements for
the classification and measurement of financial assets and liabilities.
These requirements improve and simplify
the approach for classification and measurement of financial assets compared
with the requirements of AASB 139. The
main changes are: a) Financial assets that are debt
instruments will be classified based on:
(i) the objective of the entity’s business model for managing the financial assets;
and
(ii) the characteristics of the contractual cash flows.
b) Allows an irrevocable election on
initial recognition to present gains and losses on investments in equity
instruments that are not held for trading in
other comprehensive income (instead of in profit or loss). Dividends in respect of
these investments that are a return on
investment can be recognised in profit or loss and there is no impairment or
recycling on disposal of the instrument.
c) Introduces a ‘fair value through other comprehensive income’ measurement
category for particular simple debt
instruments. d) Financial assets can be designated and
measured at fair value through profit or
loss at initial recognition if doing so eliminates or significantly reduces a
measurement or recognition inconsistency
that would arise from measuring assets or liabilities, or recognising the gains and
losses on them, on different bases.
e) Where the fair value option is used for financial liabilities the change in fair
value is to be accounted for as follows: - the change attributable to changes in
credit risk are presented in Other
Comprehensive Income (‘OCI’) - the remaining change is presented in
profit or loss
If this approach creates or enlarges an
accounting mismatch in the profit or loss,
the effect of the changes in credit risk are also presented in profit or loss.
Otherwise, the following requirements
have generally been carried forward unchanged from AASB 139 into AASB 9:
- classification and measurement of
financial liabilities; and - derecognition requirements for financial
assets and liabilities.
AASB 9 requirements regarding hedge accounting represent a substantial
overhaul of hedge accounting that enable
entities to better reflect their risk management activities in the financial
statements.
Furthermore, AASB 9 introduces a new impairment model based on expected
credit losses. This model makes use of
more forward-looking information and applies to all financial instruments that are
subject to impairment accounting.
Periods beginning on or
after 1 January 2018
Due to the fact that adoption is
only mandatory for the 30 June 2019 year end, the entity has not
yet made a full assessment of the
impact of these amendments.
However, based on the entity’s
preliminary assessment, the Standard is not expected to have
a material impact on the
transactions and balances recognised in the financial
statements when it is first
adopted for the year ending 30 June 2019.
Australian Breastfeeding Association
Notes to the financial statements
17
1. Summary of accounting policies (cont’d)
(n) Accounting Standards Issued Not Yet Effective (cont’d)
Standards likely to have a financial impact (cont’d)
AASB
referenc
e
Title and
Affected
Standard(s):
Nature of Change Application date: Impact on Initial
Application
AASB 15
Revenue from Contracts with
Customers
AASB 15 replaces AASB 118 Revenue, AASB 111 Construction Contracts and
some revenue-related Interpretations.
AASB15 establishes a new revenue recognition model that
basis for deciding whether revenue is to
be recognised over time or at a point in time. AASB15 also
more detailed guidance on specific
topics (e.g., multiple element arrangements, variable pricing, rights of
return, warranties and licensing)
roves disclosures about revenue.
In May 2015, the AASB issued ED 260
Income of Not-for-Profit Entities, proposing to replace the income
recognition requirements of AASB 1004
Contributions and provide guidance to assist not-for-profit entities to apply the
principles of AASB 15. The ED is open
for comment until 14 August 2015.
1 January 2017
Due to the fact that adoption is only mandatory for the 30 June
2018 year end, the entity has not
yet made a full assessment of the impact of these
amendments.
However, based on the entity’s preliminary assessment, the
Standard is not expected to have
a material impact on the transactions and balances
recognised in the financial
statements when it is first adopted for the year ending 30
June 2018.
(o) New and amended standards adopted by the group
None of the new standards and amendments to standards that are mandatory for the first time for the
financial year beginning 1 July 2014 materially affected any of the amounts recognised in the current period
or any prior period and are not likely to materially affect future periods.
Australian Breastfeeding Association
Notes to the financial statements
18
Consolidated
2015
$
2014
$
2. Profit / (loss) from operations
(a) Other revenue
Subscriptions 773,739 798,234
Grants 1,655,078 1,558,693
Conference Liquid Gold 576,502 -
Workshops and seminars offered outside ABA 229,692 305,146
ABA training, including branch conferences 136,155 106,420
National Raffle 77,406 162,217
Endorsement, sponsorship and advertising 90,665 117,438
Donations 79,048 78,794
Breastfeeding Friendly Workplaces 39,751 99,622
Bank interest received/receivable 31,314 33,664
Equipment hire 42,275 144,723
Other 161,277 49,216
3,892,902 3,454,167
(b) Other expenses
Audits, financial governance & consulting fees 88,129 53,677
Statutory fees, trademarks and domain names 10,962 1,319
Bad and doubtful debts expense 2,430 -
Insurance 23,120 1,492
Sales advertising and marketing 5,552 -
Advocacy, public relations and promotion 16,617 27,607
Board expenses 26,937 32,001
Volunteer management teams expenses 5,140 10,213
Office administration and overheads 108,628 140,753
Information and communication technology 26,924 40,148
Registered Training Organisation expenses 22,367 47,308
Training ABA volunteers 249,553 283,616
ABA association services 4,168 10,936
Membership Services 146,341 170,062
Membership Offers & Promotions 50,251 56,634
BFW 20,044 12,356
BIR 28,495 -
Raffle expenses 57,804 117,761
Fundraising expenses 25,468 26,725
Workshops and seminars offered outside ABA 197,560 216,212
National Breastfeeding Helpline 448,437 396,853
Other funded project expenses 164,502 71,581
Equipment hire - 2,850
Onerous lease 413,768 -
National Conference 516,971 50,796
2,660,168 1,770,900
Australian Breastfeeding Association
Notes to the financial statements
19
Consolidated
2015 2014
$ $
(c) Loss from discontinued operations
Revenue 1,106,787 1,443,872
Less cost of goods sold (807,550) (832,231)
Employee benefits (355,212) (423,778)
Depreciation & Amortisation (13,847) (13,177)
Impairment (51,312) -
Occupancy costs (56,026) (63,418)
Other expenses (115,095) (140,416)
(292,255) (29,148)
3. Remuneration of auditors
Auditor of the Head Office and Mothers Direct
Audit of the financial report 32,800 32,950
Audit of grant expenditure and raffle income 8,700 6,900
41,500 39,850
Auditor of the Branches
Audit of the financial report 16,000 15,500
Related practice of the auditor
Non-assurance services - FBT assistance 5,173 -
4. Current trade and other receivables
Trade receivables 85,630 144,233
Allowance for doubtful debts (2,430) (13,913)
83,200 130,320
Other - 162
83,200 130,482
5. Current inventories
Finished goods 101,515 389,377
Valuation provision (3,400) (7,652)
98,115 381,725
6. Other current assets
Prepayments 26,843 459,659
7. Intangible assets
Software Database:
At cost 281,252 281,252
Amortisation (182,478) (150,032)
98,774 131,220
Australian Breastfeeding Association
Notes to the financial statements
20
Consolidated
2015 2014
$ $
7. Intangible assets (cont’d)
Website:
At cost 49,487 49,487
Amortisation (22,133) (17,004)
Impairment (27,354) -
- 32,483
98,774 163,703
8. Plant and equipment
Plant and equipment:
At cost 510,993 713,832
Accumulated depreciation (419,967 ) (575,348)
Impairment (23,958) -
67,068 138,484
9. Current trade and other payables
Trade payables 181,311 638,311
Goods and services tax (GST) payable 28,648 17,459
Other 151,835 165,690
361,794 821,460
10. Current provisions
Onerous Lease 57,500 -
Employee benefits 166,012 257,604
223,512 257,604
The provision for onerous contracts relates to the future net cash outflows expected to be
incurred on the remaining lease term of the Mothers Direct retail site, which was closed in April 2015. A
provision was recognised as the expected benefits to be derived from the contract are less than the unavoidable
cost of meeting the contract obligations. The Association is in the process of finding a new tenant for the Head
Office premises.
11. Other current liabilities
Deferred Government grants 371,069 356,543
Deferred income, subscriptions 398,848 464,236
Other income received in advance 116,774 416,455
886,691 1,237,234
12. Non-current provisions
Onerous Lease 356,267 -
Employee Provisions 4,014 -
360,281 -
Australian Breastfeeding Association
Notes to the financial statements
21
(b) Reconciliation of profit/(loss) for the period to net cash flows from operating activities
Profit/ (loss) for the year (715,507) 72,864
Depreciation & amortisation 100,066 90,377
Impairment 51,312 -
Inventories valuation (4,252) 1,673
Bad and doubtful debts (11,483) 3,736
Onerous lease 413,768 -
Profit on disposal of assets (1,114) -
Changes in net assets and liabilities:
(Increase)/decrease in assets:
Current receivables 58,764 (24,854)
Current inventories 287,861 10,606
Other current assets 432,816 (430,340)
Increase/(decrease) in liabilities:
Current payables (459,666) 296,897
Current provisions (91,592) (8,688)
Other current liabilities (359,630) 519,241
Non current provisions 4,014 -
Other non-current liabilities - 3,674
Net cash inflow/(outflow) from operating activities (294,643) 535,186
(c) There are no credit standby arrangements with banks.
(d) There were no non-cash financing or investing activities during the year.
(e) The following amounts of cash and cash equivalents are not immediately available to be
utilised as they are held as security by the bank for rental guarantee and credit card facilities:
Term deposits 59,000 59,000
12. Non-current provisions (cont’d)
The provision for onerous contracts relates to the future net cash outflows expected to be incurred
on the remaining lease term of the Mothers Direct retail site, which was closed in April 2015. A
provision was recognised as the expected benefits to be derived from the contract are less than the
unavoidable cost of meeting the contract obligations. The Association is in the process of finding
a new tenant for the Head Office premises.
Consolidated
2015 2014
$ $
13. Other non-current liabilities
Deferred income, subscriptions 48,147 57,234
Group closures 8,445 -
56,592 57,234
14. Notes to the statement of cash flows
(a) Reconciliation of cash
Cash on hand 594 1,736
Cash in banks 2,016,955 2,315,929
2,017,549 2,317,665
Australian Breastfeeding Association
Notes to the financial statements
22
Consolidated
2015 2014
$ $
15. Commitments for expenditure
Non-cancellable operating lease payments
Future operating lease rentals of premises and photocopier
not provided for in the accounts, and payable:
Not longer than 1 year 109,575 185,122
Longer than 1 year not longer than 5 years 356,193 342,183
Longer than 5 years 176,941 -
642,709 527,305
16. Contingent Liabilities
Guarantees in respect of the company’s premises rental
agreement, secured by a term deposit – face value
55,000
55,000
17. Members’ Guarantee
The company is incorporated as a company limited by guarantee and not having share capital.
If the company is wound up, the Constitution states each member is required to contribute a maximum of
$20 towards meeting any outstanding obligations of the company. As at 30 June 2015 there were 2,522
members (2014: 3,039).
18. Subsequent Events
No subsequent events have occurred.
19. Additional company information
Australian Breastfeeding Association is a public company, incorporated and operating in Australia.
Registered office Principal place of business
1818 Malvern Road 1818 Malvern Road
Malvern East VIC 3145 Malvern East VIC 3145
Australian Breastfeeding Association
Notes to the financial statements
23
20. Parent Entity Information
The following details information related to the parent entity, Australian Breastfeeding Association,
at 30 June 2015. The information presented here has been prepared using consistent accounting
policies as presented in Note 1.
2015
$
2014
$
Current assets 2,203,274 2,989,762
Non-current assets 176,942 323,681
Total assets 2,380,216 3,313,443
Current liabilities 1,449,724 2,147,781
Non-current liabilities 416,873 57,234
Total Liabilities 1,886,597 2,205,015
Retained earnings 513,619 1,108,428
Total equity 513,619 1,108,428
Profit / (loss) for the year (594,809) 90,856
Other comprehensive income / (loss) for the year - -
Total comprehensive income / (loss) for the year (594,809) 90,856
21. Related Party Information
(a) Parent entity
The parent entity within the group is Australian Breastfeeding Association, a company limited by
guarantee and domiciled in Australia.
(b) Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following
subsidiary in accordance with the accounting policy described in note 1(j):
Name of entity Country of incorporation Class of shares Equity holding
2015 %
2014 %
Mothers Direct Pty Ltd Australia Ordinary 100 100
(c) Contribution to operating result
The loss of the consolidated entity for the 2015 financial year is $715,507 (2014: profit of $72,864). This
result takes into account the operations of the company (the association national head office and its
branches) and Mothers Direct Pty Ltd.
Australian Breastfeeding Association
Notes to the financial statements
24
21. Related Party Information (cont’d)
The contribution of the company (the association national head office and its branches) and its subsidiary
to the consolidated profit or loss for the year is:
Name of entity/business unit 2015
$
2014
$
Australian Breastfeeding Association
National Head Office
(506,677)
68,782
Australian Breastfeeding Association
Branches
83,425
22,074
Mothers Direct Pty Ltd (292,255) (17,992)
(715,507) 72,864