Australian Breastfeeding Association · The Directors of Australian Breastfeeding Association...

Australian Breastfeeding Association

ABN 64 005 081 523

Financial report for the financial year ended 30 June 2015


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


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.


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



(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



(Community)

Board Liaison for Liquid Gold

Conference

Scott Williams

Exec MBA, Masters Advanced Practice

Nursing, BA Paediatric Nursing, GAICD


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


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


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.


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.


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.


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.


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.



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.



14


(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.



15


(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:



16


(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.



17


(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.



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



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



20

Consolidated

2015 2014

$ $

7. Intangible assets (cont’d)

Website:

At cost 49,487 49,487

Amortisation (22,133) (17,004)


- 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)


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 -



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



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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



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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.



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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

$


National Head Office

(506,677)

68,782


Branches

83,425

22,074

Mothers Direct Pty Ltd (292,255) (17,992)

(715,507) 72,864

Australian Breastfeeding Association · The Directors of Australian Breastfeeding Association...

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