Concise Financial Report 2015 - Taralye · 2017-05-02 · 2001 is set out on page 8 of the...

2015The Advisory Council for Children with Impaired Hearing (Victoria)

47TH ANNUAL REPORT

Concise Financial Report

TARALYE – 2015 ANNUAL REPORT

For the year ended 30 June 2015

The Advisory Council for Children with Impaired Hearing (Victoria) ABN 80 004 856 053 and its Controlled Entity

Councillors’ Report 4-7

Independence Declaration 8

Discussion and Analysis of the Financial Statements 9

Financial Statements

Consolidated Statement of Proft or Loss and Other Comprehensive Income 10

Consolidated Statement of Financial Position 11

Consolidated Statement of Changes in Equity 12

Consolidated Statement of Cash Flows 13

Notes to the Concise Financial Report 14-15

Councillors’ Declaration 16

Independent Auditor’s Report 17-18

Concise Financial Report 2015

The Advisory Council for Children with Impaired Hearing (Victoria)

47TH ANNUAL REPORT

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The Councillors of The Advisory Council for Children with Impaired Hearing (Victoria) submit herewith the annual financial report for the financial year ended 30 June 2015.

CouncillorsThe names of the Councillors in office at any time during or since the end of the financial year are:

Professor Richard Dowell (Chairman)Mr Nicholas MorrisonMrs Joan HaleMrs Marilyn DannMrs Chantel Myers-Hately Ms Ariane Barker (Resigned 26 November 2014)Ms Naomi Baulch Mrs Lousje Skala (Resigned 26 November 2014)Ms Jennifer Lang (Appointed 24 February 2015)Mrs Carol Daicic (Appointed 24 February 2015)Councillors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Principal ActivityThe principal activities of the consolidated entity are the provision of facilities for diagnosing and educating children with impaired hearing.

The consolidated entity co-operates with Government, statutory authorities, education and research bodies and other industry bodies working to foster, promote and work for the provision of facilities and services related directly to children with impaired hearing.

The consolidated entity receives Government subsidies, client fees and also actively seeks to raise money by all lawful means and to solicit, receive and enlist financial and other aid and to conduct fundraising campaigns in support of its work with children with impaired hearing.

Operating ResultsThe consolidated profit of the consolidated entity for the financial year after providing for income tax and eliminating outside equity interests amounted to $248,036 (2014: $259,625).

Review of OperationsA review of the operations of the consolidated entity during the financial year and the results of those operations have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the consolidated entity.

Significant Changes in State of AffairsNo significant changes in the state of affairs of the consolidated entity occurred during the financial year.

After Reporting Date EventsNo matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity and the parent entity in future financial years.

ObjectivesThe company’s short-term objectives are to:

• Maintain responsible financial management and develop growth of the funding base

• Align service models with available resources and legislative requirements

• Maintain availability and equity of access to services

• Maintain and develop a highly educated, skilled and motivated workforce

Councillors’ Report

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Objectives (continued)The company’s long-term objectives are to:

• Develop the ongoing financial sustainability of Taralye

• Provide additional outreach services throughout Victoria

• Embrace technology and any associated efficiency opportunities

• Secure the future of Taralye as a leading oral language centre

StrategiesTo achieve its stated objectives, the company has adopted the following strategies:

• Redevelopment of revenue streams and active encouragement of stakeholder engagement

• Brand development and consistent communication to stakeholders

• Refine and redevelop current service models through continuous improvement processes

• Active participation in research and learning from other service models

Key Performance MeasuresThe company measures its own performance through the use of both quantitative and qualitative benchmarks. The benchmarks are used by the directors to assess the financial sustainability of the company and whether the company’s short-term and long-term objectives are being achieved following comparison with other First Voice centres.

Information on Directors/Councillors

Professor Richard Dowell

Position: DirectorQualifications: BSc MSc DipAud PhD FAudSA(CC)Experience: Professor of Audiology and Speech Science, University of MelbourneSpecial Responsibilities: Chairman

Mr Nicholas Morrison

Position: DirectorQualifications: BSc MAcc CPA CIA MIIA(Aust)Experience: CPA (Partner)Special Responsibilities: Finance and Risk Committee Chairman

Mrs Joan Hale

Position: DirectorExperience: Business Development and FundraisingSpecial Responsibilities: Communication and Fundraising

Mrs Marilyn Dann OAM

Position: CouncillorQualifications: BA MEd TTCTD TPTCExperience: Retired Education professionalSpecial Responsibilities: Vice-Chairman, Research and Good Governance Committee member

Mrs Chantel Myers-Hately

Position: CouncillorQualifications: Dip (Children’s Services)Experience: Early Childhood professionalSpecial Responsibilities: Fundraising

Councillors’ Report (continued)

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Ms Ariane Barker

Position: CouncillorQualifications: BA (Economics and Mathematics) CAICDExperience: Chief Financial OfficerSpecial Responsibilities: Finance and Risk Committee member

Ms Naomi Baulch

Position: CouncillorQualifications: BEd(Sec) MEd (Sc, Health & EnvEd) Post Grad Dip Ed St (Student Welfare) Grad Cert (ICT

Ed) MEd (LIHI) Post Grad Cert Ed St (Specific Learning Difficulties) Level III Auslan Cert Rept Care VDEI MACE MACEL

Experience: Education professionalSpecial Responsibilities: Advocacy

Mrs Lousje Skala

Position: CouncillorQualifications: Dip Art & Design MVA MFAExperience: ManagementSpecial Responsibilities: Marketing

Ms Jennifer Lang

Position: CouncillorQualifications: BBus (Acc) FCPA CFTP (Senior) MAICDExperience: Business, Finance, Treasury and Procurement professionalSpecial Responsibilities: Finance and Risk Committee member

Mrs Carol Daicic

Position: CouncillorQualifications: BA LLB (Hons) LLM (Environmental Regulation)Experience: LawyerSpecial Responsibilities: Good governance committee member

Meetings of Directors

During the financial period, 8 council meetings were held. The attendances by each councillor were as follows:

DIRECTORS’ MEETINGS

Number eligible to attend Number Attended

Professor Richard Dowell 8 8

Mr Nicholas Morrison 8 5

Mrs Joan Hale 8 6

Mrs Marilyn Dann 8 8

Mrs Chantel Myers-Hately 8 6

Ms Ariane Barker (Resigned 26 November 2014) 4 4

Ms Naomi Baulch 8 5

Mrs Lousje Skala (Resigned 26 November 2014) 4 3

Ms Jennifer Lang (Appointed 24 February 2015) 4 4

Mrs Carol Daicic (Appointed 24 February 2015) 4 2

Councillors’ Report (continued)Councillors’ Report (continued)

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Limitation of liabilityThe company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company is wound up, the constitution states that each member is required to contribute a maximum of $20 each towards meeting any outstanding obligations of the company. At 30 June 2015, the total amount that members of the company are liable to contribute if the company is wound up is $600 (2014: $600).

Indemnifying Officers or AuditorsDuring or since the financial year the company has not indemnified or made a relevant agreement to indemnify an officer or director of the company or of any related body corporate against a liability incurred as such by an officer or auditor. In addition the company has not paid or agreed to pay a premium in respect of a contract insuring against a liability incurred by an officer or auditor.

Proceedings on Behalf of the CompanyNo person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings.

The company was not a party to any such proceedings during the year.

Auditor’s Independence DeclarationA copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 8 of the Financial Report.

Signed in accordance with a resolution of the Councillors:

Prof. R. Dowell Mrs J Hale Councillor/Director Councillor/Director

Dated this 11th day of November 2015


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Councillors’ Report (continued)Independence Declaration

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Councillors’ Report (continued)Discussion and Analysis of the Financial StatementsINFORMATION ON THE THE ADVISORY COUNCIL FOR CHILDREN WITH IMPAIRED HEARING (VICTORIA) CONCISE FINANCIAL REPORT

The discussion and analysis is provided to assist members in understanding the concise financial report. The discussion and analysis is based on The Advisory Council for Children with Impaired Hearing (Victoria) and its controlled entity.

Financial statements and the information contained in the concise financial report have been derived from the full 2015 Financial Report of The Advisory Council for Children with Impaired Hearing (Victoria) and controlled entity.

Consolidated Statement of Profit or Loss and Other Comprehensive Income

Total revenue increased by 5.9% in 2015 and total expenses increased by 6.7% resulting in a profit after tax of $248,036 attributable to the consolidated entity. Throughout the year Taralye staff members were able to further develop and maintain stakeholder engagement with a range of motivating and successful fundraising programs which resulted in an overall increase in total donations of 4.4%. Stakeholders were captivated by the innovative program offerings and continued to demonstrate their support for a range of programs dedicated to children with a hearing loss. Due to the roll-out of the National Disability Insurance Scheme in the Victorian trial site of Barwon, State Government Early Childhood Intervention Services funding decreased by 2.4% as a result of a reduction in funded Early Intervention places. Additional capital under investment produced a 47.4% increase in interest earnings while dividend income increased by 4.3% for the year. Fee income increased by 2.5% due to the introduction of fee-for-service programs and despite a reduction in 2015 Kindergarten programs and a restructuring of Early Learning Programs.

Employee benefit expenses increased by 7.7% compared to 2014 due to staff recruitment during the year, the payment of a staff salary increase of 3.0% and the associated increase in superannuation and insurance expenses.

Depreciation expenses decreased by 37.9% due to fewer new asset acquisitions and a reduction in non-essential building improvements during the year. Cleaning and maintenance expenses increased by 142.2% primarily due to the Cummins Energy Conservation Project with an overall budget of $202,937. Fundraising expenses decreased by 22.4% as no major event was held during the year. A reduction of 22.6% in total other expenses was achieved through continuing management and staff vigilance and deferral in acquisition of non-essential goods and services.

Consolidated Statement of Financial Position

Cash assets increased by 32.5% as a result of improved fundraising activity, trade and other receivables reduced 66.0% due to a change to program fee collection and trade terms. Property, plant and equipment increased by 0.6% due to fewer new asset acquisitions and minimal building and facility improvements.

Trade, other payables and provision for employee entitlements increased 40.7% predominantly due to accruals related to the Cummins Energy Conservation Project. Long-term employee benefit provisions decreased by 11.6% due to staff separations during the year. 2015 was a successful year which produced a promising 8.2% increase in net assets.

Consolidated Statement of Cash Flows

Net cash flows increased significantly compared with 2014. New and enhanced stakeholder relationships provided a significant increase in operating cash flows during the year with continuing successful management of increasing program expenses a pleasing year end result was achieved.

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FOR THE YEAR ENDED 30 JUNE 2015

CONSOLIDATED

Note 2015 2014 $ $

Continuing operations

Revenue 2 3,856,877 3,640,827

Employee benefits expense (2,507,466) (2,328,140)

Depreciation expense (82,357) (132,658)

Fundraising expenses (242,474) (312,549)

Cleaning and maintenance expenses (449,814) (185,705)

Other expenses (326,730) (422,150)

Profit/(Loss) before income tax 248,036 259,625

Income tax expense - -

Profit/(Loss) for the year 248,036 259,625

Other comprehensive income/(loss):

Items that will be reclassified subsequently to profit or loss when specific conditions are met:

Fair value (loss) / gain on available-for-sale financial assets (29,528) 33,447

Total other comprehensive income/(loss) for the year (29,528) 33,447

Total comprehensive income/(loss) attributable to:

Members of the company 218,508 293,072

Total comprehensive income/(loss) for the year 218,508 293,072

The accompanying notes form part of these financial statements

Consolidated Statement of Profit or Loss and Other Comprehensive Income

10


AS AT 30 JUNE 2015

CONSOLIDATED

Note 2015 2014 $ $

ASSETS

CURRENT ASSETS

Cash and cash equivalents 2,078,011 1,568,432

Trade and other receivables 14,083 41,383

TOTAL CURRENT ASSETS 2,092,094 1,609,815

NON-CURRENT ASSETS

Financial assets 347,033 376,561

Property, plant and equipment 1,311,454 1,303,540

TOTAL NON-CURRENT ASSETS 1,658,487 1,680,101

TOTAL ASSETS 3,750,581 3,289,916

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 371,927 179,752

Provisions 475,831 422,690

TOTAL CURRENT LIABILITIES 847,758 602,442

NON-CURRENT LIABILITIES

Long-term provisions 23,994 27,153

TOTAL NON-CURRENT LIABILITIES 23,994 27,153

TOTAL LIABILITIES 871,752 629,595

NET ASSETS 2,878,829 2,660,321

EQUITY

General Funds 2,449,611 2,210,411

The Elisabeth Murdoch Scholarship Trust Fund 259,240 250,404

Financial Asset Reserve 169,978 199,506

TOTAL EQUITY 2,878,829 2,660,321


Consolidated Statement of Financial Position

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E.MURDOCH FINANCIAL GENERAL SCHOLARSHIP ASSET FUNDS FUNDS RESERVE TOTAL

$ $ $ $

Consolidated

Balance at 1 July 2013 1,952,575 248,615 166,059 2,367,249

Profit for the year 259,625 - - 259,625

Other comprehensive income for the year - - 33,447 33,447

Total comprehensive income for the year 259,625 - 33,447 293,072

Transfer to E. Murdoch Scholarship Funds (1,789) 1,789 - -

Balance at 30 June 2014 2,210,411 250,404 199,506 2,660,321

Balance at 1 July 2014 2,210,411 250,404 199,506 2,660,321

Profit for the year 248,036 - - 248,036

Other comprehensive (loss)/income for the year - - (29,528) (29,528)

Total comprehensive income for the year 248,036 - (29,528) 218,508

Transfer to E. Murdoch Scholarships Funds (8,836) 8,836 - -

Balance at 30 June 2015 2,449,611 259,240 169,978 2,878,829


Consolidated Statement of Changes in Equity

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CONSOLIDATED

Note 2015 2014 $ $

CASH FLOW FROM OPERATING ACTIVITIES

Receipts from government grants, donations and customers 3,748,817 3,648,596

Payroll and other operating payments (3,212,761) (3,191,314)

Dividends received 17,325 16,617

Interest received 46,469 31,518

Net cash provided by operating activities 599,850 505,417

CASH FLOW FROM INVESTING ACTIVITIES

Payments for property, plant and equipment (90,271) (66,997)

Net cash used in investing activities (90,271) (66,997)

Net increase/(decrease) in cash and cash equivalents 509,579 438,420

Cash and cash equivalents at beginning of financial year 1,568,432 1,130,012

Cash and cash equivalents at end of financial year 2,078,011 1,568,432


Consolidated Statement of Cash Flows

13



BASIS OF PREPARATION OF THE CONCISE FINANCIAL REPORTThe concise financial report is an extract for the full financial report for the year ended 30 June 2015.

The concise financial report has been prepared in accordance with Accounting Standard AASB 1039: Concise Financial Reports and the Corporations Act 2001.

The financial statements, specific disclosures and other information included in the concise financial report are derived from and are consistent with the full financial report of The Advisory Council for Children with Impaired Hearing (Victoria) and its controlled entity. The concise report cannot be expected to provide as detailed understanding of the financial performance, financial position and financing and investing activities of The Advisory Council for Children with Impaired Hearing (Victoria) and its controlled entity as the full financial report. A copy of the full financial report and auditor’s report will be sent to any member, free of charge, upon request.

The presentation currency used in this concise financial report is Australian dollars.

The financial report was authorised for issue on 11th November 2015 by the board of directors.

CONSOLIDATED

Note 2015 2014 $ $

NOTE 2: REVENUE AND OTHER INCOME

Operating Activities:

- Donations 1,522,619 1,458,724

- Government Grants 1,572,745 1,610,980

- Interest Received 46,469 31,518

- Dividends Received 17,325 16,617

- Subscriptions 1,020 1,020

- Rental Revenue 18,108 1,950

- Fees 422,899 412,664

- Other Revenue 255,692 107,354

Total Revenue 3,856,877 3,640,827

Notes to the Concise Financial Report

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NOTE 3: PARENT ENTITY INFORMATION

Statement of profit or loss and other comprehensive income

PARENT

2015 2014 $ $

Profit/(Loss) after income tax 251,497 257,836

Total comprehensive income 251,497 257,836

Statement of financial position

2015 2014 $ $

Total current assets 2,009,908 1,536,466

Total assets 3,321,362 2,840,006

Total current liabilities 847,758 602,442

Total liabilities 871,752 629,595

Equity:

General Funds 2,449,611 2,210,411

Total Equity 2,449,611 2,210,411

NOTE 4: TRUST LIABILITIES AND RIGHT OF INDEMNITYThe company acts as trustee of The Elisabeth Murdoch Scholarship Trust Fund and liabilities have not been incurred on behalf of that trust in the company’s capacity as corporate trustee.

Liabilities incurred on behalf of the trust are not recognised in the financial report when it is not probable that the company will have to meet those trust liabilities from its own resources. When it is probable that the company will have to meet some trust liabilities, a liability for the Deficiency in Trust Right of Indemnity is brought to account.

The assets of the trust, which lie behind the right of indemnity, are not directly available to meet any liabilities of the company acting in its own right. The assets of the trust were sufficient to discharge all liabilities of the trust at 30 June 2015 and 30 June 2014.

NOTE 5: EVENTS AFTER THE REPORTING DATEThere has not arisen in the interval between the end of the financial year and the date of this report, any item, transaction or event of a material and unusual nature likely, in the opinion of the Council to affect the operations of the consolidated entity, the results of these operations or the state of affairs of the consolidated entity in subsequent years.

NOTE 6: COMPANY DETAILS The registered office and principal place of business of the company is:

The Advisory Council for Children with Impaired Hearing (Victoria)

137 Blackburn Road

BLACKBURN, VIC 3130

Notes to the Concise Financial Report (continued)

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The councillors of the company declare that:

1. The concise financial report and notes as set out on pages 3 to 15 are in accordance with the Corporations Act 2001 and:

a. complies with Accounting Standard AASB 1039: Concise Financial Reports; and

b. is an extract from the full financial report for the year ended 30 June 2015 and has been derived from and is consistent with the full financial report of The Advisory Council for Children with Impaired Hearing (Victoria) and its controlled entity.

This declaration is made in accordance with a resolution of the councillors.

Prof. R. Dowell Mrs J Hale Councillor/Director Councillor/Director

Dated this 11th day of November 2015

Councillors’ Declaration

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Independent Auditor’s Report

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Independent Auditor’s Report

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About TaralyeIn 1968 a group of families and early childhood education professionals formed The Advisory Council for Children with Impaired Hearing (ACCIH). This group—Mrs Nancy John MBE, Dame Elisabeth Murdoch AC DBE, Mrs Frances Derham MBE, Mrs Ethleen King CBE, Mr & Mrs Worrall Jones, Mr John Calvert-Jones AM, and Mrs Janet Calvert-Jones AM – believed children who are deaf should have access to the same educational opportunities as hearing children.

Forty-seven years on Taralye remains true to its mission, providing life enhancing opportunities for hearing impaired children, supporting families with evidence-based programs, researching and advocating on children and families’ behalf.

Taralye is now an internationally recognised centre providing families with hearing impaired children with support across Victoria. Services include early intervention, early childhood and audiology and aim to realise our vision of giving each child the opportunity to listen, learn and speak to their full potential.

As we approach our fiftieth anniversary, Taralye is proud to be a founding member of First Voice, a supporting party of the HEARing Cooperative Research Centre, and a partner of the Royal Victorian Eye and Ear Hospital.

137 Blackburn Road Blackburn, Victoria 3130 (Melways 62 A1)Postal address: PO Box 113, Blackburn, Victoria 3130Phone: +613 9877 1300 Facsimile: +613 9877 1922Email: [email protected] Website: www.taralye.vic.edu.au

At Taralye we celebrate the diversity of all

families and strive to respect and value each of their own

special stories. Belinda - staff member

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