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KMS Financial Solutions accounting, business, tax and financial advisors

Peter Karlson CPA, AFPA, SSA Darren Munro FCA Craig Stevens CPA, AFPA, SSA

KNIGHTS OF THE SOUTHERN CROSS (VIC) INC. ABN:95 614 845 521

CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED

30 JUNE 2013

Liability limited by a scheme approved under Professional Standards Legislation

Accounting & Taxation • Business Advisory • Audit & Due Diligence • Business Acquisitions & Valuations Asset Protection • Succession Planning • Wealth Creation & Investment Advice • Superannuation Advice

Retirement & Estate Planning • Asset Finance • Wealth Protection

Office: Suite 4, 259 Whitehorse Road Balwyn Mail: PO Box 726 Balwyn Victoria 3103 Tel: (03) 9880 4999 Fax: (03) 9880 4962 Website: www.kmsfinancial.com.au

http://www.kmsfinancial.com.au

KNIGHTS OF THE SOUTHERN CROSS (VIC) INC. ABN: 95 614 845 521

CONTENTS

Committee's Report

Profit and Loss Statement

Balance Sheet

Cash Flow Statement

Notes to the Financial Statements

Statement by Members of the Committee

Auditor Independence Declaration

Independent Auditor's Report

The Priests Support and Education Fund Schedule

The Priests Support and Education Trust Schedule

J P Mitchell Memorial Welfare Fund Schedule

J.J. Tomlinson Perpetual Scholarship Fund Schedule


COMMITTEE'S REPORT

Your committee members submit the financial report of Knights of the Southern Cross (Vic) Inc. Association (Non-reporting) Inc for the financial year ended 30 June 2013.

Committee Members The name of committee members throughout the year and at the date of this report are:

Principal Activities The principal activities of the association during the financial year were:

- To promote the advancement of Australia - To foster the Christian way of life throughout the nation - To promote the welfare of its members and their families - To encourage spiritual, social and intellectual activities amongst its members - To conduct and support educational, charitable religious and social welfare work

Significant Changes No significant change in the nature of these activities occurred during the year.

Operating Result The profit amounted to $24,018

Signed in accordance with a resolution of the members of the committee.

Maurice Skehan Fr Tony Kerin John Hennessy Michael Palma Joseph O'Brien Kevin Pagon

Michael O'Halloran - retired 27/10/2012 John Bruce Tom Brodie Frank Worcester John Kirley John Tetteroo

Dated: 7 August 2013

KNIGHTS OF THE SOUTHERN CROSS (VIC) INC. PROFIT & LOSS FOR THE PERIOD ENDED 30 JUNE 2013

WITH COMPARATIVES

INCOME Sales Total

Less Cost of Sales Opening Stock Purchases less Closing Stock Total

Gross Profit/(Loss)

Other Income Advertising Bequests Donations-WSYS Donations Member Contributions Special Branch Levies Order Activities Order Development Fund Interest Received Sponsorships Total

Head Office Consolidated 2013 2012 2013 2012

$ $ $ $

1,989 2,286 1,989 2,286 1,989 2,286 1,989 2,286

7,342 7,634 7,342 7,634 - 2,540 - 2,540

5,321 7,342 5,321 7,342

2,021 2,832 2,021 2,832

(32) (546) (32) (546)

4,242 4,870 4,242 4,870 100 19,484 100 38,968

2,425 570 2,425 570 91 4,900 13,310 18,765

94,910 92,852 94,910 92,852 960 3,390 960 3,390

9,836 8,480 70,688 59,327 2,024 2,491 2,024 2,491

14,453 15,648 23,094 25,672 - - 74,700 71,950

129,041 152,685 286,452 318,855

TOTAL INCOME 129,009 152,139 286,420 318,309

KNIGHTS OF THE SOUTHERN CROSS (VIC) INC. PROFIT & LOSS FOR THE PERIOD ENDED 30 JUNE 2013

WITH COMPARATIVES

EXPENDITURE Advertising Amortisation Auditor's Remuneration Bad Debts Bank Charges Bookkeeping Cleaning Consultancy Fees Depreciation Donations Filing Fees Insurance Internet Long Service Leave Meeting & Hospitality National Service Share of Expenses Office Supplies Order Activities/Conference Postage Printing Rates & Taxes Rent Repairs & Maintenance Scholarships Superannuation Telephone Travel Trophies Utilities Wages Workcover Write off of accruals Total

OPERATING PROFIT/(LOSS)


$ $ $ $

70 - 70 -

242 278 242 278

3,750 3,895 3,750 5,005 97 186 97 186

1,059 976 1,088 982 1,793 1,024 1,793 1,024

640 - 640 -

250 - 250 -

100 136 100 136 - 3,164 80,300 87,864

78 43 78 43 6,586 4,210 6,586 4,210

681 605 681 605 643 4,549 643 4,549

1,476 2,048 1,476 2,048 11,134 11,529 11,134 11,529

1,839 753 1,839 753 11,949 11,174 74,110 64,066 6,266 6,069 6,505 6,971

14,971 17,155 15,979 17,155 - 81 - 81

6,833 6,000 6,833 6,000 - 684 - 684

4,500 - 4,500 451 3,183 3,220 3,183 3,220

308 269 308 269 3,425 2,903 3,425 2,903

- 198 - 198 1,302 780 1,302 780

35,384 35,775 35,384 35,775 176 168 176 168

- 4,350 - 4,350

118,735 122,222 262,403 262,283

10,274 29,917 24,018 56,026

KNIGHTS OF THE SOUTHERN CROSS (VIC) INC. BALANCE SHEET AS AT 30 JUNE 2013

WITH COMPARATIVES

Notes Head Office Consolidated 2013 2012 2013 2012

$ $ $ $ CURRENT ASSETS Cash at Bank 11,989 25,063 72,608 74,167 Trade Receivables 2 1,999 3,918 1,999 3,918 Other Receivables 3 7,973 1,925 8,718 1,925 Inventories 4 5,321 7,342 5,321 7,342 Prepayments 8,915 9,931 10,915 9,931 Related Party Loans Receivable 5 2,377 - - -

Total 38,574 48,179 99,561 97,283

NON-CURRENT ASSETS Investments - Term Deposits 6 332,146 310,061 522,774 498,878 Property, Plant & Equipment 7 1,956 2,298 1,956 2,298 Total 334,102 312,359 524,730 501,176

TOTAL ASSETS 372,676 360,538 624,291 598,459

CURRENT LIABILITIES

Payables 8 3,424 5,205 3,424 5,205 Provisions 9 5,192 5,736 5,192 5,736 Related Party Loans Payable 10 - - 500 500 Unearned Income 32,731 28,540 32,731 28,540 Total 41,346 39,481 41,846 39,981

NET ASSETS 331,330 321,057 582,445 558,478

EQUITY Trust Funds 331,330 321,057 582,445 558,478 TOTAL EQUITY 331,330 321,057 582,445 558,478

KNIGHTS OF THE SOUTHERN CROSS (VIC) INC. CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2013

WITH COMPARATIVES

Head Office Education Fund Education Trust

2013 2012 2013 2012 2013 2012

$ $ $ $ $ $

Accounting Profit 10,274 29,917 9,167 4,648 (2,344) 2,861

Add Depreciation & Amortisation 342 414 - - - -

Cash Profit 10,616 30,331 9,167 4,648 (2,344) 2,861

Increase in Cash Flow Decrease in Receivables - 8,016 - - - -

Decrease in Inventories 2,021 292 - - - -

Decrease in Investments - - - - - -

Decrease in Prepayments 1,016 - - - - -

Increase in Payables - - - - - -Increase in Provisions - 3,880 - - - -Increase in Inter-entity Loans - - - 2,861 3,348 -Increase in Other Loans - - - - - -

Increase in Unearned Income 4,190 28,375 - - - -Adjustment for prior period missed bank account - - - 494 - -

7,227 40,563 - 3,355 3,348 -

Decrease in Cash Flow Increase in Receivables 3,453 - - - - -

Increase in Prepayments - 2,299 2,000 - - -

Increase in Investments 22,085 71,980 - 494 - -Decrease in Payables 1,634 8,371 - - - -Decrease in Provisions 544 - - - - -Decrease in Inter-entity Loans - - 3,348 - - 2,861 Decrease in Unearned Income - - - - - -

27,717 82,650 5,348 494 - 2,861

Cash Surplus/fDeficit) (9,875) (11,756) 3,819 7,509 1,004 -

Cash at beginning of reporting period 25,063 36,819 18,390 10,881 - -

Cash at end of reporting period 15,188 25,063 22,209 18,390 1,004 -

KNIGHTS OF THE SOUTHERN CROSS (VIC) INC. NOTES TO THE BALANCE SHEET AS AT 30 JUNE 2013

WITH COMPARATIVES

1 Statement of Significant Accounting Policies This financial report is a special purpose financial report prepared in order to satisfy the financial reporting requirements of the Associations Incorporation Act Vic. The committee has determined that the association is not a reporting entity.

The financial report has been prepared on an accruals basis and is based on historic costs and does not take into account changing money values or, expect where specifically stated, current valuations of non-current assets.

The following significant accounting policies, which are consistent with the previous period unless stated otherwise, have been adopted in the preparation of this financial report.

Property, Plant and Equipment (PPE) The depreciable amount of all PPE is depreciated over the useful lives of the assets to the association commencing from the time the asset is held ready for use.

Employee Benefits Provision is made for the association's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits have been measured at the amounts expected to be paid when the liability is settled.

Provisions Provisions are recognised when the association has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions are measured at the best estimate of the amounts required to settle the obligation at the end of the reporting period.

Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, and other short-term highly liquid investments with original maturities of three months or less.

Accounts Receivable and Other Debtors

Accounts Receivable and other debtors include amounts due for advertising from customers. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets.

These notes are to be read in conjunction with the attached compilation report.


WITH COMPARATIVES

CURRENT ASSETS 2 Trade Receivables

Trade Debtors

3 Other Receivables Accrued Interest Withholding Tax Receivable GST Refundable

4 Inventories Stock on Hand - Medals

5 Related Party Loans Loan - Priests Support & Edu. Trust

NON-CURRENT ASSETS 6 Investments

Cash Management Accounts Term Deposits

7 Property, Plant & Equipment Leasehold Improvements less Accumulated Amortisation

Plant & Equipment less Accumulated Amortisation

Total Property, Plant & Equipment

CURRENT LIABILITIES 8 Payables

Trade Creditors Sundry Creditors Accrued Expenses

9 Provisions Provision for PAYG Withheld Provision for Long Service Leave Provision for Doubtful Debts

10 Related Party Loans Loan - J Ralph


$ $ $ $

1,999 3,918 1,999 3,918 1,999 3,918 1,999 3,918

6,968 1,595 7,434 1,595 279

1,005 330 1,005 330 7,973 1,925 8,718 1,925

5,321 7,342 5,321 7,342

2,377

32,327 57,965 92,536 116,705 299,819 252,096 430,238 382,173 332,146 310,061 522,774 498,878

4,160 4,160 4,160 4,160 2,544 2,302 2,544 2,302 1,616 1,858 1,616 1,858

1,763 1,763 1,763 1,763 1,423 1,323 1,423 1,323

340 440 340 440

1,956 2,298 1,956 2,298

5,836 5,836 2,797 (631) 2,797 (631)

627 - 627 -3,424 5,205 3,924 5,705

1,001 1,001 5,192 4,549 5,192 4,549

- 186 - 186 5,192 5,736 5,192 5,736

500 500 _ - 500 500


WITH COMPARATIVES

Revenue and Other Income Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. For this purpose, deferred consideration is not discounted to present values when recognising revenue. Interest revenue is recognised using the effective interest method, which for floating rate financial assets is the rate inherent in the instrument. Grant and donation income is recognised when the entity obtains control over the funds, which is generally at the time of receipt. If conditions are attached to the grant that must be satisfied before the association is eligible to receive the contribution, recognition of the grant as revenue will be deferred until those conditions are satisfied.

Accounts Payable and Other Payables Accounts payable and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the association during the reporting period that remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

Consolidated Accounts The consolidation of the accounts includes the following entities/ancillary funds:

- Knights of the Southern Cross (Vic) Inc. - The Priests Support and Education Fund - The Priests Support and Education Trust - J P Mitchell Memorial Welfare Fund - J.J. Tomlinson Perpetual Scholarship Fund

Detailed financial statements for each trust/fund have been attached to show their individual performance.

These notes are to be read in conjunction with the attached compilation report.

accounting, business, tax and financial advisors KMS Financial Solutions Peter Karlson CPA, AFPA, SSA

Darren Munro FCA Craig Stevens CPA, AFPA, SSA

KNIGHTS OF THE SOUTHERN CROSS (VIC) INC.

ABN: 95 614 845 521

LEAD AUDITOR'S INDEPENDENCE DECLARATION UNDER SECTION 30B OF THE ASSOCIATIONS INCORPORATION ACT 1981

To: the directors of the Knights of the Southern Cross (Vic) Inc:

I declare that, to the best of my knowledge and belief, in relation to the audit for the year ended 30 June 2013 there has been:

(i) no contraventions of the auditor independence requirements as set out in the Associations Incorporations Act 1981 in relation to the audit; and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit.

DARREN MUNRO Auditor #193891

Dated at Melbourne: 7 August 2013






I

accounting, business, tax and financial advisors KMS Financial Solutions Peter Karlson CPA, AFPA, SSA

Darren Munro FCA Craig Stevens CPA, AFPA, SSA

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

KNIGHTS OF THE SOUTHERN CROSS (VIC) INC.

We have audited the accompanying financial report, being a special purpose financial report of Knights of the Southern Cross (VIC) Inc. (Non-reporting) Inc (the association), which comprises the committee's report, the assets and liabilities statement as at 30 June 2013, the income and expenditure statement for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the statement by members of the committee.

Committee's Responsibility for the Financial Report

The committee of Knights of the Southern Cross (Vic) Inc. (Non-reporting) Inc is responsible for the preparation of the financial report, and has determined that the basis of preparation described in the Notes is appropriate to meet the requirements of the Associations Incorporation Act Vic and is appropriate to meet the needs of the members. The committee's responsibility also includes such internal control as the committee determines is necessary to enable the preparation of a financial report that is free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We have conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company's preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

In our opinion, the financial report presents fairly, in all material respects, the financial position of Knights of the Southern Cross (Vic) Inc. (Non-reporting) Inc as at 30 June 2013 and its financial performance for the year then ended in accordance with the accounting policies described in the Notes to the financial statements, and the requirements of the Associations Incorporation Act Vic.

Basis of Accounting

Without modifying our opinion, we draw attention to Note 7 of the financial report, which describes the basis of accounting. The financial report has been prepared to assist Knights of the Southern Cross (Vic) Inc. (Non-reporting) Inc to meet the requirements of the Associations Incorporation Act Vic. As a result, the financial report may not be suitable for another purpose.

Auditor's signature: Darren Munro

Auditor's address: Suite 4, 259 Whitehorse Road Balwyn, VIC, 3103





Opinion




STATEMENT BY MEMBERS OF THE COMMITTEE

In the opinion of the committee the financial report: 1. Presents a true and fair view of the financial position of Knights of the Southern Cross (Vic) Inc.

Association (Non-reporting) Inc. as at 30 June 2013 and its performance for the year ended on that date.

2. At the date of this statement, there are reasonable grounds to believe that Knights of the Southern Cross (VIC) Inc. Association (Non-reporting) Inc will be able to pay its debts as and when they fall due.

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

Chairman .. ^ ^ k i Q

Maurice Skehan .

Treasurer./.. iff... Joseph O'Brien


THE PRIESTS SUPPORT AND EDUCATION FUND PROFIT LOSS STATEMENT AND BALANCE SHEET

FOR THE PERIOD ENDED 30 JUNE 2013 WITH COMPARATIVES

Education Fund 2013 2012

$ S INCOME Donations 9,023 -

Ticket, function and raffle sales 60,852 50,847 Interest Received 1 230 Sponsorships 74,700 71,950 Total 144,576 123,028

EXPENDITURE Auditor's Remuneration - 370 Donations 72,000 72,000 Order Activities/Conference 62,161 52,892 Postage 239 902 Printing 1,008 -Total 135,409 126,164

OPERATING PROFIT/(LOSS) 9,167 (3,136)

CURRENT ASSETS Cash at Bank 22,209 18,390 Prepayments 2,000 -

Total 24,209 18,390

NON-CURRENT ASSETS Investments - Term Deposits 3,925 3,905 Total 3,925 3,905

TOTAL ASSETS 28,134 22,295

CURRENT LIABILITIES Related Party Loans - Priests Support & Edu. Trust - 3,348 Total - 3,348

NET ASSETS 28,134 18,947

EQUITY Trust Funds TOTAL EQUITY

28,134 18,947 28,134 18,947

THE PRIESTS SUPPORT AND EDUCATION TRUST PROFIT LOSS STATEMENT AND BALANCE SHEET


Education Trust 2013 2012

$ $ INCOME Interest Received 5,956 6,731 Total 5,956 6,731

EXPENDITURE Auditor's Remuneration - 370 Donations 8,300 3,500 Total 8,300 3,870

OPERATING PROFIT/(LOSS) (2,344) 2,861

CURRENT ASSETS Cash at Bank 1,004 -Related Party Loans - Priests Support & Edu. Fund - 3,348 Total 1,004 3,348


TOTAL ASSETS 108,004 110,348

CURRENT LIABILITIES Loan - J Ralph 500 500 Total 1,000 500

NET ASSETS 107,004 109,848

EQUITY Trust Funds 107,504 109,848 TOTAL EQUITY 107,504 109,848

J P MITCHELL MEMORIAL WELFARE FUND PROFIT LOSS STATEMENT AND BALANCE SHEET


Welfare Fund 2013 2012

$ $ INCOME Bequests - 19,484 Donations 4,196 -

Interest Received 2,214 2,571 Total 6,410 22,056

EXPENDITURE Auditor's Remuneration - 185 Bank Charges 7 6 Donations - 9,200 Total 7 9,391

OPERATING PROFIT/(LOSS) 6,403 12,666

CURRENT ASSETS Cash at Bank 37,226 30,512 Other Debtors 745 -

Total 37,971 30,512



CURRENT LIABILITIES Related Party Loan - Knights of the Southern Cross 2,377 -

Total 2,377 -

NET ASSETS 89,957 83,555


J.J. TOMLINSON PERPETUAL SCHOLARSHIP FUND PROFIT LOSS STATEMENT AND BALANCE SHEET


Scholarship Fund 2013 2012

$ $ INCOME Interest Received 470 492 Total 470 492

EXPENDITURE Auditor's Remuneration - 185 Bank Charges 22 -Scholarships - 451 Total 22 636

OPERATING PROFIT/(LOSS) 448 (144)

CURRENT ASSETS Cash at Bank 180 202 Total 180 202



NET ASSETS 25,519 25,071


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