SCIA Financial Statement 2014 - 2015

Spinal Cord Injuries Australia ABN: 93 001 263 734 Financial Statements For the Year Ended 30 June 2015

Spinal Cord Injuries Australia ABN: 93 001 263 734

Contents For the Year Ended 30 June 2015

Page

Financial Statements Directors' Report 1 Auditors Independence Declaration under Section 307C of the Corporations Act 2001 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' Declaration 24 Independent Audit Report 25


Directors' Report For the Year Ended 30 June 2015

1

Your directors present their report on Spinal Cord Injuries Australia for the financial year ended 30 June 2015.

1. General information

Directors

The names of the directors in office at any time during, or since the end of, the year are: David Brawn Director 2006 *Antony Varrall Deputy President 2007

*Richard Klinger Director Appointed 1997 (excluding 2005-2007)

*David O’Brien Director 1996 Brad O’Hara Chairman 2010 Anna-Maria Arabia Director 2012 Stewart Calderwood Director 2012 *Joan Hume Director 2012

*Edward Watts Director Appointed 2013 Deceased 2015

*Mark Tonga Director Appointed in 2014 Ceased in 2015

Peter Perry Company Secretary 2007

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

* Denotes a person with disability

Directors

The names of the directors in office at any time during, or since the end of, the year are: David Brawn

Experience David holds a Bachelor of Science in Physics and Maths from London University, a Masters in Business Studies from the London Business School and a Diploma with Order of Merit from the Australian Institute of Company Directors. He was CEO of Telstra eBusiness Pty Ltd, a subsidiary of Telstra Corporation, before he retired in 2003. David is a Past District Governor of Rotary District 9750.

*Antony Varrall Experience Tony had just completed his first year of Industrial Arts High School Teaching when

he had a motorcycle accident breaking his back at the T6 level in January 1979. He returned to full-time High School Teaching at the start of 1980 which he enjoyed until he decided to retire at the start of 2005. Tony was a member of Kuringai Council’s Access Committee from 2000 to 2003. In 2006, he became an ambassador for Spinal Cord Injuries Australia and joined the Board of SCIA towards the end of 2007. Tony took on the role of SCIA President following the sad passing away of David Brice in 2012. He is a member of the CEO Liaison, Finance and Audit and Member Issues sub Committees. He says he is proud to be involved with such a great organisation that is doing so much for the disabled in our community.



Directors (Cont'd)

2

*Richard Klinger

Experience Richard was the Chairman of SCIA (AQA) from 1998–2001, President from 1999–2000, and a member of the Community Housing Advisory Committee from 2000–01. He is a past director and Chairman of Sargood Centre Pty Ltd. Richard’s background is in the civil construction engineering field and his present occupation is Managing Director of equibuilt, a Building Services Company.

*David O’Brien Experience David holds a Bachelor of Business Administration and works for the Audit Office of

NSW. He is a member of SCIA’s Finance and Audit Sub-Committee.

Brad O’Hara Experience Brad is currently employed with The National Roads & Motorists Association and

heads up the Lifestyle & Entertainment programs within the NRMA Group. Brad has over 20 years corporate experience with varying roles and responsibilities. His working life has exposed him to diverse community groups and this has helped him understand the unique challenges that these groups face and how corporates and the not for profit sector can work together successfully to deliver on common goals. Brad is passionate about helping in the community, having developed strategies and implemented community engagement programs at NRMA and acted as a volunteer for a number of charities and not for profits. He is also keen to explore new uses of communication and motoring technologies to further educate, engage and drive positive change in community attitudes towards people with spinal cord injury. Brad is a recipient of the Government of New South Wales medal for community service, a Member of the Institute of Automotive Mechanical Engineers and a Member of the Australian Institute of Company Directors. Brad uses his corporate knowledge and experience to strongly advocate for people with spinal cord injury so that they too can gain the independence and quality of life that others enjoy.

Anna-Maria Arabia Experience Anna-Maria is currently Director of Policy to the Hon Bill Shorten MP, Leader of the

Federal Opposition. She is a trained neuroscientist having undertaken her under graduate and post graduate training at the University of Melbourne, the Baker IDI Heart and Diabetes Institute in Melbourne, and the Mario Negri Pharmacological Research Institute in Milan. Anna-Maria was formerly General Manager of Questacon - the National Science and Technology Centre. She has held political advisory roles in both social and economic portfolios in federal government and opposition, has been in involved in policy development in the federal bureaucracy, and in efforts to foster international cooperation in the area of science and technology. Anna-Maria wishes to use her advocacy, political, and research skills to influence policy outcomes and assist others reach their potential. Anna-Maria holds a personal commitment to social justice and equity and is committed to Spinal Cord Injuries Australia's mission.



Directors (Cont'd)

3

Stewart Calderwood Experience Stewart is currently Director at Ord Minnett. He has corporate background in the

finance sector with over 25 years experience in London and Australia. He has client relationship management experience in a wide range of institutional and corporate clients. Stewart suffered a spinal injury in 1994, in a diving accident, was left temporarily paralysed and went through intensive therapy within a spinal unit which undoubtedly aided the recovery. Stewart subsequently became involved with the Back Up Trust, a UK charity assisting those paralysed through spinal cord injury to inspire independence and to encourage everyone to get the most from their lives. Stewart moved to Australia several years ago and wanted to be involved with a charity addressing the needs of people with spinal cord injury which is passionate about transforming lives. Stewart will use his corporate and financial back ground to bring the needs of the charity and its members to the awareness of the Corporate Sector.

*Joan Hume Experience Joan’s long standing commitment to and involvement in disability and community

activism was interrupted in 2000 with a diagnosis of leukaemia from which she is now in remission. A further bout of cancer in 2008 compounded her withdrawal from public activities until recovery. Joan decided to stand for the board of Spinal Cord Injuries again because she believes she can still make a valuable contribution to the development of the organisation with which she had an association for 35 years. Joan holds a B.A. Dip Ed., MA (English Literature), Sydney University and has been awarded the Medal of the Order of Australia (OAM) awarded in 1982 for services to people with disabilities, the Australian Human Rights Awards 1991: Print Magazine Category – Highly Commended – A Portfolio of Writings promoting the rights of People with Disabilities and the Australian Achievement Award 1994 for Media Guidelines on using appropriate language about people with disabilities. Joan has a passionate commitment to advocacy, the promotion of the rights and full participation of people with disabilities in all aspects of community life. Apart from the experience of decades in both mainstream and disability education, Joan brings well-honed writing and policy development skills, familiarity with management and collaborative board participation expertise.



4

Principal activities

The principal activity of Spinal Cord Injuries Australia during the financial year was the provision of range of services designed to maximise personal independence for all members and clients.

No significant changes in the nature of the company's activity occurred during the financial year.

Short term objectives

The company's short term objectives are:

• To advance the rights, choices and entitlements of people living with a spinal cord injury. • To do whatever it takes to create and maintain relevant services for people with spinal cord injury and similar

conditions. • To position Spinal Cord Injuries Australia as the recognised leader in all matters relating to spinal cord injury

Strategy for achieving the objectives

To achieve these objectives, the company has adopted the following strategies:

• Create a one-stop shop for advice, referral and services a) Deliver a compelling member value proposition in a rapidly-changing environment b) Further develop customer relationship management and client analysis capabilities c) Further develop program logic and evaluation d) Centralise all client intake, reporting, follow-up and evaluation activities e) Bring whole organisation to the client

• Invest in infrastructure and people a) Upgrade business systems to ensure outstanding customer service in the new world b) Redevelop Little Bay site to streamline operations and enhance staff capability c) Further advance position as an employer of choice and learning organisation d) Ensure people are fully prepared for rapid change in an evolving sector

• Build on what we do well a) Double the number of clients with SCI by 2018 b) Offer relevant services to: - other disability types as appropriate - pediatric clients where possible - new geographies across Australia, as appropriate c) Redesign existing services to respond to emerging client needs d) Consider the impact of ageing with a disability across all services e) Further build on policy influence at local, State and Federal level

• Stay open to, and act on opportunities as they arise a) Closely monitor developments in relation to person centred approaches in NSW b) Closely monitor developments in relation to the NDIS launch sites nationally c) Develop new service offerings as opportunities arise d) Actively seek new ADE contracts across Australia

• Build partnerships a) Build on existing relationships with hospitals, clinicians, researchers, employers b) Develop corporate partnerships to bolster funding, member benefit & capability c) Partner with like-minded organisations to enhance services and member benefits d) Consider mergers to achieve greater scale, scope and efficiency e) Further build on strong organisational profile, within Australia and internationally



Strategy for achieving the objectives (Cont'd)

5

• Pursue a National Spinal Strategy / Chair in SCI Research a) Formalise National Alliance with other State-based SCI community organisations b) Drive the implementation of a National Spinal Strategy through the National Alliance c) Partner with Spinal Cure Australia / others to create a Chair in SCI Research in NSW

How principal activities assisted in achieving the objectives

The principal activities assisted the company in achieving its objectives through the alignment of each department’s and individual’s performance plans to the strategic plan, with individual and departmental key performance indicators.

Performance measures

The following measures are used within the company to monitor performance:

• Key performance measures at the departmental level, appropriate to the needs of each department • Key performance measures at the individual level, flowing from the departmental measures • Social Return on Investment, to measure the social value being created through each program area

Members guarantee

The 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 outstandings and obligations of the Company. At 30 June 2015 the number of members was 1,063 (2014: 936).

At 30 June 2015 the collective liability of members was $ 21,260 (2014: $ 18,720).

Meetings of directors

During the financial year, 12 meetings of directors were held. Attendances by each director during the year were as follows:

David Brawn 6 6 *Antony Varrall 12 11 *Richard Klinger 12 12 *David O’Brien 12 9 Brad O’Hara 12 10 *Mark Tonga 2 2 Anna-Maria Arabia 12 8 Stewart Calderwood 12 12 *Joan Hume 12 12 *Edward Watts 12 8



6

Auditor's independence declaration

The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for the year ended 30 June 2015 has been received and can be found on page 7 of the financial report.

Signed in accordance with a resolution of the Board of Directors:

Director: ............................................................... David Brawn

Director: ................................................................ Brad O’Hara

Dated

ordance with a resoluluuuuuuuuuuuuut

....................................

27 October 2015

Auditors Independence Declaration under Section 307C of the Corporations Act 2001 to the Directors of Spinal Cord Injuries Australia

7

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2015, there have been:

(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

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

PKF SCOTT TOBUTT Chartered Accountants Partner

Dated: 27 October 2015

Sydney, NSW

PKF International Limited administers a network of legally independent firms which carry on separate business under the PKF Name.

PKF International Limited is not responsible for the acts or omissions of individual member firms of the network.

For office locations visit www.pkf.com.au

Sydney

Level 8, 1 O’Connell StreetSydney NSW 2000 Australia GPO Box 5446 Sydney NSW 2001

p +61 2 8346 6000 f +61 2 8346 6099

PKF(NS) Audit & Assurance Limited Partnership

ABN 91 850 861 839

Liability limited by a scheme

approved under Professional

Standards Legislation

Newcastle

755 Hunter Street Newcastle West NSW 2302 Australia PO Box 2368 Dangar NSW 2309

p +61 2 4962 2688 f +61 2 4962 3245


Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 30 June 2015

The accompanying notes form part of these financial statements. 8

Note2015

$ 2014

$ Revenue 2 8,203,547 7,991,691 Other income 2 10,673 98,183 Community development expenses (3,099,442) (3,115,165) Community services expenses (3,229,629) (3,085,274) Direct costs of fundraising (77,824) (90,152) Administration and marketing (2,187,731) (2,056,752)

(Deficit)/Surplus before income tax

(380,406) (257,469) Income tax expense - -

(Deficit)/Surplus for the year

(380,406) (257,469)

Other comprehensive income:

Profit/(Loss) on available for sale investments (63,838) 148,599

Other comprehensive income for the year

(63,838) 148,599

Total comprehensive income for the year

(444,244) (108,870)


Statement of Financial Position As At 30 June 2015


Note2015

$ 2014

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 4 481,120 1,736,319 Trade and other receivables 5 541,788 510,937 Financial assets 6 2,621,522 2,530,873 TOTAL CURRENT ASSETS

3,644,430 4,778,129 NON-CURRENT ASSETS

Financial assets 6 483,065 513,223 Property, plant and equipment 7 1,643,360 909,348 TOTAL NON-CURRENT ASSETS

2,126,425 1,422,571 TOTAL ASSETS

5,770,855 6,200,700

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 8 827,758 816,968 Short-term provisions 9 633,918 634,632 TOTAL CURRENT LIABILITIES

1,461,676 1,451,600 NON-CURRENT LIABILITIES

Long-term provisions 9 67,679 63,356 TOTAL NON-CURRENT LIABILITIES

67,679 63,356 TOTAL LIABILITIES

1,529,355 1,514,956 NET ASSETS

4,241,500 4,685,744

EQUITY

Reserves 349,026 412,865 Retained Surpluses 3,892,474 4,272,879 TOTAL EQUITY

4,241,500 4,685,744


Statement of Changes in Equity For the Year Ended 30 June 2015


Available for Sale Reserve

$

Retained Surpluses

$ Total

$ Balance at 1 July 2014 412,865 4,272,879 4,685,744 Gain/(Loss) on available for sale investments (63,838) - (63,838) Deficit attributable to members of the entity - (380,406) (380,406)

Balance at 30 June 2015

349,027 3,892,473 4,241,500 Balance at 1 July 2013 264,266 4,530,348 4,794,614 Gain on available for sale investments 148,599 - 148,599 Deficit attributable to members of the entity - (257,469) (257,469)

Balance at 30 June 2014

412,865 4,272,879 4,685,744


Statement of Cash Flows For the Year Ended 30 June 2015


Note2015

$ 2014

$

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers 2,964,986 2,540,471 Payments to suppliers and employees (8,231,840) (7,956,614) Donations received 756,356 994,401 Interest received 94,307 108,753 Receipt from grants 4,210,366 4,191,644 Net cash (used in)/provided by operating activities (205,825) (121,345)

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sale of plant and equipment 98,205 74,700 Purchase of property, plant and equipment (1,147,579) (229,685) Net cash used in investing activities

(1,049,374) (154,985)

CASH FLOWS FROM FINANCING ACTIVITIES:

Net (decrease)/increase in cash and cash equivalents held (1,255,199) (276,330) Cash and cash equivalents at beginning of year 1,736,319 2,012,649 Cash and cash equivalents at end of financial year 4 481,120 1,736,319


Notes to the Financial Statements For the Year Ended 30 June 2015

12

The financial statements are for Spinal Cord Injuries Australia as a not-for-profit individual entity.

1 Summary of Significant Accounting Policies

(a) Basis of Preparation

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated.

The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

(b) Comparative figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

(c) Property, plant and equipment

Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.

Plant and equipment

Plant and equipment are measured on the cost basis less depreciation and impairment losses. Cost includes expenditure that is directly attributable to the asset.

Plant and equipment that have been contributed at no cost, or for nominal cost are valued and recognised at the fair value of the asset at the date it is acquired.

Depreciation

The depreciable amount of all fixed assets and capitalised leased assets is depreciated on a straight-line basis over the asset's useful life to the Company commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.



1 Summary of Significant Accounting Policies (Cont'd)

(c) Property, plant and equipment (Cont'd)

13

The depreciation rates used for each class of depreciable asset are shown below: Class of Fixed Asset Depreciation rate Leasehold improvements 20% Plant and Equipment 10 - 25% Motor Vehicles 15%

The assets' residual values, depreciation methods and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of profit or loss and other comprehensive income.

(d) Financial instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the instrument. For financial assets, this is the equivalent to the date that the company commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transactions costs, except where the instrument is classified 'at fair value through profit or loss' in which case transaction costs are expensed to profit or loss immediately.

Classification and subsequent measurement

Financial instruments are subsequently measured at either fair value, amortised cost using the effective interest rate method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in an arm's length transaction. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

Amortised cost is calculated as:

(a) the amount at which the financial asset or financial liability is measured at initial recognition;

(b) less principal repayments;

(c) plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the maturity amount calculated using the effective interest method; and

(d) less any reduction for impairment.




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(d) Financial instruments (Cont'd)

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss.

The classification of financial instruments depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and at the end of each reporting period for held-to-maturity assets.

The company does not designate any interest as being subject to the requirements of accounting standards specifically applicable to financial instruments.

(i) Financial assets at fair value through profit or loss

Financial assets are classified at ‘fair value through profit or loss’ when they are either held for trading for the purpose of short-term profit taking, derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying value being included in profit or loss.

(ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost.

Loans and receivables are included in current assets, except for those which are not expected to mature within 12 months after the end of the reporting year.

(iii) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

Available-for-sale financial assets are included in non-current assets, except for those which are expected to be sold within 12 months after the end of the reporting period.




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(d) Financial instruments (Cont'd)

Fair value

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm's length transactions, reference to similar instruments and option pricing models.

Impairment

Objective evidence that a financial asset is impaired includes default by a debtor, evidence that the debtor is likely to enter bankruptcy or adverse economic conditions in the stock exchange. At the end of each reporting period, the Company assesses whether there is objective evidence that a financial asset has been impaired through the occurrence of a loss event. In the case of available-for-sale financial instruments, a significant or prolonged decline in the value of the instrument is considered to indicate that an impairment has arisen.

Where a subsequent event causes the amount of the impairment loss to decrease (e.g. payment received), the reduction in the allowance account (provision for impairment of receivables) is taken through profit and loss.

However, any reversal in the value of an impaired available for sale asset is taken through other comprehensive income rather than profit and loss.

Impairment losses are recognised through an allowance account for loans and receivables in the statement of profit or loss and other comprehensive income.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

When available-for-sale investments are sold, the accumulated fair value adjustments recognised in other comprehensive income are reclassified to profit or loss.

(e) Impairment of non-financial assets

At the end of each reporting period the company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. Value in use is either the discounted cash flows relating to the asset or depreciated replacement cost if the criteria in AASB 136 'Impairment of Assets' are met. Any excess of the asset's carrying value over its recoverable amount is expensed to the statement of profit or loss and other comprehensive income.

Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.




(e) Impairment of non-financial assets (Cont'd)

16

Where an impairment loss on a revalued asset is identified, this is debited against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that same class of asset.

(f) Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, which are convertible to a known amount of cash and subject to an insignificant risk of change in value, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position.

(g) Provisions

Provisions are recognised when the company 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 recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.

(h) Trade and other payables

Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the Company during the reporting period which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

(i) Employee benefits

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

Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. Those cashflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cashflows.

(j) Income tax

No provision for income tax has been raised as the company is exempt from income tax under Div 50 of the Income Tax Assessment Act 1997.

(k) Leases

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that are transferred to the company are classified as finance leases.




(k) Leases (Cont'd)

17

Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for that period.

Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the company will obtain ownership of the asset or over the term of the lease.

Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the life of the lease term.

(l) Revenue and other income

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of Spinal Cord Injuries Australia's activities as discussed below.

Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. Any consideration deferred is treated as the provision of finance and is discounted at a rate of interest that is generally accepted in the market for similar arrangements. The difference between the amount initially recognised and the amount ultimately received is interest revenue.

Rendering of services

Revenue in relation to rendering of services is recognised depending on whether the outcome of the services can be measured reliably. If this is the case then the stage of completion of the services is used to determine the appropriate level of revenue to be recognised in the period.

If the outcome cannot be reliably measured then revenue is recognised to the extent of expenses recognised that are recoverable.

Grant revenue

Grant revenue is recognised in the statement of profit or loss and other comprehensive income when the entity obtains control of the grant, it is probable that the economic benefits gained from the grant will flow to the entity and the amount of the grant can be measured reliably.

When grant revenue is received whereby the entity incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt.

Spinal Cord Injuries Australia receives non-reciprocal contributions of assets from the government and other parties for zero or a nominal value. These assets are recognised at fair value on the date of acquisition in the statement of financial position, with a corresponding amount of income recognised in the statement of profit or loss and other comprehensive income.




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(l) Revenue and other income (Cont'd)

Donations and collections

Collections, donations and bequests are recognised as revenue when received. Directors acknowledge cash donations may be misstated due to the inherent nature of these items, however processes have been implemented that mitigate the risk to an acceptably low level.

Interest revenue

Interest is recognised using the effective interest method, which for floating rate financial assets is the rate inherent in the instrument.

All revenue is stated net of the amount of goods and services tax (GST).

(m) Goods and services tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

Cash flows are presented in the statement of cash flows are included on a gross basis, except for the GST component of investing and financing activities which are disclosed as operating cash flows.

(n) Critical accounting estimates and judgments

The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Company. The directors did not make any critical accounting estimates or judgments in the financial statements preparation.

(o) Adoption of new and revised accounting standards

The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods. The directors do not expect the adoption of these standards to have any impact on the reported position or performance of the company.



2015

$ 2014

$

19

2 Revenue and Other Income

Revenue from continuing operations

Sales revenue

- Fee income 2,845,369 2,541,493 - Donations 756,356 994,401 - Interest income 250,000 234,876 - Residents contribution 141,456 119,777 - Government subsidies and grants 4,210,366 4,101,144

8,203,547 7,991,691

Other revenue

- Gain on disposal of non-current assets 1,661 2,409 - Sundry income 9,012 95,774

10,673 98,183 Total Revenue 8,214,220 8,089,874

3 Result for the Year

(a) Expenses Depreciation

Depreciation - leasehold improvements 15,855 28,370 Depreciation - plant and equipment 221,088 105,135 Depreciation - motor vehicles 74,240 82,225

Total Depreciation

311,183 215,730 Audit fees

22,500 21,750

Employee benefits expense 4,698,652 4,502,928 Rental expense on operating leases 430,843 475,742

4 Cash and cash equivalents Cash on hand 8,500 8,500 Cash at bank 472,620 1,727,819

481,120 1,736,319



2015

$ 2014

$

20

5 Trade and Other Receivables

CURRENT

Trade receivables 480,938 302,437 Other receivables 60,850 208,500

541,788 510,937

6 Financial Assets CURRENT

Available for sale financial assets

- Managed investment fund 2,621,522 2,530,873 NON-CURRENT

Available for sale financial assets

- Listed shares in other corporations 483,065 513,223

7 Property, Plant and Equipment

LAND AND BUILDINGS

Freehold land & building

At cost 809,969 -

Capital works in progress

At cost 38,513 -

Motor vehicles

At cost 508,335 505,054 Accumulated depreciation (139,984) (132,119)

368,351 372,935

Leasehold Improvements

At cost 469,613 479,174 Accumulated depreciation (411,679) (395,824)

57,934 83,350

Plant and equipment

At cost 1,213,674 1,077,055 Accumulated depreciation (845,081) (623,992)

368,593 453,063

Total property, plant and equipment

1,643,360 909,348



2015

$ 2014

$

7 Property, Plant and Equipment (Cont'd)

21

(a) Movements in Carrying Amounts

Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year:

Motor Vehicles

$

Leasehold Improvements

$

Plant and Equipment

$

Land and Buildings

$ Balance at the beginning of year 372,935 83,350 453,063 - Additions 172,036 28,078 136,618 809,969 Disposals - written down value (102,380) - - - Transfers - (37,639) - - Depreciation expense (74,240) (15,855) (221,088) -

Balance at the end of the year 368,351 57,934 368,593 809,969

Capital Work In Progress

$ Total

$ Balance at the beginning of year - 909,348 Additions 874 1,147,575 Disposals - written down value - (102,380) Transfers 37,639 - Depreciation expense - (311,183)

Balance at the end of the year 38,513 1,643,360

8 Trade and Other Payables

CURRENT

Trade payables 146,912 331,719 Other payables 680,846 485,249

827,758 816,968

9 Provisions

CURRENT

Employee entitlements 633,918 634,632

NON-CURRENT

Employee entitlements 67,679 63,356



2015

$ 2014

$

22

10 Leasing Commitments

(a) Operating lease commitments

Non-cancellable operating leases contracted for but not capitalised in the financial statements

Payable - minimum lease payments:

- not later than 1 year 272,217 313,256 - between 1 year and 5 years 468,622 488,010

740,839 801,266

(b) Capital expenditure commitments

Capital expenditure commitments contracted for:

Property, plant and equipment purchases - 810,000

The company entered into a contract on 24 May 2014 to purchase a property at 34 Premier Street, Gymea 2227. This purchase has been settled on 1 July 2014.

11 Contingent Liabilities and Contingent Assets

In the opinion of the Directors, the company did not have any contingencies at 30 June 2015 (30 June 2014:None).

12 Financial Risk Management

The main risks Spinal Cord Injuries Australia is exposed to through its financial instruments are credit risk, liquidity risk and market risk consisting of interest rate and equity price risk.

The company's financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable and payable, and leases.

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows:

Financial Assets

Cash and cash equivalents 481,120 1,736,319 Trade and other receivables 541,788 510,937 Financial assets at fair value through profit or loss

- listed shares 2,621,522 2,530,873 Available-for-sale financial assets:

- at fair value

- listed shares in other corporations 483,065 513,223

4,127,495 5,291,352

Financial Liabilities

Trade and other payables 827,758 816,968

827,758 816,968



23

13 Interests of Key Management Personnel

The total remuneration paid to key management personnel of the company is $ 1,044,682 (2014: $ 1,069,864).

14 Events after the end of the Reporting Period

The financial report was authorised for issue on by the Board of Directors.

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations or the state of affairs of the company in future financial years.

15 Members' Guarantee

The 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 outstandings and obligations of the company. At 30 June 2015 the number of members was 1,063 (2014: 936).


Directors' Declaration

24

The directors of the company declare that: 1. The financial statements and notes, as set out on pages 8 to 23, are in accordance with the Corporations Act 2001 and:

a. comply with Accounting Standards - Reduced Disclosure Requirements; and

b. give a true and fair view of the financial position as at 30 June 2015 and of the performance for the year ended on that date of the company.

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.

Director .................................................................. David Brawn

Director .................................................................. Brad O’Hara

Dated

27 October 2015

Independent Audit Report to the members of Spinal Cord Injuries Australia

25

Report on the Financial Report

We have audited the accompanying financial report of Spinal Cord Injuries Australia, which comprises the statement of financial position as at 30 June 2015, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration.

Directors' Responsibility for the Financial Report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We 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 about 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 company’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.

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Spinal Cord Injuries Australia, would be in the same terms if given to the directors as at the time of this auditor’s report.

PKF International Limited administers a network of legally independent firms which carry on separate business under the PKF Name.

PKF International Limited is not responsible for the acts or omissions of individual member firms of the network.

For office locations visit www.pkf.com.au

Sydney

Level 8, 1 O’Connell StreetSydney NSW 2000 Australia GPO Box 5446 Sydney NSW 2001

p +61 2 8346 6000 f +61 2 8346 6099

PKF(NS) Audit & Assurance Limited Partnership

ABN 91 850 861 839

Liability limited by a scheme

approved under Professional

Standards Legislation

Newcastle

755 Hunter Street Newcastle West NSW 2302 Australia PO Box 2368 Dangar NSW 2309

p +61 2 4962 2688 f +61 2 4962 3245

Independent Audit Report to the members of Spinal Cord Injuries Australia

26

Opinion

In our opinion the financial report of Spinal Cord Injuries Australia is in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the company’s financial position as at 30 June 2015 and of its performance for the year ended on that date; and

(b) complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations 2001.

Emphasis of Matter

We draw attention to Note 1 to the financial statements which describe the revenue recognition policy of Spinal Cord Injuries Australia, including the limitations that exist in relation to the recording of cash receipts from collections. Revenue from this source represents $126,373 which is 1.5% of Spinal Cord Injuries Australia overall revenue. Our opinion is unmodified in respect of this matter.

PKF SCOTT TOBUTT Chartered Accountants Partner

Dated: 27 October 2015

Sydney, NSW

SCIA Financial Statement 2014 - 2015

Documents

Transcript of SCIA Financial Statement 2014 - 2015