SRCS AReport 2018-19 Text

Sunraysia Rural Counselling Service Inc.

Acknowledgements

The Sunraysia Rural Counselling Service Inc. wishes to acknowledge and sincerely thank the following organisations for their funding, contributions and support during the 2018/19 financial year:

Grants

Department of Agriculture & Water Resources

Australian Government funding for the Rural Financial Counselling Service Program

Department of Jobs, Precincts & Regions

Victorian Government funding for the - Rural Financial Counselling Service Program - Employment of a Senior Rural Financial Counsellor Coordinator

Donations & Cash Contributions

Dried Fruits Australia Iron Horse Intermodal Mallee Catchment Management Authority Mildura Rural City Council Murray Valley Winegrowers’ Inc TASCO Petroleum

Cash contributions to SunRISE Mapping & Research

IGA Community Chest & Victorian Lions Clubs Gift cards for food purchases at IGA Supermarkets

Photographic Images

LM Fowler Photography (Cover page) Darren Seiler (Staff photos Mildura)

Andy Banks Photography (Staff photos Bendigo)

Wayne Bradbury Photography (Chair’s Report)

Anne Morley Photography (Executive Officer’s Report)

Christine O’Connell (Client Testimonials)

Printing

Sunnyland Press

2018-19 Annual Report 1

Contents Page

Organisational Overview ........................................................................................................................... 2 - 3

Organisational Structure .................................................................................................................................. 4

Board....................................................................................................................................................................5 – 7

Vale Ken Slatter ..................................................................................................................................................... 8

Staff .................................................................................................................................................................... 9 - 10

Chair’s Report............................................................................................................................................. 11 - 12

Executive Officer’s Report................................................................................................................... 13 - 14

Rural Financial Counselling Service Program Report ........................................................... 15 – 17

Case Study – RFCS Program.......................................................................................................................... 18

Client Testimonials – RFCS Program ........................................................................................................ 19

Online Presence .................................................................................................................................................. 20

SunRISE Mapping & Research Report ..............................................................................................21-23

General Purpose Financial Report for the year ended 30 June 2019: ...........................24-45

• Board Report ............................................................................................................................25-26 • Statement of Profit or Loss & Other Comprehensive Income .............................. 27 • Statement of Financial Position ............................................................................................. 28 • Statement of Changes in Equity ............................................................................................ 29 • Statement of Cash Flows ......................................................................................................... 30 • Notes to the Financial Statements................................................................................31-42 • Statement by the Members of the Board ........................................................................ 43 • Independent Auditor’s Report ........................................................................................44-45

Sunraysia Rural Counselling Service Inc.

Acknowledgements

The Sunraysia Rural Counselling Service Inc. wishes to acknowledge and sincerely thank the following organisations for their funding, contributions and support during the 2018/19 financial year:

Grants

Department of Agriculture & Water Resources

Australian Government funding for the Rural Financial Counselling Service Program

Department of Jobs, Precincts & Regions

Victorian Government funding for the - Rural Financial Counselling Service Program - Employment of a Senior Rural Financial Counsellor Coordinator

Donations & Cash Contributions

Dried Fruits Australia Iron Horse Intermodal Mallee Catchment Management Authority Mildura Rural City Council Murray Valley Winegrowers’ Inc TASCO Petroleum

Cash contributions to SunRISE Mapping & Research

IGA Community Chest & Victorian Lions Clubs Gift cards for food purchases at IGA Supermarkets

Photographic Images

LM Fowler Photography (Cover page) Darren Seiler (Staff photos Mildura)

Andy Banks Photography (Staff photos Bendigo)

Wayne Bradbury Photography (Chair’s Report)

Anne Morley Photography (Executive Officer’s Report)

Christine O’Connell (Client Testimonials)

Printing

Sunnyland Press

2 Sunraysia Rural Counselling Service Inc.

Organisational Overview Sunraysia Rural Counselling Service Inc. (SunRCS) is an independent, confidential and cost free service that has been supporting farming families and rural communities across Sunraysia and the Mallee for the past thirty-four years. It was formed in 1984 as a result of a public meeting following a downturn in the dried vine fruit industry. There have been name changes, funding changes and amalgamations of services along the way, however, the primary objective of assisting primary producers and farming communities has never changed.

After successfully tendering for the Rural Financial Counselling Service (RFCS) to be provided across an expanded region, SunRCS began the necessary transitioning tasks associated with the establishment of the new RFCS Victoria - North West Service.

The expanded North West Service now reaches across eleven local government areas:

Mildura Rural City; Swan Hill Rural City; Yarriambiack Shire; Hindmarsh Shire; Buloke Shire; Gannawarra Shire; Loddon Shire; Central Goldfields Shire; Greater Bendigo City; Mount Alexander Shire; and Macedon Ranges Shire.

SunRISE Mapping continues to deliver mapping services to traditional clients and partners, and look for synergies with new partners and programs.

Vision

To be the leader in the provision of information and support services to build resilient rural communities.

Philosophy

To provide a community driven responsive service which is innovative, flexible and accessible to those in need.

Motto

Trust, Integrity and Empathy


Organisational Overview continued

Region

The SunRCS office is located at:

Mildura All enquiries: 1300 769 489

139 Lime Avenue, Mildura Vic 3500

PO Box 2824, Mildura Vic 3502

Phone: (03) 5022 0799

Fax: (03) 5022 0599

Email: [email protected]

www.sunrcs.com.au

Our Rural Financial Counsellors outreach from offices in Mildura, Swan Hill, Pyramid Hill (closed February 2019), Donald and Bendigo, covering the north west region of Victoria. SunRISE Mapping and Research operates from the Mildura office.


Organisational Structure

SunRISE Mapping Services Manager

Sue Argus GIS Project Officer

Julie Hawtin

Senior Rural Financial Counsellor Co-ordinator

Stephanie Ferdelja

RFCS VICTORIA – NORTH WEST PROJECT BOARD

Jack Forbes : Chair Greg Cahill (resigned 14/11/18) John Senior Lyn Heaysman Leo Tellefson Andrew Pickles Kylie Zanker

Audit & Risk Committee

Finance Committee

Governance Committee

Central Advisory Group

EXECUTIVE OFFICER Patrick Timmons

Rural Financial Counsellors Bendigo

Jim Chamouras Anna McGee Ken Slatter

Donald James Goldsmith (commenced 21/1/19)

Pyramid Hill Teresa Meulendijks (resigned 18/10/18)

Swan Hill Teresa O’Brien (resigned 7/6/19)

Scott Sanders (commenced 29/1/19)

Mildura Ashley Kuhl

Graeme Polkinghorne (resigned 30/6/19) John Sheehy (resigned 1/2/19)

David Talbot

SUNRAYSIA RURAL COUNSELLING SERVICE INC BOARD

Jack Forbes : Chair Greg Cahill (resigned 14/11/18) Kylie Zanker : Vice Chair Andrew Pickles Leo Tellefson : Secretary John Senior Lyn Heaysman : Treasurer

Executive Assistant Lorraine Argus

Administration Officers Mildura

Dianne Johnstone

Joan Polwarth Bendigo

Erin Bottomley


Board

Jack Forbes – Chair Appointed 09/09/1985 A long standing board member since 1985, Jack was elected to the position of Chairperson in 2008. A farming family background has motivated a long term involvement in rural and farm related issues. Jack’s skills and expertise in succession planning, retirement planning and aged care issues, superannuation, government assistance programs and rural financial issues have been developed in his former role as a Financial Information Service Officer with Centrelink in Mildura. Jack has undertaken the Australian Institute of Company Directors course and has completed financial planning and accounting course segments. Jack is now semi-retired. He has a long term interest in seeing rural Australia grow and flourish.

Kylie Zanker – Vice Chair Appointed 21/3/2013 Kylie has been a councillor with the Yarriambiack Shire Council since September 2008 and has served two terms as Mayor from October 2011. Her special interest lies with children, youth and community-minded projects. She is a qualified Early Childhood Years teacher and her past employment includes teaching and co-ordination within early childhood years programs and university lecturing in the area of social sciences. More recently Kylie has worked part-time with the Victorian Responsible Gambling Foundation within the Gamblers Help Program, within the local health sector and she is currently engaged in project management work with the Department of Education & Training and the Department of Justice & Regulation. Current committees she is involved with include: Yarriambiack Shire Council internal audit committee, North West Municipalities Association, Wimmera Mallee Sustainability Alliance, WORDS steering committee, Yarriambiack Youth Action Council, Yarriambiack Chaplaincy Council and Chair of Warracknabeal Secondary College Board.

Leo Tellefson – Secretary Appointed 22/11/2012 Leo is involved in farming through his family farm and also owns the local butcher shop in his home town of Donald. His current local community involvement includes serving as a board member of the Donald and District Community Bank branch of the Bendigo Bank and also the Johnson-Goodwin Memorial Homes Aged Care facility in Donald. The environment and music are among Leo’s many interests.

Lyn Heaysman – Treasurer Appointed 08/09/1998 Lyn’s interest in agriculture stems from twenty-one years of owning a family vineyard in Sunraysia. During those years Lyn held several positions on the Australian Dried Fruits Association Board. She was also invited to be a Director of the Victorian Dried Fruits Board, a position she held for ten years. Lyn has been a board member since 1998, holding the position of Chair for nine years to 2008. She has been self-employed in her financial planning business for over fifteen years. Lyn’s qualifications include a Masters in Applied Finance and Certificate in Business Accounting and she has undertaken the Australian Institute of Company Directors course. Lyn has been delighted to see the continued success of a concept born from local community need to look after farmers in financial difficulty.


Board continued

Greg Cahill – Board Member Appointed 11/8/2016 - Resigned 14/11/18 Greg was involved in establishing the Rural Financial Counselling Service in Bendigo in 1990. He built on his thirty-seven year career with Victorian Department of Agriculture by engaging in consultancy work, including several projects for the Rural Financial Counselling Service. He then worked part-time as a Rural Financial Counsellor for four years during the last drought. Greg has been part of the Bendigo community for over thirty years, demonstrating knowledge, experience and a strong affinity with farming in the North Central region. Greg has been active in local sporting groups and the Golden Square/Kangaroo Flat Catholic Parish. He also has a keen interest in travel, being a tour leader for overseas travel groups, taking Australian farmers for farming study tours.

Andrew Pickles – Board Member Appointed 11/8/2016 Andrew’s rural background and interest in agriculture stems from the family farm in north central Victoria. A partner in law firm Robertson Hyetts Solicitors at Bendigo, Andrew specialises in commercial work, particularly property developments, litigation and wills and estates. He was a committee member of a former Rural Financial Counselling Service for over 10 years. His knowledge of the region is based on his family background, client base and his extensive community involvement including Bendigo Apex, Bendigo-Sandhurst Rotary, Golden Square JFC Committee, Bendigo Art Gallery and Foundation, Bendigo Chamber Choir and Castlemaine Art Museum. Qualifications include B.A (Monash), LL.B (Monash) and LL.M (Monash). Andrew holds mediation accreditation from Bond University and has been appointed an arbiter under the Local Government Act. He has a particular interest in non-profit organisations and is a former president of the Bendigo Law Association.

John Senior – Board Member Appointed 25/09/2008 John has extensive experience in the management of small and medium enterprises, has been a member of boards of management in the business services and aged care sector for over ten years and is currently consulting in the Government funded health and community sector. John has a continuing interest in quality assurance and a commitment to the delivery of services in support of health and wellbeing in remote and rural areas of Australia. His qualifications include a Certificate in Management Services and a postgraduate Diploma in Management Studies. John is a Member of the Australian Institute of Company Directors.


Board continued

The SunRCS Board and RFCSV NW Project Board meet quarterly and the Governance Committee bi-annually. The Finance Committee meets quarterly and on an as required basis. The Audit & Risk Committee meets at least bi-annually (more frequently if required) and comprises two Board members and two external independent persons of appropriate standing and professional experience, one of whom chairs the Committee. Attendances for meetings held in 2018-19 are listed below.

Member

SunRCS Board

RFCSV NW Project Board


Finance Committee


Eligible to

Attend

Attended

Eligible to

Attend

Attended

Eligible to

Attend

Attended

Eligible to

Attend

Attended

Eligible to

Attend

Attended

Jack Forbes (Chair) 4 4 4 4 4 4

Greg Cahill (Resigned 14/11/18) 2 2 2 2 2 2

Lyn Heaysman 4 3 4 3 4 3

John Senior 4 4 4 4 2 2

Andrew Pickles 4 3 4 3 2 1 1 1

Leo Tellefson 4 4 4 4 2 2

Kylie Zanker 4 4 4 4 2 2 2 1 1 1

Co-opted Members:

Ian Ballantyne (Chair, Audit & Risk Committee) 2 2

Linda Nalder (Appointed 9/10/18) 1 1 2 2

Graeme Matotek 4 2

Meeting Dates: SunRCS Board

RFCSV NW Project Board


Finance Committee


6/9/18 14/11/18 21/3/19 20/6/19

6/9/18 14/11/18 21/3/19 20/6/19

27/9/18 5/6/19

27/8/18 9/11/18 15/3/19 14/6/19

9/10/18 26/6/19

Regular informal meetings of the executive (Chair, Executive Officer and Executive Assistant) were held as required.


Vale Ken Slatter

28.07.1942 – 12.07.2019

After serving over twenty five years as a Rural Financial Counsellor, Ken Slatter passed away suddenly on the 12th of July 2019.

Coming from a farming background, Ken understood the plight of many a farmer and his patience, knowledge and caring attitude was appreciated by those facing crucial decisions.

Ken would often go above and beyond to assist his clients, happy to take calls after hours, and always worked tirelessly toward positive outcomes.

His patient and gentle nature allowed farmers to consider the information and options and make decisions. He was able to recognise that until the underlying issues were addressed, his clients would struggle making decisions.

It was this approach that assisted many survivors of the Black Saturday fires that Ken worked with. Ken’s supportive guidance to survivors was appreciated not only by his clients, but agencies working alongside the Rural Financial Counselling Service. Ken’s efforts in the recovery were acknowledged by the Financial and Consumer Rights Council when they presented him with the Jan Pentland Memorial Award in 2011 for his excellence in service.

Ken also provided the same level of support to his colleagues. His willingness to share his skills and knowledge and be a sounding board was admired by many Rural Financial Counsellors over the years. He also shared his love of baking with us, spoiling us with cakes and slices that were enjoyed by all.

Aside from his work as a Rural Financial Counsellor, Ken was a caring, considerate and passionate man who embraced and supported the communities he was a part of and this shone through wherever he went and whoever was fortunate enough to meet him.

We will always remember Ken as a great friend and work colleague.

Our thoughts continue to be with Ken’s wife Sandra and his family.


Staff

Patrick Timmons Execu�ve Officer

Stephanie Ferdelja Senior Rural Financial

Counsellor Coordinator

David Talbot Rural Financial Counsellor

Mildura

Ashley Kuhl Rural Financial Counsellor

Mildura

John Sheehy Rural Financial Counsellor Mildura (resigned 1/2/19)

Graeme Polkinghorne Rural Financial Counsellor Mildura (resigned 30/6/19)

Teresa O’Brien Rural Financial Counsellor Swan Hill (resigned 7/6/19)

Sco� Sanders Rural Financial Counsellor

Swan Hill (commenced 29/1/19)

Teresa Meulendijks Rural Financial Counsellor

Pyramid Hill (resigned 18/10/18)

Anna McGee Rural Financial Counsellor

Bendigo

Ken Sla�er Rural Financial Counsellor

Bendigo

Jim Chamouras Rural Financial Counsellor

Bendigo

James Goldsmith Rural Financial Counsellor

Donald (commenced 21/1/19)


Staff continued

Lorraine Argus Execu�ve Assistant

Mildura

Erin Bo�omley Administra�on Officer

Bendigo

Dianne Johnstone Administra�on Officer

Mildura

Joan Polwarth Administra�on Officer

Mildura

Sue Argus SunRISE Mapping Services Manager

Mildura

Julie Haw�n GIS Project Officer

Mildura


Chair’s Report The 2018-2019 season has delivered good returns for many farmers in the north west of Victoria. Despite drier than usual seasonal conditions, table grapes, citrus, almonds and stock returns have been very healthy. Winegrape growers have enjoyed improved returns, however, dairy farmers in our eastern area and broad acre farmers in the far north west face very difficult times.

The major concerns for the 2019–2020 season are the lack of rain, particularly in the far north west (reportedly the worst since the 1940s drought) and the expected reduced irrigation water allocations along the Murray River. There is reduced water in storages, no flow down the Darling River (or water in the Menindee Lakes) and prices for temporary water are already exorbitantly high and expected to increase further.

Increased irrigation plantations over recent years, particularly of almonds and to some extent table grapes, are dramatically challenging water arrangements and in turn putting pressure on small producers. Expected water allocations of as low as 60% for the coming irrigation season will leave many small producers facing the options of paying exorbitant and unaffordable temporary water prices, dramatically reducing crop size, or leaving some plantations to die. Either way, we expect to have increased numbers of farmers seeking Rural Financial Counselling Service assistance. The SunRISE Mapping program have included information in their annual report on irrigation plantations in north west Victoria from 1997 to 2018 and continue to highlight how dramatically plantings have increased. Mature almond trees use more water than traditional plantings and the increased acreage presents a huge risk both in terms of water availability and the capacity to get additional water downstream, given the constraints of the Barmah Choke. In recent times there have been calls for a moratorium on new plantations as awareness of these issues has increased.

SunRISE Mapping & Research secured significant contracts in 2018-19 and 2019-20 to provide reports on irrigation development to a range of government and business organisations.

Our Rural Financial Counselling Service Victoria - North West Project Board believe that we are able to provide greater support to farming communities when small business financial counselling resources are made available to compliment the rural financial counselling effort in small rural communities. We have strongly advocated for the creation of this capacity to work with small businesses in rural towns, and a Commonwealth election commitment made in early 2019 is yet to materialise.

We have continued to manage the difficulty that comes with insecure funding over this twelve month period. Additional contingency funding has been much appreciated, but with it comes limitations on developing a robust and responsive workforce - funding in twelve month increments means recruitment and development of the workforce is compromised. Our core funding level was insufficient from the outset to ensure a viable and sustainable service.

During the year, a review of the Farm Household Allowance was conducted by the Commonwealth and the Department of Agriculture & Water Resources has conducted a review of rural financial counselling. We look forward to the outcomes of both reviews and will support any changes to improve the take up of Farm Household Allowance and enhance the role of the Rural Financial Counselling Service.

Generous donations from Victorian Lions Clubs through IGA have enabled us to continue to offer clients in difficult financial circumstances a food card for use at their local supermarket. Our counsellors have found this type of immediate relief to be of great benefit and it is very much appreciated by clients.

I believe our counsellors are making an enormous difference for farmers in difficulty. I am constantly told at community gatherings what a wonderful job they do. The surveys returned to Department of Agriculture & Water Resources endorse the farmer’s appreciation of our Service. My thanks to all our counsellors – keep up the great work. They are well supported by our management team and administration staff who have shown great dedication and enthusiasm.

Throughout 2018-19 our Service has been supported financially by the Commonwealth Department of Agriculture & Water Resources and the Victorian Department of Jobs, Precincts & Regions. We greatly appreciate their support and thank them for their responses to difficult conditions. Department staff are always ready to help and prepared to assist farmers in difficulty. I also wish to thank the eleven Local Government Authorities in our region and Lower Murray Water for their support and encouragement.


Chair’s Report continued

The Board has undertaken some shared governance training and committed to individual and shared training opportunities as they present. I wish to thank my fellow Board members for their commitment and support to the Service, ensuring that our Service has strong and appropriate leadership and governance in place. I also extend that appreciation to our four ‘ex officio’ appointments committed to working with our SunRCS Sub-committees, and the membership of our Central Advisory Group.

One Board member, Greg Cahill, who came to our Service from the former North Central RFCS Board stepped down as a Board member mid-year, and we now have nominations to consider to fill that vacancy.

I believe that the Service has operated very successfully over the last year and continued to provide essential support to those farmers in financial distress. Given current conditions and the Bureau of Meteorology outlook forecast, the coming season will be difficult for too many farmers in north west Victoria. We are prepared and look forward to assisting farmers to adjust and deal with the challenges they face.

Many farmers will have a prosperous year and hopefully it will rain so that those affected by drought and water issues can look forward to better seasons.

A.J. (Jack) Forbes

Chair

The coming season will be difficult for too many

farmers in north west Victoria. We are prepared

and look forward to assisting farmers to

adjust and deal with the challenges they face.”

A.J. (Jack) Forbes Chair

“


Chair’s Report continued

The Board has undertaken some shared governance training and committed to individual and shared training opportunities as they present. I wish to thank my fellow Board members for their commitment and support to the Service, ensuring that our Service has strong and appropriate leadership and governance in place. I also extend that appreciation to our four ‘ex officio’ appointments committed to working with our SunRCS Sub-committees, and the membership of our Central Advisory Group.

One Board member, Greg Cahill, who came to our Service from the former North Central RFCS Board stepped down as a Board member mid-year, and we now have nominations to consider to fill that vacancy.

I believe that the Service has operated very successfully over the last year and continued to provide essential support to those farmers in financial distress. Given current conditions and the Bureau of Meteorology outlook forecast, the coming season will be difficult for too many farmers in north west Victoria. We are prepared and look forward to assisting farmers to adjust and deal with the challenges they face.

Many farmers will have a prosperous year and hopefully it will rain so that those affected by drought and water issues can look forward to better seasons.

A.J. (Jack) Forbes

Chair

The coming season will be difficult for too many

farmers in north west Victoria. We are prepared

and look forward to assisting farmers to

adjust and deal with the challenges they face.”

A.J. (Jack) Forbes Chair

“


Executive Officer’s Report In the past twelve months we have developed stronger working relationships with stakeholders across the north west region and it is pleasing that we have been able to work more closely with the Farm Household Case Officers - responsible for the delivery of the Farm Household Allowance to eligible farmers, and have been actively involved with the Victorian Farmers Federation, Grain Corp and Agriculture Victoria in their pre-harvest workshops and information forums throughout the year.

Outcomes for rural farming communities across our region have followed familiar trends: good seasons for some, a struggle for others – production costs ever increasing, poor returns and escalating debt for many. Our Rural Financial Counselling Service (RFCS) has kept pace with the changes and resource options available throughout the year: Farm Household Allowance, Regional Investment Commission, a variety of state government and community driven support and grant opportunities – initiated in support of emerging drought impacts and the chronic issues faced by the embattled dairy industry.

The Commonwealth Department of Agriculture and State government Department of Jobs, Precincts and Regions (Agriculture Victoria) have been swift to provide our RFCS program with the necessary resources to meet peaks in demand for service and it is much appreciated. Moving with the emerging areas of demand we have relocated one Rural Financial Counsellor (RFC) to be based in Donald and re-established an office in Swan Hill, supported by three RFCs over the next twelve months. Our RFCS Central Advisory Group continues to meet in Kerang and provides our Service with valuable input on local pressure-points and issues.

Sunrise Mapping has settled in under the auspices of SunRCS and continues to increase its business activity – at times punching above its weight – and providing valuable information to key industry developments in the north west including Murray Darling Basin stakeholders, while continuing to make free farm maps available to RFC clients where possible.

After successfully tendering for a small business project through the Murray-Darling Basin Economic Development Program, we are now ready to commence delivery on the service – to be known as Rural Business Connections - to the river communities of Colignan, Red Cliffs, Merbein, Rochester and Wakool and we are looking forward to reporting on the program achievements over the next three years.

The Victorian Department of Jobs, Precincts and Regions have also provided us with a twelve month resource to deliver a Small Business Financial Counselling service to small town businesses battling the economic impacts of drought and the chronic situation for many farmers in the dairy industry. This support is much appreciated and it is the case that the program will have some synergies and joint activities with the Rural Business Connections program. The hope is that we continue to deliver this program beyond the initial twelve months.

Thank you to all of the SunRCS staff: another successful year of service to our communities! Thanks to my Leadership Group support: Lorraine Argus and Stephanie Ferdelja. They continue to provide excellent support and leadership to staff across our region, to Board members and the Chair whenever the need arises, and to my role as a rather ‘mobile’ Executive Officer. Thanks to our Board members, Sub-committee members and Chair, Jack Forbes, for their input and efforts over the year: always available for the big (and not-so-big) matters requiring input and participation.

Again, our team have worked hard to ensure that SunRCS’s ISO 9001:2015 certification is maintained, and we have successfully completed our triennial audit in 2019: well done!

Looking ahead, our priorities are:

• To be an Employer of Choice through active support for staff well-being, staff development and pursuing best practice allowing staff to be the best they can be.

• Ensuring that our rural communities and stakeholders know and understand what SunRCS do through active promotions and participation in community forums and stakeholder events across our region.


Executive Officer’s Report continued

• To identify and target program support to the pockets of climate impacted towns and communities across our large geographic area – victim to localised storms, frosts, extreme contrasts in dry conditions across broad acre farming areas and specific industry issues such as the chronic impacts for dairy farming and irrigation/water users.

• Demonstrating strong accountable governance and performance to funders, stakeholders and communities.

In March 2019 we commenced reviewing our Strategic Plan and have developed a new Strategic Plan for 2020 to 2023. Underpinning our structures and commitment to servicing the north west, and as a not-for-profit organisation, the SunRCS vision for “Building Resilient Rural Communities” clearly remains front and centre of our focus into the next few years.

Patrick Timmons Executive Officer

The SunRCS vision for

Building Resilient Rural Communities

clearly remains front and centre of our focus into

the next few years.” Patrick Timmons Executive Officer

“


Rural Financial Counselling Service (RFCS) Program Report Senior RFC Co-ordinator Report

Adjustment is a recurring theme in Australian agriculture and farming in the north west of Victoria is not immune to adjustment pressures. Throughout the course of the reporting year the number of clients assisted by the Service increased from 307 to 315 and within the year there was a steady increase in client numbers per quarter.

We are now getting a more even spread of client demand for services across the north west region. Mildura LGA continues to reflect the highest demand for services, followed by Gannawarra, Loddon and Buloke LGAs.

The most significant change in client location came in the Mildura LGA where there was a shift away from irrigator clients toward dryland farmers and this was also reflected in the statistics below.

Further south in the Mallee Track crops were patchy. There was a five percent increase on the previous year’s number of clients in Buloke LGA, with smaller increases in Yarriambiack and Gannawarra - triggered by disappointing and mixed grain harvest results. However, it’s worth noting farmers in sections of our service area enjoyed fairly good climatic conditions and commodity prices.

272

410

307 315

0

50

100

150

200

250

300

350

400

450

A P R T O J U N 2 0 1 6 2 0 1 6 / 2 0 1 7 2 0 1 7 / 1 8 2 0 1 8 / 1 9

CLIENT NUMBERS SINCE 2016


RFCS Program Report continued

Enterprise type, irrigation allocation and rainfall has a large impact on demand for our Service and the pressure points are reflected in the statistics.

The enterprise type of active clients comprised thirty one percent mixed grains and livestock, twenty one percent grain growing, fifteen percent dairy and thirteen percent viticulture. The key changes were an increase in mixed grains and livestock clients of nine percent, an increase in grain growing of almost eight percent and a seven percent reduction in the percentage of clients involved in viticulture as their major enterprise. This reconciles with the financial performance and seasonal conditions experienced by the key industries.

189

245267

285

0

50

100

150

200

250

300

J U L T O S E P O C T T O D E C J A N T O M A R A P R T O J U N

2 0 1 8 2 0 1 8 2 0 1 9 2 0 1 9

ACTIVE CLIENTS PER QUARTER

31%

21%

15% 13%

4% 4% 4% 3% 2% 1% 1% 0% 0% 0.3%0%

5%

10%

15%

20%

25%

30%

35%

2018/19 INDUSTRY


RFCS Program Report continued

The work we do with clients is based around a case management model, enabling clients to better understand their financial position, identify options, create an action plan to improve their circumstances and then implement the plan. Completing a statement of position and cash flow budget is an important first step in providing assistance and it goes a long way toward providing clarity and identifying what, if any, financial or other assistance is available given their unique circumstances.

The main type of financial assistance accessed by clients is Farm Household Allowance (FHA) and the program, requiring farmers to work with a Farm Household Case Officer (FHCO), has been very helpful in empowering clients to make positive change. Additional financial incentives for recipients of FHA were greatly welcomed and appeared to increase demand for the program. Our strong relationship with FHCO’s across our service area has led to many beneficial outcomes and is valued by staff and clients alike. A further opportunity to strengthen relationships and learning occurred at a joint one day training conference for FHCOs and Rural Financial Counsellors in Brisbane in June 2019.

In October 2018 RFCS Victoria – North West organised and hosted a visit to Birchip by the FHA Expert Review Panel in support of the panel’s quest to gather firsthand feedback on the FHA program. This was an excellent opportunity for our Rural Financial Counselling team, clients and stakeholders to provide feedback to the panel on the mechanics and practical application of the FHA program, along with some valuable suggestions for improvement.

Our Rural Financial Counselling team underwent numerous changes throughout the year with John Sheehy and Teresa O’Brien choosing a well-earned retirement and Teresa Meulendijks and Graeme Polkinghorne leaving to pursue other endeavours. These changes allowed the Service to rethink the allocation of resources across the region and we chose to strengthen our presence in Swan Hill to meet a recognisable increase in service demand. The service amenity in Swan Hill has also been enhanced with the establishment of a dedicated office at 60 Campbell Street. We also have a dedicated RFC presence in Buloke, establishing a satellite office in Donald at the Skillinvest office at 67 Woods Street.

The positive outcomes achieved with clients and feedback received is testament to the high quality of assistance our team provided to the farming community. We thank the team for their dedication and look forward to working with our farming and related small business community in 2019/20.

Stephanie Ferdelja Senior RFC Co-ordinator

31%

21%

15%

13%4%

2018/19 Top five client industry types

Mixed grainsand livestockGraingrowingDairy

Viticulture

Fruit andnuts

22%

20%15%

13%

10%

2017/18 Top five client industry types

Mixed grainsand livestockViticulture

Dairy

GraingrowingFruit andnuts


Case Study – RFCS Program Paddy McFly is a chicken farmer and focused his business mainly on egg production. More recently the business was under extreme financial distress and, under his own steam, made an application for Farm Household Allowance (FHA). Paddy’s application was incomplete and the FHCO referred Paddy to the local RFCS for assistance.

Additional information had been requested by Centrelink but Paddy’s accountant was unable to help and Paddy (being more passionate about his chooks than record keeping) continued to be unsure of his overall financial situation despite using QuickBooks for invoicing. As a consequence, Paddy was struggling to get the required information and documentation together for his FHA application. From the first meeting with the RFC, it became clear that following up the FHA claim – while important - was a secondary issue. When it was pointed out, Paddy agreed that he really required assistance with understanding income and expenditure, record keeping, financial management and ATO reporting obligations.

While Paddy had done his best to maintain quarterly payments to the ATO, there were still outstanding payments owing to the ATO and he had a poor track record on regular reporting to the ATO: Paddy did not know where to start to rectify the problem.

The RFC was able to point out that while Paddy’s business didn’t need to be GST registered, there could be significant benefits to being GST registered. Alternatively, Paddy could register as a business that sold GST-free products (eggs and related fresh food products), thus avoiding the GST collection burden but gaining the GST credits for any expenditure which incurred GST. Additionally, Fuel Tax Credits could then be claimed if registered for GST. The RFC was also able to explain how the ATO would most likely respond to his efforts to resolve the outstanding matters positively!

The RFC assisted Paddy to register for GST and was able to have it backdated to the commencement date for the business. This in turn meant Paddy was entitled to claim several thousand dollars in GST input tax credits - a significant boost to the business cash flow and to the bottom line. Claiming GST credits and Fuel Tax Credits into the future was going to assist with ongoing cashflows.

Paddy registered for the ATO Business Portal as part of a whole business strategy to achieve better financial management of his tax reporting and to assist him to manage online with a historical ATO debt. The whole process motivated Paddy to focus more on financial management by keeping a much closer eye on record keeping. There was plenty of time left to nurture the chooks.

With the help of the RFC, an application for a bursary was made to assist with diversification of Paddy’s business. The application involved developing a business plan to demonstrate proposed improvements to the business and was successful. Paddy stated that working with the RFC helped him to learn so much about the fundamentals of managing financials, taxation and record keeping. With the FHA application being the original reason to connect with RFCS, the application was finalised and approved. The newly developed business plan came in nicely to enter in the Farm Improvement Agreement, and a vision of a diminishing need for FHA after twelve months or so was emerging.

The learning:

‘’The ATO will always welcome opportunity to resolve outstanding matters” Anonymous.


Client Testimonials – RFCS Program

“Guided us through a very difficult time in our lives. Without the help

we received, things would have been a lot harder to deal with.”

“RFCS has made an unbelievable difference to our family business. They are educating us all in the family to improve our financial position,

and are offering services as almost a partnership we can rely on and ask for advice

on anything we have concerns with.”

“RFCS has been an essential part of support to me and my business, helping us move forward

in difficult times of drought and hardship.”

"Having assistance from RFCS has helped us to understand

our business position, and to make correct decisions for our

future planning.”

“RFCS has provided us with the support we needed to successfully get through the stresses

of drought and to cope. Our RFC has been a great support during tough times”

"My financial counsellor has gone over my business plan with me and I am now certain that it is sound, and when it rains again I will be able

to go from strength to strength.”

"With the support from RFCS we made the decision to stay on our property - having a budget to follow gave us the

trust and confidence to move forward in a positive way.”


Online Presence Visitors to our Rural Financial Counselling Service website have increased 30% this year, in comparison to last year, with an average of 739 page views per month, and 249 unique visitors per month.

The most visited pages are the Home, Rural Financial Counsellors, Contact, Meet the SunRCS Team, Government Assistance Programs and Services pages.

88% of visitors are new to the site, with 12% returning visitors. 71% of visitors access the website via their desktop computer, followed by their mobile phone (22%), and tablet (7%). Interestingly, 39% of all visitors are ‘Direct’ visitors meaning they already have our website address, perhaps from a marketing promotion or business card (rather than search for our website over the internet and find our page through a search engine such as Google).

Our Facebook page Rural Financial Counselling Service Victoria - North West includes general information about our Service, and continues to be a good way to share news and information about our Service in a timely, effective manner to our clients, potential clients and stakeholders with the opportunity to expand this reach with paid advertising.

Website statistics:

695

1003

703

1000 992776 696

590 675489

824

430

0200400600800

10001200

WEBSITE PAGE VIEWS PER MONTH

88.00%

12.00%

VISITOR TYPE

New Visitor Returning Visitor

44.00%

17.00%

39.00%

TRAFFIC MEDIUM

Organic Referral Direct

171

395

223316 332

272 242204

245

149

286

153

0

100

200

300

400

500

WEBSITE UNIQUE SESSIONS PER MONTH


SunRISE Mapping and Research Report The focus for SunRISE Mapping and Research (SunRISE) in 2018-19 was to complete 2018 mapping of irrigated horticulture (crop mapping) across the lower Murray-Darling region of New South Wales and Victoria. The mapping was based on January 2018 aerial imagery.

Irrigation development from 1997 to 2018

Across the region shown in the following map, the irrigation area increased by 51,700 ha, from 95,000 ha in 1997 to 146,700 ha in 2018.

The main changes were an increase of 25,460 ha in almond plantings, a decrease of 11,990 ha in the area of irrigated field crops (pasture, lucerne, cereal crops etc.), an increase of 5,805 ha in fruit trees (stonefruit, olives, avocados, etc.) and an increase of 5,715 ha in table grape plantings.

The ’not irrigated’ area increased by 27,200 ha. These were areas out of production, predominantly seasonal cropping in rotation or not irrigated due to low water availability and high water prices. There were also permanent planting areas that were not irrigated, they were in redevelopment or abandoned but had the potential to be brought back into production at a later stage.

Map of irrigation expansion from 1997 to 2018


SunRISE Mapping and Research Report continued

Chart of the area of crop types in 1997, 2009 and 2018

Chart of the area of dried, table and wine grape plantings in 1997, 2009 and 2018

Consultancy services in 2018-19

Crop mapping has been maintained by SunRISE Mapping since 1997 and is used to provide accurate information on irrigation development from 1997 to 2018.

In 2018-19, reports on changes and trends in irrigated horticulture were prepared for Western Murray Irrigation (NSW), the Mallee Catchment Management Authority (Vic) and the NSW Department of Industry, Lands and Water Division.

Other consultancy services provided by SunRISE Mapping included:

• Mapping of spotlight counts of rabbit sightings for Parks Victoria; • Mapping of horticultural commodities within 200km of Merbein for Wakefield Transport Group; • Dried Fruits Australia Database Project 2018; • Grapevine mapping to assist Wine Australia’s national vineyard mapping; • Service Area maps for Mallee District Aboriginal Services; and • Maps of the Lake Victoria region for the Department of Industry, Crown Lands & Water NSW.

Mapping services in 2018-19

Maps, in digital and hard copy formats, were provided for 134 properties, predominantly for:

• Property planning and development; • Redevelopment of horticultural properties; • Irrigation system design; • Export market registration; and • Quality assurance programs such as Freshcare.

26,815 32,060 29,335

20,300 28,11042,610

30,62056,685

34,830

020,00040,00060,00080,000

100,000120,000140,000160,000

1997 2009 2018

hect

ares

Not irrigated

Vegetables

Field crops

Miscellaneous

Almond & other Nut trees

Fruit trees

Citrus

Dried, Table & Wine Grapes

13,66521,390

14,700

5,220

7,07510,935

7,930

3,5953,700

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

1997 2009 2018

hect

ares Grape Dried

Grape Table

Grape Wine


SunRISE Mapping and Research Report continued

SunRISE partner organisations

Our thanks are extended to the following organisations for their support through 2018-19:

- Dried Fruits Australia

- Lands and Water Division, NSW Department of Industry

- Lower Murray Water

- Mallee CMA

- Mildura Rural City Council

- Murray Valley Winegrowers

- TASCO Petroleum

- Wakefield Transport & Iron Horse Intermodal

- Wentworth Shire Council

- Western Murray Irrigation

Sue Argus Manager, SunRISE Mapping and Research


Sunraysia Rural Counselling Service Incorporated ABN 70 870 481 312

General Purpose Financial Report

For the year ended 30 June 2019



Board Report For the Year Ended 30 June 2019 The Board members present their report, together with the financial statements, on the Sunraysia Rural Counselling Service Incorporated for the year ended 30 June 2019.

Board members The following persons were Board members of the Sunraysia Rural Counselling Service Incorporated during the whole of the financial year and up to the date of this report, unless otherwise stated:

Jack Forbes Chairperson Kylie Zanker Vice Chairperson Leo Tellefson Secretary Lyn Heaysman Treasurer Andrew Pickles Member John Senior Member

Objectives Assist in alleviating poverty and hardship within farming and small business families by adopting social and systemic change through a community development philosophy. Maintain high service delivery standards to eligible clients. Develop policy direction for rural financial counselling services within the designated region and to make recommendations to all levels of Government on issues affecting the regional farming economy. Assist farmers, small business operators and their families under stress or in difficulty and to offer or provide:

(a) Free, independent and confidential financial counselling services; (b) Information and referral to the various services available to farmers, small farming business operators and

their families; and (c) Provide support and encouragement to farmers, small farming business operators

and their families. Conduct research and to publish reports and periodicals, books or other information which the Board may consider appropriate. Consult widely with community and interest groups across the region, including, specifically, those reference groups that provide representative members on the Board.

Strategy for achieving the objectives Sunraysia Rural Counselling Service Incorporated believes its objectives can be met by implementing the following two Strategies during 2018-19:

(i) Achieving integration of our diverse communities: - through Advisory Groups, ensuring local inputs into our regional services delivery, - develop an organisational culture that supports diverse communities - staff and Board, - develop high performance teams, embracing diversity of skill sets, inclusion of difference and

pursuit of program value and excellence, - align organisational structures to support strategic directions, - promotion of the integration journey with our communities; and

(ii) Developing leadership with new opportunities: - develop and contribute to industry leadership opportunities and teams, - develop processes for identifying strategic opportunities for program delivery - including

partnerships, funding models and options, - develop new ways of connecting and understanding stakeholder needs; and - develop internal and external leadership pathways - including promotion of outcomes and wins

for individuals and communities.


Sunraysia Rural Counselling Service Incorporated ABN 70 870 481 312 Board Report (continued) For the Year Ended 30 June 2019 Principal activities The principal activities of the Association during the financial year were to provide rural financial counselling services to customers within the North West region of Victoria. Operating results The operating surplus for the financial year 2019 amounted to $75,213 (2018: $45,068).



Statement of Profit or Loss & Other Comprehensive Income For the Year Ended 30 June 2019

Note 2019 $

2018 $

Revenue 2 1,971,076

1,924,306

Employee expenses

(1,321,732)

(1,229,947) Administration expenses (121,270) (117,510) Program expenses - (130,861) Vehicle expenses (124,499) (117,021) Committee expenses (31,674) (16,429) Staff training & recruitment expenses (83,080) (46,737) Special project expenses - (10,000) Depreciation expenses (65,191) (65,265) Other expenses 3 (148,417) (145,468) Surplus for the year 75,213 45,068

Other comprehensive income

-

-

Total comprehensive income for the year 75,213 45,068

The accompanying notes form part of this financial report



Statement of Financial Position As at 30 June 2019

ASSETS

Note 2019 $

2018

$

CURRENT ASSETS Cash and cash equivalents

5

1,055,052

1,170,483 Trade and other receivables 6 427,372 7,518 TOTAL CURRENT ASSETS 1,482,424 1,178,001

NON-CURRENT ASSETS Property, plant & equipment

7

343,171

256,145 TOTAL NON-CURRENT ASSETS 343,171 256,145 TOTAL ASSETS 1,825,595 1,434,146

LIABILITIES

CURRENT LIABILITIES Trade and other payables

8

74,809

75,392 Grants received in advance 9 761,146 480,000 Short term provisions 10 184,772 125,741 TOTAL CURRENT LIABILITIES 1,020,727 681,133

NON-CURRENT LIABILITIES Long term provisions

10

1,456

24,814 TOTAL NON-CURRENT LIABILITIES 1,456 24,814 TOTAL LIABILITIES 1,022,183 705,947 NET ASSETS 803,412 728,199

EQUITY Reserves

11

160,957

160,957

Retained Surplus 642,455 567,242 TOTAL EQUITY 803,412 728,199




Statement of Cash Flows For the Year Ended 30 June 2019

Note

2019

$

2018

$

Cash Flows from Operating Activities Operating grant receipts and donations

1,745,399

1,769,153 Payments to suppliers and employees (1,711,277) (1,806,525) Interest received 10,891 10,963 Net cash provided by / (used in) operating activities 15(b) 45,013 (26,409)

Cash Flows from Investing Activities Purchase of property, plant and equipment

(202,674)

(39,364)

Sale of property, plant and equipment 42,230 15,658 Net cash (used in) investing activities (160,444) (23,706)

Net (decrease) in cash held (115,431) (50,115)

Cash and cash equivalents at the beginning of the year

1,170,483

1,220,598

Cash and cash equivalents at the end of the year 15(a) 1,055,052 1,170,483




Statement of Cash Flows For the Year Ended 30 June 2019

Note

2019

$

2018

$

Cash Flows from Operating Activities Operating grant receipts and donations

1,745,399

1,769,153 Payments to suppliers and employees (1,711,277) (1,806,525) Interest received 10,891 10,963 Net cash provided by / (used in) operating activities 15(b) 45,013 (26,409)

Cash Flows from Investing Activities Purchase of property, plant and equipment

(202,674)

(39,364)

Sale of property, plant and equipment 42,230 15,658 Net cash (used in) investing activities (160,444) (23,706)

Net (decrease) in cash held (115,431) (50,115)

Cash and cash equivalents at the beginning of the year

1,170,483

1,220,598

Cash and cash equivalents at the end of the year 15(a) 1,055,052 1,170,483




Notes to the Financial Statements For the Year Ended 30 June 2019

Note 1. Significant accounting policies

The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a) New or amended Accounting Standards and Interpretations adopted The Sunraysia Rural Counselling Service incorporated has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

(b) Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB'), the Australian Charities and Not-for- profits Commission Act 2012 and the Associations Incorporation Reform Act 2012 , as appropriate for not-for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB'). Historical cost convention The financial statements have been prepared under the historical cost convention.

Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Association's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Note 2.

(c) Revenue recognition The incorporated association recognises revenue as follows:

Revenue comprises revenue from the sale of goods, government grants, fundraising activities and mapping services. Revenue from major products and services is shown in Note 2. Revenue is measured by reference to the fair value of consideration received or receivable by the Association for goods supplied and services provided, excluding sales taxes, rebates, and trade discounts. Revenue is recognised when the amount of revenue can be measured reliably, collection is probable, the costs incurred or to be incurred can be measured reliably, and when the criteria for each of the Association’s different activities have been met. Details of the activity-specific recognition criteria are described below.

Government Grants A number of the Association's programs are supported by grants received from the federal and state governments. If conditions are attached to a grant which must be satisfied before the Association is eligible to receive the contribution, recognition of the grant as revenue is deferred until those conditions are satisfied. Where a grant is received on the condition that specified services are delivered to the grantor, this is considered a reciprocal transaction. Revenue is recognised as services are performed and at year end a liability is recognised until the service is delivered. Revenue from a non-reciprocal grant that is not subject to conditions is recognised when the Association obtains control of the funds, economic benefits are probable and the amount can be measured reliably. Where a grant may be required to be repaid if certain conditions are not satisfied, a liability is recognised at year end to the extent that conditions remain unsatisfied. Where the Association receives a non-reciprocal contribution of an asset from a government or other party for no or nominal consideration, the asset is recognised at fair value and a corresponding amount of revenue is recognised.


Sunraysia Rural Counselling Service Incorporated

ABN 70 870 481 312 Notes to the Financial Statements For the Year Ended 30 June 2019 (c) Revenue recognition (continued)

Sales revenue Revenue from the sale of goods and services is recognised when the control of goods or services passes to the customer.

Donations Donations collected are recognised as revenue when the Association gains control, economic benefits are probable and the amount of the donation can be measured reliably. Mapping Services Fees charged for mapping services are recognised when the service is provided.

Interest Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Other revenue Other revenue is recognised when it is received or when the right to receive payment is established.

(d) Income tax As the Sunraysia Rural Counselling Services Incorporated is a charitable institution in terms of subsection 50-5 of the Income Tax Assessment Act 1997 , as amended, it is exempt from paying income tax.

(e) Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Sunraysia Rural Counselling Services Incorporated's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

A liability is classified as current when: it is either expected to be settled in the incorporated association's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.

(f) Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(g) Trade and other receivables The Association makes use of a simplified approach in accounting for trade and other receivables and records the loss allowance at the amount equal to the expected lifetime credit losses. In using this practical expedient, the Association uses its historical experience, external indicators and forward-looking information to calculate the expected credit losses using a provision matrix.


Sunraysia Rural Counselling Service Incorporated ABN 70 870 481 312 Notes to the Financial Statements For the Year Ended 30 June 2019

(h) Property, plant and equipment Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation is calculated on a diminishing value basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows:

Class of Fixed Assets Depreciation Rate Plant and equipment 30 – 40 % Motor vehicles 22.50%

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.

An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to Sunraysia Rural Counselling Services Incorporated. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.

(i) Impairment of non-financial assets Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.

Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.

(j) Trade and other payables These amounts represent liabilities for goods and services provided to the Sunraysia Rural Counselling Services incorporated prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

(k) Employee benefits

Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.

Other long-term employee benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Defined contribution superannuation expense Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.



(l) Fair value measurement When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market.

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

(m) Goods and Services Tax ('GST') Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.



(o) Financial instruments Financial assets and financial liabilities are recognised when the Association becomes a party to the contractual provisions of the financial instrument, and are measured initially at fair value adjusted by transactions costs, except for those carried at fair value through profit or loss, which are measured initially at fair value. Subsequent measurement of financial assets and financial liabilities are described below.

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.

All financial assets are measured at the transaction price and all financial assets are initially measured at fair value adjusted for transaction costs (where applicable). For the purpose of subsequent measurement financial assets are classified into the following categories upon initial recognition: - amortised cost; - fair value through profit or loss (FVPL); and - equity instruments at fair value through other comprehensive income (FVOCI). All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade receivables which is presented within other expenses. Classifications are determined by both: - The entities business model for managing the financial asset; and - The contractual cash flow characteristics of the financial assets. All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade receivables, which is presented within other expenses.

Amortised cost Assets measured at amortised cost are financial assets where: - the business model is to hold assets to collect contractual cash flows; and - the contractual terms give rise on specified dates to cash flows are solely payments of principal and interest on the principal amount outstanding. The Association's financial assets measured at amortised cost comprise trade and other receivables and cash and cash equivalents in the statement of financial position. Subsequent to initial recognition, these assets are carried at amortised cost using the effective interest rate method less provision for impairment. Interest income and impairment are recognised in profit or loss. Gain or loss on derecognition is recognised in profit or loss.

Fair value through other comprehensive income The Association does not hold any equity instruments or debt investments, therefore no financial instruments are measured using the fair value through other comprehensive income method.

Financial assets through profit or loss All financial assets not classified as measured at amortised cost or fair value through other comprehensive income as described above are measured at FVTPL. The Association does not hold any financial assets recognised under this criteria.



(o) Financial instruments (continued)

Impairment of financial assets Impairment of financial assets is recognised on an expected credit loss (ECL) basis for applicable financial assets measured at amortised cost. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Association considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Association's historical experience and informed credit assessment and including forward looking information. The Association uses the presumption that an asset which is more than 30 days past due has seen a significant increase in credit risk. The Association uses the presumption that a financial asset is in default when: - the other party is unlikely to pay its credit obligations to the Association in full, without recourse to the

Association to actions such as realising security (if any is held); or - the financial assets is more than 90 days past due. Credit losses are measured as the present value of the difference between the cash flows due to the Association in accordance with the contract and the cash flows expected to be received. This is applied using a probability weighted approach.

Donated financial assets Financial assets donated to the Association are recognised at value at the date the Association obtains control over the assets.

Other financial assets measured at amortised cost Impairment of other financial assets measured at amortised cost are determined using the expected credit loss model in AASB 9. On initial recognition of the asset, an estimate of the expected credit losses for the next 12 months is recognised. Where the asset has experienced significant increase in credit risk then the lifetime losses are estimated and recognised.

(p) Critical accounting judgements, estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

Estimation of useful lives of assets The Association determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.

Impairment of non-financial assets other than goodwill and other indefinite life intangible assets The Association assesses impairment of non-financial assets other than goodwill and other indefinite life intangible assets at each reporting date by evaluating conditions specific to the incorporated association and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and assumptions.



(p) Critical accounting judgements, estimates and assumptions (continued)

Employee benefits provision As discussed in Note 1, the liability for employee benefits expected to be settled more than 12 months from the reporting date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account.

(q) Leases Leases are classified at their inception as either operating or finance leases based on economic substance of the agreement so as to reflect the risks and benefits incidental to ownership. 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.

(r) Comparatives Where necessary, comparative information has been reclassified and repositioned for consistency with current year disclosures.

(s) Financial Risk Management The Association is exposed to a variety of financial risks through its use of financial instruments. The Association‘s overall risk management plan seeks to minimise potential adverse effects due to the unpredictability of financial markets. The principal categories of financial instruments used by the Association is Trade receivables, Cash at bank and Trade and other payables.

The most significant financial risks to which the Association is exposed to are liquidity and interest rate risk which are described below in detail:

(i) Liquidity risk Liquidity risk arises from the Association’s management of working capital and the finance charges and principal repayments on its debt instruments. It is the risk that the Association will encounter difficulty in meeting its financial obligations as they fall due. The Association’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities as and when they fall due. The Association monitors and controls this risk through the following mechanisms: - Preparing forward looking cash flow analysis in relation to its operational, investing and financing activities; - Maintaining a reputable credit profile; - Managing credit risk related to financial assets; and - Only investing surplus cash with major financial institutions. At the reporting date, the Association expected to have sufficient liquid resources to meet its obligations under all reasonably expected circumstances and will not need to draw upon any of the financing facilities.

(i) Interest rate risk The Association is only exposed to interest rate risk on cash assets as there are no borrowings held which have interest rate risk. The Association's policy is to minimise interest rate cash flow risk. Cash and cash equivalents are invested on varying fixed terms to secure fixed rates to minimise interest rate risk. Sunraysia Rural Financial Counselling exposure to interest rate risk applicable to cash and cash equivalents is $1,055,052 (2018: $1,170,483) of which $990,754 (2018: $1,087,349) is interest bearing at a weighted average effective interest rate of 1.05%.


Sunraysia Rural Counselling Service Incorporated ABN 70 870 481 312 Notes to the Financial Statements For the Year Ended 30 June 2019 Note 2: Revenue 2019

$ 2018

$ Operating activities

- Government grants 1,727,639

1,752,181 - Mapping and other services 196,754 98,752 - Vehicle program lease 42,000 53,419 1,966,393 1,904,352 Non-operating activities

- Donations and sponsorships 2,000

10,000 - Interest received 10,891 10,963 - Other income 104 2,208 - Loss on disposal of plant and equipment (8,312) (3,217) 4,683 19,954 TOTAL REVENUE 1,971,076 1,924,306

Note 3: Other expenses

Insurance 8,981 9,242 Internet and telephone 18,657 20,685 IT expenses 61,063 23,947 Mapping 3,078 20,185 Promotion 35,832 38,854 Miscellaneous expenses 20,806 32,555 148,417 145,468

Note 4: Surplus for the year

Surplus has been determined after deducting following expenses: Depreciation

65,191

65,265 Loss on disposal of fixed assets 8,312 3,217 Motor vehicle lease expenses 42,000 42,500 Office lease expenses 101,408 96,096 Superannuation contributions 107,954 95,444

Note 5: Cash and Cash Equivalents

Cash at bank 894,095 1,009,526 Short term deposits 160,957 160,957 1,055,052 1,170,483

Note 6: Trade and Other Receivables

Accounts receivable 419,815 - Office lease security deposit 7,557 7,518 427,372 7,518


Sunraysia Rural Counselling Service Incorporated ABN 70 870 481 312 Notes to the Financial Statements For the Year Ended 30 June 2019 Note 7: Property, Plant & Equipment

2019 $

2018 $

Plant & equipment (at cost)

60,796

46,304 Less accumulated depreciation (23,423) (27,747)

37,373 18,557

Motor vehicles (at cost)

440,410

360,139 Less accumulated depreciation (134,612) (122,551)

305,798 237,588 Total Property Plant & Equipment 343,171 256,145

(a) Movements in carrying amounts

Plant & Equipment

Motor Vehicles

TOTAL

$ $ $ Balance at the beginning of the year 1 July 2018 18,557 237,588 256,145 Additions 32,284 170,390 202,674 Disposals (4,142) (46,316) (50,458) Depreciation expense (9,326) (55,864) (65,190) Carrying amount at the end of

the year 30 June 2019 37,373 305,798 343,171

Plant &

Equipment

Motor Vehicles

TOTAL $ $ $ Balance at the beginning of the year 1 July 2017 21,890 279,031 300,921 Additions 4,775 34,588 39,363 Disposals (527) (18,348) (18,875) Depreciation expense (7,581) (57,683) (65,264) Carrying amount at the end of

the year 30 June 2018 18,557 237,588 256,145

Note 8: Trade and other Payables

Accounts payable and accrued expenses

9,155

4,790 NAB Visa card 6,648 4,627 PAYG tax payable 16,509 16,276 Net GST payable 42,497 49,699

74,809 75,392


Sunraysia Rural Counselling Service Incorporated ABN 70 870 481 312 Notes to the Financial Statements For the Year Ended 30 June 2019 Note 9: Grants received in advance

2019 $

2018 $

Federal government funds 384,401 480,000 Victorian government funds 376,745 - 761,146 480,000

Note 10: Provisions CURRENT Employee entitlements - Annual Leave

59,400

45,626 Employee entitlements - Long Service Leave 125,372 80,115 184,772 125,741 NON-CURRENT Employee entitlements - Long Service Leave

1,456

24,814

1,456 24,814

Aggregate provision for employee entitlements

186,228

150,555

Note 11: Reserves

The general reserve records surplus funds "earmarked" and set aside for the wind up of the service should this occur at any point in future.

Note 12: Contingent Liabilities

The Association is conscious that Funding Contracts may expire and not be renewed after 2020. If this is the case, certain funds still on hand, and fixed assets, must be returned to the Commonwealth Government. It is not possible to quantify the amount at this stage. The Association has, however, created a Reserve and put aside an amount of funds to cover wind up costs should this eventuate. At 30 June 2019, the Board are unaware of any other liability, contingent or otherwise, which has not already been recorded elsewhere in this financial report.

Note 13: Capital and Leasing Commitments

Leasing commitments due as at 30 June 2019 are as follows:

One year 1 - 5 years Total Property leases 59,850 - 59,850

There are no other capital commitments as at 30 June 2019.

Note 14: Financial risk management

The Association's financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable. The totals for each category of financials instruments, measured in accordance with AASB 9 as detailed in the accounting policies to these financial statements, are summarised overpage:



2019 $

2018 $



59,400


1,456

24,814

1,456 24,814


186,228

150,555

Note 11: Reserves












2019 $

2018 $



59,400


1,456

24,814

1,456 24,814


186,228

150,555

Note 11: Reserves












2019 $

2018 $



59,400


1,456

24,814

1,456 24,814


186,228

150,555

Note 11: Reserves












2019 $

2018 $



59,400


1,456

24,814

1,456 24,814


186,228

150,555

Note 11: Reserves












2019 $

2018 $



59,400


1,456

24,814

1,456 24,814


186,228

150,555

Note 11: Reserves












2019 $

2018 $



59,400


1,456

24,814

1,456 24,814


186,228

150,555

Note 11: Reserves












2019 $

2018 $



59,400


1,456

24,814

1,456 24,814


186,228

150,555

Note 11: Reserves












2019 $

2018 $



59,400


1,456

24,814

1,456 24,814


186,228

150,555

Note 11: Reserves











Sunraysia Rural Counselling Service Incorporated ABN 70 870 481 312 Notes to the Financial Statements For the Year Ended 30 June 2019 Note 14: Financial risk management (continued) 2019

$ 2018

$ Financial assets Cash and cash equivalents

1,055,052

1,170,483

Trade receivables 419,815 - 1,474,867 1,170,483

Financial liabilities Financial liabilities at amortised cost: - Trade and other payables

74,809

75,392 74,809 75,392 Note 15: Cash Flow Information

a) Reconciliation of cash Cash as at the end of the year as shown in the statement of cash flows is reconciled to related items in the statement of financial position, as follows:

Cash at Bank 1,055,052 1,170,483

b) Reconciliation of cash from operating activities to accounting result

Surplus for the year

75,213

45,068

Add/(Less) non cash items in operating result Depreciation

65,191

65,265

Loss on disposal of plant and equipment Changes in assets/liabilities (Increase)/decrease in receivables

8,227

(419,854)

3,217

185

Increase/(decrease) in trade and other payables (583) 24,170 Increase/(decrease) in grants received in advance 281,146 (147,592) Increase/(decrease) in provisions 35,673 (16,723) Cashflow from operations 45,013 (26,409)

Note 16: Segment Reporting

The Association operates predominantly in one business and geographical segment being in the community assistance sector by providing an independent, confident and cost free service for eligible farmers, fishing enterprises, forest growers, and small farm related business in the North West region of Victoria.

Note 17: Events Subsequent to Reporting Date

At the date of this report the Board are unaware of any event subsequent to the reporting date that would have a material impact on this financial report.

Note 18: Entity Information

The registered office of the Association is: Sunraysia Rural Counselling Service Incorporated 139 Lime Avenue MILDURA VIC 3500


Crowe Murray Darling ABN 27 161 274 861 133 Langtree Avenue Mildura VIC 3500 Australia

PO Box 1608 Mildura VIC 3502 Australia Tel 03 5023 9700 Fax 03 5021 1430 www.crowe.com.au

INDEPENDENT AUDITOR’S REPORT to the Members of Sunraysia Rural Counselling Service Incorporated

Report on the Audit of the Financial Report

Auditor’s Opinion

We have audited the financial report of Sunraysia Rural Counselling Service Incorporated, which comprises the statement of financial position as at 30 June 2019, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the statement and report by members of the board.

In our opinion, the accompanying financial report of the Association has been prepared in accordance with Association’s Incorporation Reforms Act (2012), including:

(a) giving a true and fair view of the Association’s financial position as at 30 June 2019 and of its financial performance for the year then ended; and

(b) complying with Australian Accounting Standards and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Association in accordance with the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act) and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

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

Responsibilities of the board of management for the Financial Report

The board is responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and for such internal control as management determines 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.

In preparing the financial report, the board is responsible for assessing the Association’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intend to liquidate the Association or to cease operations, or have no realistic alternative but to do so.

The board are responsible for overseeing the Entity’s financial reporting process. The title ‘Partner’ conveys that the person is a senior member within their respective division, and is among the group of persons who hold an equity interest (shareholder) in its parent entity, Findex Group Limited. The only professional service offering which is conducted by a partnership is the Crowe Australasia external audit division. All other professional services offered by Findex Group Limited are conducted by a privately owned organisation and/or its subsidiaries.

Findex (Aust) Pty Ltd, trading as Crowe Australasia is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a separate and independent legal entity. Findex (Aust) Pty Ltd and its affiliates are not responsible or liable for any acts or omissions of Crowe Global or any other member of Crowe Global. Crowe Global does not render any professional services and does not have an ownership or partnership interest in Findex (Aust) Pty Ltd. Services are provided by Crowe Murray Darling, an affiliate of Findex (Aust) Pty Ltd. Liability limited by a scheme approved under Professional Standards Legislation. Liability limited other than for acts or omissions of financial services licensees. © 2019 Findex (Aust) Pty Ltd


Auditor’s Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, the auditor exercises professional judgement and maintains professional scepticism throughout the audit. The auditor also:

Identifies and assesses the risks of material misstatement of the financial report, whether due to fraud or error, designs and performs audit procedures responsive to those risks, and obtains audit evidence that is sufficient and appropriate to provide a basis for the auditor’s opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtains an understanding of internal control relevant to the audit 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.

Evaluates the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board.

Concludes on the appropriateness of the board’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If the auditor concludes that a material uncertainty exists, the auditor is required to draw attention in the auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify the auditor’s opinion. The auditor’s conclusions are based on the audit evidence obtained up to the date of the auditor’s report. However, future events or conditions may cause the entity to cease to continue as a going concern.

Evaluates the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that the auditor identifies during the audit.

CROWE MURRAY DARLING

Josh Porker 4 October 2019 Senior Manager – Audit & Assurance Mildura, Victoria

SRCS AReport 2018-19 Text

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