KIDS HOPE AUS Ltd Annual Report 2015
KIDS HOPE AUS Ltd
Annual Report 2015
Hope in the life of every child
Our Vision Hope in the life of every child
Our Mission KIDS HOPE AUS is a Christian ministry which
partners with churches and schools to positively
change the lives of vulnerable children through
consistent mentoring relationships.
Our Values Christian In alignment with our Christian faith, KIDS HOPE
AUS works in local communities, to bring hope
and positive transformation to the lives of
vulnerable young children.
Children Children are our focus, because we believe that
every child matters; that every child has the right
to be valued and respected; and every child
should feel supported in reaching their full
potential.
Partnerships We know that the best outcomes for children are
achieved through building strong partnerships,
in strong communities. Establishing vibrant
partnerships between schools, churches and
parents, for the wellbeing of vulnerable children,
is central to the work of KIDS HOPE AUS.
Church KIDS HOPE AUS seeks to assist churches to reach
out to their local communities, by equipping,
resourcing and supporting the development of
an effective and successful mentoring program,
in their local school.
Commitment We value commitment and faithfulness in the
relationships that we build with children,
because we know that they build strong
foundations of trust, and have positive impacts
on children’s lives.
Hope in the life of every child
A message from the Chair
This has been a significant year in the history of
KIDS HOPE AUS. We have transitioned to an
independent organisation; moved to our new
office space and we continue to see the program
grow steadily. I am extremely proud of the KIDS
HOPE AUS staff who have handled these changes
with grace, while maintaining our vision to grow
and develop this program to positively impact
children across the country. The conferences
and training offered to our volunteers have
achieved excellent feedback and are a testament
to the hard work of our staff team.
Our Board meets regularly and is passionate
about ensuring the future of KIDS HOPE AUS.
Each member brings skill and commitment to
their role and we continue to build on the eleven
years of the KIDS HOPE AUS journey. Fundraising
for program growth is challenging and will
require ongoing effort to develop a strong
financial base to grow the program.
What began eleven years ago as a small pilot
program within the wider work of World Vision
Australia, is now a fully functioning independent
entity reaching 327 schools and churches across
the country. This is a significant achievement
and the mentoring does change children’s
lives. The relationships developed between local
churches and schools are of great benefit to
both. These transformational relationships
happen because mentors meet faithfully each
week with a child. The voluntary hours of service
given by mentors make an enormous impact and
we are thankful for each one.
We are also thankful for the outstanding
leadership of our Founder and retiring Chief
Executive Officer, Marylin Leermakers, over these
past eleven years. Marylin had the vision to
establish KIDS HOPE AUS and has guided and
directed its growth during this period. Her
achievements have seen the program flourish
and she has been a role model to many.
Working with Marylin has been a delight and we
wish her well in her retirement. KIDS HOPE AUS
owes her a debt of gratitude for her faithful and
loving service and in recognition of this Marylin
will be formally acknowledged as “Founder and
Patron” of KIDS HOPE AUS in her retirement.
We are excited about our future and pray that
the program will continue to be a blessing to
many in the years ahead.
Susan Bazzana
Chair, KIDS HOPE AUS
Hope in the life of every child
A message from the CEO
This year has been one of transition and
establishment. After 10 years within World Vision
Australia, KIDS HOPE AUS began operating as an
independent charity from October 1 2014.
It has been an exciting year, not without its
challenges, but with many positive outcomes to
celebrate.
37 new programs have been added.
We have developed strategies to increase
program retention and program support.
We are proud to report that 3,300
vulnerable children in 327 schools are
experiencing the power of one-to-one
mentoring.
More than $2,800,000 worth of volunteer
hours were invested into the lives of
vulnerable children in the last year.
A review of the training has taken place
and plans are well on the way towards
the release of new training resources in
2016.
New promotional materials, with our new
branding, have been developed.
And finally
After 11 operational years of KIDS HOPE AUS
(and almost 2 years of preparation before that) it
is time for me to retire from the CEO role.
I leave the CEO role looking back with deep
gratitude for the opportunity I have had to
develop this amazing ministry. I am thankful too
for all that has been achieved by our dedicated
coordinators and mentors - and the children!
As the Founder of KIDS HOPE AUS and with the
same passion for this ministry that birthed it,
I look forward with great hope and joy towards a
future where thousands of children’s lives will
continue to be transformed by the power of one-
to-one mentoring.
Marylin Leermakers
Hope in the life of every child
Our Board of Directors
Chair – Susan Bazzana
John Altmann
Sarah Cleaves
Stephen Larmar
Bob Mitchell
Dean of New College
Village, University of
New South Wales.
Lawyer, Anglican
minister, social
entrepreneur
Manager Baya Gawiy
Children & Family
Centre, WA
Senior Lecturer at Griffith
University, School of
Humanities, QLD
Lawyer, Anglican minister,
CEO Anglican Overseas
Aid
Hope in the life of every child
Our Partners
KIDS HOPE USA continues to license KIDS
HOPE AUS to use the KIDS HOPE model in
Australia. We are thankful for the great
support and spirit of generous collaboration
over the last 11 years.
With the nurture and support of World
Vision, KIDS HOPE AUS has grown to
become Australia’s largest mentoring
program. KIDS HOPE AUS and World Vision
Australia continue to have a strong
partnership.
World Vision endorses, supports and
promotes KIDS HOPE AUS as a highly
successful and professional mentoring
model. World Vision CEO, Tim Costello is the
patron of KIDS HOPE AUS
KIDS MATTER and KIDS HOPE AUS share the
objective of improved quality of life, mental
health and wellbeing outcomes for
individuals and families.
‘Alone we can do so little; together we
can do so much.’
Helen Keller
Hope in the life of every child
Our Year in Numbers 340 church/school partnerships
16 coordinator training sessions
3400 children mentored
140,000 mentor hours
2,800,000 worth of mentor time
Hope in the life of every child
Rachel’s Story Last year, Rachel
gave a speech in
front of a large
group of students,
parents and
teachers at her
school’s valedictory
dinner.
The valedictory
speech was just one
of several speeches Rachel has given in her role
as school captain at Oxley
College. Rachel has come a long way from her
early days in primary school, when she was a
quiet, timid child in need of some individual
attention. At that time, KIDS HOPE AUS stepped
in, providing a mentor for her.
Rachel started school before she was five, and
her mother became concerned about her social
readiness. “She cried almost every day for the
first term of prep,” she said. “It was awful.” Rachel
was matched with Margaret who became a
significant adult friend. Rachel remembers the
hour with Margaret as being the highlight of her
week. “I’m really thankful that Margaret was so
dedicated to spending time with me,” Rachel
said. “Even now she still keeps in touch with me.
She always used to tell me she was really proud
of me – it meant a lot to me.”
Rachel has
certainly gone on
to conquer her
shyness... she
has many friends
and her role as
school captain at
Oxley College
was both voted
on by her peers
and endorsed by
the teachers and
principal. She
plans an arts/law
double degree,
and her ultimate
aim is to use her qualifications to help
others. That’s quite a goal for a girl who
was once too shy to speak to anyone at
school!
KIDS HOPE AUS changes lives…. And that’s no small change!
Hope in the life of every child
What we do…
KIDS HOPE AUS builds caring relationships – one
hour, one child, one church, one school.
The aim of KIDS HOPE AUS is to provide care and
support for vulnerable Australian children,
through caring, long term mentoring
relationships. These relationships support
children’s emotional, social and academic
development, thereby enhancing their capacity
to learn and giving them hope for a brighter
future.
KIDS HOPE AUS is built on a partnership model –
whereby a local church and local school partner
to deliver KIDS HOPE AUS mentoring to students
needing additional support. Strong partnerships
contribute to the development of more resilient
children and communities.
And why we do it… Family violence
In 2012-13, there were over 184,000 children
suspected of being harmed or at risk of neglect
or abuse. More than 53,000 notifications were
substantiated and there are over 40,500 children
in out of home care.
Kids Helpline
Over 20,000 calls last year were made by children
aged 5 – 12 years. The top concerns were:
mental health
family relationships
emotional wellbeing
suicide-related
friends/peer relationships
self-injury/self-harm
child abuse (family violence)
bullying
education
www.actagainstviolence.org
Hope in the life of every child
ARACY Report on the Wellbeing of Young
Australians 2013: http://www.aracy.org.au/documents/item/126
• Conflict with family members is a strong
concern for nearly 1/4 of young people.
• More than one in 10 parents use harsh
parenting practices with 4-5 year olds
• The number of children in care is rising.
• Significant numbers of Australian families
and children live in poverty without
access to the material basics.
• Sole parents have the highest rates of
deprivation at twice the national average.
• The percentage of young children in
jobless families is increasing.
• More than a million Australians on low
incomes are experiencing housing stress.
• Children and youth who are homeless
experience significant negative social and
health consequences including disrupted
schooling, high rates of mental health
When there is no intervention for vulnerable
children, they are likely to display:
• chronic behaviour problems
• social withdrawal
• peer and teacher rejection
• poor academic achievement
• chronic absenteeism
All of which are predictors of school failure,
delinquency and dropout.
(Converse & Lignugaris Kraft, 2009
Why Australian kids need mentoring
Hope in the life of every child
Stories from Schools
‘As his teachers, we realise Camille is a far more
challenging and a less appreciative participant
compared to other mentees. However, this
demonstrates the great need she has to be part
of the mentor program. Alan, we believe you
have developed a wonderful rapport with her
and a relationship that has gone through the test
of time. Most teachers and classmates change
after a year, but you have remained a constant
throughout her school life.’
‘[Our School] was one of the first schools to
have access to the KIDS HOPE AUS program
thanks to the dedication and commitment of
the [local church]. I thank them for providing
such positive adult role models for students
who need what they provide.’
‘You honestly wouldn't believe the impact Kids
Hope mentors have on our kids - the teachers
often talk about them ... it's a pity I don't record
all the things I hear because everyone here is
very passionate about Kids Hope & the
difference it makes to our kids. In this morning's
staff meeting we were talking about our school
and how much student welfare we do ... your
mentors are such a big part of what makes our
school just awesome. After hearing the very sad
news about Phil Hughes (cricketer) I have been
thinking about what is really important &
thought you should all know how important Kids
Hope is!’
Hope in the life of every child
Stories from Churches
‘I think what’s happening through our
KIDS HOPE AUS program excites me
more than almost any other
outreach/community connection
opportunity we have. An amazing
relationship of trust, respect and
support has developed between the
school and the church, and there
have been some wonderful
relationship breakthroughs with our
KIDS HOPE families. The mother of
one of our kids is seriously ill with
cancer, and our mentor, who is an
older lady, has become a
grandmotherly figure in the family.
She has taken them on several family
outings, even hiring a wheelchair to
take the family to the zoo…’
Pastor, Geelong
Each church in our community has
partnered with a school to run a KIDS
HOPE AUS mentoring program. We
are proud to have a whole community
approach to helping these kids.’
(Pastor, Adelaide).
Hope in the life of every child
KIDS HOPE AUS Staff Team
10 Year Anniversary Celebration
Me and my mentor – Sam, aged 6
KIDS HOPE AUS Finance Report For more information
Call 03 9780 4823
Email [email protected]
www.kidshopeaus.org.au
Celebrating 10 years of KIDS HOPE AUS
KIDS HOPE AUS LTD
ABN 66 167 768 158
Financial Report
30 June 2015
www.kidshopeaus.org.au
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Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
CONTENTS
DIRECTORS’ REPORT ............................................................................................................................... 3
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME .......................................... 9
STATEMENT OF FINANCIAL POSITION ................................................................................................. 10
STATEMENT OF CHANGES IN EQUITY .................................................................................................. 11
STATEMENT OF CASH FLOWS .............................................................................................................. 12
NOTES TO THE FINANCIAL STATEMENTS ............................................................................................. 13
DIRECTORS’ DECLARATION .................................................................................................................. 23
AUDITOR’S REPORT .............................................................................................................................. 24
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Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
DIRECTORS’ REPORT
The directors present their report together with the financial statements of Kids Hope Aus Ltd (the
Company) for the period 29 January 2014 to 30 June 2015 and the auditor’s report thereon.
1. Directors The directors of the Company at any time during or since the end of the period are.
Sue Bazzana Experience & Qualification • Dean of New College Village, University of NSW. Previously Head of Church Partnerships -
World Vision Australia. • Masters of Management – University NSW
Graduate Diploma Christian Studies –Ridley College,
Graduate Diploma Communication & PR - Queensland University of Technology,
Bachelor of Arts Humanities – Griffith University.
Date joined: 29 January 2014 Status: Current member
Bob Mitchell
Experience & Qualification
• CEO, Anglican Overseas Aid. Previously Executive roles at World Vision Australia.
• Bachelor of Laws Queensland University of Technology
Master of Philosophy (By research in Public Policy), Griffith University
Graduate Diploma in Taxation University of Central Queensland
Master of Theological Studies Flinders University
Graduate Diploma in Theology Brisbane College of Theology
Doctor of Philosophy University of Divinity
Date joined: 10 June 2015 Status: Current member
Stephen Larmar
Experience & Qualification
• Senior Lecturer with the School of Human Services and Social Work, Griffith University • Bachelor of Arts (Fine Art) Queensland University of Technology • Graduate Diploma Education Med (Counselling) • PhD (Psychology) Griffith University
Date joined: 12 February 2014 Status: Current member
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Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
DIRECTORS’ REPORT (Continued)
Marylin Leermakers
Experience & Qualification
• Bachelor of Arts (Education) Deakin University
• 15 years Primary School Teacher
• Diploma Community Services (TAFE)
22 years Community Development and National Program Management
Date joined: 29 January 2014 Status: Current CEO
Sarah Cleaves
Experience & Qualification
Manager, Baya Gawly Children & Families Centre, Director –Koru Consulting.
• Grad Dip Bus Admin Business Administration – Southern Cross University
• Master or International Relations – Bond University
• Bachelor of Arts (International Studies & European Studies) – Bond University
Date joined: 23/04/2014 Status: Current member
Glenn Scott
Experience & Qualification
Director & Founder - Platform Advisors Pty Ltd, Director, Anglican Overseas Aid
• Bachelor of Commerce, University of Melbourne • Public Practice License, CPA
Date joined: 6 February 2014 Status: Resigned:10 February 2015
John Altmann
Experience & Qualification
Commercial lawyer, Anglican minister and social entrepreneur.
Director - Platform Legal Pty Ltd, Director - Altmann Legal, Director -Barefoot Power Pty Ltd.
• BA/LLB(Hons), Law, Japanese & Philosophy – University of Melbourne • Bachelor of Theology - Ridley College Melbourne
Date joined: 7 April 2014 Status: Current member
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Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
DIRECTORS’ REPORT (Continued) 2. Director’s meetings
The number of director’s meetings and number of meetings attended by each of the directors of the Company during the period are:
Director Board Meetings A B Sue Bazzana 5 5 Bob Mitchell 1 1 Steve Larmar 5 5 Marylin Leermakers 5 5 Sarah Cleaves 5 5 Glenn Scott 1 2 John Altmann 5 5
A – Number of meetings attended B – Number of meetings held during the time the director held office during the period
3. Principal activities
The Principal Purpose for which the Company is established is to operate as a tax-deductible public benevolent institution pursuant to item 4.1.1 of section 30-45 of the Income Tax Assessment Act 1997 (Cth), and, in particular, to make provision for the direct relief and alleviation of poverty and disadvantage for children experiencing suffering and distress due to isolation, homelessness, financial and family crises.
The Company supports vulnerable children from disadvantaged backgrounds by providing screened and trained mentors to help meet social/emotional and academic needs of children referred by teachers to the program. The Company facilitates the development of church/school partnerships and provides comprehensive screening, training and program management resources for partner churches to implement the program in schools.
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Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
DIRECTORS’ REPORT (Continued)
4. Objectives and strategies
To ensure our success, the Company focuses on four strategic pillars:
A. Programs: Our commitment to children
• Develop and implement a national growth strategy to increase the number of children supported by trained mentors. (Growth of current programs)
• Conduct a feasibility study to ascertain and consider new opportunities for services and/or products into new markets
• Undertake a review of the Kids Hope Aus’ training strategy to ensure it is effective and relevant.
• Implement a process to effectively monitor and evaluate the Kids Hope mentoring program.
B. Operations: Our base for long-term success
• Implement relevant Human Resources Management systems and establish payroll procedures.
• Develop and implement a volunteer strategy designed to meet the needs both the strategic plan and the organisation.
• Design a staff resourcing strategy to meet the demands of the strategic plan
• Identify required non-financial resources to support the program and engage suitable service providers where appropriate.
• Review the transition plan to ensure all necessary actions are completed during the separation from World Vision Australia.
• Complete a detailed risk assessment and implement mitigation strategies to address identified risks.
• Design and implement governance policies as appropriate
• Complete a board skills audit to inform future board recruitment and succession planning.
• Implement procedures in relation to the operations of the Board
C. Stakeholders: Our relationship with supporters
• Complete a style guide and ‘Key Messaging Framework’ to ensure consistency in messaging, communications and branding.
• Undertake a detailed marketing strategy designed to identify required resources to effectively market the Company
• Sign a memorandum of understanding with World Vision Australia and implement a strategy to ensure the terms of the MoU are fulfilled.
• Design and implement a strategy for collaboration and liaison with Kids Hope USA. • Undertake a review of relationships with churches and implement strategies to
enhance those relationships • Undertake a review of relationships with schools and implement strategies to
enhance those relationships • Review strategies to support churches in maintenance and growth of the Company’s
program. • Review and improve systems to better support schools in partnering with the
Company’s program.
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Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
DIRECTORS’ REPORT (Continued)
D. Finances: Our sustainable approach to the future
• Complete operational and capital budgets, together with cash-flow projections for 2015, 2016 and 2017
• Appoint professional advisors, including Accountants and Auditors • Prepare and implement a detailed fundraising strategy to ensure the ongoing
sustainability and growth of the organisation.
5. Performance measurement
The Company’s strategic Plan includes a table of objectives, strategies, actions,
accountabilities and measures to ensure that each objective with its aligned activities is
completed.
6. Member’s guarantee The Company is a company limited by guarantee. If the Company is wound up, the Constitution state that each member is required to contribute a maximum of $10 each towards meeting any outstanding obligation of the Company. At 30 June 2015, the total amount that members of the company are liable to contribute if the company is wound up is $60.00
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Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2015
Note 2015
$
Revenue 2
444,304
Employee benefits expense (292,600)
Depreciation and amortisation expenses (576)
Rental expense
(11,514)
Training expense (11,984)
Audit, legal and consultancy expense (11,104)
Administration expense (16,242)
Fundraising expense (42,214)
Other expenses (28,788)
Surplus before income tax
29,282
Income tax expense 1g
-
Surplus for the period
29,282
Other comprehensive income: Total other comprehensive income for the period
-
Total comprehensive income for the period
29,282
The accompanying notes form part of these financial statements.
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Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2015
Note 2015
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents 3
161,084
Trade and other receivables 4
5,780
Prepayments 1,875
TOTAL CURRENT ASSETS
168,739
NON-CURRENT ASSETS
Plant and equipment 5
7,122
TOTAL NON-CURRENT ASSETS
7,122
TOTAL ASSETS
175,861
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 6
37,588
Provisions 7 69,679
Income in advance 39,312
TOTAL CURRENT LIABILITIES
146,579
NON-CURRENT LIABILITIES
TOTAL NON-CURRENT LIABILITIES -
TOTAL LIABILITIES
146,579
NET ASSETS
29,282
EQUITY
Accumulated surplus 29,282
TOTAL EQUITY
29,282
The accompanying notes form part of these financial statements.
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Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2015
Accumulated Surplus
Total
$
$
Balance at 29 January 2014
- -
Comprehensive income
Surplus for the period
29,282 29,282
Total comprehensive income for the period attributable to the member of the Company
29,282 29,282
Balance at 30 June 2015 29,282 29,282
The accompanying notes form part of these financial statements.
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Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 JUNE 2015
Note 2015
$
Cash flows from operating activities
Cash receipts from donations 65,793 Cash receipts from church affiliates 154,791
Cash receipts from grants
6,000
Cash receipts from partner contribution 240,000
Cash receipts from training fees 14,781
Interest received 1,810
Cash paid to employees and suppliers
(314,393)
Net cash provided by operating activities 168,782
Cash flows from investing activities
Acquisitions of plant and equipment (7,698)
Net cash used in investing activities (7,698)
Net increase in cash and cash equivalents 161,084
Cash and cash equivalents at beginning of period
-
Cash and cash equivalents at end of period 3
161,084
The accompanying notes form part of these financial statements.
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Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2015
Grants A number of the Company programs are supported by grants received. If conditions are attached to a grant which must be satisfied before the Company 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 until the service is delivered. Revenue from a non-reciprocal grant that is not subject to conditions is recognised when the Company 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 Company 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. Donations Donations collected, including cash and goods for resale, are recognised as revenue when the Company gains control, economic benefits are probable and the amount of the donation can be measured reliably. Interest income Interest income is recognised on an accrual basis using the effective interest method.
(b) Plant and equipment
Plant and other equipment are initially recognised at acquisition cost or manufacturing cost, including any costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by the Company management. Plant and other equipment are subsequently measured using the cost model, cost less subsequent depreciation and impairment losses. Depreciation is recognised on a straight-line basis to write down the cost less estimated residual value of plant and other equipment. The following useful lives are applied:
- plant and equipment: 3-10 years
- computer hardware: 3-7 years
In the case of leasehold property, expected useful lives are determined by reference to comparable owned assets or over the term of the lease, if shorter. Material residual value estimates and estimates of useful life are updated as required, but at least annually. Gains or losses arising on the disposal of plant and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognised in profit or loss within other income or other expenses.
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Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2015
(c) Leases
Operating leases Where the Company is a lessee, payments on operating lease agreements are recognised as an expense on a straight-line basis over the lease term. Associated costs, such as maintenance and insurance, are expensed as incurred.
(d)
Impairment of assets At the end of each reporting period, the entity assesses whether there is any indication that an asset may be impaired. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (eg in accordance with the revaluation model in AASB 116) Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard. Where it is not possible to estimate the recoverable amount of an individual asset, the entity estimates the recoverable amount of the cash-generating unit to which the asset belongs. Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
(e)
Financial instruments Recognition, initial measurement and derecognition Financial assets and financial liabilities are recognised when the Company 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 initially measured 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.
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Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2015
(f) Classification and subsequent measurement of financial assets
For the purpose of subsequent measurement, financial assets other than those designated and effective as hedging instruments are classified into the following categories upon initial recognition: - loans and receivables
- financial assets at Fair Value Through Profit Or Loss (‘FVTPL’)
- Held-To-Maturity (‘HTM’) investments;
- Available-For-Sale (‘AFS’) financial assets
The category determines subsequent measurement and whether any resulting income and expense is recognised in profit or loss or in other comprehensive income. All financial assets except for those at FVTPL are subject to review for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Different criteria to determine impairment are applied for each category of financial assets, which are described below. All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs or finance income, except for impairment of trade receivables which is presented within other expenses. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial recognition, these are measured at amortised cost using the effective interest method, less provision for impairment. Discounting is omitted where the effect of discounting is immaterial. The Company’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments. Individually significant receivables are considered for impairment when they are past due or when other objective evidence is received that a specific counterparty will default. Receivables that are not considered to be individually impaired are reviewed for impairment in Company’s, which are determined by reference to the industry and region of a counterparty and other shared credit risk characteristics. The impairment loss estimate is then based on recent historical counterparty default rates for each identified group. Financial assets at FVTPL Financial assets at FVTPL include financial assets that are either classified as held for trading or that meet certain conditions and are designated at FVTPL upon initial recognition. Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair values of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists.
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Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2015
HTM investments HTM investments are non-derivative financial assets with fixed or determinable payments and fixed maturity other than loans and receivables. Investments are classified as HTM if the Company has the intention and ability to hold them until maturity. The Company currently holds long term deposits designated into this category. HTM investments are measured subsequently at amortised cost using the effective interest method. If there is objective evidence that the investment is impaired, determined by reference to external credit ratings, the financial asset is measured at the present value of estimated future cash flows. Any changes to the carrying amount of the investment, including impairment losses, are recognised in profit or loss.
AFS financial assets AFS financial assets are non-derivative financial assets that are either designated to this category or do not qualify for inclusion in any of the other categories of financial assets. The Company’s AFS financial assets include listed securities. All AFS financial assets are measured at fair value. Gains and losses are recognised in other comprehensive income and reported within the AFS reserve within equity, except for impairment losses and foreign exchange differences on monetary assets, which are recognised in profit or loss. When the asset is disposed of or is determined to be impaired the cumulative gain or loss recognised in other comprehensive income is reclassified from the equity reserve to profit or loss and presented as a reclassification adjustment within other comprehensive income. Interest calculated using the effective interest method and dividends are recognised in profit or loss within ‘revenue’. Reversals of impairment losses for AFS debt securities are recognised in profit or loss if the reversal can be objectively related to an event occurring after the impairment loss was recognised. For AFS equity investments impairment reversals are not recognised in profit loss and any subsequent increase in fair value is recognised in other comprehensive income. Classification and subsequent measurement of financial liabilities The Company’s financial liabilities include borrowings and trade and other payable. Financial liabilities are measured subsequently at amortised cost using the effective interest method, except for financial liabilities held for trading or designated at FVTPL, that are carried subsequently at fair value with gains or losses recognised in profit or loss. All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in profit or loss are included within finance costs or finance income.
(g)
Income taxes
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.
(h) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
18
Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2015
(i) Post-employment benefits and short term employee benefits
The Company provides post-employment benefits through defined contribution plans. Defined contribution plans The Company pays fixed contributions into independent entities in relation to several state plans and insurance for individual employees. The Company has no legal or constructive obligations to pay contributions in addition to its fixed contributions, which are recognised as an expense in the period that relevant employee services are received. Short-term employee benefits Short-term employee benefits are current liabilities included in employee benefits, measured at the undiscounted amount that the Company expects to pay as a result of the unused entitlement. Annual leave is included in ‘other long-term benefit’ and discounted when calculating the leave liability as the Company does not expect all annual leave for all employees to be used wholly within twelve (12) months of the end of reporting period. Annual leave liability is still presented as current liability for presentation purposes under AASB 101 Presentation of Financial Statements.
(j) Provisions, contingent liabilities and contingent assets
Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are discounted to their present values, where the time value of money is material. Any reimbursement that the Company can be virtually certain to collect from a third party with respect to the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related provision. No liability is recognised if an outflow of economic resources as a result of present obligation is not probable. Such situations are disclosed as contingent liabilities, unless the outflow of resources is remote in which case no liability is recognised.
(k) Income in advance
The liability for income in advance is the affiliation fees received in advance. The fees are usually provided or the conditions usually fulfilled within twelve (12) months of receipt. Where the amount received is in respect of fees to be provided over a period that exceeds twelve (12) months after the reporting date or the conditions will only be satisfied more than twelve (12) months after the reporting date, the liability is discounted and presented as non-current.
19
Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2015
(l)
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Tax Office. 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.
(m)
Economic dependence
The Company is dependent upon the ongoing receipt of sponsorship from World Vision Australia and community and corporate donations to ensure the ongoing continuance of its programs. At the date of this report management has no reason to believe that this financial support will not continue.
(n)
Significant management judgement in applying accounting polices
When preparing the financial statements, management undertakes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses. Estimation uncertainty Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual results may be substantially different. Impairment In assessing impairment, management estimates the recoverable amount of each asset or cash-generating unit based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.
(o)
Employee benefits
Short-term employee benefits Provision is made for the company’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service, including wages and salaries. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled. The company’s obligation for short-term employee benefits such as wages and salaries are recognised as a part of current trade and other payables in the statement of financial position.
20
Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2015 Other long-term employee benefits The company classifies employee’s ‘long service’ leave and annual leave entitlements as other long-term employee benefits as they are not expected to be settled wholly with 12 months after the end of the annual reporting period in which the employees render the related service. Provision us made for the company’s obligation for other long-term employee benefits, which are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures, and are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Upon measurement of obligations for other long-term employee benefits, the net change in the obligation is recognised in profit or loss classified under employee benefits expense. The company’s obligation for long-term employee benefits are presented as non-current liabilities in its statement of financial position, expect where the company does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the obligations are presented as current liabilities. Retirement benefit obligations Defined contribution superannuation benefits All employees of the company received defined contributions superannuation entitlements, for which the company pays the fixed superannuation guarantee contribution (currently 9.50% of the employee’s average ordinary salary) to the employee’s superannuation fund of choice. All contributions in respect of employee’s defined contribution entitlements are recognised as an expense when they become payable. The company’s obligation with respect to employee’s defined contribution entitlements is limited to its obligation for any unpaid superannuation guarantee contributions at the end of the reporting period. All obligations for unpaid superannuation guarantee contributions are measured at the (undiscounted) amounts expected to be paid when the obligation is settled and are presented as current liabilities in the company’s statement of financial position.
21
Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2015
2015
$
2.
REVENUE AND OTHER INCOME
Church affiliation fees 115,920
Interest received 1,810
Training fees 15,221
Partner contribution 240,000
Non-Government grants 6,000
Donations 65,353
444,304
3. CASH AND CASH EQUIVALENTS
Cash at bank
161,049
Petty cash 35
161,084
4.
TRADE AND OTHER RECEIVABLES
CURRENT
Accounts receivable 440
Goods & services tax 5,084
Wages overpaid 256
5,780
5. PLANT AND EQUIPMENT
Plant and equipment
7,698 Less accumulated depreciation (576)
Total plant and equipment 7,122
22
Kids Hope Aus Ltd
ABN 66 167 768 158
Financial Report 30 June 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2015
(a) Movements in carrying amounts for each class of plant and equipment Plant and
equipment $
Total $
Carrying amount at 29 January 2014 Additions 7,698 7,698 Depreciation expense (576) (576) Carrying amount at 30 June 2015 7,122 7,122
2015
6.
TRADE AND OTHER PAYABLES
$
CURRENT
Accounts payable 12,713
Superannuation payable 6,730
Withholding taxes payable 4,088
Other payables 14,057
37,588
7. PROVISIONS
2015 $ CURRENT Provisions for employee benefits: annual leave 33,544 Provisions for employee benefits: long service leave 36,135 69,679 NON-CURRENT Provisions for employee benefits: long service leave - - 69,679
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF KIDS HOPE AUS LTD.
Report on the Financial Report
We have audited the accompanying financial report of Kids Hope Aus Ltd. (the company), which comprises the statement of financial position as at 30 June 2015, the statement of profit or loss and comprehensive income, statement of changes in equity and statement of cash flows for the period 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 (including the Australian Accounting Interpretations) and the Australian Charities and Not-for-profits Commission Act 2012 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, 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 entity’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the Australian Charities and Not-for-profits Commission Act 2012.
accountants
60-64 Railway Road, Blackburn 3130PO Box 189, Blackburn 3130t: (03) 9878 1477 f: (03) 9894 [email protected]
ABN 84 164 947 290
Liability limited by a scheme approved under Professional Standards Legislation
Opinion
In our opinion the financial report of Kids Hope Aus Ltd. has been prepared in accordance with Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, including:
a. giving a true and fair view of the company’s financial position as at 30 June 2015 and of its financial performance for the period ended on that date; and
b. complying with Australian Accounting Standards - Reduced Disclosure Requirements (including Australian Accounting Interpretations) and Division 60 of the Australian Charities and Not-for-profits Commission Regulations 2013.
Matthew Hung, CA rdl.accountants 22 December 2015 Blackburn, Victoria
AUDITOR’S INDEPENDENCE DECLARATION UNDER DIVISION 60 OF THE AUSTRALIAN CHARITIES AND NOT-FOR-PROFITS COMMISSION ACT 2012 TO THE DIRECTORS OF KIDS HOPE AUS LTD. 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 Australian Charities and Not-for-profit Commission Act 2012 in relation to the audit; and
ii. no contraventions of any applicable code of professional conduct in relation to the audit.
Matthew Hung, CA rdl.accountants 17 December 2015 Blackburn, Victoria
accountants
60-64 Railway Road, Blackburn 3130PO Box 189, Blackburn 3130t: (03) 9878 1477 f: (03) 9894 [email protected]
ABN 84 164 947 290
Liability limited by a scheme approved under Professional Standards Legislation