Financial Statements For the Year Ended 31 December 2017 Calrossy Anglican School
ABN: 17 870 616 829 Contents
For the Year Ended 31 December 2017
Page
Financial Statements Board Members' Report 1 Statement of Profit or Loss and Other Comprehensive Income 4 Statement of Financial Position 5 Statement of Changes in Equity 7 Statement of Cash Flows 8 Notes to the Financial Statements 9 Statement by School Board 28 Independent Auditor's Report 29 Calrossy Anglican School
ABN: 17 870 616 829
Board Members' Report
For the Year Ended 31 December 2017
The Board presents its report, together with the financial statements, on Calrossy Anglican School for the financial year ended 31 December 2017.
Board Members
The names of the Board members in office at any time during, or since the end of, the year are: Names Position Appointed/Retired Mr David Lamb Chairman Elected Chair on 18 January 2017 Mr Philip Leslie Deputy Chairman Ms Jeanette Barnes Deputy Chair Mr John Boag Mrs Penny Blomfield Rev Simon Carter Mr Gordon Dandie Mr Cameron Stewart Mrs Janice Frampton Rev Joshua Bovis Appointed 26 April 2017
Board members have been in office since the start of the financial year to the date of this report unless otherwise stated.
Principal activities
During the financial year the principal activities of Calrossy was provision of co-educational facilities for students from Preparatory Class through to Year 12 across two campuses, as well as boarding for secondary students from across the greater North-West region of NSW.
No significant changes in the nature of the School's activity occurred during the financial year.
Overall Purpose and Vision
Mission:
" Calrossy’s mission is to create a dynamic, caring, Christian environment in which girls and boys may grow to be adults of faith, integrity and compassion who value learning and pursue life with confidence and initiative, committed to excellence and truth.
" The Board’s focus is to ensure that Calrossy flourishes in its Christian mission, educational excellence and financial viability. The Board does this through the creation of plans, setting of policies and making sound decisions.
Vision:
" Calrossy aspires to be the leader in regional New South Wales through excellence in education and connection to community, with a Christ-centered focus.
" The Board’s vision is for a community, comprising students, teachers and parents, which will spread
1 Calrossy Anglican School
ABN: 17 870 616 829
Board Members' Report
For the Year Ended 31 December 2017
Overall Purpose and Vision core Christian values and influence wider community outcomes, through growing well-equipped people for positions of leadership and participation.
Strategy for achieving the objectives
The school, in its Strategic Plan 2015-2020 ‘Our pathway to the future’, documented five core areas for us to focus on to achieve our overall purpose and vision:
" Christian Focus At Calrossy, our focus is to develop a community committed to the Gospel of Jesus Christ, and its ongoing application to life, as revealed in God’s Word. " Identity Calrossy seeks to provide a cohesive and inclusive school community from Preschool to Year 12, through shared partnerships between home, school, parish and the wider community with Christ as our Light. " Teaching and Learning Calrossy seeks to be a place of excellence where students celebrate learning, personal growth and individual differences through a wide range of educational opportunities within a Christian environment. " Sustainability The long-term future of Calrossy is shaped by application and management of resources under the governance of the School Board, founded on the school’s vision, mission and values statements. " Boarding Calrossy is committed to provide a ‘home away from home’ where boys and girls will experience, separate gender, communal living in a safe and nurturing environment which promotes Christian values, academic achievement and personal fulfillment.
Performance measures
Calrossy Board, and the School Executive group measure performance by:
" Monitoring financial outcomes against annually approved budgets. " Maintaining financial performance in line with the financial covenants conditioned to us by our financier, the Commonwealth Bank, and the Anglican Diocese of Armidale.
" Analysing the exam results of both the NSW Higher School Certificate, and the NSW Naplan against peer and competitor schools.
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Calrossy Anglican School
ABN: 17 870 616 829
Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 31 December 2017
2017 2016 Note $ $ Tuition fees 8,696,155 8,285,910 Boarding fees 3,426,501 3,091,449 Government grants 3(a) 10,406,764 9,750,504 Interest received 2,278 2,363 Other income 3(b) 730,820 815,058 Total Revenue 23,262,518 21,945,284
Administrative expenses (1,370,812) (1,539,396) Maintenance costs (530,108) (1,096,708) Boarding costs (650,903) (592,226) Tuition costs (1,443,689) (1,589,252) Occupancy costs (639,622) (627,126) Depreciation (1,413,977) (1,276,872) Salaries and Wages (17,149,544) (16,739,637) Finance costs (237,491) (226,600) Total expenses (23,436,147) (23,687,817) Loss before income tax (173,629) (1,742,533) Income tax expense 1(d) - - Net gain on revaluation of land and buildings - 23,832 Other comprehensive income for the year, net of tax - 23,832 Total comprehensive income for the year (173,629) (1,718,701)
The accompanying notes form part of these financial statements. 4 Calrossy Anglican School
ABN: 17 870 616 829
Statement of Financial Position
As At 31 December 2017
2017 2016 Note $ $ ASSETS CURRENT ASSETS Cash and cash equivalents 5 418,558 157,408 Trade and other receivables 6 220,834 1,205,381 Inventories 7 155,400 161,400 Other financial assets 8 226,363 220,585 Other assets 9 235,692 139,704 TOTAL CURRENT ASSETS 1,256,847 1,884,478 NON-CURRENT ASSETS Trade and other receivables 6 746,289 292,649 Other financial assets 8 10 10 Property, plant and equipment 10 31,559,339 33,240,919 Investment property 11 1,306,616 760,852 Intangible assets 12 105,225 104,518 TOTAL NON-CURRENT ASSETS 33,717,479 34,398,948 TOTAL ASSETS 34,974,326 36,283,426 LIABILITIES CURRENT LIABILITIES Trade and other payables 13 1,008,277 1,046,640 Borrowings 16 36,423 7,335,839 Employee benefits 14 1,910,773 2,067,132 Other liabilities 15 1,020,593 815,404 TOTAL CURRENT LIABILITIES 3,976,066 11,265,015 NON-CURRENT LIABILITIES Borrowings 16 6,050,000 10,446 Employee benefits 14 428,599 302,688 Other liabilities 15 467,113 479,103 TOTAL NON-CURRENT LIABILITIES 6,945,712 792,234 TOTAL LIABILITIES 10,921,778 12,057,249 NET ASSETS 24,052,548 24,226,177
The accompanying notes form part of these financial statements. 5 Calrossy Anglican School
ABN: 17 870 616 829
Statement of Financial Position
As At 31 December 2017
EQUITY Assets revaluation reserve 4,867,606 4,867,606 Special reserve 13,349,149 13,349,149 Retained earnings 5,835,793 6,009,422 TOTAL EQUITY 24,052,548 24,226,177
The accompanying notes form part of these financial statements. 6 Calrossy Anglican School
ABN: 17 870 616 829
Statement of Changes in Equity
For the Year Ended 31 December 2017
2017 Asset Special Revaluation Retained Reserve Reserve Earnings Total $ $ $ $ Balance at 1 January 2017 13,349,149 4,867,606 6,009,422 24,226,177 Profit/(Loss) for the year - - (173,629) (173,629) Balance at 31 December 2017 13,349,149 4,867,606 5,835,793 24,052,548
2016 Asset Special Revaluation Retained Reserve Reserve Earnings Total $ $ $ $ Balance at 1 January 2016 13,349,149 4,843,774 7,751,954 25,944,877 Profit/(Loss) for the year - - (1,742,532) (1,742,532) Revaluation increment - 23,832 - 23,832 Balance at 31 December 2016 13,349,149 4,867,606 6,009,422 24,226,177
The accompanying notes form part of these financial statements. 7 Calrossy Anglican School
ABN: 17 870 616 829
Statement of Cash Flows
For the Year Ended 31 December 2017
2017 2016 Note $ $ CASH FLOWS FROM OPERATING ACTIVITIES: Tuition and boarding fees 12,711,042 11,531,651 Operating grants 11,370,440 10,643,274 Student receipts and other income 867,230 845,655 Interest received 2,278 2,363 Interest costs (237,491) (226,600) Payments to suppliers and employees (23,003,480) (23,433,774) Net cash provided by (used in) operating activities 17 1,710,019 (637,431)
CASH FLOWS FROM INVESTING ACTIVITIES: Construction / purchase of land and buildings (26,806) (734,765) Purchase of plant and equipment (273,384) (643,373) Payment for intangible assets (30,000) (18,129) Proceeds from disposal of plant & equipment 64,182 39,421 Net cash used by investing activities (266,008) (1,356,846)
CASH FLOWS FROM FINANCING ACTIVITIES: (Repayments) / proceeds of borrowings (1,259,864) 1,363,886 Capital grants 77,000 82,280 Net cash used by financing activities (1,182,864) 1,446,166
Net increase (decrease) in cash and cash equivalents held 261,147 (548,111) Cash and cash equivalents at beginning of year 157,411 705,522 Cash and cash equivalents at end of financial year 5 418,558 157,411
The accompanying notes form part of these financial statements. 8 Calrossy Anglican School
ABN: 17 870 616 829
Notes to the Financial Statements
For the Year Ended 31 December 2017
The financial report covers Calrossy Anglican School as an individual entity. Calrossy Anglican School is a not- for-profit organisation whose constitution is established under an instrument by the Anglican Diocese of Armidale.
The functional and presentation currency of Calrossy Anglican School is Australian dollars and rounded to the nearest dollar.
1 Summary of Significant Accounting Policies
(a) Basis of Preparation
The School Board has prepared the financial statements on the basis that the School is a non- reporting entity because there are no users dependent on general purpose financial statements. These financial statements are therefore a special purpose financial statements that has been prepared in order to meet the requirements of the Australian Charities and Not-for-profits Commission Act 2012 and the School Board.
The financial statements have been prepared in accordance with recognition and measurement requirements specified by the Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the disclosure requirements of AASB 101 'Presentation of Financial Statements', AASB 107 'Statement of Cash Flows' and AASB 108 'Accounting Policies, Changes in Accounting Estimates and Errors' and AASB 1054 'Australian Additional Disclosures' as appropriate for not-for-profit entities.
The significant accounting policies disclosed below are those which the School Board has determined are appropriate to meet the needs of the Board and other users. Such accounting policies are consistent with the previous period unless otherwise stated.
The financial statements have been prepared on an accruals basis and are based on historical costs unless otherwise stated in the notes.
Comparatives are consistent with prior years, unless otherwise stated.
(b) Revenue and Other Income
Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the School and specific criteria relating to the type of revenue as noted below, has been satisfied.
Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates.
All revenue is stated net of the amount of goods and services tax (GST).
Grant revenue
Grant revenue is recognised in the statement of profit or loss and other comprehensive income when the entity obtains control of the grant, it is probable that the economic benefits gained from the grant will flow to the School and the amount of the grant can be measured reliably. 9 Calrossy Anglican School
ABN: 17 870 616 829
Notes to the Financial Statements
For the Year Ended 31 December 2017
1 Summary of Significant Accounting Policies
(b) Revenue and Other Income
Grant revenue
When grant revenue is received whereby the entity incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt.
Rendering of services
Revenue in relation to rendering of services is recognised depending on whether the outcome of the services can be estimated reliably. If the outcome can be estimated reliably then the stage of completion of the services is used to determine the appropriate level of revenue to be recognised in the period.
If the outcome cannot be reliably estimated then revenue is recognised to the extent of expenses recognised that are recoverable.
Interest revenue
Interest is recognised using the effective interest method.
Donations
Donations and bequests are recognised as revenue when received. Where conditions are attached in respect of the use of the funds and these have not yet been fulfilled the amount is taken up as a current liability.
(c) Goods and Services Tax (GST)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payable are stated inclusive of GST.
The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the statement of financial position.
Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.
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ABN: 17 870 616 829
Notes to the Financial Statements
For the Year Ended 31 December 2017
1 Summary of Significant Accounting Policies
(d) Income Tax
The School is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.
(e) Cash and Cash Equivalents
Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
(f) Inventories
Warehouse inventories are measured at the lower of cost and net realisable value. Livestock have been valued at estimated market value.
(g) Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment.
Assets measured using the revaluation model are carried at fair value at the revaluation date less any subsequent accumulated depreciation and impairment losses. Revaluations are performed whenever there is a material movement in the value of an asset under the revaluation model.
Where the cost model is used, the asset is carried at its cost less any accumulated depreciation and any impairment losses. Costs include purchase price, other directly attributable costs and the initial estimate of the costs of dismantling and restoring the asset, where applicable.
Land and buildings
Land and buildings are measured using the revaluation model, based on periodic, valuations by external independent valuers, less subsequent depreciation and impairment for buildings. The valuations are undertaken more frequently if there is a material change in the fair value relative to the carrying amount. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Increases in the carrying amounts arising on revaluation of land and buildings are credited in other comprehensive income through to the revaluation surplus reserve in equity. Any revaluation decrements are initially taken in other comprehensive income through to the revaluation surplus reserve to the extent of any previous revaluation surplus of the same asset. Thereafter the decrements are taken to profit or loss. Improvements carried out during the year are capitalised at cost, and subject to revaluation when the assets are next revalued.
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ABN: 17 870 616 829
Notes to the Financial Statements
For the Year Ended 31 December 2017
1 Summary of Significant Accounting Policies
(g) Property, Plant and Equipment
Plant and equipment
Plant and equipment are stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Depreciation
Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assets useful life to the School, commencing when the asset is ready for use.
Leased assets and leasehold improvements are amortised over the shorter of either the unexpired period of the lease or their estimated useful life.
The depreciation rates used for each class of depreciable asset are as follows: Depreciation Fixed asset class rate Buildings and improvements 2.5% Plant and Equipment 10% Furniture and equipment 10% - 25% Motor Vehicles 12.5% - 20% Library resources 10% Music equipment 10% Computer equipment 25% ICT Improvement program 15%
At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate.
(h) Investment property
The investment property at 130 Brisbane Street, Tamworth is carried at fair value. Improvements carried out during the year are capitalised at cost. All other repairs and maintenance costs are expensed when incurred.
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ABN: 17 870 616 829
Notes to the Financial Statements
For the Year Ended 31 December 2017
1 Summary of Significant Accounting Policies
(i) Intangibles
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair value at the date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life intangible assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangible assets are subsequently measured at cost less amortisation and any impairment. The gains or losses recognised in profit or loss arising from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or period.
(j) Employee Benefits
Provision is made for the School's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled, including related on-costs.
Employee benefits expected to be settled more than one year after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Cashflows are discounted using market yields on high quality corporate bond rates, with terms to maturity that match the expected timing of cashflows. Changes in the measurement of the liability are recognised in profit or loss.
(k) Hire Purchases and Lease Contracts
Hire purchase contracts for fixed assets, are capitalised by recording an asset and a liability in the balance sheet equal to the present value of the minimum contract payments, including any guaranteed balloon or residual values. Repayments are allocated between the reduction of the liability and the loan interest expense for the period. The asset is depreciated at the relevant rate over the estimated useful life of the asset.
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that are transferred to the School are classified as finance leases.
Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.
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.
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Notes to the Financial Statements
For the Year Ended 31 December 2017
1 Summary of Significant Accounting Policies
(l) Adoption of new and revised accounting standards
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 31 December 2017. The consolidated entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
2 Critical Accounting Estimates and Judgments
The Board make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances.
These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates.
The significant estimates and judgements made have been described below.
Provision for impairment of receivables
The receivables at reporting date have been reviewed to determine whether there is any objective evidence that any of the receivables are impaired. An impairment provision is included for any receivable where the entire balance is not considered collectible. The impairment provision is based on the best information at the reporting date.
Estimation of useful lives of assets
The School 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.
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.
Key estimates - property held at fair value
An independent valuation of property (land and buildings) carried at fair value was obtained in June 2015. The Board have reviewed this valuation and updated it based on valuation indexes for the area in which the properties are located. The valuation is an estimation which would only be realised if the properties are sold. Note 10 provides information on inputs and techniques to determine valuation.
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Notes to the Financial Statements
For the Year Ended 31 December 2017
3 Revenue
(a) Government Grants 2017 2016 $ $ State grants 2,414,959 2,307,914 Commonwealth grants- recurrent 7,910,105 7,357,590 Commonwealth grants- non recurrent 11,700 10,200 Capital grants 70,000 74,800 10,406,764 9,750,504
(b) Other income
2017 2016 $ $ School activities and excursions 415,776 461,311 Facilities Hire 186,244 247,237 Sundry income 48,394 17,937 Donations 16,857 40,698 Net profit from rental properties 50,690 40,223 Profit on sale of non current assets 12,860 7,652 730,821 815,058
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Notes to the Financial Statements
For the Year Ended 31 December 2017
4 Result for the Year 2017 2016 $ $ The following expense items are relevant in explaining the financial performance: Bad and doubtful debts (3,671) (48,243) Salaries and wages 15,723,425 15,358,903 Superannuation 1,426,119 1,380,734 Depreciation and amortisation 1,413,977 1,341,261 Computer expenses 276,213 427,029 Building and ground maintenance 497,652 1,059,661 Department/faculty expenses 578,336 554,091 Library expenses 40,663 47,974 Electricity and gas 297,655 279,073 Excursions 413,265 411,549 Kitchen and dining supplies 610,469 563,100 Motor vehicle expenses 100,267 99,789 Promotion and marketing 180,062 155,035 Rental repayments 132,046 113,140 Subscriptions 203,314 198,539 Stationery & Photocopying 121,850 106,051
5 Cash and Cash Equivalents 2017 2016 $ $ Cash on hand 546 700 Cash at bank 418,012 156,708 418,558 157,408
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Notes to the Financial Statements
For the Year Ended 31 December 2017
6 Trade and Other Receivables 2017 2016 $ $ CURRENT Trade receivables 108,284 1,189,881 Provision for impairment (23,312) (175,971) 84,972 1,013,910
GST receivable 54,952 32,132 Other receivables 80,910 159,339 Total current trade and other receivables 220,834 1,205,381
NON-CURRENT Trade receivables 974,684 510,062 Provision for impairment (228,395) (217,413) Total non-current trade and other receivables 746,289 292,649
7 Inventories 2017 2016 $ $ CURRENT At cost: At net realisable value: Stock on hand- Cattle 155,400 161,400 Total stock on hand 155,400 161,400
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ABN: 17 870 616 829
Notes to the Financial Statements
For the Year Ended 31 December 2017
8 Other financial assets 2017 2016 $ $ CURRENT Term Deposit - Lady M Grieve Bequest 226,363 220,585 Total current assets 226,363 220,585
2017 2016 $ $ NON-CURRENT University Bookshop shares 10 10 Total non-current assets 10 10
9 Other assets 2017 2016 $ $ CURRENT Prepayments 235,692 139,704 235,692 139,704
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ABN: 17 870 616 829
Notes to the Financial Statements
For the Year Ended 31 December 2017
10 Property, Plant and Equipment 2017 2016 $ $ LAND AND BUILDINGS Freehold land At independent valuation 5,090,060 5,090,060 Buildings At independent valuation 24,080,740 24,625,740 Improvements - at cost 539,104 513,061 Accumulated depreciation (1,236,930) (623,180) Total land and buildings 28,472,974 29,605,681 PLANT AND EQUIPMENT Capital works in progress At cost 58,918 25,699 Plant and equipment At cost 209,288 182,007 Accumulated depreciation (53,498) (34,470) Total plant and equipment 155,790 147,537 Furniture and equipment At cost 3,433,546 3,351,825 Accumulated depreciation (2,388,078) (2,196,047) Total furniture and equipment 1,045,468 1,155,778 Motor vehicles At cost 909,372 905,866 Accumulated depreciation (493,301) (424,918) Total motor vehicles 416,071 480,948 Library resources At cost 148,778 148,778 Accumulated depreciation (148,778) (148,778) Computer equipment At cost 3,539,375 3,550,314 Accumulated depreciation (2,199,438) (1,798,476) Total computer equipment 1,339,937 1,751,838
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Notes to the Financial Statements
For the Year Ended 31 December 2017
10 Property, Plant and Equipment Music equipment At cost 163,986 153,540 Accumulated depreciation (93,805) (80,102) Total music equipment 70,181 73,438 Total plant and equipment 3,086,365 3,635,238 Total property, plant and equipment 31,559,339 33,240,919
The school's land and buildings were revalued on 25 June 2015 by independent external valuers. Valuations were made on the basis of continued use & market value and adopted by the School's board at 31 December, 2015. The revaluation surplus was credited to an asset revaluation reserve in equity.
(a) Movements in Carrying Amounts
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Capital Works in Land & Plant and Furn & Motor Progress Buildings Equipment equip Vehicles $ $ $ $ $ Year ended 31 December 2017 Balance at the beginning of year 25,699 29,605,681 147,537 1,155,778 480,948 Additions 33,219 26,043 27,281 108,021 64,430 Disposals - written down value - - - (8,819) (41,667) Transfers to investment property - (545,000) - - - Depreciation expense - (613,750) (19,028) (209,512) (87,640) Balance at the end of the year 58,918 28,472,974 155,790 1,045,468 416,071
Library Music Computer resources Equip equip Total $ $ $ $ Year ended 31 December 2017 Balance at the beginning of year - 73,438 1,751,838 33,240,919 Additions - 10,473 29,959 299,426 Disposals - written down value (836) - - (51,322) Transfers to investment property - - - (545,000) Depreciation expense (441,024) (13,730) - (1,384,684) Balance at the end of the year (441,860) 70,181 1,781,797 31,559,339
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Notes to the Financial Statements
For the Year Ended 31 December 2017
10 Property, Plant and Equipment
(a) Movements in Carrying Amounts
11 Investment Properties 2017 2016 $ $ Land & buildings at valuation 760,852 650,000 Transfer from property,plant and equipment 545,000 - Improvements at cost 764 110,852 Total Investment property 1,306,616 760,852
12 Intangible Assets 2017 2016 $ $ Intangible assets Software - at cost 163,336 133,336 Water licence -at valuation 39,200 39,200 Accumulated amortisation (97,311) (68,018) Total Intangibles 105,225 104,518
(a) Movements in carrying amounts of intangible assets
Water Intangible Licenses assets Total $ $ $ Year ended 31 December 2017 Balance at the beginning of the year 39,200 65,318 104,518 Additions - 30,000 30,000 Amortisation - (29,293) (29,293) Closing value at 31 December 2017 39,200 66,025 105,225
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Notes to the Financial Statements
For the Year Ended 31 December 2017
13 Trade and Other Payables 2017 2016 $ $ CURRENT Trade payables 355,044 419,161 Payroll liabilities 653,233 627,479 1,008,277 1,046,640
All amounts are short term and the carrying values are considered to be a reasonable approximation of fair value.
14 Employee Benefits 2017 2016 $ $ Current liabilities Long service leave 1,531,576 1,719,644 Provision for sick leave 379,197 347,488 1,910,773 2,067,132 Non-current liabilities Long service leave 428,599 302,688 428,599 302,688
15 Other Liabilities 2017 2016 $ $ CURRENT Amounts received in advance 558,535 340,635 Enrolment deposits 73,322 88,672 Funds held on behalf of students and third parties 157,373 160,512 Unexpended Bequests 231,363 225,585 1,020,593 815,404 NON-CURRENT Enrolment deposits 467,113 479,103 467,113 479,103
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Notes to the Financial Statements
For the Year Ended 31 December 2017
16 Borrowings 2017 2016 $ $ CURRENT Secured liabilities: Credit cards 25,977 11,256 Bank overdraft - 51,746 Finance lease obligation 10,446 122,837 CBA Better business loan - 4,650,000 CBA Market rate loan - 2,500,000 Total current borrowings 36,423 7,335,839
NON-CURRENT Secured liabilities: Finance lease obligation 19(b) - 10,446 CBA Better Business Loan 3,550,000 - Market rate facility 2,500,000 - Total non-current borrowings 6,050,000 10,446 Total borrowings 6,086,423 7,346,284
(a) Defaults and breaches
During the current and prior year, there were no defaults or breaches on any of the loans.
(b) Credit facility limits
2017 2016 $ $ Business Lending Business credit cards 50,000 50,000 Direct Debit facility 60,000 60,000 Overdraft Facility 100,000 400,000 Market Rate Facility 2,500,000 2,500,000 Better Business Loan 5,250,000 5,250,000 Equipment finance 400,000 400,000 John Deere Financial 1,671 21,724 Total facility 8,361,671 8,681,724
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Notes to the Financial Statements
For the Year Ended 31 December 2017
16 Borrowings
(c) Mortgages, charges and securities
The Commonwealth Bank holds security as registered first mortgages over non-residential real property located at 9 & 11 Raglan Street, 242 Moore Creek Road, 134-142 Brisbane Street, 24-34 Tribe Street and 9 Burnside Ave Tamworth.
The School undertakes to not encumber the three residential properties situated at 128, 130 and 132 Brisbane Street, Tamworth NSW, or the rural property known as "Tangara", 1246 Gunnedah Road, Gunnedah without the Bank's prior written consent.
17 Cash Flow Information
(a) Reconciliation of result for the year to cashflows from operating activities
Reconciliation of net income to net cash provided by operating activities: 2017 2016 $ $ Profit for the year (173,629) (1,742,532) Cash flows excluded from profit attributable to operating activities - Capital grant funding received (77,000) (82,280) Non-cash flows in profit: - depreciation 1,413,977 1,276,872 - net gain on disposal of property, plant and equipment (12,860) (7,652) Changes in assets and liabilities: - (increase)/decrease in trade and other receivables 542,091 44,179 - (increase)/decrease in other assets (5,777) (4,362) - (increase)/decrease in prepayments (95,988) 79,976 - (increase)/decrease in inventories 6,000 152,983 - increase/(decrease) in trade and other payables 143,653 (246,608) - increase/(decrease) in provisions (30,448) (108,007) Cashflows from operations 1,710,019 (637,431)
24 Calrossy Anglican School
ABN: 17 870 616 829
Notes to the Financial Statements
For the Year Ended 31 December 2017
18 Reserves
(a) Asset Revaluation Reserve
The asset revaluation reserve records fair value movements on property, plant and equipment held under the revaluation model.
(b) Special Reserve
The special reserve represents the fair value of the net assets of Calrossy, Calrossy Pre-School and William Cowper Anglican School transferred to Calrossy Anglican School at the date of its formation.
19 Commitments for expenditure
(a) Maintenance & Lease commitments - operating 2017 2016 $ $ Committed at the reporting date but not recognised as liabilities, payables - Within one year 420,843 410,789 - One to five years 763,307 1,233,929 Total 1,184,150 1,644,718
Operating lease commitments includes contracted amounts for plant, equipment and maintenance under non-cancellable operating leases expiring within one to five years with, in some cases, options to extend.
(b) Equipment loan commitments 2017 2016 $ $ Committed at the reporting date and recognised as liabilities, payables - Within one year 10,446 122,836 - One to five years - 10,446 Total commitment 10,446 133,282 Less: Future finance changes (2,911) (2,944) Net commitment recognised as liabilities 7,535 130,338
25 Calrossy Anglican School
ABN: 17 870 616 829
Notes to the Financial Statements
For the Year Ended 31 December 2017
19 Commitments for expenditure
(c) Contracted Commitments 2017 2016 $ $ Minimum payments under non-cancellable service agreements not recognised as liabilities: - not later than one year 141,204 202,335 - between one year and five years 59,395 200,599 200,599 402,934
Dancrai Pty Ltd The school has a 24 month contract with Dancrai Pty Ltd to provide Information Technology services from August 2016.
ARRNet Pty Ltd The school engaged AARNet Pty Ltd to provide high quality internet and related network services to the school, being delivered from 2016 for a period of three years.
ICT Improvement program In August 2016 the school entered into a 24 month agreement with Dancrai Pty Ltd to supply managed IT support services in continuation of the ICT Improvement Program delivered during 2016.
20 Contingent Liabilities
Capital Funding by Federal and State Governments
The Federal and State Governments have provided grants and subsidies to assist the School in purchasing various items included in non-current assets. As such, the various Governments have potential equity in a number of non-current assets which may, on sale or transfer, require repayment of some or all of the proceeds.
The Board and management estimate the amount potentially repayable in such an event is in the vicinity of $4,475,000 in total.
21 Going concern
The School incurred an operating loss of $173,629 during the year ended 31 December 2017, (2016: loss $1,742,532). There is also a significant excess of current liabilities to current assets as at that date. The school's Board and management have taken steps to reduce expenditure to ensure the school returns to profitability in the 2018 year.
The Board and management are confident these measures will enable the school to continue to meet its obligations as they fall due.
26 Calrossy Anglican School
ABN: 17 870 616 829
Notes to the Financial Statements
For the Year Ended 31 December 2017
22 Events Occurring After the Reporting Date
The financial report was authorised for issue on the 16th of May 2018 by the members of the board.
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the School, the results of those operations, or the state of affairs of the School in future financial years.
23 Related Parties
Any person(s) having authority and responsibility for planning, directing and controlling the activities of the school, directly or indirectly, including any school board member (whether executive or otherwise) of the school are considered key management personnel. Transactions with key management personnel and their related parties are as follows;
Members of the School Board and Management were invoiced $70,784.69 for tuition fees. At the end of the year $2,130 remained outstanding.
These transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.
24 Economic Dependence
Calrossy Anglican School is dependent on the recurrent grants from the NSW State and Australian Federal Governments for a significant proportion of its revenue used to operate the school. At the date of this report the school board have no reason to believe the NSW State and Australian Federal Governments will not continue to support Calrossy Anglican School in the future.
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Calrossy Anglican School
ABN: 17 870 616 829
Independent Auditor's Report to the members of Calrossy Anglican School
Report on the Audit of the Financial Report
Opinion
We have audited the accompanying financial report, being a special purpose financial report of Calrossy Anglican School (the School), which comprises the statement of financial position as at 31 December 2017, the statement of profit or loss and other 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 by school board.
In our opinion, the accompanying financial report presents fairly, in all material respects, including:
(i) giving a true and fair view of the School's financial position as at 31 December 2017 and of its financial performance for the year ended; and
(ii) complying with Australian Accounting Standards and with 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. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. Our responsibilities under those standards are further described in the Auditor’s Responsibility section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Basis of Accounting
We draw attention to Note 1(a) to the financial report, which describes the basis of accounting. The financial report has been prepared to assist Calrossy Anglican School to comply with the financial reporting provisions of its constitution. As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter.
29 Calrossy Anglican School
ABN: 17 870 616 829
Independent Auditor's Report to the members of Calrossy Anglican School
Responsibilities of Members of the Board for the Financial Report
The Members of the Board of the School are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and Division 60 of the Australian Charities and Not-for-profits Commission Act 2012 and for such internal control as the Members of the Board determine necessary to enable the preparation of a 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 Members of the Board are responsible for assessing the the School’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 the Members of the Board either intend to liquidate the School or to cease operations, or have no realistic alternative but to do so.
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 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 the financial report. As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor’s judgement, including 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.
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.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial report.
30 Calrossy Anglican School
ABN: 17 870 616 829
Independent Auditor's Report to the members of Calrossy Anglican School
We conclude on the appropriateness of management’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 School’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the School to cease to continue as a going concern.
We evaluate 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 obtain sufficient appropriate audit evidence regarding the financial information of the business activities within the School to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.
We communicate with management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements. We also provide management with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
PKF NENW Audit & Assurance Pty Ltd
Margaret van Aanholt
22-24 Bourke Street, Tamworth
Dated this 17th day of May 2018
31