WA, NILS -WA NO INTEREST LOANS NETWORK INC.
ANNUAL REPORT 2007/2008
PO Box 282 Willefton WA 6955 Telephone: 1300 365 301 Fax: 9354 7633 CONTENTS
ABOUT WA NILS INC®
Mission Statement & Objective Principles Board of Management Advisors to the Board Auditors Staff
MANAGEMENT REPORTS
Chairperson's Report Treasurer's Report Manager's Report
MEMBERSHIP NETWORKS Agencies Traders
FINANCIAL REPORTS Statement by Members of the Board Independent Audit Report Income & Expenditure Statement Statement of Financial Position Notes to the Financial Statement WA NILS WA NO EN'TEREck- LO.A.:.NS NETWORK LKC.
Mission Statement
The WA No Interest Loans Network Inc. (with the commitment of Member Agencies) aims to address consumer inequality in the financial market and empower borrowers to take control of their financial situation by increasing their skills, confidence and self-esteem in dealing with their financial planning.
Objective
The overall aim of the no interest loans service is to provide families and individuals on low incomes across the state with the opportunity to apply for a loan to purchase essential items, without the burden of interest charges or fees. This service is not for the provision of emergency relief and is operated as a loan scheme with an expectation that repayments are made as negotiated between the service and the customer. Principles
The WA NILS® Network will:
❖ Provide credit to those most in need,
❖ Allocate loan funds equitably within and between country and metropolitan areas of Western Australia,
❖ Work simply, efficiently and cost effectively,
e Be flexible, responsive and accountable to the members of the Network,
4. Provide access to credit locally,
❖ Provide access to credit equitably across those in need, so as not to favour or disadvantage one individual or community,
• Provide loans responsibly, so as to not build a reliance on credit or promote mass consumption,
• Provide credit so as to maximise the benefit of the money available, by:
■ recycling credit amongst the maximum number of people ■ utilising existing community sector networks and infrastructure to the best advantage ■ assisting users of existing agencies and Family and Children's Services, while also providing access to other applicants ■ creating linkages between agencies to best meet the needs of clients through referral and other support services. Board of Management 2007/2008
CHAIRPERSON Lynda Wennstrom, Fremantle Community Legal Centre
SECRETARY Tricia Lee Wanslea Family Services
TREASURER Renuka Dissanaike Wanslea Family Services
ORDINARY MEMBERS
Sally Newman Communicare Misty Hayden Salvation Army Balga/WACOSS Janne Halma Jacaranda Community Centre Iris Watt Sussex Street Community Law Service Kate Davey Anglicare SNAP Sharon Cowper Salvation Army Jenny Lydon Salvation Army
BOARD APPOINTED MEMBER
Carol Wallbank Ego Creative
ADVISOR TO THE BOARD
Ian McDonald, Solicitor
AUDITOR 2007-2008
William Cosson, Chartered Accountant ATTENDANCE AT BOARD MEETINGS
A total of 10 Board Meetings were held from July 2007—June 2008
Lynda Wennstrom Attended 10 meetings Tricia Lee Attended 9 meetings Renuka Dissanaike Attended 10 meetings Sally Newman Attended 2 meetings (From January 2008) Misty Hayden Attended 2 meetings (From January 2008)
Janne Halma Attended 5 meetings (From January 2008) Iris Watt Attended 8 meetings Kate Davey Attended 2 meetings (From April 2008) Sharon Cowper Attended 5 meetings (From February 2008) Jenny Lydon Attended 3 meetings (From February 2008) Carol Walibank Attended 2 meetings
Susan Pope Attended 1 meeting (Resigned in August 2007)
David Deane-Spread Attended 1 meeting (Resigned in October 2007)
Nick Murphy Attended 5 meetings (Manager - attendance until October 2007 prior to resignation)
John Ambrose Attended 6 meetings (Joined as Manager in February 2008. Attended January meeting by invitation) Staff 2007/2008
Manager Nick Murphy (July-December 2007) John Ambrose (February 2008 >)
Bookkeeper/ Office Supervisor Lorry McCartney (July 07-April 08)
Accountant Christian Budimuljono (April 08-August 08) Ruby Xu (July 2008 >)
Loans Administration Officer Pauline Mc Gillivray (July 07 - April 08) Michelle Salt (April 2008 >)
Reception Sharon Dunstone (July 07 - May 08)
Administration Assistant Shirley Davis (April 08 >)
[Note: Designations and Names highlighted denote currently serving employees.] Chairperson's Report 2007 - 2008
It gives me pleasure as Chairperson to present my Report for 2007/08. WANILS is a not- for-profit organisation whose Board consists of representatives from member agencies, and others from outside the sector who are willing to commit to a worthwhile cause.
I'd like to thank all Board members who have willingly given their time this year: Tricia Lee -- Secretary, Renuka Dissanaike — Treasurer, and general members Iris Watt, Sally Newman, Jenny Lydon & Sharon Cooper, Misty Hayden, Janne Halma, Kate Davey, and Carol Wallbank.
The traders who have signed on to the Traders Charter provide a fee each year to be part of this. These funds are put aside from the loan funds to be used for a range of worthwhile purposes. Some of the proceeds from the Trader's Charter funds were distributed via the CWA just before Christmas to assist farmers in the Wheatbelt over this period.
This year has proved challenging for all as the previous Manager, Nick Murphy left us in December for a job he couldn't refuse. It helped that it was located nearer his home. In addition there has been a changeover of all office staff. Thanks to all past staff for their commitment to WANILS.
In February a new Manager joined the team, John Ambrose. He was no sooner with us when he attended the Annual WANILS Conference in Adelaide along with several Board members. This was an enlightening experience for all concerned. John has had a rapid introduction to the project and I would like to thank him for his time and commitment. I would also like to express my appreciation to the current office staff.
I would like to give special mention and thanks to the Loans Committee members (and their employers) who volunteer their time to assist with the assessment and approval of loans. Without them we would have a deal of difficulty approving the number of loan applications that we receive.
WANILS was once again a finalist in the WA Consumer Protection Awards 2008. It was a great achievement to be nominated for a third year.
My thanks also to those staff members of DCP who have been assisting with WA NILS over the years - Tracey Glass (CDFO) and, in particular, Julie Waylen (Director, Funding & Policy) who has been with us from the very start of WA NILS.
As I have said in past Chairperson's reports, this project is a very rewarding one to be involved with. I have been involved with WANILS from before its inception and the many outcomes that I have witnessed have brought me a great deal of satisfaction and pride. This will be my final report as Chairperson as I am standing down from the Committee this year. I wish the new Board continued success.
LYNDA WENNSTROM Chairperson Treasurer's Report 2007 - 2008
It gives me pleasure to present the Treasurer's report for WA No Interest Loans Network Inc for the 2007-08 financial year.
The financial year ended with a net surplus of $ 42,254. This includes a Lotterywest equipment grant of $ 24,711 used for the purchase of a photocopier.
The operating grant received from the Department for Child Protection (DCP) included indexation arrears for the past 3 years. $ 15,429 of these arrears have been carried over to meet expenditure in 2008-09.
This was the first year in which the DCP did not provide funds for the loans pool. Investment of unutilised loans pool funds in Term Deposits provided interest income which was sufficient to cover the cost of bad debts written off during the year. This strategy resulted in a slight growth in the balance in the loans pool.
The demand for loans dropped during the year under review. A survey conducted by the agency revealed that the drop in demand was due partly to external factors such as the rise in cost of living. The association continues to address issues around community awareness, marketing and publicity. The loan limit per applicant was raised from $ 1,000 to $ 1,500 in recognition of the general increase in cost of living. The list of approved loan items has been further expanded to accommodate areas of greater need within the community.
Loan arrears are well within limits set by the DCP. WA NILS continues to monitor arrears and the various measures adopted in the last few years around the approval of loans have resulted in lower rates of default.
Traders who support WA NILS provided funds amounting to $ 8,935 during the year. Of this, $ 5,000 was donated to the Country Women's Association in December 2007 to provide relief to families affected by the drought.
WA NILS continues to provide support to the WA Low Interest Loans Network by providing it with management and administrative functions. WA NILS receives a management fee for this service.
In conclusion, WA NILS is financially sound and is in a position to continue providing a no interest loans service to the community, within the guidelines set by the Department for Child Protection.
R. Dissanaike Treasurer Manager's Report
2007/08 has been another exciting and rewarding year. One of the changes that occurred was a complete turnover of staff during the first-half of 2008. WA NILS now has a totally new team made up of people dealing with increased workloads and shorter timelines for processing and approving' loan applications.
Some significant changes occurred this year: • the loan amount was increased from $1000 to $1500 • clients became eligible to apply for two items per loan • 15 more new items were added to the list (this only happened in July 2008) • the six-month cooling off period between loans was rescinded — which means clients can now apply for a second loan as soon as the first one's repaid • and, the six month requirement for continuous stay in accommodation is now reduced to three months — in view of the volatile rental market.
All these changes have had a very positive impact on our activities — and, no doubt, in the lives of our low income clients.
Our application for a Lotterywest grant — to replace our computers, a photocopy machine and to meet the partial costs of upgrading our loans database — was successful. A cheque for $43,861 was presented to us, on behalf of Lotterywest, by The Hon. Tony McRae MLA, the Member for Riverton, on March 14, 2008. Thanks to Lotterywest, these new equipment have made a huge difference to work efficiency levels in our office.
WA NILS has also become THE leading no interest loans provider in Australia. Statistics presented during the National NILS Conference in Adelaide earlier this year reveal that WA NILS provides more loans to needy clients than all the other NILS Agencies in the Commonwealth put together!
This is a fantastic achievement. And, in addition to this, we were again selected Runners' Up for DOCEP's Dick Fletcher Award for Organisational Achievement. This goes to show that we are also recognised for our work, and the benefits we provide to our clients.
The Board of Management WA NILS has contributed much to these successes. Thanks also to Lorry, Pauline, Sharon and Nick for a job well done during their service with WA NILS. My sincere appreciation to all the current staff — Shirley, Michelle and Ruby — who are a great team to work with — especially when they just had to pick up and run with their jobs as soon as they joined the organisation.
As part of improvement process, we have initiated more frequent and regular dialogues with our Agencies, our Clients and Traders. This has brought about a greater sense of inclusiveness to the service that all of us, in partnership, provide towards the greater wellbeing of the people most vulnerable in our community. We need you and your support — and we look forward to continue working well together in time to come.
John Ambrose Manager MEMBER AGENCIES 01/07/07 - 30/06/08
ANAWIM PERTH Anglicare ASH MANDURAH Anglicare Financial Counselling Albany ALBANY Anglicare Financial Counselling Sunbury BUNBURY Anglicare Financial Counselling Busselton BUSSELTON Anglicare Financial Counselling Collie COLLIE Anglicare Financial Counselling Katanning KATANNING Anglicare Financial Counselling Mandurah MANDURAH Anglicare Financial Counselling Manjimup MANJIMUP Anglicare Financial Couselling Mt Barker MT BARKER Anglicare RYEAP BALDIVIS Anglicare SAAP Family Housing EAST PERTH Anglicare SHAP Albany ALBANY Anglicare SHAP Sunbury SUNBURY Anglicare SHAP Fremantle COOLBELLUP Anglicare YES! Housing North & South EAST PERTH Armadale Gosnells Domestic Violence S/S Inc GOSNELLS ASWA Sunbury SUNBURY Australian Asian Association of WA Inc PERTH Avon Youth Services Inc NORTHAM Bay of Isles Community Outreach Inc ESPERANCE Bega Garnbirringu Health Service Aboriginal Corp KALGOORLIE Bidyadanga Community BROOME Boogurlarri Community House LANGFORD Broome CIRCLE BROOME C-Bers Services SUBIACO Centrecare Inc CANNINGTON Chrysalis Support Services Inc (Wonthella House) GERALDTON City of Belmont Accommodation Outreach BELMONT City of Cockburn Atwell Office ATWELL City ofJoondalup Financial Counselling Service JOONDALUP Communicare Inc CANNINGTON Community & Youth Training Services PERTH Coolabaroo Housing Service (WA Moorditch) GOSNELLS Cyrenian House CULLACABARDEE Duncraig Information & Care Centre DUNCRAIG Escare Inc ESPERANCE Foothills Information & Referral Service FORRESTFIELD Foundation Housing Ltd MIDLAND Fremantle Community Legal Centre FREMANTLE Frontier Services Murchison MEEKATHARRA Geraldton Resource Centre Inc GERALDTON Goldfields Centrecare KALGOORLIE Gosnells Community Legal Centre GOSNELLS Harvey Health & Community Services Group Inc HARVEY Helping Out People Everywhere (HOPE) PERTH Jacaranda Community Centre CLOVERDALE Jungarni-Jutiya HALLS CREEK Karnany Aboriginal Corp MIDLAND Kuwinywardu Aboriginal Resource Unit (KARU) CARNARVON Lucy Saw Centre ROCKINGHAM Mamabulanjin Aboriginal Corp BROOME Margaret River Community Resource Centre Inc MARGARET RIVER Marnin Bowa Dumbara Aboriginal Corp DERBY Multicultural Services Centre of WA Inc NORTH PERTH Multicultural Women's Advocacy Service NORTHBRIDGE Narrogin Youth Support Service Inc NARROGIN Ngaringga Ngurra Aboriginal Corp HALLS CREEK Northam Share & Care NORTHAM Outcare EAST PERTH Outcare Bandyup GUILDFORD Palmerston Farm WELLARD Ravensthorpe & Districts Rural Agcare RAVENSTHORPE Ruah Refuge MT LAWLEY Salvation Army Balga BALGA Salvation Army Ellenbrook ELLENBROOK Salvation Army Kalgoorlie/Boulder KALGOORLIE Salvation Army Kwinana KWINANA Salvation Army Morley MORLEY Salvation Army Perth Family Support PERTH Salvation Army Rockingham ROCKINGHAM Southcare Inc MANNING Southern Agcare Inc GNOWANGERUP Southside Care ARMADALE Spina Bifida Assoc of WA Inc NEDLANDS St Patrick's Community Support Centre FREMANTLE St Vincent De Paul Busselton BUSSELTON St Vincent De Paul Waroona WAROONA STAR Rockingham ROCKINGHAM Sussex Street Community Legal Services VICTORIA PARK The Council of Churches of WA Inc MIDLAND The Gowrie/Belmont Financial Counselling Service BELMONT Uniting Aid Inc NOLLAMARA UWA Student Guild CRAWLEY Victoria Park Youth Accomodation VICTORIA PARK WA Aids Council WEST PERTH Wanslea Family Services SCARBOROUGH West Coast Ministries International WANGARA Wyndham Family Support Inc WYNDHAM Xavier Care ARMADALE Yadgalah Aboriginal Corporation DENHAM Youth Legal Service PERTH CHARTER TRADERS 01/07/07 TO 30/06/08
Harvey Norman Albany Fridge & Washer City Albany Retravision Albany Harvey Norman Armadale Retravision/Hills Appliance Armadale Fridge & Washer City Balcatta Retravision Gaynor's Balcatta Retravision Belmont Harvey Norman Belmont Retravision Broome Best Buy Electrical Broome Bidyadanga Community Broome Fridge & Washer City Bunbury Retravision Bunbury Harvey Norman Bunbury Harvey Norman Cannington Fridge & Washer City Cannington Retravision Carlisle Best Buy Electrical Carnarvon Retravision Collie Retravision/Esperance Appliance Centre Esperance Betta Electrical & Gas/Keevii's Esperance Betta Electrical & Gas Exmouth Harvey Norman Geraldton Mitchell & Brown Geraldton Retravision Hails Creek(Kimberley) Retravision Joondalup The Good Guys Joondalup Harvey Norman Kalgoorlie Retravision Kalgoorlie Betta Electrical Goldfields Kalgoorlie Harvey Norman Karratha LiI's Retravision Karratha Retravision Katanning Retravision/Tuckerbox Kununurra Retravision/Mitchells Maddington Rick Hart Mandurah Retravision Mandurah McCays Home & Computer Centre Manjimup Warren Electrical Manjimup Best Buy Electrical Merredin Harvey Norman Midland Best Buy Electrical Midland Retravision Midland The Good Guys Midland Retravision Mirrabooka Harvey Norman Morley Retravision Narrogin Retravision Newman Retravision Northam Fridge & Washer City O'Connor Harvey Norman O'Connor The Good Guys O'Connor Retravision O'Connor The Good Guys Osborne Park Harvey Norman Port Hedland Retravision Electric City Riverton Fridge & Washer City Rockingham Retravision Rockingham Lil's Retravision South Hedland Betta Electrical & Gas Tom Price Retravision Wanneroo Harvey Norman Warwick WA NO INTEREST LOANS NETWORK INCORPORATED
Special Purpose Financial Report For the year ended 30 June 2008 WA NO INTEREST LOANS NETWORK INCORPORATED
CONTENTS
Statement by Board 3
Independent Audit Report 4
Income Statement 6
Balance Sheet 8
Notes to the Financial Statements 9 WA NO INTEREST LOANS NETWORK INCORPORATED
STATEMENT BY BOARD
The Board has determined that the Association is not a reporting entity and that this special purpose financial report should be prepared in accordance with the accounting policies outlined in Note 1 to the financial statements.
In the opinion of the Board the financial report, as set out on pages 6 to 14:
1. presents a true and fair view of the financial position of WA No Interest Loans Network Incorporated as at 30 June 2008 and its performance for the year ended on that date.
2. at the date of this statement, there are reasonable grounds to believe that WA No Interest Loans Network Incorporated will be able to pay its debts as and when they fall due.
3. the Board and the Association have complied with reporting and other requirements of the Constitution of the Association and the terms and conditions of the Service Agreement with the Minister for Family and Children's Services.
This statement is made in accordance with a resolution of the Board and is signed for and on behalf of the Board by:
LYNDA WENNSTROM Chairperson
RENUKA DISS AIKE Tre
Signed at this )51 day of October 2008
Page 3 COSSON & CO CHARTERED ACCOUNTANTS
Principal: WD Cosson F.C.A. Telephone: (08) 9244 2699 Facsimile: (08) 9446 6811 Email: [email protected]
WA NO INTEREST LOANS NETWORK INCORPORATED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS
Report on the financial report
We have audited the accompanying financial report, being a special purpose financial report, of WA No Interest Loans Network Incorporated (the Association), which comprises the income statement, balance sheet as at 30 June, 2008 and notes to the financial statements. Board's responsibility for the financial report The Board of the Association is responsible for the preparation and fair presentation of the financial report and have determined that the accounting policies described in Note 1 to the financial statements, which form part of the financial report, are consistent with the financial reporting requirements of the Associations incorporation Act 1987 of Western Australia (as amended) and are appropriate to meet the needs of the members. The Board's responsibilities also include establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor's responsibility Our responsibility is to express an opinion on the financial report based on our audit. No opinion is expressed as to whether the accounting policies used, as described in Note 1, are appropriate to meet the needs of the members. We conduct our audit in accordance with Australian Auditing Standards. These auditing 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 our judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. in making those risk assessments, we consider internal controls relevant to the entity's preparation and fair presentation of the financial report 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 account estimates made by the Board, as well as evaluating the overall presentation of the financial report.
The financial report has been prepared for distribution to members for the purpose of fulfilling the Board's financial reporting requirements under the Associations Incorporation Act 1987 of Western Australia (as amended). We disclaim any assumption of responsibility for any reliance on this report or on the financial report to which it relates to any person other than the members, or for any purpose other than that for which it was prepared.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Liability limited by a scheme approved under Professional Standards Legislation Visit our website: www.cosson.com.au
Level I, Suite 5, 24 Walters Drive, Herdsman W.A. 6016 • Postal Address: PO Box 1187, Osborne Park,W.A. 6916 ABN 56 156 418 064 Page 4 Cosson & Co Chartered Accountants, Auditors & Advisors
Independence In conducting our audit, we have complied with the independence requirements of Australian professional ethical pronouncements.
Audit opinion in our opinion, the financial report presents fairly, in all material respects the financial position of WA No Interest Loans Network Incorporated as at 30 June, 2008 and of its financial performance for the year then ended in accordance with the accounting policies described in Note 1 to the financial statements.
This opinion must be read in conjunction with the rest of our audit report.
Casson & Co
W D Cosson Principal
Herdsman
Dated this >47 day of October, 2008
Page 5 WA NO INTEREST LOANS NETWORK INCORPORATED
INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2008
Note 2008 2007 $ $
INCOME Grant from DCP 343,011 331,065 Trader charter subscriptions 8,935 3,909 Management fees - WALILN 5,591 Other income - Lotterywest grant 24,711 Reimbursements WALILN 980 30,000 Member agency subscription 836 1,865 Total income 384,064 366,839
EXPENDITURE Agency training 2,410 696 Bank charges 497 26 Depreciation - equipment 1,170 1,079 Depreciation - hardware 2,128 - Depreciation - prior year adjustment (1,819) Electricity and gas 1,754 2,040 Insurance 6,716 4,822 Memberships and subscriptions 1,727 1,855 Miscellaneous administration expenses 3,820 2,975 Motor vehicle - depreciation 2,588 4,979 Motor vehicle - insurance & registration 634 Motor vehicle - running costs 9,528 6,000 Motor vehicle - interest charges 2,440 Profit on sale of vehicle 5,211 Office equipment and fixtures < $1,000 2,415 1,135 Office equipment rental 450 Database upgrade 6,246 Printing, postage and stationery 13,818 11,788 Professional development & training 5,321 3,905 Professional fees - accounting assistance 6,486 6,248 Professional fees - audit 8,082 7,003 Professional fees - bookkeeping assistance 1,699 1,980 Repairs and maintenance 5,166 4,326 Rent and outgoings - office premises 29,295 28,880 Staff amenities and other employee expenses 5,171 4,031 Superannuation 16,685 16,012 Telecommunications 13,525 8,772 Travel expenses 12,215 15,351 Wages 186,446 182,469 Excess leave provision expense written back (14,208) Web site maintenance 3,458
The accompanying notes form part of these financial statements. These financial statements should be read in conjunction with the attached audit report Page 6 WA NO INTEREST LOANS NETWORK INCORPORATED
INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2008
Note 2008 2007
National NILS Forum expenses 81 29,235 Donations ex traders charter funds 5,000 3,909 Advertisement 818 Total expenditure 341,810 354,679
Net surplus from ordinary activities 11 42,254 12,160
The accompanying notes form part of these financial statements. These financial statements should be read in conjunction with the attached audit report Page 7 WA NO INTEREST LOANS NETWORK INCORPORATED
BALANCE SHEET AS AT 30 JUNE 2008
Note 2008 2007 $ $
CURRENT ASSETS Cash 45 ,_1215,7 1,110,400 Receivables- 3 189,584 249,140 Other 6 1,283 2,778 TOTAL CURRENT ASSETS 1,408,610 1,362,318
NON-CURRENT ASSETS Receivables 181,555 192,529 Plant & equipment 6 78,363 25,107 Other 6 5,500 5,500 TOTAL NON-CURRENT ASSETS 265,418 223,136 TOTAL ASSETS 1,672,028 1,585,454
CURRENT LIABILITIES ' Creditors & accruals 31,468 20,915 Grants received in advance 7 15,429 Borrowings 8 48,114 23,379 Provisions 9 1,007 18,423 TOTAL CURRENT LIABILITIES 96,018 62,717
NON-CURRENT LIABILITIES Trust fund liability 10 1,496,698 1,485,679 TOTAL NON-CURRENT LIABILITIES 1,496,698 1,485,679 TOTAL LIABILITIES 1,592,716 1,548,396
NET ASSETS 79,312 37,058
MEMBERS FUNDS Retained surplus 79,312 37,058
TOTAL MEMBERS FUNDS 11 79,312 37,058
The accompanying notes form part of these financial statements. These financial statements should be read in conjunction with the attached audit report Page NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2008
Note 1: Statement of Significant Accounting Policies (continued)
e) Grant funding (continued) In accordance with the Service Agreement with the Minister for Family and Children's Services, funds provided for the sole purpose of providing capital for interest-free loans are maintained in a trust account. As such, all activity associated with these funds are recorded in the trust account on a cash basis. The net balance of the trust account is recorded as a non-current liability in the balance sheet.
Loans receivable Loans provided to clients from trust account monies are recorded in the balance sheet as loans receivable. The outstanding balance of loans at balance date is allocated between current and non-current assets based on loan statistics of average value of loans issued, average repayments per fortnight and the average period of loans. g) Provision for doubtful debts A provision for doubtful debts has been raised in relation to loans receivable based on the recoverability of loans outstanding at balance date
Notes 2008 2007 $ $ Note 2: Cash Cash at bank — operating account 76,685 57,818 Cash at bank — trust account 10 487,782 433,309 Term deposit — trust account 10 650,976 619,173 Petty cash 300 100 Total cash 1,215,743 1,110,400
Note 3: Receivables Current Loans receivable 3(a) (---7-„—__ 115. 271,397 Less: provision for doubtful debts 4,10 (25,000) (25,000) 180,414 246,397 Advance to WA Low Interest Loans Network Incorporated 3(b) 9,170 2,743 Total current receivables 189,584 249,140
Non-current Loans receivable 3(a) 181 555 192,529 Total non-current receivables 181,555 192,529 INIMOMME/10.1.011,
These notes should be read in conjunction with the attached audit report Page 10
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2008
Notes 2008 2007 $ Note 3: Receivables (continued) (a) Reconciliation of loans receivable Balance at 1 July 463,926 649,280 Loans provided 525,563 676,393 Loan discounts 3,066 Bad debts recovered 3,744 2,036 Loans repaid (585,233) (781,438) Loans written off/discounted 24,097) (82,345) Balance at 30 June 10 463,926 C (b) WA Low Interest Loans Network Incorporated is a separate Association that was established to provide low interest loans to low income earners.
As at 30 June 2008 WA No Interest Loans Network Incorporated had contributed $9,170 (2007 $2,743) costs of the Association. These amounts are due to be reimbursed by WA Low Interest Loans Network Incorporated in the 2008 financial year. The entity is a separate non reporting entity and does not form part of these financial statements.
Note 4: Provision for doubtful debts Balance at 1 July 25,000 84,000 Loans written off 4(a) (24,097) (82,318) Bad debts recovered 3,744 2,036 Increase in provision for doubtful debts 20,353 21,282 Balance at 30 June 25,000 25,000
(a) Bad debts written off during the year relate to loan receivables deemed by the Board to be irrecoverable at balance date.
Note 5: Plant and equipment Motor vehicles— at cost 48,494 28,532 Less: accumulated depreciation (2,588) (6,958) 45,906 21,574
Furniture & fixtures — at cost 32,355 32,355 Less: accumulated depreciation (28,822) (28,822) 3,533 3,533
Office equipment — at cost 32,222 Less: accumulated depreciation (3,298) 28,924 Total plant and equipment 78,363 25,107
These notes should be read in conjunction with the attached audit report Page 11 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2008
Notes 2008 2007 $ $ Note 6: Other assets Current Prepayments 1,283 2,778 1,283 2,778
Non-current Rental bond — office premises 5,500 5,500
Note 7: Grants received in advance Current DCD — operating grant 15,429
Note 8: Borrowings Current Hire purchase liabilities 51,634 24,917 Less: unexpired interest charges (3,520) (1,538) Total current borrowings 48,114 23,379
The hire purchase liabilities relate to the motor vehicles purchased during the year and recorded under plant and equipment at Note 5.
The total hire purchase liabilities are shown as a current liability at 30 June 2008 as the total liability is due to be repaid in the 2009 financial year.
Note 9: Provisions Current Provision for annual leave 1,007 15,215 Provision for trader subscription donations 3,208 1,007 18,423
These notes should be read in conjunction with the attached audit report Page 12 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2008
Notes 2008 2007 $ $ Note 10: Trust fund liability (a) The net assets of the trust are comprised of: Assets Cash at bank 10(b) 487,782 433,309 Term deposit 10(c) 650,976 619,173 Loans receivable 3(a) 386,969 463,926 Less: provision for doubtful debts 4 (25,000) (25,000) Total assets 1,500,727 1,491,408
Liabilities c4J\Irj")-\ Funds yet to be transferred to operating bank account 10(d) c 2,500 Unallocated repayments and other 4,029 3,229 Total liabilities 4,029 5,729
Net assets 1,496,698 1,485,679
(b) The activity in the trust bank account is as follows: Balance at 1 July 433,309 948,454 Loan funds granted by DCD - 75,000 Loans provided (525,563) (676,393) Loans repaid 585,232 781,438 Transfers out to trust term deposit 10(c) - (600,000) Operating grant monies received during the year and not yet transferred to the operating bank account 10(d) (7,025) 2,500 Operating grant monies held in prior year transferred to operating bank account (93,543) Transfer to operating account re GST on prior year trust grant not previously transferred (4,500) Loan costs/adjustments 1,829 353 Balance at 30 June 487,782 433,309
(c) The activity in the trust term deposit is as follows: Balance at 1 July 619,173 Transfers in from trust bank account 10(b) 600,000 Interest earned 31,803 19,173 Balance at 30 June 650,976 619,173
(d) Both operating grant monies and trust account grant monies are paid as one lump sum into the trust account by the DCP each quarter. As at 30 June 2008 $7,025 was yet to be transferred to the operating account..
These notes should be read in conjunction with the attached audit report Page 13 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2008
Notes 2008 2007 $ $ Note 11: Members Funds Retained surplus Balance at 1 July 37,058 24,898 Net surplus from ordinary activities 42,254 12,160 Balance at 30 June 79,312 37,058
Note 12: Provision for services A contract dated 31 March 2004 between WA No Interest Loans Network Incorporated and DCP relating to the provision of services in Western Australia has been executed. The contract sets out the grants to be given and the requirements for the provision of services and accounting for monies received relating to the period 1 April 2004 to 31 March 2007. This agreement was subsequently extended until 30 September 2007.
A new contract was executed subsequent to 1 July, 2007 which covers the period 1 October 2007 to 30 September 2010, with two one-year options to potentially extend the contract to 30 September 2012.
Note 13: Insurance The Association has complied with the minimum insurance requirements as required by the above contract.
These notes should be read in conjunction with the attached audit report Page 14 Result of Election
Board of Management
2008/2009
Chairperson from
Treasurer from
Secretary from
Members 1. from
2. from
3. from
4. from
5. from
6. from
7. from
8. from
9. from
10. from
I. J Government of Western Australia Department for Child Protection
Mr Andrew Hall Chairperson WA No Interest Loans Network Inc Unit 6 300 Vahland Avenue WILLETTON WA 6155
Dear 11/1r1-rd Arie41-4-1
Submission of Financial Statements for 2008-09
The Department for Child Protection's Contract Management Project recently endorsed the recommendations of independent consultants, AOT Consulting Pty Ltd's final report on streamlining contract management.
To assist organisations streamline the reporting process, the Department has introduced a 'single audit sign off for all funded services annual audited financial reporting. As a result, for 2008-09 for all Department funded services with an annual funding level in excess of $35,000 only the following will be required:
• ONE original of the whole of organisation audited financial statements; • ONE original signed Auditor's Certification Statement • ONE original signed Management Board Certification; and • Statement of Receipts and Payments for each funded service.
The annual audit package for 2008-09 will be forwarded to your organisation in July 2009. It is anticipated that the modified financial reporting requirement for a single audit sign off will assist your organisation in the annual submission of financial statements.
If you have any queries please contact Mr Frank Mazziotta, Senior Non Government Finance and Budgeting Officer on telephone (08) 9222 2609.
Yours sincerely
ew EXECUTIVE DIRECTOR SERVICE STANDARDS AND CONTRACTING 23 June 2009
Service Standards and Contracting Non Government Policy and Funding 189 Royal Street, East Perth WA 6004 (PO Box 6334 East Perth WA 6892) Telephone (08) 9222 2551, Facsimile (08) 9221 0178