ARACY Annual Report 2017
aracy.org.au
Our Mission
To improve the wellbeing of children and young people by collaboratively transforming evidence into policy and practice.
Our Vision
An Australia where ‘All young people are loved and safe, have material basics, are healthy, learning, participating, and have a positive sense of culture and identity’
Our History The Australian Research Alliance for Children and Youth (ARACY) was established in 2002 to harness the expertise and resources of individuals and organisations in developing innovative solutions to the range of complex problems affecting the health, development and wellbeing of increasing numbers of young Australians.
ARACY continues to build the capacity to connect people and establish networks that will enable the sharing of ideas, information and knowledge across previously discrete boundaries of expertise and endeavour.
The collaborations that are established make it possible to more effectively and comprehensively address the “big picture” issues that are impacting on the quality of life of children and young people growing up in Australia.
This collaborative approach enhances the nation’s capacity to achieve outcomes that are significantly better than could be achieved from the more fragmented approaches practised in the past.
ARACY is a Company Limited by Guarantee and has registered charity status with the Australian Charities and Not-for-profit Commission.
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SECTION 1 AN OVERVIEW OF ARACY
ABOUT US
The Australian Research Alliance for Children and Youth (ARACY) is a research and results focused, apolitical organisation. We work with government, researchers and those providing services to children and their families.
Our aim is to help children achieve a better life. We focus on heading off problems before they arise.
ARACY is unique in making the link between all areas of wellbeing for young Australians. We also make the link between all areas of government, policy making, research and service delivery to address the issues young Australians face.
We work on these through a national action plan called The Nest.
The Nest
The Nest Action Agenda is Australia’s first evidence-based framework for national child and youth wellbeing, (0-24 years), focussed across six wellbeing domains:
• Loved and Safe • Material Basics • Healthy • Learning • Participating • Positive Sense of Culture & Identity
Like any roadmap or blueprint for change, The Nest Action Agenda relies on the collective efforts of those working towards the same outcome – population level changes in child and youth health and development.
This means that individuals, agencies, programs and services, collective impact and place-based initiatives, government departments and policy makers, research institutions, advocacy groups and representative organisations across the country bring The Nest to life, when they use it to frame their work.
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SECTION 1 AN OVERVIEW OF ARACY
OUR PEOPLE
Our Board
Ms Elaine Henry OAM - BSc (Hons 1) DLitt (h.c.) Board Chair Elaine Henry has been the Chair of ARACY since 2011, having served on the Board since its inception in 2001. Elaine also Chairs the National Breast Cancer Foundation and is a member of a number of boards and committees such as the Australian Government Financial Literacy Board, Financial Literacy Australia, the Early Start Advisory Committee of the University of Wollongong, the Vice-Chancellor’s Industry Advisory Board of the University of Technology Sydney, and the Advisory Board of the Centre for Social Impact. Elaine was awarded first-class honours in Science at Oxford Brookes University in the UK. On returning to Australia, Elaine became the Executive Director of the Cancer Council (NSW) from 1985-1997 and she was awarded a Medal in the Order of Australia (OAM) for her work in cancer control in 1994. She was also recognised with an honorary Doctorate of Letters from UNSW in 2006. In 1998, as CEO of The Smith Family, she led a comprehensive transformation of the organisation focusing it on the power of education to change the lives of disadvantaged children, families and communities across Australia. As part of a social movement, she was a founding member of Social Ventures Australia, inaugural chair of Nonprofit Australia Ltd and Director of the Australian Social Innovation Exchange. Throughout her career, Elaine has served on a wealth of committees and boards at the state, national and international levels, including as chair of the Australian Government’s Stronger Families and Communities Partnership, which had a major role in the development of the Communities for Children initiative, and as a member of the former Prime Minister’s Community Business Partnership. Elaine’s leadership skills have been recognised by many awards including the Lifetime Achievement Award from Research Australia in 2008. She is a Member of the Australian Institute of Company Directors and Chief Executive Women.
Mr Tim Goodwin – LL.M BA and Law (Hons) Tim Goodwin is a member of the Yuin nation, an Aboriginal nation that occupies the southeast coast of NSW. Tim is currently a barrister in Melbourne. He graduated with bachelor’s degrees in arts and Law (with Honours) from the Australian National University in 2007 and with a Master of Laws from Harvard Law School in 2012. Tim was the Associate to The Hon Justice AM North of the Federal Court of Australia from 2008 to 2009 and to the Hon Justice M Bromberg of the Federal Court of Australia from 2009 to 2010. From 2008 to 2010, he was a member of the Steering Committee for the establishment of a National Indigenous Representative Body. This work resulted in the creation of the National Congress of Australia’s First Peoples. Tim is currently a trustee of the Roberta Sykes Indigenous Education Foundation and the Sharing Stories Foundation, and a Board Member of the Victorian Equal Opportunity and Human Rights Commission.
Dr Norman Swan – MBChB FRCP MD (Hons) Causa DCH Host of the Health Report, on the Australian Broadcasting Corporation’s Radio National, and Tonic on ABC News24, Dr Norman Swan was one of the first medically qualified journalists in Australia. He was born in Scotland, graduated in medicine from the University of Aberdeen and later obtained his postgraduate qualifications in paediatrics. Norman also edits his own newsletter, The Choice Health Reader, which is published in partnership with CHOICE, Australia’s leading consumer advocacy organisation. On television, Dr Swan has hosted ABC Television’s science program, Quantum, and been a guest reporter on Catalyst and Four Corners. He hosted Health Dimensions on ABC Television, and created, wrote and narrated a four-part series on disease and civilisation, “Invisible Enemies”, made for Channel 4 (UK) and SBS Television. He also co-wrote and narrated “The Opposite Sex”, a four-part series for ABC Television. Norman Swan has been the Australian correspondent for the Journal of the American Medical Association and the British Medical Journal and has consulted for the World Health Organization in Geneva. He is also co-founder of Tonic Health Media, a company which focuses on communicating to patients and accompanying persons at the point of care promoting evidence-based care.
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SECTION 1 AN OVERVIEW OF ARACY
Professor Stephen Zubrick - MSc MA PhD FASSA FAAMHS Stephen Zubrick currently holds a professorial appointment in the Centre for Child Health Research at the University of Western Australia and is also a Senior Principal Research Fellow at the Telethon Kids Institute where he is Head of the Brain and Behaviour Research Focus Area. He is the Chairman of the Consortium Advisory Group for the National Longitudinal Study of Australian Children and a Member of the Steering Committee for the Longitudinal Study of Indigenous Children. In 2014 he was appointed Deputy Director of the Australian Research Council Centre of Excellence for Children and Families Across the Lifecourse. In 2010 he received a Western Australian Citizen of the Year Award for lifetime contributions to children and young people. Stephen holds several national and international competitive research grants and his research interests include the study of the social determinants of health and mental health in children, studies of the genetic and environmental determinants of language development, and large scale psychosocial survey work in non-Indigenous and Indigenous populations. Over the past 20 years he has been instrumental in designing and implementing the leading Australian studies (national and state) of child and adolescent mental health.
Ms Lisa Paul – AO PSM FAIMF AICD FIPAA FACEL FANZSOG BA (Hons) Lisa Paul AO PSM is a prominent Australian policymaker. As a Chief Executive (Secretary) in the Australian Federal Government from 2004 until 2016, she held national responsibility for all aspects of education from childhood to post graduate and international education, research, science, employment, workforce and workplace relations among others, and was the principal adviser to government on these matters. Since moving to the private sector, Lisa has continued her long-standing interests in all matters educational; the development of a stronger philanthropic focus on social services and policy; and developing further the relationship between education, leadership and productivity. Along with her role at ARACY, Lisa is a Melbourne University Enterprise Professor and Bond University Councillor, and in December 2016 was appointed as a member of the Federal Government’s Naval Shipbuilding Advisory Board. Lisa also serves on the Boards of Navitas, Australia America Leadership Dialogue, Schools Plus, High Resolves, APM, Social Ventures Australia, and was formerly a member of Programmed and the Melbourne Accelerator Program. In 2011, Lisa was made an Officer of the Order of Australia for distinguished service to public sector leadership in key policy and program implementation. In 2003, Lisa was awarded a Public Service Medal for leading the Australian Government's domestic response to the Bali bombings. Lisa is a fellow of the Australian Institute of Company Directors, a fellow of the Australian Council for Educational Leaders, National Fellow of the Institute of Public Administration Australia, a Fellow of the Australian Institute of Management, an Australian National University Public Policy Fellow, a Fellow of the Australian and New Zealand School of Government and is a member of Chief Executive Women.
Professor Gervase Chaney MBBS FRACP FAIM Gervase Chaney is the Dean of the School of Medicine Fremantle, University Notre Dame Australia and a general paediatrician at Princess Margaret Hospital for Children. He was previously the Executive Director of Perth Children's Hospital (responsible for commissioning) in the Child and Adolescent Health Service (CAHS) in Western Australia from 2016 – 2017. He was Executive Director of Princess Margaret Hospital (PMH) in CAHS from 2015 – 2016; Chairman of the PMH Paediatric Medicine Clinical Care Unit 2011 - 2014; and Co-Lead of the Child and Youth Health Network for WA Health from 2005 – 2010. He is Secretary of the Academy of Child and Adolescent Health (ACAH) and was on the Board of Kidsafe WA from 2004 – 2015. He is a past President of the Paediatrics and Child Health Division of the Royal Australasian College of Physicians (RACP) 2010 – 2012 and was on the Board of the RACP from 2008 - 2012. He has been on the Board of ARACY since 2013.
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SECTION 1 AN OVERVIEW OF ARACY
Professor Ngiare Brown (commenced 16 June 2017) Ngiare is a Yuin nation woman from the south coast of NSW. She is a senior Aboriginal medical practitioner with qualifications in medicine, public health and primary care, and has studied bioethics, medical law and human rights. She was the first identified Aboriginal medical graduate from NSW and is one of the first Aboriginal doctors in Australia. Over the past two decades she has developed extensive national and international networks in Indigenous health and social justice, including engagement with the UN system. Ngiare is a founding member and Foundation CEO of the Australian Indigenous Doctors’ Association (AIDA); is a founding member of the Pacific Region Indigenous Doctors’ Congress (PRIDoC); and is Chair of the Health, Rights and Sovereignty committee of PRIDoC. Professor Brown is undertaking doctoral research in law, addressing Aboriginal child protection systems and practice, and has made extensive contributions to Aboriginal and Torres Strait Islander health, research process, bioethics, policy, translation and practice. She is dedicated to Aboriginal child and adolescent wellbeing, and supporting communities to develop initiatives focused on cultural education, and breaking the intergenerational cycles of disparity.
Professor Kristy Muir – PhD GAICD (commenced 15 December 2017) Professor Kristy Muir is the CEO of the Centre for Social Impact (CSI), a Professor of Social Policy at UNSW Sydney and an elected member of UNSW Sydney’s Council. She has worked for more than two decades with for purpose organisations to help understand, measure, and find innovative solutions to complex social problems. Kristy has worked with dozens of government, not-for-profit, corporate and philanthropic organisations to help improve social impact; has won more than $11m in research funding; and has published widely in academic journals and popular media, such as TEDx and The Conversation. Kristy was formerly CSI’s Research Director, the Associate Dean Research for the Faculty of Arts and Social Sciences and the Director of the Disability Studies and Research Centre at UNSW Sydney. She has a PhD in social history, is a graduate of the AICD and, prior to joining academia, worked in the not-for-profit sector.
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SECTION 1 AN OVERVIEW OF ARACY
Our Staff
Name Position Stephen Bartos Chief Executive Officer Dr Rebecca Goodhue General Manager, Projects & Networks Paul Kindermann General Manager, Communications Simon Rosenberg General Manager, Policy Christopher Wood General Manager, Corporate Services
Jing Bai Finance Manager Barbara Barker Research Manager Narelle Barrie Executive Assistant and Office Manager Dale Cook Digital Communications Manager Rhiannon Cook Principal, Collaboration and Engagement Zoya Gill Research and Policy Officer Dr Caroline Ladewig Research and Policy Officer Dr Kristy Noble Principal, Collaboration and Engagement Lisa O’Farrell Project and Network Support Officer Lauren Renshaw Research Officer Kate Sollis Research Data Analyst Kellie Sydlarczuk Events Manager Jacob Wray Research Officer
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SECTION 1 AN OVERVIEW OF ARACY
Our Volunteers
ARACY is supported by volunteer coordinators in each Australian jurisdiction—passionate people working in the child or youth sector with broad networks who help articulate and advance ARACY’s work.
Coordinator-run events include small, informal networking opportunities to help members connect and collaborate. If you would like to connect with ARACY coordinators in your region please visit the ARACY website.
States/Territories Coordinators
Victoria Jasmine Lyons Barbara Minuzzo Jane Price
Queensland Susan Cary
Perrin Moss
Giselle Olive
Australian Capital Territory Wendy Cave Liam McNicholas
Anna Whitty
Northern Territory Sarah Brittle Catherine Phillips
New South Wales Ross Beaton
Rachael Sowden
Western Australia Marianne Knaus
Tasmania Catherine Robinson Lindsay Smith
South Australia Kiran King Julie Petersen
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SECTION 1 AN OVERVIEW OF ARACY
OUR SUPPORTERS
ARACY gratefully acknowledges the support of the following in allowing us to continue our work on behalf of our members and young Australians in 2017.
• Commonwealth Department of Social Services • Commonwealth Department of Education • ACT Government Department of Education • Australian Sports Commission • Commonwealth Department of Prime Minister & Cabinet • Ian Potter Foundation • Vincent Fairfax Family Foundation • Sidney Myer Fund • BUPA Foundation • Beyond Blue through the Parenting Research Centre • Catholic School Parents Australia
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SECTION 2 GOVERNANCE
Board Chair’s Report
Elaine Henry OAM
On behalf of the Board of Directors, it gives me great pleasure to present this Annual Report for 2017.
The past year has been one of achievement and the Board and management team of ARACY are focussed on helping our members to be even more effective in their work in 2018.
The past year has seen many standout moments where, as a membership organisation, we have brought politicians, professionals, practitioners, parents and young people together to work on ways to apply evidence to solving problems facing Australia’s children and youth.
Our Parent Engagement Conference was a huge success, attracting more than 600 delegates and expert speakers from around Australia and the globe. I was very pleased the event was officially opened by Senator the Hon. Simon Birmingham, Minister for Education and Training, signifying both the priority he places on parent engagement and the regard with which ARACY and its members are held in the Australian parliament.
The 2017 Fiona Stanley Forum focused on “Achieving great outcomes for Aboriginal and Torres Strait Islander kids” and we were pleased to welcome The Hon Ken Wyatt, Minister for Indigenous Health to speak with us along with ARACY Board member Professor Ngiare Brown, and Alex Splitt, of Aboriginal Housing Victoria.
We have also continued to make factual and evidence-based contributions to public debates: including a submission and public response to the Royal Commission into the Protection and Detention of Children in the Northern Territory, and calling on Australian Governments to improve family welfare assistance, to ensure the almost 750,000 Australian children growing up in poverty are not trapped in it for their lifetime.
The Board and the ARACY Management team will continue to look for new ways to bring more of our members together for the benefit of young people. I am especially pleased that we have launched our Member Network Directory and have developed a heavy schedule of webinars and events which will provide excellent networking and information gathering opportunities for all our members.
In the coming year ARACY will continue its work to shape the national debate, in particular working in collaboration with Indigenous agencies and young people to develop an Aboriginal and Torres Strait Islander children and young people's outcomes framework.
On behalf of the Board I thank our members for their commitment to ARACY and to our shared vision for young people. We have achieved much in 2017 and will continue the momentum in 2018.
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SECTION 2 GOVERNANCE
Chief Executive Officer’s Report
Stephen Bartos
ARACY moved to a paid membership model during 2017 and we thank those who have taken up and continue to take up paid ARACY membership.
We expect to grow our membership in the coming year by continuing to improve the offering to, and value members receive from, being part of our connected community of practice and research.
In 2018 we are working to increase the number of webinars which we know are a convenient and low-cost way for our members to gain new insights and learn about emerging work.
We also continue to encourage our members to consider featuring their work and their people in ARACY webinars.
We also continue the important work of Government Relations, meeting with Minsters and MPs to tell them about the work we are doing and maintaining relationships in Commonwealth Departments as a conduit between our membership and the research and practice needs of the Australian Government.
In 2017 we have recruited a number of new staff members with expertise and experience in education, medicine, government, and the community sector as well as recruiting an outstanding group of volunteer State Coordinators who work on the ground to bring ARACY members together to share ideas and explore opportunities to work together.
With new staff, State Coordinators and highly active specialist networks (including an emerging Middle Years Network) ARACY is well placed to serve our members and, through them, the children and young people of Australia in the year ahead.
______ARACY Annual Report 2017 11 SECTION 3 The Year In Review
Focussing on First 1000 Days
The first 1000 days, from conception to age 2, is the most critical period of development that shapes children’s long-term outcomes. A First 1000 Days Partnership was formed in response to the limited policy focus on, and public understanding of, the importance of the first 1000 days.
The partnership was launched by The Honourable Dame Quentin Bryce in 2015. The partnership released a major literature review The First 1000 Days - An Evidence Paper – Summary in September 2017.
This joint effort by ARACY members generated significant national media and helped refocus attention on this critical stage in the life of every young Australian.
The First 1000 Days Partnership is an alliance between:
• ARACY • Bupa Australia • The Bupa Health Foundation • Murdoch Childrens Research Institute (MCRI) led by the Centre for Community Child Health (CCCH) • PwC Australia
Case study: right@home
In Australia today, more than one in five children are considered developmentally vulnerable at the time they enter kindergarten (AEDC, 2016). This means they are falling behind their peers in at least one of five categories of physical health, behaviour, emotions, language and communication. Research suggests that when children start school on the back foot, they usually don’t catch up.
Only a small number of programs in Australia are designed to specifically meet the learning and development needs of young children before they enter school. A shortage of evaluation evidence means that we do not know if these are effective in shifting outcomes for children.
right@home is helping fill this gap by providing robust evidence on how sustained nurse home visiting (SNHV) can improve children’s readiness for school, by helping to shape their home, parenting and learning environments. right@home is a relationship-based Australian model of SNHV delivered by highly trained professionals and embedded in the universal health service. It is specifically targeted to improve outcomes for children and their families by building parents’ capacity to provide safe, responsive care and a home environment that supports children’s learning.
Based on the Maternal Early Child Sustained Home Visiting (MECSH) program, it is designed for the Australian context to integrate with and sustainably strengthen the existing Maternal and Child Health service. Beginning during pregnancy and continuing until the child reaches two, parents who take part in right@home receive 25 home visits by a specially trained nurse, who is further supported by a social worker.
right@home is currently being delivered to community members in 8 sites across Victoria.
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SECTION 3 The Year In Review
Partnering with parents to help kids to better at school
A key focus for ARACY during 2017 has been our Parent Engagement Project and ongoing support for the around 700 members of the Australian Parent Engagement Network.
Professor John Hattie describes the ‘parent engagement effect’ which he says is the equivalent of adding an extra two to three years’ education over a student’s school life. As such it can be an extremely cost-effective way for governments and communities to get better educational results for our children.
In 2017 we saw two key landmarks in ARACY’s work on parent engagement.
First was the release of Enhancing parent engagement to help close the gap in high Aboriginal enrolment schools: learnings from Researching Parent Engagement, A qualitative field study in April 2017. The report prepared for ARACY by Professor Margaret Somerville found Aboriginal parents and carers see home and community as the place where most learning takes place, and can struggle to engage with their children’s school-based learning. On the other side, teachers often lack the skills or confidence to engage with Aboriginal and Torres Strait Islander cultures or viewpoints in their teaching. Beyond diagnosing the problem, the research outlines key strategies that could be used to help Aboriginal parents support their children’s educational success. Specialised professional development for teachers, and increased representation of Aboriginal staff in schools and Aboriginal parents on school committees could encourage positive parent- teacher relationships. These relationships may also be enhanced through educational support for parents, programs with outside agencies, and cultural and out-of-school learning for Aboriginal children.
The second landmark was the Australian Parent Engagement Conference. Held in Melbourne in June 2017, it was jointly hosted by ARACY and The Smith Family and supported by funding from the Australian Government.
The primary aim of the conference was to highlight the way parent engagement supports child wellbeing and learning outcomes, with four areas of focus:
o Growing a shared understanding of parent engagement and why it matters o Acknowledging the diversity of contexts in which parent engagement operates o Building a consistent approach to the measurement and evaluation of parent engagement o Highlighting the importance of capacity building to the future direction of parent engagement in the Australian context.
The Conference was opened by Senator the Honourable Simon Birmingham, Minster for Education. It attracted a range of expert speakers from around Australia and around the globe.
The Conference has helped build an ongoing community of practice through our Parent Engagement Network, supported by ARACY staff, with conference resources now publicly available on a dedicated conference website.
WW4K – making evidence of what works bets for kids more available to all
In October 2017 ARACY’s Longitudinal Studies Network launched the What Works for Kids Website. Based on The Nest, it is a rich source of information on programs, practices and tools that define best practice, designed for practitioners, researchers and decision makers.
The website allows anyone investing in child and youth wellbeing to choose a program most likely to address the social or developmental issue of concern in a preventative way, and to know what level of confidence they can have in claims that the program will work.
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SECTION 3 The Year In Review
Case study: The Nest embedded in Tasmanian Government Policy
As a result of ongoing consultations with the Tasmanian Government, its development of the Child and Youth Wellbeing Framework and related policies such as the Strong Families – Safe Kids Implementation Project and Out of Home Care Reforms have been strongly based on The Nest, Australia’s first evidence-based framework for national child and youth wellbeing, developed by ARACY.
The Tasmanian Government’s Child and Youth Wellbeing Framework provides a common language for Government, non-government organisations, the private sector, and the community. Besides the fact that this Government policy is based on and directly references The Nest and its six domains of wellbeing, the general approach is akin to The Common Approach, ARACY’s prevention-focused, strengths-based, flexible way of working to help everyone have quality conversations with young people and their families about all aspects of their wellbeing.
The Strong Families – Safe Kids Implementation Plan 2016-2020 also states that to support the redesign of the Child Protection Service, the Tasmanian Government will promote the use of the Common Approach framework across the service system.
ARACY remains actively engaged with the Strong Families Safe Kids initiative. This is tangible evidence of The Nest and the work of ARACY and its members having a real and positive impact on the lives of Tasmania’s children and young people.
ARACY continues discussions with other state and territory governments to explore how The Common Approach can help their communities better meet their obligations to their young people.
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SECTION 4 OUR FINANCES
Notes 2017 2016 $ $ ASSETS
Current Assets
Cash and cash equivalents 3 2,041,216 1,043,268 Trade and other receivables 4 73,705 66,806 Term deposits 5 35,951 1,410,032 Prepayments 6 31,881 30,962
Total Current Assets 2,182,753 2,551,068
Non-current Assets
Property, plant and equipment 7 21,320 -
Total Non-current Assets 21,320 -
Total Assets 2,204,073 2,551,068
LIABILITIES
Current Liabilities
Trade and other payables 8 248,365 286,037 Government grants received in advance 9 946,364 880,100 Employee benefit liabilities 10 56,957 63,297 Total Current Liabilities 1,251,686 1,229,434
Non-current Liabilities
Employee benefit liabilities 10 3,804 9,263
Total Non-current Liabilities 3,804 9,263
Total Liabilities 1,255,490 1,238,697
NET ASSETS 948,583 1,312,371
MEMBER’S FUNDS
Retained surpluses attributable to Members 948,583 1,312,371
Total Member’s funds 948,583 1,312,371
This statement should be read with the accompanying notes.
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Notes 2017 2016 $ $ CONTINUING OPERATIONS
Revenue 11 4,258,946 3,968,895
Expenses
Employee benefits expense (1,600,716) (1,740,601)
Research partners expense (2,040,071) (521,826)
Research projects expense (19,634) (1,169,404)
Travel expense (89,959) (118,851)
Communications expense (40,486) (33,138)
Premises expenses (149,419) (176,477)
Information technology expense (113,771) (109,864)
Insurance expense (18,044) (18,857)
Depreciation expense (3,479) (531)
Professional fees expense (27,332) (29,344)
Conferences and events expense (474,855) (24,108)
General expense (44,968) (23,191)
Total Expenses (4,622,734) (3,966,192)
Net (deficit)/surplus from continuing operations (363,788) 2,703
Other Comprehensive Income - -
Total comprehensive (loss)/income attributable to members of Australian Research Alliance for (363,788) 2,703 Children and Youth Limited
This statement should be read with the accompanying notes.
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Notes Retained earnings $
At 1 January 2016 1,309,668
Surplus for the year 2,703
At 31 December 2016 1,312,371
At 1 January 2017 1,312,371
Deficit for the year (363,788)
At 31 December 2017 948,583
This statement should be read with the accompanying notes.
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Notes 2017 2016 $ $
OPERATING ACTIVITIES
Receipts from grants and gifts 4,260,945 4,039,631 Receipts from conferences and events 396,720 59,884 Interest received 40,148 53,105 Payments to suppliers and employees (5,049,149) (5,332,447) Net cash flow (used in) operating activities (351,336) (909,827)
INVESTING ACTIVITIES
Proceeds from / (Payments for) investments in 1,374,082 (978,432) term deposits (Payments for) property, plant & equipment (24,798) - Net cash flow (used in) investing activities 1,349,284 (978,432)
Net increase/(decrease) in cash and cash 997,948 (1,888,259) equivalents
Cash and cash equivalents at 1 January 1,043,268 2,931,527 Cash and cash equivalents at 31 December 2,041,216 1,043,268
This statement should be read with the accompanying notes.
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1. CORPORATE INFORMATION
The financial report of the Australian Research Alliance for Children and Youth Limited for the year ended 31 December 2017 was authorised for issue in accordance with the resolution of Directors dated 8 March 2018.
The entity is a company limited by guarantee incorporated in Australia and the liability of members is limited to an amount not exceeding $1. The Directors may impose an annual subscription on any class of membership from time to time and the members within a class which is subject to an annual subscription is liable to pay the subscription. The entity is a not for profit entity for financial reporting purposes.
The entity is established for the charitable purpose of facilitating, co-ordinating and supporting the development of knowledge through scientific research and the effective use of that knowledge which is or may prove to be of value to Australia by enhancing the well being and the life chances of children and young people.
The entity’s principal place of business is 3/60 Marcus Clarke Street, Canberra, Australia.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
The financial report is a general purpose financial report which has been prepared in accordance with the requirements of the Australian Charities and Not-for-profit Commission Act 2012 and Australian Accounting Standards – Reduced Disclosure Requirements. Other mandatory professional reporting requirements and relevant Accounting Interpretations have also been complied with.
The financial report has been prepared on a historical cost basis. The financial report has been presented in Australian dollars.
The financial report has been prepared on the going concern basis.
Statement of Compliance
The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the Australian Charities and Not-for-profit Commission Act 2012, Australian Accounting Standards – Reduced Disclosure Requirements and other authoritative pronouncements of the Australian Accounting Standards Board. The Company is a not-for-profit private sector entity which is not publicly accountable. Therefore, the financial statements for the Company are tier 2 general purpose financial statements which have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements (AASB – RDRs).
New Accounting Standards & Interpretations
There were no changes in accounting policies, new and amended standards and interpretations during this financial year.
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Revenue Recognition
Revenue is recognised and measured at the fair value of the consideration received or receivable to the extent that it is probable that the economic benefits will flow to the entity and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:
Grants Contributions received or receivable are recognised immediately as revenue when:
(a) the entity obtains control of the contribution or the right to receive the contribution; (b) it is probable that the economic benefits comprising the contribution will flow to the entity; and (c) the amount of the contribution can be measured reliably.
If conditions are attached to the grant which must be satisfied before ARACY is eligible to receive the contribution, the recognition of the grant as revenue is deferred until those conditions are satisfied. When grant revenue is received whereby the entity incurs an obligation to deliver economic value directly back to the contributor/transferor, 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/transferor, otherwise the grant is recognised as income on receipt.
Gifts Gifts are recognised on receipt.
Interest Revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.
Conferences & Events Revenue is recognised for conferences and events when it is determined the entity has the right to receive the revenue according to the conference’s or event’s terms and conditions. Additional conference and event receipts are recognised in the statement of financial position as a liability until the relevant terms and conditions deem them non-refundable.
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Current vs Non-Current Classification
The Company presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is current when it is: • Expected to be realised or intended to be sold or consumed in the normal operating cycle • Held primarily for the purpose of trading • Expected to be realised within twelve months after the reporting period
Or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period
All other assets are classified as non-current. A liability is current when: • It is expected to be settled in the normal operating cycle • It is held primarily for the purpose of trading • It is due to be settled within twelve months after the reporting period
Or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period
The Company classifies all other liabilities as non-current.
Cash and Cash Equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Trade and Other Receivables
Trade receivables, which generally have 30-day terms and are recognised initially at fair value, and subsequently measured at amortised cost using the effective interest method, less an allowance for any uncollectible amounts.
Collectability of trade receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off when identified. An allowance for doubtful debts is made when there is objective evidence that the entity will not be able to collect the debts.
Term Deposits
Term deposits in the statement of financial position comprise term deposits with an original maturity of more than three months, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Term deposits may be held as security for Rental Bond arrangements included in lease agreements.
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Income Tax
Under Section 50-5 of the Income Tax Assessment Act 1997, the income of the entity is exempt from income tax.
GST
Revenues, expenses and assets are recognised net of the amount of GST except: • when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and • receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.
Cash flows are included in the statement of cash flows 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, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
Property, Plant and Equipment
Plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is calculated on a straight-line basis over the estimated useful life of the asset. The depreciation rates used for plant and equipment range between 20% and 33% pa.
All asset residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end.
Impairment
The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the entity were deprived of the asset, its value in use is taken to be its depreciated replacement cost.
Trade and Other Payables
Trade payables and other payables are carried at amortised cost. They represent liabilities for goods and services provided to the entity prior to the end of the financial year that are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
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Employee Leave Benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled within 12 months of the reporting date are recognised in employee benefit liabilities in respect of employees’ services up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled.
Liabilities for leave expected to be taken in greater than 12 months of the balance date are shown at the present value of the expected future payments to be made in respect of employees’ services, based on the projected unit credit method. In calculating the liabilities, consideration is given to expected future wage and salary levels, experience of employee departures and periods of service, as well as estimated average discount rates applicable to adjust gross values calculated to net present values. The amounts calculated are treated as non-current liabilities and included in employee benefit liabilities.
Leases
The determination of whether an arrangement is or contains a lease is based in the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.
Operating lease payments are recognised as an operating expense in the income statement on a straight-line basis over the lease term. Operating lease incentives are recognised as a liability when received and subsequently reduced by allocating lease payments between rental expense and reduction of the liability.
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2017 2016 $ $
3. CASH AND CASH EQUIVALENTS
Cash at bank and in hand 585,926 1,043,268 Short-term deposits 1,455,290 - 2,041,216 1,043,268
Cash at bank earns interest at floating rates based on daily bank deposit rates. The carrying amounts of cash and cash equivalents represent fair value.
Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the entity, and earn interest at the respective short-term deposit rates.
4. TRADE AND OTHER RECEIVABLES
Trade receivables 18,946 58,583 Other debtors 339 673 Bank interest receivable 5,856 7,550 GST refundable 48,216 - FBT refundable 348 - 73,705 66,806 Trade receivables are non-interest bearing and as at 31 December 2017 (and 31 December 2016) none were past due or impaired. 5. TERM DEPOSITS
Term deposits - 1,374,083 Rental bond 35,951 35,949 35,951 1,410,032
6. PREPAYMENTS
Prepaid project expenses 20,600 20,141 Prepaid insurance 11,281 10,821 31,881 30,962
7. PROPERTY, PLANT AND EQUIPMENT
At cost 33,755 8,956 Less accumulated depreciation (12,435) (8,956) 21,320 - Movements in carrying amounts: Plant and equipment Balance at the beginning of financial year - 531 Purchase of new plant and equipment 24,799 - Depreciation expense (3,479) (531) Carrying amount at the end of financial year 21,320 -
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2017 2016 $ $ 8. TRADE AND OTHER PAYABLES
Trade payables 73,538 118,001 PAYG tax payable 6,043 26,773 FBT payable - 3,542 GST Payable - 35,355 Accrued expenses 168,784 102,366 248,365 286,037
9. GOVERNMENT GRANTS RECEIVED IN ADVANCE
At 1 January 880,100 1,038,436 Received during the year 1,872,727 1,788,719 Released to the statement of profit or loss (1,806,463) (1,947,055) At 31 December 946,364 880,100
Government grants have been received for delivery of the right@home, Parent Engagement, Chronic Illness and Education Support, Aboriginal and Torres Strait Islander Outcomes Framework and Family and Communities programmes.
The government grant revenue released has no unfulfilled conditions or contingencies attached.
10. EMPLOYEE BENEFIT LIABILITIES
Current Annual leave 51,265 51,395 Long service leave 5,692 11,902 56,957 63,297
Non-Current Long service leave 3,804 9,263 3,804 9,263
11. REVENUE
Revenue from government grants 3,106,727 3,025,446 Revenue from gifts and other grants 751,417 835,904 Revenue from conferences and events 360,654 54,440 Bank interest 40,148 53,105 Total revenues 4,258,946 3,968,895
2017 2016 12. COMMITMENTS AND CONTINGENCIES $ $
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Operating Lease Commitments
Non-cancellable operating lease contracted for but not capitalised in the financial statements for a multifunction photocopier Payable - not later than one year 11,316 11,316 - later than one year but not later than five years 19,803 31,119 31,119 42,435 Operating Lease of Office space at 60 Marcus Clarke Street, Canberra ACT, expiring February 2021 Payable - not later than one year 130,076 130,076 - later than one year but not later than five years 281,831 411,907 411,907 541,983
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13. DIRECTOR AND KEY MANAGEMENT PERSONNEL DISCLOSURES (Continued)
Director Compensation
The compensation made to Directors is set out below.
2017 2016 $ $ Compensation to directors of the Company Nil (8) Nil (6) (number of directors)
No interests are held by Directors.
Key Management Personnel Compensation
The compensation made to staff who were key management personnel is set out below.
2017 2016 $ $ Compensation to staff who were key management personnel of the Company 733,766 (6) 799,617 (5) (number of key management personnel)
No interests are held by Key Management Personnel.
14. EVENTS AFTER THE REPORTING PERIOD
There were no significant events after balance date.
15. AUDITOR REMUNERATION The auditor of the Australian Research Alliance for Children and Youth Limited is Ernst & Young.
Amounts received or due and receivable by Ernst & Young (Australia) is set out below.
2017 2016 $ $ Audit of the financial report of the entity 21,476 20,600
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In accordance with a resolution of the Directors of Australian Research Alliance for Children and Youth Limited, I state that:
In the opinion of the Directors:
(a) The financial statements and notes, of the company, are in accordance with the Australian Charities and Not-for-Profits Commission Act 2012, including:
(i) Giving a true and fair view of the company’s financial position as at 31 December 2017 and of the performance for the year ended on that date; and
(ii) Complying with Australian Accounting Standards Reduced Disclosure Requirements, and the Australian Charities and Not-for-Profits Commission Regulation 2013; and
(b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
In accordance with a resolution of Directors
Elaine Henry, Director
Date: 8 March 2018
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SECTION 4 Support ARACY – Support Australia’s Children and Youth
HOW YOU CAN GET INVOLVED
Join us – TOGETHER we can make a difference.
As an ARACY member, you will join an influential community of researchers, policymakers and practitioners. Visit our website at https://www.aracy.org.au/join-us/become-a-member or email [email protected] to find out more about becoming an ARACY member.
Support ARACY
ARACY needs your support to continue our important work to improve the wellbeing of children and youth. We seek reciprocal partnerships – either through financial support or your professional expertise – with Australian organisations that share our vision that, by investing together, we can improve the life chances of Australian children.
ARACY gratefully acknowledges the generous support of our current partners and supporters. Please contact us on 02 6248 2400 to discuss the possibility of a collaboration between ARACY and your organisation.
CONTACT US
Office: 3/60 Marcus Clarke St, Canberra ACT 2601 Mail: GPO Box 2807, Canberra, ACT 2601 Phone: +61 2 6248 2400 Email: [email protected] Website: aracy.org.au
The Australian Research Alliance for Children and Youth (ARACY) aims to improve the wellbeing of children and young people by collaboratively transforming evidence into policy and practice
aracy.org.au