BOARD OF TRUSTEES
OF THE
TOWNSVILLE GRAMMAR SCHOOL
ANNUAL REPORT
TO THE
MINISTER FOR EDUCATION, TRAINING AND EMPLOYMENT
FOR THE PERIOD
1 JANUARY 2012 TO 31 DECEMBER 2012
ISSN 1837-8544
© Townsville Grammar School 2012 TOWNSVILLE GRAMMAR SCHOOL
0 p I! n r n .1 d o ~ " n c c 1 S /iS
11 March 2013
The Honourable John-Paul Langbroek MP, Minister for Education, Training and Employment, PO Box 15033 CITY EAST Q 4002
Dear Minister
I am pleased to present the Annual Report 2012 for the Townsville Grammar School.
I certify that this Annual Report complies with: · • The prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, and • The detailed requirements set out in the Annual Report Requirements for Queensland Government Agencies.
A checklist outlining the annual reporting requirements can be accessed at www.tgs.qld.edu.au.
Yours sincerely
Greg Walsh Secretary to the Board of Trustees OfTownsville Grammar School
Years 7-12 Pre-Prep-Year 6 www.tgs.qld.edu.au iA 45 Paxton Street 1 Brazier Drive An International Baccalaureate ,..., NORTH WARD QLD 4810 ANNANDALE QLD 4814 World School TABLE OF CONTENTS PAGE
PUBLIC AVAILABILITY OF REPORT 1
LEGISLATIVE BASIS 1
MINISTER RESPONSIBLE FOR ADMINISTRATION OF LEGISLATION 1
PRINCIPAL PLACE OF BUSINESS 1
GOVERNING BODY 1
STATUTORY FUNCTIONS 1
STATUTORY POWERS 2
CONTROLLED ENTITIES 2
EXTERNAL SCRUTINY 2
MACHINERY OF GOVERNMENT 2
STRATEGIC PLAN 2
REVIEW OF STRATEGIC GOALS 4
KEY PERFORMANCE INDICATORS 4
CHAIRMAN'S REPORT 5
REVIEW OF OPERATIONS- PRINCIPAL'S REPORT 6
SERVICES PROVIDED 13
STAFF INFORMATION 16
LIST OF SENIOR OFFICERS 16
PROFESSIONAL DEVELOPMENT PROGRAMMES 17
PERFORMANCE MANAGEMENT SYSTEMS 17
RISK MANAGEMENT 18
SPECIAL INTEREST GROUPS 18
OVERSEAS TRAVEL BY THE BOARD OF TRUSTEES 18
STAFF OVERSEAS TRAVEL 18
INFORMATION SYSTEMS AND RECORD KEEPING 18
CONSUL TANCIES 18
FORWARD PLANS 19
FINANCIAL STATEMENTS (appended) 19
ORGANISATION CHART 20
STATISTICAL INFORMATION 21 PUBLIC AVAILABILITY OF REPORT This report is available to the public on request at the School's Administration Office or www.tgs.qld.edu.au. Enquiries should be directed to: Greg Walsh, Board Secretary, telephone 0747224931, Facsimile 47224994 or [email protected].
LEGISLATIVE BASIS The Board of Trustees of the Townsville Grammar School is constituted under the Grammar Schools Act 1975 and is a Statutory Authority as prescribed by the Financial Accountability Act 2009 and is subject to audit by the Auditor-General.
MINISTER RESPONSIBLE FOR ADMINISTRATION OF LEGISLATION The Minister for Education, Training and Employment is responsible for the administration of the Grammar Schools Act 1975.
PRINCIPAL PLACE OF BUSINESS 45 Paxton Street, Townsville Old 4810 is the main campus address of the School. The Junior School campus is located at 1 Brazier Drive Annandale Old 4814.
GOVERNING BODY The Board of Trustees of the Townsville Grammar School was constituted on 16 Apri11888. The Board consists of seven members appointed by the Governor in council for four years of whom:- ( a) four are persons nominated by the Minister; {b) three are persons who have donated or subscribed to the School and elected as prescribed by the Act.
The term of the Board as constituted began on 18 November 201 0 for a period of 4 years.
Members of the Board perform their duties on a part-time basis for no remuneration.
The Board held nine (9) general meetings during 2012.
Membership of the Board as at the 31 December 2012 was:-
CHAIRMAN Judge S. Durward S.C., LL.B. Elected Member DEPUTY CHAIRMAN MrJ.Johnson B.Tech. (Civil} Ministerial Appointment MEMBER Mrs A. Johnson B. Bus (Ace) LLB Ministerial Appointment MEMBER Mrs K.Biomberg B.Ed., Dip. Teach Elected Member MEMBER Mr G.Bell Dip. Teach Elected Member MEMBER Mrs D Giudes Ministerial Appointment MEMBER Mr B McKay Ministerial Appointment
STATUTORY FUNCTIONS The functions of the Board of Trustees of the Townsville Grammar School are:-
(a) to supervise, maintain and control the conduct of the school for which the board is constituted; {b) to erect, alter, add to, purchase or sell buildings used or to be used for or in connection with the school; (c) to effect general improvements to the premises used or to be used for or in connection with the school; {d) to provide in the school courses of instruction; (e) to make with respect to - (i) fees and charges to be paid in relation to students enrolled or to be enrolled at the school; and (ii) the management and control of the school; and
Page I (iii) the discipline and conduct of students enrolled at the school. STATUTORY POWERS The Board shall have and may exercise and perform such powers and functions as are conferred or imposed upon it by or under the Grammar Schools Act 1975.
(a) The power to establish trust funds and to accept gifts and the like subject to conditions. (b) The power to establish investment common funds. (c) Appointment of employees. (d) Superannuation scheme. 1) The Board may - a) establish or amend superannuation Schemes; or b) join in establishing or amending superannuation schemes; or c) take part in superannuation schemes. 2) The auditor-general may audit the schemes. 3) Subsection (2) is subject to the Financial Accountability Act 2009 . . (e) The power to enter into financial arrangements.
CONTROLLED ENTITY The Board of Trustees of the Townsville Grammar School administer a Building Fund established in accordance with "The Charitable Funds Act 1958". The fund is audited by the Queensland Audit Office. The financial details are included in the attached statements. The fund is the "Townsville Grammar School Building Fund". The purpose of the fund is to provide for the acquisition, construction or maintenance of the School buildings.
EXTERNAL SCRUTINY The Board of Trustees is responsible for the preparation and fair presentation of the financial report in accordance with prescribed accounting requirements identified in the Financial and Performance Management Standard 2009. In accordance with this, general purpose financial statements pursuant to section 62(1) of the Financial Accountability Act 2009 are prepared. The financial statements are subject to annual audit under the Auditor-General Act 2009.
MACHINERY OF GOVERNMENT On Tuesday 3 Apri12012, Education, Training and Employment Minister John-Paul Langbroek was sworn in to the Legislative Assembly of Queensland by the Queensland Governor, Her Excellency Penelope Wensley AC, with Saxon Rice MP appointed as the Assistant Minister for Technical and Further Education.
STRATEGIC PLAN 2009-2015
Mission Statement To provide a best practice, independent school environment within which students enjoy mutual respect, a sense of pride and can achieve their personal best in academic, cultural and sporting endeavours. Vision To grow Townsville Grammar School to maintain pre-eminence in North Queensland. Critical Success Factors • Leadership of the Principal; • Quality and commitment of all staff; • High expectations of student achievement and behaviour; • Strategically focused Board with a strong relationship with the Principal; • Sound financial base.
Page2 Enrolments • Junior School to be 4 streams P- 6 by 2015; • Townsville Grammar School will pursue a consolidation model of enrolment growth in the current economic circumstances but then pursue a more aggressive model as conditions improve. Educational Offering • Establish appropriate schooling structures and programmes which maximise student potential within a single School framework: - P-6 Junior School - Annandale Campus - 7-9 Middle School- North Ward Campus - 10-12 Senior School - North Ward Campus • Develop best practice program delivery- teaching, learning and caring; • Maximise OP outcomes for all eligible students; • Provide a best practice co-curricular program staffed primarily by TGS personnel. Boarding • Build on our strength as the pre-eminent co-educational boarding School in North Queensland; • Boarding facilities are sustainable over the next 4 years (2009- 2013) given the School's preference to retain a model of "excess demand for boarding". • Attract and retain quality boarding staff. Staff Development • Ensure competitive and attractive remuneration for all staff; • Provide attractive professional development opportunities; • Further develop staff facilities and working conditions; • Optimise the efficiency and effectiveness of the Senior Management team. Marketing and communicati.ons • Strengthen links with alumni to ensure an ongoing base of support for the School's future; • Build stronger relationships with the local, national and international School community; • Maintain the opportunity for parents and friends of the School to interact as a positive School community. Property, facilities and resources • Prepare a master plan for physical facilities; Governance and management • Manage the succession of membership of the Board to ensure enhanced effectiveness and a continued strategic focus; • Provide ongoing governance training to the Board within the School. Funding the Vision • Establish and resource a TGS Foundation to underpin fundraising and the future development of the School; • Prepare a financial plan for the life of this strategic plan. The Values of Townsville Grammar School • Personal best- a commitment to personal best achievement by students in all their endeavours; • Best practice- a commitment to organisational critical reflection and incremental improvement; • Mutual respect- a commitment to ensuring that everyone is valued and a School ethos where there is: - Respect for self - Respect for each other
Page3 - Respect between staff and students - Respect for the fabric, ethos, history and facilities of the School. • Shared leadership - everybody in the School from Board to staff to students accepts responsibility for maintaining the values and standards of the School; • Responsive to our community- an ongoing commitment to listen, to discuss and to take action in the best interests of the whole School; • Staff are valued as an integral component of the ongoing success of the School.
REVIEW OF STRATEGIC GOALS >- In September 2005 the Board engaged a consultant to facilitate a workshop to review progress on the Strategic Plan to date.
It was agreed that 6 priorities will be the focus of the School's strategic thrust over the medium to long term: • A building programme to cope with expanded enrolments at the North Ward and Annandale campuses; • A focus on attracting, developing and retaining high calibre teaching staff; • Adoption of a growth model which could include development of a third campus in a new growth area of Townsville; • A strategy for the boarding element of the School's offering and operations; • Continued focus on improving academic outcomes; • A more structured approach to maintaining contact and fostering relations with alumni.
Further, it was agreed that tasks previously identified in the Strategic Plan that are yet to be completed will receive greater priority.
These priorities remain the focus of the Board of Trustees. >- In March 2007 a Strategic Capital Developments Timeline for the period 2007-2014 was developed as a charter for future capital works.
>- The Board met twice during 2012, in addition to regular Board meetings, to consider the strategic development of the School's infrastructure.
)'> A Building sub-committee met on a monthly basis to ensure strategic developments identified in the strategic plan progressed as planned.
KEY PERFORMANCE INDICATORS
Enrolments 2012 2011 2010 2009 2008 SECONDARY 806 836 830 827 829
PRIMARY 656 599 570 575 483
TOTAL 1462 1435 1400 1402 1312
BOARDING 146 145 151 150 145
The increase in enrolments over the last five years indicates the school is meeting its strategic goals: • Developing a best practice program delivery in teaching learning and caring. • Providing a best practice co-curricular program. • Building on the schools position, as the pre-eminent boarding school in North Queensland.
Page4 Operating Efficiency 2012 2011 2010 2009 2008 Total income $27,214,301 $ 27,528,208 $ 25,622,297 $22,484,823 $19,818,457 Operating Surplus before Depreciation and Interest expense $4,989,924 $6,791,819 $ 6,594,485 $4,884,308 $3,275,570
Student Numbers 1462 1435 1400 1402 1312
Operating Efficiency 18% 25% 20% 22% 17%
Per Student $3413 $4733 $4710 $3484 $2497
Operating efficiency is measured as the surplus from every dollar of gross revenue. Benchmark suggested by Somerset Education for similar schools (based on year ending 31 December 2011 data) is 13%.
Debt per Student 2012 2011 2010 2009 2008 Borrowings at end of Financial year $14,260,171 $15,498,506 $16,841,732 $12,135,578 $10,174,494
Student Numbers 1462 1435 1400 1402 1312
Debt per student $9,754 $10,800 $12,030 $8,656 $7,755
REVIEW OF OPERATIONS- PROGRESS TOWARDS GOAL ACHIEVEMENTS
CHAIRMAN'S REPORT
In my annual report last year, I referred to the comprehensive master plan for the North Ward Campus. A brochure was sent to parents this year and a copy of this is available on the School's website.
The development proposals are exciting and, whilst building and ground works on a functioning campus is a challenge, the Board of Trustees is confident that the implementation of the master plan can be done with minimal interruption to teaching, learning and other activities in the School or to the boarding environment. Whilst the Board of Trustees is still in the process of prioritising works within the master plan, one of the key elements of the plan is the building of a new road access to Landsborough Street and the creation of a cul-de-sac for traffic along what will primarily be a pedestrian passage through the central part of the School, other than for work and emergency vehicle movements.
I will keep the School community informed as the prioritisation of the master plan implementation is determined. A further development that has exciting potential is the rehabilitation of School House, the venerable century-plus building on the North Ward Campus. The Conservation Management Plan developed by the School, with its heritage architect, received an award at the recent Queensland Heritage Awards. The Board of Trustees is working with its heritage and local architects to prioritise a works plan for this project to commence in 2013.
Next year is the 125th anniversary of our School. It is a significant milestone that will be celebrated by a series of special Board, School, student and community events during 2013. Our School has come a long way since its humble beginnings in 1888. Meanwhile, the completion of works at the Annandale Campus continues and the School has made an application for provisional accreditation for the proposed second Junior School Campus at North
PageS Shore. The first part of the full accreditation process, which is a statutory requirement for all new schools in Queensland, should be completed in January, 2013. Every parent in the School will be only too well aware of the debate about funding of independent schools and the vision of governments to raise the performance of state schools. The Board of Trustees supports that vision in its holistic context, provided no disadvantage - financial or otherwise - flows to our parents and our School community. The Board understands the pressures that parents experience - each member, after all, is a current or former parent of students who attended our School. The School is a multimillion dollar business which requires careful and skilled corporate governance to endure and grow. However, that business is about people - students, parents and staff - and about community and the presentation of a first-class educational opportunity - that fact is always at the forefront of the Board of Trustees decision-making process.
Our Year 12 students are about to embark on their life journey - the purpose, one might say, of the years of preparation through family and school education and collegiality that those students have achieved. The Board of Trustees congratulates our departing students and wishes them every success in their careers and adult lives. The achievements of our students across all of the activities in the School in 2012 have been outstanding. Once again, the academic results have been wonderful and the Board of Trustees is grateful for the dedication of our highly valued teaching staff in the delivery of our first class educational programme. We also acknowledge the valuable contribution of our staff overall. I commend the Senior Management team for their leadership. Mr Greg Walsh has the unenviable task of reporting to the Principal as Business Manager, and also to me as Chairman in his role as Board Secretary. The Board of Trustees acknowledges his valuable service in both roles. This has been a difficult year for School Principal, Mr Richard Fairley, as you all know. Mr Fairley and I have worked closely together through the year and the Board is grateful for his recovery and delighted that he has accepted our offer to extend his contract. The Board acknowledges Mr Fairley's continued astute and skilled principalship of the School in 2012.
I personally thank my colleagues on the Board of Trustees for their support of my Chairmanship and that of the Deputy Chairman, Mr John Johnson and for their voluntary service to the School as Trustees. Next year will be an exciting celebration of our School's 125 years. My fellow Trustees and I look forward to joining the whole of the School community in that celebration through 2013. Judge Stuart Durward SC CHAIRMAN, BOARD OF TRUSTEES
REVIEW OF OPERATIONS- Principal's report
1 As we prepare for the celebration of our 125 h anniversary next year, Townsville Grammar School is now the largest of the eight Queensland Grammar Schools that have their origins in the Grammar Schools 1 Act of 1860. The School opened its doors for the first time on the 16 h April, 1888 with 20 dayboys and 3 boarders. Today, the School has in excess of 1,500 boys and girls enrolled from Pre-Prep to Year 12, including 150 boarders from Years 7 to 12. We are very proud of the fact that we have continuously provided boarding as an educational option for remote and rural families since our foundation.
Very few schools in Queensland or Australia enjoy the landmark position that Townsville Grammar commands in terms of its history, reputation or regional status as a school of academic excellence. Of course, being a high performing school has its challenges in terms of not only maintaining our core values but also ensuring that both staff and students are committed to a culture of continuous improvement. Most, if not all schools have a school motto, but few manage to capture the essence of their raison d'etre as well as Grammar's 'bonus intra, melior exi'.
The School opened the year with a record 1513 enrolments, including a waiting list for boarding places. In 2013, the School looks set to commence with a record enrolment of Year 7 students, as many families look to pre-emptively take full advantage of our middle school environment prior to 2015. Depending on
PageS Queensland Government capital funding, we are planning for additional classrooms and boarding capacity by 2015 to accommodate the movement of Year 7 into secondary, across the state.
The annual release of national literacy and numeracy test results for Year 3, 5, 7 and 9 students has opened up a wealth of longitudinal data and an opportunity for system-wide and individual school analysis. In fact, it would be fair to say that, as a school, we have thrived on this insight into our relative strengths and weaknesses and associated programmes and pedagogy. We benchmark our NAPLAN performance against a whole range of indicators as we constantly challenge ourselves to provide even better programmes for our students. Our data analysis has, to date, been very affirming, with many diverse indications of enhanced outcomes over recent years.
Following the release of the Courier Mail Queensland Schools Guide website earlier this year, Townsville Grammar School was rated as one of the top 2008-2011 NAPLAN performing schools in Queensland; being one of only three schools, outside of Brisbane, that was ranked in the 'top 10' on their Primary and High school tables. No other school in Townsville featured in these 'top 10' rankings and the fact that TGS featured in both categories was an outstanding achievement.
The Courier Mail also reported very favourably on Townsville Grammar in terms of Year 12 Overall Position (OP) and tertiary entrance outcomes. For the period 2007-2011, Grammar was ranked in the 'top 25' schools in Queensland on OP1-15 results and in the 'top 10' schools in Queensland for successful QTAC applications, with a remarkable 97.8% of Grammar applicants, receiving an offer of university placement. These results are particularly impressive given that over 95% of our students undertake pre-tertiary, i.e. OP or International Baccalaureate Diploma (lBO) courses.
Perhaps, nothing else quite captures the essence of our desire to challenge ourselves, than the decision, to introduce the International Baccalaureate Diploma as a Year 11 and 12 course of study in 2010. The IB course is in place as an alternative to the OP courses taken by the majority of university bound senior students in Queensland. The internationally acclaimed IB has not only provided our staff and students with access to a world class curriculum but positioned the school as an internationally accredited World School, in regional Australia. Interestingly, this has brought with it the challenge of distancing Grammar from a narrower OP view of Year 12 success. This is an interesting challenge for us, because historically, our OP results have been incredibly strong and now of course, a number of our best students do not feature in published OP outcomes because they achieve IB Diploma results instead.
In 2011, the Year 12 cohort comprised 152 OP students, 12 IB Diploma candidates and 7 non-OP students. In the School's best result since 1992, 40 students, (26% of the OP eligible cohort) achieved an OP1-4 result, compared with a State average of 14%. Seven of these students earned the highly acclaimed OP1 outcome, placing them in the top 2.6% of Queensland.
Our inaugural cohort of IB students performed remarkably well and exceeded world averages. We congratulate these students and their teachers for their commitment to teaching and learning in an environment where individual performance is measured by individual results. Eleven students (92%) qualified for the prestigious IB Diploma. All IB students must undertake a second language as part of their Diploma studies and our results in Spanish were particularly pleasing with 8 students achieving a GPA of 5.5/7.0. All our IB students gained tertiary admission to their courses of choice.
1 The 15 h annual Cum Laude Ceremony held in July was a significant highlight in the academic calendar. Invited guest, Flight Lieutenant Cavin Wilson, past student and Dux of School (2005) added a special presence to the occasion. It is wonderful that this particular event has matured sufficiently to now enable our recent Past Grammarians to return as special guests. Inevitably, these young men and women reflect on the importance of the culture of Cum Laude as a motivating factor in their time at the School.
1 To coincide with the 20 h anniversary of the introduction of the OP system in Queensland, Flight Lieutenant Cavin Wilson assisted in unveiling a new OP1/IB Honour Board to acknowledge 111 Past Grammarians who, to date, have achieved the prestigious OP1 (or IB equivalent) result.
2012 has been another very positive year for the Annandale Campus. The Junior School, now in its 16th year of operation, is fast approaching its capacity as a 4-stream school. With the construction of 2 new
Page7 Prep classrooms in 2013, the Campus will reach its maximum classroom capacity in 2014, 12 months ahead of schedule. The Board of Trustees has strategically secured a site for a second Primary campus at North Shore and we are currently in the process of gaining accreditation for that proposed campus through the Non State Schools Accreditation Board.
A number of themed weeks were celebrated during the course of the year and these included the annual Celebration of Boarding Week, Bullying Awareness Week and Drug and Alcohol Awareness Week. In 2013, the School will look to expand this highly successful approach to pastoral care and exploration of social issues with the addition of a Multi-cultural Awareness Week, e-Safety Week, Health and Well Being Week, Sun-safety Week and Road Safety Week.
In an exciting development for the pastoral care of students, the three Heads of School travelled to Geelong Grammar School in August to learn about their highly regarded Positive Education approach to pastoral care and student well-being. Positive Education is derived from research based positive psychology and a key tenet of Positive Education is that the skills and mindsets that promote well-being can be explicitly taught and role modeled within schools. As a school, we plan to adopt aspects of Positive Education at Grammar over the next few years, as we look to enhance our pastoral care of staff and students.
An annual report such as this one would not be complete without special mention being made of our residential staff and our boarders. Boarding continues to offer a special dynamic, as it has done so for nearly 125 years. With around 150 boarders from rural Queensland and overseas; living, playing and learning on campus, the sense of community generated, is often the beginning of life-long friendships for many.
Boarders continue to provide the backbone of many of our sporting teams. Boarders are also well supported academically, by a significant number of teaching staff who visit the boarding houses and provide tutorial assistance during the course of the year.
In the aftermath of the decommissioning of historic Schoo/ House as a residential facility at the end of last year, the introduction of the new Paxton House flats adjacent the School has proven a very popular senior boys facility. Given the success of this satellite model of boarding, an additional residential property adjacent the School boundary has been acquired for further niche boarding in 2013. With the air-conditioning of the main Parker Hall facility planned for the beginning of next year, all of our boarders will return in January to air-conditioned residential facilities. This much anticipated project will cost in the vicinity of $350,000.
In August, at a special presentation in Brisbane, Deputy Chairman of the Board of Trustees, Mr John Johnson, accepted on behalf of the School, a Silver Award from the National Trust for our Conservation Management Plan for School House. This Plan will form the basis of a staged refurbishment of the heritage listed building, commencing with a restoration of the northern facia and verandah. These works are planned to begin next year, to coincide with the School's 125 anniversary celebrations.
The Modern Language Faculty continues to be very active in promoting a love of languages within the student community. We take considerable pride in the fact that we offer 5 foreign languages (Indonesian, Japanese, Italian, French and Spanish) across the School, including IB French and Spanish. The School has recently been identified as one of only 8 schools in Queensland that maintains a commitment to Asian languages and, as a consequence, we have been invited to participate in an ISQ facilitated Asian Languages - Student Retention project.
The resource collections at both the Tail Library on the Annandale Campus and the PF Rowland Library on the North Ward Campus have continued to expand, with each library adding around 1800 new resources designed to provide access to quality information, a key factor underpinning academic success in schools. Whilst most of the resources consist of conventional print materials, we are also beginning to offer students a range of e-resources. This is in keeping with the changing nature of publishing and the availability of information via the Internet. This has resulted in an increase of the number of e-books and electronic databases that TGS students can access.
PageS The Tail Library, now in its second year of operation, boasts a modern, aesthetically pleasing ambience, which attracts a large number of students who enjoy browsing the curved shelving, or nestling into one of the funky chairs. The PF Rowland Library is also a bustling hive of student activity especially during the breaks and after school, with students using computers, playing chess, reading or doing research and homework.
The uptake of TAFE and Townsville Creative Technologies College (TCTC) courses as Thursday afternoon electives is very popular for many students in Years 10 to 12. Programmes range from automotive engineering, computer aided drafting, printing and graphics, game programming, hospitality, coffee making, pastries, cakes and yeast goods, responsible service of alcohol, hairdressing, beauty therapy and sports trainer courses. In addition to the above, a small number of students have taken up the option of school based apprenticeships or traineeships. Sadly, TAFE policy will preclude our Year 10 students from attending such courses in 2013.
In supporting teaching and learning processes across the School, a programme of upgrading and expanding Information Technology facilities on both the North Ward and Annandale campuses, continued throughout 2012.
In addition to a specialised computer (media) room in the Tail Library, each classroom at the Junior School now has at least two computers and an Interactive White Board and data projector. To further enhance flexibility, the campus now has four mobile trolleys of laptops that can be shared between classes. Students and staff at the North Ward campus began the year with 110 replacement notebooks. Student computers in the boarding houses were upgraded and additional computers added. The final allotment of DER equipment has been finalised bringing to 1:1 the ratio of computers per student for Years 9 to 12.
The provision of data projectors and sound systems has been undertaken progressively over the last few years and now all main classrooms on both campuses have a data projector with a sound system. An upgrade of the AV controls in 10 rooms at the North Ward campus now allows a consistency throughout the School and enables teachers to use their laptops seamlessly with the AV equipment in the classrooms. At North Ward, wireless access has been progressively strengthened, giving the School nearly 100% wireless network coverage. This allows all staff and students access to our network from all parts of the campus, creating the backbone essential for optimum use of facilities.
In terms of teaching and learning, the trial of 'Moodie' our Learning Management System, has been a pleasing success. Over 500 students and in excess of 30 teachers have been involved in the trial, offering an abundance of feedback regarding how we can organise the structures and formats with this system so that it best meets our needs. One of the biggest benefits of 'Moodie' is that our students can now access and/or submit subject documents, take a quiz or submit a query to their teacher, anywhere, any time of day.
In terms of the Arts at Grammar, the official opening of the $4.1 m Performing Arts Complex at the North Ward campus in April, was a particularly special occasion. The construction of this multi-million dollar facility, clearly re-affirmed the performing arts as a pivotal component of the School's holistic curriculum. The naming of the centre-piece facility, the Perry PA Space in honour of Past Grammarian, Past Parent, and former long serving staff member and Head of Drama, Mrs Glennys Perry was most fitting. To the degree that Glennys Perry was the 'heart and soul' of the development of Drama at Grammar, her iconic contribution to the School will be embedded within the soul of the facility and its users, for generations to come.
The new facility has been built first and foremost as a teaching and learning centre and provides students with real theatre amenities, including dressing rooms, costume rooms, lighting, audio visual and bio-box facilities. The fact that the School has 77 senior Drama students in Year 12, including 6 IB Theatre students, makes Grammar one of the strongest Performing Arts schools in the Queensland, if not Australia.
The PA Complex has not only won the acclaim of staff and students but also the Master Builders
Page9 Queensland, with the building winning 'project of the year' in North Queensland. This award, for buildings less than $5m, brings great credit to the builders, Abigroup and School architect, Mr Arthur Schrock. In assessing the building, the judges noted that the building facility was architecturally complex, including a number of different shapes and forms, construction methodologies, acoustic and aesthetic considerations, specialist lighting and audio visual requirements. The new PA Complex includes various dance and performance spaces, staff facilities and has been designed to cover a diverse range of performing arts, including dance, music and drama.
During 2012, in addition to daily classes, the PA Complex has been used after hours for NIDA workshops, Bell Shakespeare auditions, Trinity College examinations, the Year 7 Concert, the Music Ensembles Showcase, Year 12 Drama performances and as home for the newly established TGS Dance Troupe. In preparing for the 2013 School Production, The Servant of Two Masters, a classic comedy written in 1750 by Carlo Goldoni, it is anticipated that the Perry PA Space will be invaluable as a rehearsal venue.
2012 has been a busy and fulfilling year for Music at Townsville Grammar School. The Music Faculty has continued its support for the international humanitarian charity, Musicians without Borders, with a further donation of $1,000 made from contributions received at various concerts throughout the year.
The Music programme continues to receive tangible assistance from families and supporters within the School community and in this context we are absolutely delighted to have recently taken delivery of 7 new Wenger four-step Choral Risers. Two of the risers are in the Junior School Arts Cottage and 5 are in the Music Centre. These premium quality risers allow for our choirs to rehearse and perform in an ideal choral environment. The School has been able to purchase the risers due to the support of the Parents Network and the generosity of individual sponsors. The Black and Gold Committee also generously donated a new Yamaha upright piano for use in the Perry PA Space. This is the third piano which the Black and Gold Supporters have provided for the School during the past five years.
At the Annandale Campus, the Minors Choir (Years 1 to 3), Majors Choir (Years 4 to 6) and Junior School Boys' Choir all continue to grow from strength to strength. The Year 3 Strings programme has been running for five years and Andante Strings (Years 4 to 6) has made excellent progress throughout the year. The auditioned group, Allegro Strings, is now performing without a conductor. Acoustic Guitars, Flutes, Recorders, Clarinets and Saxophone Ensembles all perform regularly. These musicians feed into our Junior School Band, which has almost doubled in size.
Curriculum Music remains the foundation of our Music programme. All students from Prep to Year 7 receive regular classroom Music lessons. Music is a popular elective subject for students in Years 8 to 12. The new Middle School Boys' Choir has given boys further opportunity for enriching their lives through vocal performance. Equally pleasing, is the growth in the Senior Girls' Vocal Ensemble, which has tripled its size in a year.
Townsville Grammar School's ongoing commitment to Community Service continued in 2012 with Community Service groups, together with the Interact Club, raising awareness and funds for some very worthy causes.
The Annandale Campus held its annual World Families Australia coin trail. Money raised from this event was used to sponsor an Ethiopian child, which the Junior School has done for many years. Over $3000 was raised from the Junior School Funky Hair Day and Monsters Ball and donated to the Sian Mariam School in Ethiopia.
Jillian's Day, named in memory of 17 year old Past Grammarian Jillian Hardy, who passed away in 1998, was celebrated on both campuses in October. This uniquely special Grammar day is used as an opportunity to remind all in our community about the insidious nature of skin cancer and the importance of sunsmart practices. All donations received on Jillians's Day are allocated to cancer research charities.
The Starlight Foundation benefited from a donation from the Middle School Citizenship Committee. Lunch-time fund raising activities were well supported by Middle School Students for this cause.
Page 10 The annual Relay for Life was postponed due to inclement weather earlier in the year. Although students were not able to participate in the relay itself, over $5,000 was raised through lunch time events and initiatives for this worthy cause.
The School's annual Red Cross Blood Drive was held on the last day of third term. Both students and staff donated much needed blood at the Red Cross donormobile, positioned outside the School.
Members of the North Ward Interact Club have been very active in community service work. The Food Appeal resulted in the single biggest donation of non-perishable food items (over 2,000 meals) to Food Relief NQ who redistributed these food items to needy locals. The proceeds from the sale of cakes and muffins (at lunch-times), soft drinks (at swimming carnivals), bandannas (on Ji/lian's Day) and an Easter egg drive went towards Canteen (supporting Australian Teenagers suffering from Cancer) and funding shipping costs to send school books to a Rotary charity school in East Timor.
Members of Interact spent many lunchtimes counting, folding, preparing and packing two hundred birthing kits to assist the Townsville Zonta Club with their Birthing Kits Foundation Project. These kits were sent to third world countries to ensure the better health of mothers and babies in the birthing process. The Interact club paid for the items to go into the kits, assembled the kits and paid for their postage to a needy international destination.
Highlights of the sporting year have included 'back to back' Girls VI\\ Head of the River titles, 12 Netball teams and 6 Rugby teams qualifying for their respective finals and 88 students achieving individual recognition through North Queensland, Queensland and Australian representation, across 27 sports.
The Swimming programme, under the direction of Head Swim Coach, Mr Glenn Beringen, strategically took an exciting new direction in 2012 with the development of the Kokoda Spirit Swim Club. Townsville Grammar students now enjoy the opportunity to access two stages of coaching to accommodate their interests and personal development in the sport of swimming. The Swim@Grammar programme remains open to all students for general fitness and stroke development, whilst the Kokoda Spirit Swim Club provides a more targeted approached for advanced swimmers.
Sporting tours form an important component of the sporting programme at Townsville Grammar School. Tours are offered to Club Rugby and Netball players at the Junior, Middle and Senior Schools and provide our students with the experience of travelling regionally, interstate and abroad. Our Rowers, also travel to regional championships in Queensland. In 2012, the Junior School Rugby and Netball tour travelled to Cairns during May and played against Trinity Anglican School and St Andrews College. The Middle School Rugby and Netball tour travelled to Canberra and Sydney during the June holidays and played against Canberra Girls Grammar, Radford College, St Edmonds College, St Clare's College and St Luke's Grammar. The Senior Rugby squad travelled to the United Kingdom in September. On this tour, the boys played games in Ireland, Scotland and England, with matches against Colaste lognade in Galway, Catholic University School in Dublin, Gordonstoun in Inverness and Robert Gordon College in Aberdeen.
In Club Rugby, the School fielded 9 teams with 170 registered players in the Townsville and District Rugby Union competition. Six Grammar teams competed in the finals with the Under 10 Gold team, winning the Premiership and the Under 11 Gold team and the Under 17s being Runners Up.
In Club Netball, the School had 226 players in 26 teams in the Townsville City Netball Competition. At the end of the minor round 12 of the 21 eligible teams made the semi-finals with Grammar 11 and 21 finishing as minor premiers. Of these teams, 7 played in Grand Finals with Grammar 4, Grammar 11, and Grammar 12 winning their respective Premierships.
Rowing@Grammar has become an increasingly competitive component of the School's sporting programme. In 2012, Grammar fielded its largest ever team of 72 athletes.
At the A// Schools Head of the River Regatta, the Girls 1' 1 VIII won the coveted title for the second year in a row. The Boys 1'1 VII\ placed 2nd. In overall point score, the Girls team placed 2nd and the Boys team
Page 11 placed 3'd
This year Townsville Grammar has over 60 students who participated in the Duke of Edinburgh programme.
A Bronze practice expedition was conducted in May in the stunning Running River Gorge and Puzzle Creek area near Hidden Valley and a Test Expedition was completed in August that saw students trek through the magnificent rainforests of Mt Spec National Park near Paluma.
In July, our Silver candidates completed a sailing expedition on board the Queensland Training Sailing vessel 'The South Passage'. For 4 days and nights the candidates became part of the crew learning how to sail and navigate a working tall ship around the pristine waters of the Palm Island Group and the Great Barrier Reef.
TGS Chess enthusiasts have done very well in the Gardiner Chess Competition which runs interschool tournaments three times a year for students in the Primary and Secondary school sections throughout the State. Grammar teams in both the Primary and the Secondary sections placed second in the Finals of the Townsville District competition.
Since the School's last Annual Report, a significant financial commitment has been allocated to improving the fabric of the School to ensure an excellent physical environment for both students and staff. Approximately $2,143,000 has been expended on infrastructure development in 2012, i.e. just under $8.113m during the course of 2011 and 2012. This includes completion of the new Performing Arts Complex at North Ward, refurbishment of the North Ward Pool toilets and the refurbishment of the Paxton House boarding facility. The School has also allocated $395,000 to extensive AV/IT upgrades, and $1.189m for new or upgraded boarding facilities and amenities.
Grammar has been greatly assisted in 2012 by very generous support from the Black and Gold Support Group and the TGS Parents Network. The Black and Gold group purchased a new Yamaha piano ($9750) for the PA Complex and the Parents Network contributed over $40,000 towards various student amenities, including water bubblers at the Junior School, choral risers, Speech Night perpetual prizes and a mobile coffee machine for Hospitality students. The Parent Networkers have supplemented their parent levy funds by hosting the Grammar Golf Day, the annual Melbourne Cup Luncheon and catering at sports carnivals.
The support of a significant number of families who make contributions to the School's Building Fund is gratefully acknowledged. These tax-deductible donations are particularly important for the School's ongoing infrastructure development. In 2013, these funds will be instrumental in facilitating the air conditioning of the Parker Hall boarding house and the new Pre-Prep (Stage 2) classrooms.
After 14 years of distinguished service, Deputy Chairman, Mr Ken Pickard has resigned from the Board of Trustees, due to his relocation to Brisbane and associated work commitments. Ken provided astute business and financial acumen at this corporate governance level and his extended service to the School community is acknowledged with unqualified gratitude.
The School continues to be governed by a highly committed, prudent and visionary Board of Trustees, led by Judge Stuart Durward and Deputy Chair, Mr John Johnson. As Principal, I am very fortunate to be supported by such a dedicated Chairman and Board. In particular, this year has had its unique personal challenges and I formally acknowledge the Board for its care and support. Stuart Durward and John Johnson have been well supported by Trustees Mrs Karen Blomberg, Mrs Debbie Giudes, Mr Bob McKay, Mr Grant Bell and Mrs Alison Johnson.
RICHARD FAIRLEY Principal
Page 12 SERVICES PROVIDED: 2012 Middle Years
The Middle Years Curriculum, Years 7 to 9, was organised around the Key Learning Areas. At Townsville Grammar School students study a core curriculum across these years electing a specific Modern Language option or Literacy Support. In 2012 four language choices were offered to students: Indonesian, Japanese, French and Italian. Students requiring literacy support were withdrawn from Modern Language classes to receive specialised support. A wide reading programme across Years 7-9 also provided an avenue for slower readers to receive additional support. Art and Design Technology were studied on a semester rotation. Music was integrated into Year 7 curriculum for two periods per cycle, but the subject is an elective option for Years 8 and 9, occurring when wide reading is scheduled.
Subjects offered include:
Year7 YearS Year9 English English English Mathematics Mathematics Mathematics Science Science Science SOSE SOSE SOSE Physical Education Health and Physical Education Health and Physical Education Sport Art* I Design & Technology * Art * I Design & Technology * Modern Language: Japanese, Modern Language: Japanese, Modern Language: Japanese, French, Italian, Indonesian, or French, Italian, Indonesian, or French, Indonesian, Italian or Learning Support Learning Support Learning Support Art* I Design & Technology* Performing Arts Performing Arts Music Information Technology Information Technology Performing Arts Music or Wide Reading Music or Wide Reading Wide Reading *Stx months
2012 Senior School In 2012, Year 10, 11 & 12 comprised the senior school, with students studying six subjects only. In Year 10 three subjects were core: English or English Literature; Mathematics and Science. Students then elected at least one option from:
• Modern Languages- Indonesian, Japanese, French, Italian • Drama • History • Geography • Literacy Support * (only if previously received support) • Philosophy
The other subject options for students to select from included:
• Music • Technology Studies • Business Studies • Graphics • Information Technology • Physical Education • Hospitality • Art
Year 1 0 students were offered access to T AFE courses on Thursday afternoons along with the Year 11 and 12 students. Fitness, Mathematics Tutorials and Hospitality Club were offered to Year 10 as an
Page 13 alternative to T AFE or the private study options as well.
Years 11 & 12 Curriculum The curriculum provision was flexible and allowed a student to be directed towards entry into the Faculties of Universities in Australia and into the Schools of all Institutes of Technology and Advanced Education, the Agriculture Colleges, the Rural Training Schools, and the professions, trades and occupations in general. In 2012 the School continued the International Baccalaureate Diploma, an internationally recognised tertiary preparation programme. Specific vocational subjects were offered at Years 11 and 12 and the School continues to promote students' participation in School-based apprenticeships and traineeships to provide preparation for employment in the competitive labour market that faces school leavers today.
YEAR 11 2012
1 2 3 4 5 6 7
Biology Accounting Art Math s A Accounting Ancient History ESL
Drama Chemistry Chemistry Maths B Biology Drama Home Study
Earth Science Drama English English Economics Private Study
Eng lish English Graphics French English TAFE course
Legal Stu dies Geography Modern History Italian Graphics TCTC course
Physics Maths C Japanese IPT
Hospitality Physical Music Studies Education
Technology Physical Studies Education
Hospitality Physics Studies
English Industrial Skills Hospitality* Hospitality* Communication* - Engineering#
Manufacturing B&C*
# School based * Authority Registered
IB SU BJECT OFFERINGS· 2 3 4 5 6 7 Week A - IB Economics IB Maths (HL) IB Biology IB Chemistry IB French IB English Theory of Knowledge Week B - IB Psychology IB Maths (SL) IB Physics IB Spanish Language Tutorial
Page 14 YEAR 12 2012
1 2 3 4 5 6 7
Accounting Biology Ancient History Accounting Chemistry Maths A ESL
Chemist ry Chemistry Drama Art Drama Maths B Home Study
Eng lish English Earth Science Biology English Private Study
French Geography English Drama Graphics TAFE course
Hospitality Graphics Modern History English Legal Studies TCTC Course Studies Hospitality Physical Physica l Maths C IPT Studies Education Education
I ndonesian Physics Physics Music
Italian Tech Studies
Japanese
Physical Education Manufact uring I ndustrial Skills Hospitality* Hospitality* B&C* - Engineering#
# School based * Authority Registered
IB SUBJECT OFFERINGS:
1 2 3 4 5 6 7
Week A- IB French I B Mathematics IB Economics IB Art I B English I B Chemistry Theory of Knowledge I B Week B - I B Italian Mathematical IB Psychology I B Music Language Studies Tutorial
I B Japanese I B Physics Private Study
I B Spanish IB Theatre Arts
Page 15 STAFF INFORMATION During 2012 the School employed 251 individuals, 122 teaching staff and 129 ancillary staff members. There were 154 full-time staff and 97 part-time staff members. Nil redundancy offers made during 2012. TGS supports the Queensland Carers Charter as detailed in the Carers (Recognition) Act 2008, through the remote access facilities available to our staff. TGS ensures staff are provided with relevant information and support as required. Number of Staff Total Full-Time Part-Time Teaching Staff Senior 83 59 24 Junior 39 35 4 122 94 28 Ancillarv Staff Library 4 2 2 Teaching Assistants 31 5 26 Boarding Resident Staff 18 18 Accounting & Clerical 19 17 2 Buildings & Grounds 7 6 1 Cleaners 14 9 5 Catering 13 12 1 Laundry 1 1 0 Outside Hours Care/PrePrep 16 6 10 Medical 3 1 2 Bus Drivers 3 1 2 129 60 69 251 154 97
LIST OF SENIOR OFFICERS
Principal Mr R.W. Fairley B.Econ., Dip. Ed., Grad. Dip. Ed. Admin., Grad. Dip. Currie. Leadership, MACE, FAIM, MAICD
Deputy Principal (Operations) MrS. Morris M.Ed., M.App.Sc., M.Mus.St., B.Mus., Grad.Dip.Ed.
Deputy Principal (Curriculum) Mrs M. Hall B.Ed., M.Ed., Grad Cert.Ed. (Middle Sch.), MACE
Director of Boarding & I. B. Co-ordinator MrC. Wilson H.Dip.Ed.,B.Comm.,M.Bus.Leadership, Cert.Residential Care Head of Junior School Mr N. Nethery B.Ed., Dip. Teach, Grad.Cert.Ed.
Head of Middle School Mr D. Terblanche B.Ed.
Head of Senior School Mrs S.Ahern Dip Teach, Grad Cert.Ed. (Middle Sch.)
Director of Enrolmentsand Marketing Mrs K Scott B.A., Dip.Ed.
Business Manager & Secretary MrG. Walsh to the Board of Trustees B.Comm., MBA, Grad. Dip. CSP, Assoc. Dip. Civil Eng., CPA, ACIS
Page 16 PROFESSIONAL DEVELOPMENT PROGRAMMES The on-going professional development of the staff at Townsville Grammar School is actively encouraged through subject faculties, and is co-ordinated by the Deputy Principal (Curriculum). The School has a significant Professional Development budget to provide opportunities for staff to attend professional development programmes and for professional development on designated student-free days throughout the year.
During 2012 staff attended various professional development activities, receiving professional development funding when required. Each semester a professional development newsletter is prepared and published to all staff and the Trustees. Each staff member is required to prepare a precis of the professional development and the outcomes gained.
PERFORMANCE MANAGEMENT SYSTEMS Financial and Administration System The School administration system is provided by a software package known as PCSCHOOL, this package is provided and maintained by ComAssist Solutions, a Queensland based company.
The package is a complete school performance management system covering student and family administration, curriculum, timetable and financials. The financial module is a completely interfaced accounting package that enables the school executive team to manage the school efficiently and produce timely and accurate monthly reports to the Board of Trustees. The systems in place allow the Board to monitor the school's financial and operational performance in accordance with the Financial and Performance Management Standard 200g. The School keeps full and accurate records of its activities.
Benchmarking Each year the national body of the Association of School Bursars and Administrators (ASBA) commissions Somerset Education to conduct an Independent Schools Financial Survey. Schools participating in the survey are provided with a report by Somerset Education which provides financial benchmarks for the School.
The School participated in the survey during 2012 with respect to the 2011 financial data.
The Board considered the report provided by Somerset Education comparing the School's performance against schools of similar SES both within the State and nationally. As the School's 2010 performance was within the recommended guidelines no remedial action was taken. Key benchmarks were incorporated into the 2013 budget for the Board's consideration.
Board Reporting The Board of Trustees is provided with detailed financial and operational reports on a monthly basis.
The Operational Report is in the form of a report from the Principal that covers strategic matters such as staffing and enrolments as well as day-to-day activities.
The Financial Report is provided by the Board Secretary and contains: • Statement of Financial Performance by month year to date; • Variance Analysis of actual revenues and costs against budget; • Cash Flow Projections; • Finance Report; • Property Report; • Debtors Report; • Statement of Financial Position at the month end; • Key Performance Indicators against benchmarks set by education specialists for comparable schools such as: o Revenues per Student; o Net Operating Margins; o Staff Pupil Ratios; o Full Time Equivalent Staff Numbers;
Page 17 o Capital Debt per Student. The Finance Committee of the Board meets prior to Board meetings to review the Financial Report. This committee consists of the Chairman of the Board of Trustees, a Trustee who is a chartered accountant, the Principal and the Board Secretary. A report from this meeting is included in Board papers distributed to the Board. The School does not have an audit committee.
A review of the school's systems for compliance with the Financial Management and Performance Standard 2009 is provided as part of the audit process carried out by the Queensland Audit Office.
RISK MANAGEMENT The School does not have in place a formal system for Risk Management however Townsville Grammar School, with other Grammar Schools, has produced a comprehensive Financial Management Practice Manual as required by S61 of the Financial Accountability Act 2009.This manual provides detailed policy guidelines by which the School can operate effectively while providing a high level of accountability. The Board regularly reviews reports against the stated Risk Management Manual and Guidelines. In 2008 the School had a risk analysis undertaken by the School's insurers for its physical assets.
In addition to the Grammar Schools' risk management manual, the School has prepared staff handbooks for both academic and non-academic staff. The handbook covers the following policy headings: administration, boarding, co-curriculum, curriculum, emergency procedures, excursions and camps, facilities and resources, medical, staff and students. The manual provides policies and procedures designed to minimize day-to-day risk.
SPECIAL INTEREST GROUPS/RELATED ENTITES The Townsville Grammar School Parents Network and Black & Gold Ladies maintained an active interest in the School and carried out a number of fund raising ventures during 2012.
GRAMMAR SCHOOLS ASSOCIATION Townsville Grammar School is a member of this Association of the eight Grammar Schools who draw their governance from the Grammar Schools Act. The Association was incorporated in September 2000. Its first full year of operation was 2001. It is a Public Sector entity for the purposes of the Financial Accountability Act 2009, being a body controlled by a group of Statutory Bodies and subject to audit by the Queensland Audit Office. The current Chairman of this Association isMs Elizabeth Jameson, Chairman of the Board of Trustees of Brisbane Girls Grammar School.
OVERSEAS TRAVEL BY THE BOARD OF TRUSTEES No overseas travel was taken by any member of the Board of Trustees on behalf of the School.
STAFF OVERSEAS TRAVEL The following overseas trips were taken by staff on behalf of the School: In March 2012 the Director of Enrolments undertook a marketing trip to Hong Kong to visit Agents. This trip resulted in new boarding enrolments in 2013. The cost of travel and accommodation was $4,053. In July 2012 the Deputy Principal (Curriculum) participated in the Commonwealth Government funded National Asian Learning and Studies Project tour of China. During the year academic staff hosted two tourist parties at no cost to the School. Destinations included: United Kingdom, France and New Zealand.
INFORMATION SYSTEMS AND RECORDKEEPING
The School makes full and accurate records of its activities. Record keeping is a systematic part of the School's activities and records are identified, captured and retained in an accessible and useable format. The School is working towards compliance with Information Standards IS31 and IS40.
CONSUL TANCIES The total cost of consultants engaged during 2012 was $292,291. Categories of consultants engaged as follows: 1. Legal Services ($1 0,497); 2. Financial Consultants ($17,228);
Page 18 3. Building Consultants (Engineers, Architect etc) ($173, 118); 4. Miscellaneous ($53,516).
FORWARD PLANS FACILITIES AND INFRASTRUCTURE
• School House Refurbishment · Planning for the restoration of the heritage listed School House is under way. The building requires repairs to the existing verandahs and the Board is considering how the building can be used as a focal point of the School. Work is expected to coincide with the School's 125th anniversary. • Prep Stage 2- a 2 GLA facility will be built on the Annandale campus during 2013. This will allow 4 streams from Prep to year 6.
SUMMARY OF FINANCIAL PERFORMANCE In 2012 Townsville Grammar School had a surplus from ordinary activities, after interest and depreciation of $2,801 ,846. This compares with a surplus of $3,760,440 for the previous year.
This result was achieved on revenues of $27.21 million, an increase on revenues of $27.53 million in 2011. The increase in revenue is attributable to increase student numbers and an annual increase in school fees.
The final cash position at the end of 2012 was $9.36 million in cash and investments.
A copy of the 2011 Annual Financial Statements of the Board in accordance with Section 62(1) of the Financial Accountability Act 2009 is appended.
Debt and liquidity ratio graphs appear on page 21 of the report.
Page 19 Organisational Chart Townsville Grammar School I ~5c;hool Principal ( CEG_~ .. -a - I I l Dlr Dlr Helld He.od Head Dcpully Dcpully Door.tng Ml:t Senior Mlddlo Jwiicr Pnndpal Principal & & School School (Ope) (Curr) Sehool IDCOC>"d ~ Enrof'"c rrte
Dlr Dlr of of Muole s~
l\6e!:Heo!l /.HtH&Id lloo~ (TeiCh & (Ope) lAwn) Sporu L DP"' M.. ur ,.. (Curr)
T Mot Cllt.aifliJ Duo Monaga- Monaga I 1--- ,--- Dlr lleodemlc. l ··~·· Rure'e Rnnncc Pre Teac:hlng lll'rcnt IT Nu...rne front Stoff Dffict & Scaff See Sup~ Staff I l I I Mllint L.Undry Cleo r~ng Kltehcn Dlrof ~~:... Clild Teac:h DEBT $18,000,000 - $16,000,000 - $14,000,000 r--- $12,000,000 r----- $10,000,000 r--- $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 I 2012 2011 2010 2009 2008 DEBT PER STUDENT $14,000 .------~-~-~--~----t $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 ~~--~--~--~--~-~-----~-~-~--~-~~ 2012 2011 2010 2009 2008 LIQUIDITY RATIO 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2012 2011 2010 2009 2008 21 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL Financial Statements- 31 December 2012 Contents Financial Report Page Statement of Comprehensive Income l Statement of Financial Position 2 Statement of Changes in Equity 3 Statement of Cash Flows 4 Notes to the Financial Statements 5 Trustee Declaration 25 Independent Audit Report 26 This financial report covers The BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL as an individual not for profit entity. The financial report is presented in the Australian currency. The Townsville Grammar School is established under the provisions of the Grammar Schools Act 1975. BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL is a not for profit school domiciled in Queensland, Australia. Its principal place of business is: BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL 45 Paxton Street North Ward QLD 4810 The financial repmt was authorised for issue by the Trustees of the Townsville Grammar School on 26 February 2013. BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2012 NOTE 2012 2011 $ $ REVENUE FROM CONTINUING OPERATIONS 2 27,214,301 27,528,208 · Education expense 3 (17,930,677) (17,002,759) Depreciation 3 (1 ,271 ,542) (1 ,847,459) Finance costs 3 (916,536) (984,918) Boarding expenses 3 (1,871,061) (1,764,800) Property expenses 3 (2,422,640) (2, 167,832) Operating result from continuing operations 2,801,846 3,760,440 Other comprehensive Income Increase in asset revaluation surplus 13(a) 2,001,751 Total other comprehensive income 2,001,751 Total comprehensive income 4,803,597 3, 760,440 The accompanying notes form part of these statements. BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2012 Note 2012 2011 $ $ ASSETS Current Assets Cash and cash equivalents 4 9,355,784 7,776,393 Receivables 5 743,035 546,317 Inventories 6 598,102 638,848 Total Current Assets 10,696,921 8,961,558 Non-current assets Property, plant and equipment 7 50,876,968 48,585,336 Total Non-Current Assets 50,876,968 48,585,336 TOTAL'ASSETS 61,573,888 57,546,894 LIABILITIES Current Liabilities Payables 8 1,726,404 1,373,364 Other financial liabilities 9 1,240,027 1,245,206 Accrued employee benefits 10 1,427,736 1,216,691 Total Current Liabilities 4,394,167 3,835,261 NON-CURRENT LIABILITIES Payables 8 1,750,000 2,000,000 Other financial liabilities 11 13,020,144 14,253,300 Accrued employee benefits 12 717,701 570,053 Total Non-Current Liabilities 15,487,844 16,823,353 TOTAL LIABILITIES 19,882,012 20,658,614 Net Assets 41,691,877 36,888,280 EQUITY Reserves 13 (a) 16,078,113 13,816,020 Retained surplus 13 (b) 25,613,764 23,072,261 Total Equity 41,691,877 36,888,280 The accompanying notes form part of these statements. 2 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2012 Retained Surpluses Asset Revaluation Surplus Other Reserves Total (Note 13b) (Note 13a) (Note 13a) $ ' $ $ $ Balance as at 1 January 2011 20,547,148 11,026,399 1,554,293 33,127,840 Operating result from continuing operations 3,760,440 3,760,440 Transfers to/(from) reserves (1,235,328) 1,235,328 Balance as at 31 December 2011 23,072,260 11,026,399 2,789,621 36,888,280 Balance as at 1 January 2012 23,072,260 11,026,399 2,789,620 36,888,280 Operating result from continuing operations 2,801,846 2,801,846 Transfers to/(from) reserves (260,341) 260,341 Total other comprehensive income - Increase in Asset Revaluation Surplus 2,001,751 2,001,751 Balance as at 31 December 2012 25,613,765 13,028,150 3,049,961 41,691,877 The accompanying notes form part of these statements. 3 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL STATEMENT OF CASH FLOWS FORTHEYEARENDED31DECEMBER2012 NOTE 2012 2011 $ $ Cash flows from operating activities Receipts from school fees 14,047,391 13,166,581 Receipts from government grants 10,559,895 9,829,800 Receipts from other operating activities 1,932,902 2,839,549 Payments to suppliers and employees (21 ,612,470) (21,576,570) 4,927,718 4,259,361 Interest received 357,627 497,684 Interest paid (916,536) (984,918) . Net cash inflow from operating activities 19 4,368,809 3,772,128 Cash flows from investing activities Payments for property, plant and equipment (1,811 ,424) (6,027,570) Interest- capital reserves 110,141 1,235,328 Transfers from capital reserves 150,200 Net cash outflow from investing activities (1,551,082) (4,792,242) Cash flows from financing activities Proceeds from borrowing Loan repayments (1 ,238,336) (1 ,343,226) Net cash outflow from financing activities (1 ,238,336) (1 ,343,226) Net increase in cash and cash equivalents 1,579,391 (2,363,341) Cash and cash equivalents at the beginning of the financial year 7,776,393 10,139,734 Cash and cash equivalents at end of financial year 4 9,355,784 7,776,393 The accompanying notes form part of these statements. 4 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 1. Summary of significant accounting policies a) Basis of preparation The school has prepared these financial statements in compliance with section 43 of the Financial and Performance Management Standard 2009 These financial statements are general purpose financial statements, and have been prepared on an accrual basis in accordance with Australian Accounting Standards and Interpretations. In addition, the financial statements comply with Treasury's Minimum Reporting Requirements for the year ending 31 December 2012, and other authoritative pronouncements. With respect to compliance with Australian Accounting Standards and Interpretations, the school has applied those requirements applicable to not-for-profit entities, as the school is a not-for-profit entity. Except where stated, the historical cost convention is used. b) Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates and amounts collected on behalf of third parties. The school recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the school and specific criteria have been met for each of the school's activities as described below. Revenue is recognised for the majo: business activities as follows: (1) School fees are recognised upon enrolment of the student and the issuance of the school fees. (2) Grants, contributions, donations and gifts that are non-reciprocal in nature are recognised as revenue in the year in which the school obtains control over them. Where grants are received that are reciprocal in nature, revenue is accrued over the term of the funding arrangements. (3) Interest income is recognised when it is earned. (4) Donations and gifts are recognised in the year they are received. c) Leases A distinction is made in the financial statements between finance leases that effectively transfer from the lessor to the lessee substantially all risks and benefits incidental to ownership, and operating leases, under which the lessor retains substantially all risks and benefits. Operating lease payments are representative of the pattern of benefits derived from the leased assets and are expensed in the periods in which they are incurred. d) Cash and cash equivalents For the purposes of the Statement of Financial Position and the Statement of Cash Flows, cash assets include all cash and cheques receipted but not banked at 31 December as well as deposit at call with financial institutions. e) Trade receivables Trade debtors are recognised at the nominal amounts due at the time of sale or service delivery. Settlement of these amounts is required within 30 days -from invoice date. The collectability of receivables is assessed periodically with provision being made for impairment. All known bad debts were written-off as at 31 December. Increases in the provision for impairment are based on loss events as disclosed in note 14. Other debtors generally arise from transactions outside the usual operating activities of the school and are recognised at their assessed values. Terms are a maximum of three months, no interest is charged and no security is obtained. 5 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 f) Inventories Inventories held for sale are valued at the lower of cost and net realisable value. Cost is assigned on a weighted average basis and includes expenditure incurred in acquiring the inventories and bringing them to their existing condition. Net realisable value is determined on the basis of the school's normal selling pattern. Expenses associated with marketing, selling and distribution are deducted to determine net realisable value. g) Acquisition of assets Actual cost is used for the initial recording of all non-current physical asset acquisitions. Cost is determined as the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the assets ready for use, including architects' fees and engineering design fees. However, any training costs are expensed as incurred. h) Plant and Equipment Items with a cost of less than $5,000 are expensed in the year of acquisition. i) Revaluations of Non-Current Physical Assets Land and buildings are shown at fair value in accordance with AASB 116 Property, Plant and Equipment and Queensland Treasury's Non-Current Asset Policies for the Queensland Public Sector. Plant and equipment is measured at cost. Non-current physical assets measured at either fair value, market value or depreciated replacement value and are comprehensively revalued at least once every three years with interim valuations, using appropriate indices, being otherwise performed on an annual basis where there has been a material variation in the index. Any revaluation increment arising on the revaluation of an asset is credited to the asset revaluation surplus of the appropriate class, except to the extent it reverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying amount on revaluation is charged as an expense, to the extent it exceeds the balance, if any, in the revaluation surplus relating to that asset class. On revaluation, accumulated depreciation is restated proportionately with the change in the carrying amount of the asset and any change in the'estimate of remaining useful life. Separately identified components of assets are measured on the same basis as the assets to which they relate. j) Depreciation of Property, Plant and Equipment Land is not depreciated as it has an unlimited useful life. Property, plant and equipment is depreciated on a straight-line basis so as to allocate the net cost or revalued amount of each asset, less its estimated residual value, progressively over its estimated useful life to the schooL Where assets have separately identifiable components that are subject to regular . replacement, these components are assigned useful lives distinct from the asset to which they relate and are depreciated accordingly. QAO CERTifiED 6 STATEMENTS BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to the school. · The depreciable amount of improvements to or on leasehold land is allocated ·progressively over the estimated useful lives of the improvements or the unexpired period of the lease, whichever is the shorter. The unexpired period of a lease includes any option period where exercise of the option is probable. For each class of depreciable asset the following depreciation and amortisation rates are used: · -Buildings 25-40 years - Plant and equipment 4- 15 years k) Impairment of Non-Current Assets All non-current physical assets are assessed for indicators of impairment on an annual basis. If an indicator of possible impairment exists, the school determines the asset's recoverable amount. Any amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss. The asset's recoverable amount is determined as the higher of the asset's fair value less costs to sell and depreciated replacement cost. An impairment loss is recognised immediately in the Statement of Comprehensive Income, unless the asset is carried at a revalued amount. When the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation surplus of the relevant class to the extent available. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no im~airment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income, unless the asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. Refer also note 1(i). I) Trade and other payables Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured and are generally settled on 30 day terms. m) Borrowings Borrowings are classified as current liabilities unless the school has an unconditional right to defer settlement of the liability for at least 12 months after the balance date. n) Borrowing costs Finance costs are recognised as an expense in the period in which they are incurred. Finance costs include: -Interest on bank overdrafts and short-term and lorig-term borrowings; - Finance lease charges; -Amortisation of discounts or premiums relating to borrowings; and -Ancillary administration charges. No borrowing costs are capitalised into qualifying assets. QAO CERTIFIED STATEMENTS 7 ~====- BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 o) Provisions Provisions are recorded when the school has a present obligation, either legal or constructive as a result of a past event. They are recognised at the amount expected at reporting date for which the obligation will be settled in a future period. Where the settlement of the obligation is expected after 12 or more months, the obligation is discounted to the present value using an appropriate discount rate. The amounts recognised as provisions in relation to the dismantling and removal of assets and the restoration of land on which the assets have been located, have been included in the cost of the assets. p) Employee benefits i) Wages, Salaries and Sick Leave Wages and salaries due but unpaid at reporting date are recognised in the Statement of Financial Position at the nominal salary rates. Payroll tax and workers' compensation insurance are a consequence of employing employees, but are not counted in an employee's total remuneration package. They are not employee benefits and are recognized separately as employee related expenses. Employer superannuation contributions, annual leave levies and long service leave levies are regarded as employee benefits. For unpaid entitlements expected to be paid within 12 months, the liabilities are recognised at their undiscounted values. Entitlements not expected to be paid within 12 months are classified as non-current liabilities and recognised at their present value, calculated using yields on Fixed Rate Commonwealth Government bonds of similar maturity, after projecting the remuneration rates expected to apply at the time of likely settlement. Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised. As sick leave is non-vesting, an expense is recognised for this leave as it is taken. ii) Long service leave The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage· and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. iii) Employee Benefits >Key Executive management personnel and remuneration Key executive management personnel and remuneration disclosures are made in accordance with the section 5 of the Financial Reporting Requirements for Queensland Government Agencies issued by Queensland Treasury. Refer to Note 21 for the di~closures on key executive management personnel and remuneration. iv) Executive Remunerations The State Government has commenced a review of the Grammar Schools Act 1975 (the Act). The review is a commitment under the Premier's Six month Action Plan July-December 2012. An option for the outcome of the Review is to repeal the Act so that Grammar Schools are not established as statutory bodies. The disclosure requirements for key executive management personnel positions only relate to statutory bodies. Until the review is finalised and the ongoing statutory body status of Grammar Schools confirmed, the remuneration for the School's executive management personnel as identified in Note 21 will be disclosed as an aggregate. QAO CERTiFIED 8 S1:ATEMENTS BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 q) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables in the Balance Sheet are shown inclusive of GST. Cash flows are presented in the Statement of Cash Flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. r) Income Tax No provision for income tax has been raised as the school is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997. · s) Insurance The school's non-current physical assets and other risks are insured through the Aon Risk Services Australia Limited, premiums being paid on a risk assessment basis. In addition, the school pays premiums to WorkCover Queensland in respect of its obligations for employee compensation. t) Financiallnstruments Initial recognition and measurement Financial assets and financial liabilities are recognised when the school becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the school commits itself to either purchase or sell the asset (ie trade date accounting is adopted). Financial instruments are initially measured at fair value plus transactions costs except where the instrument is classified 'at fair value through profit or loss' in which case transaction costs are expensed to profit or loss immediately. Classification and subsequent measurement Finance instruments are subsequently measured at either fair value, amortised cost using the effective interest rate method or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is calculated as: i. the amount at which the financial asset or financial liability is measured at initial recognition; ii. less principal repayments; iii. plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the maturity amount calculated using the effective interest method; and iv. less any reduction for impairment. The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including. fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial .instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss. 9 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 (i) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. (ii) Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Borrowings are initially recognised at fair value, plus any transaction costs directly attributable to the borrowings, then subsequently held at amortised cost using the effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of a financial instrument (or, when appropriate, a shorter period) to the net carrying amount of that instrument. · Any borrowing costs are added to the carrying amount of the borrowing to the extent they are not settled in the period in which they arise. Borrowings are classified as non-current liabilities to the extent that the school has an unconditional right to defer settlement until at least 12 months after balance sheet date. The school does not enter into transactions for speculative purposes, nor for hedging. Apart from cash and cash equivalents, the school holds no financial assets classified at fair value through profit and loss. All other disclosures relating to the measurement and financial risk management of financial instruments held by the school are included in Note 14(a). u) Issuance of Financial Statements The financial statements are authorised for issue by the Chairman and Secretary at the date of signing the Management Certificate. v) Critical Accounting·Estimates and Judgements The Trustees evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the group. The Australian Government passed its Clean Energy Act in November 2011 with a start date of 1 July 2012. The legislation will result in the introduction of a price on carbon emissions made by Australian businesses from 1 July 2012. The Trustees evaluates the carbon price mechanism will not have significant impact on critical accounting estimates, assumptions and management judgements. Key estimates- Impairment . The school assesses impairment at each reporting date by evaluating conditions specific to the school that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Fair value less costs to sell or current replacement cost calculations performed in assessing recoverable amounts incorporate a number of key estimates. QAO 11 CERTifiED II 10 ' s-r;E~"i-EMENTS ../ -~ BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 Key judgements: Provision for impairment . Included in trade and other receivables at 31 December 2012 is an amount receivable for school fees from various parents of students during the current financial year amounting to $67,164. The debts are currently in the hands of an external debt collection agency and a provision for impairment has been made for $67,164 at 31 December 2012. Valuation- Land and Buildings Land and building valuation methodologies are detailed in Note 7b. w) Rounding and Comparatives Amounts included in the financial statements are in Australian dollars and have been rounded to the nearest $1. Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period. x) New and Revised Accounting Standards The school did not voluntarily change any of its accounting policies during 2012. The school is not permitted to early adopt a new or amended accounting standard ahead of the specified commencement date unless approval is ob!ained from the Treasury Department. Consequently, the school has not applied any Australian accounting standards and interpretat'1ons that have .been issued but are not yet effective. The school will apply those standards and interpretations in accordance with their respective commencement dates. All other Australian accounting standards and interpretations with future commencement dates are either not applicable· to the school, or have no material impact on the school. 11 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 2. Revenue 2012 2011 From continuing operations $ $ Education revenue Tuition Fees 11,696,291 10,789,523 Boarding Fees 2,017,409 1,972,402 Application Fees 144,370 139,205 Surcharge Fees 245,465 224,714 State Government Recurrent Grants 2,735,452 2,529,974 State Government Endowment Grants 18,200 18,200 Commonwealth Government Recurrent Grants 7,806,243 7,281,626 General Purpose Levy 499,031 482,713 Outside School Hours Care & Pre Prep 1,232,034 1,051,969 26,394,496 24,490,327 Other revenue Capital Grants and Donations 318,635 2,461,108 Interest Income - General Fund 165,034 132,813 Interest Income- Cash Management 192,593 364,872 Other revenue 143,542 79,088 27,214,301 27,528,208 3. EXPENSES Education Expenses Tuition 14,479,338 13,504,792 Administration 3,451,340 3,497,968 Total Education Expenses 17,930,677 17,002,759 Depreciation Buildings 994,831 959,853 Plant and equipment 276,710 887,606 Total depreciation 1,271,542 1,847,459 Other Expenses Finance 916,536 984,918 Boarding 1,871,061 1,764,800 Property 2,422,640 2,167,832 External audit fees- Total audit fees paid to the Queensland Audit Office relating to the 2012 financial statements are estimated to be $33,900 (2011: $37,932). There are no non-audit services included in this amount. 12 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 2012 2011 $ $ 4. Current Assets -Cash and cash equivalents General Account 2,080,500 932,647 Cash Management Account 4,222,485 4,051,283 Endowment Fund Account 206,182 199,414 Cash on Hand 2,260 2,260 Building Fund 1 ,082, 109 905,546 Loan Fund 583 583 Trust Fund 200,044 184,038 Trust Fund balances not available for use: Short term deposit 1,556,622 1,495,622 Suncorp Interest bearing deposit 5,000 5,000 Total cash assets 9,355,784 7,776,393 a) Reconciliation to cash at the end of the year The above figures are reconciled to cash at the end of the financial year as shown in the statement of cash flows as follows: Balance as above 9,355,784 7,776,393 Balance per statement of cash flows 9,355,784 7,776,393 b) Cash at bank These deposits are bearing interest rates between 3.28% and 4.64%(2011- 2.08% and 5.52%). c) Trust Fund Balances Not available for use Trust Fund Investments (Short term deposit, CBA and Sun corp Interest Bearing Deposits) of $1,561,622 (2011 - $1 ,500,622) represents monies that have been bequeathed to the school. The use of these funds is restricted to the terms and conditions established in the bursary agreements. The bursary agreements stipulate the school cannot use these funds in the norm.al course of their operating cycle. · · These deposits are bearing interest rates between 0.01% and 5.71% (2011- 0.01% and 5.98%). 5. Current assets- Receivables Trade receivables 391,644 293,190 less: Provision for impairment of receivables. (67, 164) (65,814) 324,480 227,376 Other receivables - Debtors 54,968 1,961 Prepayments 363,586 316,979 743,035 546,317 Movement in the allowance of provision fo~ impairment Balance at beginning of the year 65,814 47,990 Amounts written .off during the year (Decrease)/increase in allowance recognised in profit or loss 1,350 17,824 Balance at the end .of the year 67,164 65,814 13 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHEYEARENDED31DECEMBER2012 2012 2011 $ $ 6. Current assets - Inventories Inventory at cost 598,102 638,848 598,102 638,848 7. Non-current assets -Property, plant and equipment BUILDINGS Buildings at Valuation - Depreciated Replacement Cost 63,054,000 53,454,000 Plus: Additions at cost 8,150,714 63,054,000 61,604,714 Less: Accumulated Depreciation (21 ,269,000) (25,220,503) Total Buildings- Depreciated Replacement Cost 41 ,785,000 36,384,211 Buildings at Valuation - Market Value 760,000 250,000 Plus: Additions at cost Total Buildings- Market Value 760,000 250,000 TOTAL BUILDINGS 42,545,000 36,634,211 LAND LEASEHOLD LAND Land at Fair Value 1,890,000 1,630,000 FREEHOLD LAND Land at Market Value 5,430,000 1,750,000 TOTAL LAND 7,320,000 5,880,000 PLANT & EQUIPMENT Plant and Equipment at Valuation , 937,677 937,677 Plus: Additions at cost 2,096,215 2,074,857 Less: Accumulated Depreciation (2,710,179) (2,433,467) 323,713 579,066 WORK IN PROGRESS At cost 688,255 5,492,058 688,255 5,492,058 Total Property, Plant and Equipment . 50,876,968 48,585,336 14 QAO CERTlflED S~fi\TEfu1ENTS "'"'"=·=-==-- BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 7. Non-current assets- Property, plant and equipment (continued) a) Property, Plant and Equipment Reconciliation $ $ $ $ $ Work In Total Land Buildings P&E Progress Carrying amount at 1 January 2012 48,585,334 5,880,000 36,634,212 579,065 5,492,058 Acquisitions 1,561,424 400,000 59,164 21,359 1,080,901 Transfer between classes 700,000 5,184,704 (5,884,704) Revaluation incremenls/(decrements) (Note 13a) 2,001,751 340,000 1,661,751 Depreciation/amortisation (1 ,271 ,542) (994,831) (276,710) Carrying amount at 31 December 2012 50,876,968 7,320,000 42,545,000 323,713 688,255 Carrying amount at 1 January 2011 42,155,225 3,380,000 37,304,249 596,132 874,845 Acquisitions 8,277,570 2,500,000 289,8-15 870,541 4,617,213 Revaluation increments (Note 13a) De!::Jreciation/amortisation (1 ,847,459) (959,853) (887,606) Carrying amount at 31 December 2011 48,585,335 5,880,000 36,634,212 579,066 5,492,058 b) Valuations of land and buildings Land and Buildings were independently valued by Mr G Pyman (Certified Practicing Valuer), International Valuation Consultants, a division of Aon Risk Services Australia Limited, in December 2012. LEASEHOLD LAND Land with a total value of $1,890,000 is held under a Deed of Grant in Trust (DOGIT) providing the Trustees with exclusive use of that land however ownership remains with the Crown. The land has been valued on a freehold basis. FREEHOLD LAND Land with a total value of $5,430,000 has been valued at market valued laking zoning considerations and available sales evidence into account. BUILDINGS- DEPRECIATED REPLACEMENT COST . This category of buildings and site improverrle:nts are of a specialised operational nature and are rarely sold in the open market. They are consequently categorised as replacement cost based assets and their value has been derived by depreciating their replacement cost, taking into account their age, construction, condition and estimated residual life. BUILDINGS- MARKET VALUE Market value for this category of building is based on available sales evidence and subject to qualifications, assumptions and encumbrances contained therein. Acquisition of Plant and equipment acquired since 1 January 2003 are recorded at cost. 15 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 2012 2011 8. Payables $ $ Current Trade Payables 1,006,388 748,664 Fees in advance 470,016 374,700 Amount Due Under Contract of Sale 250,000 250,000 1,726,404 1 ,373,364 Non-Current Amount Due Under Contract of Sale 1,750,000 2,000,000 1,750,000 2,000,000 9. Current Liabilities- Other financial liabilities Secured Bank Loan Secured (Queensland Treasury Corporation) - Not later than one year 1,240,027 1,245,206 1,240,027 1,245,206 a) Secured bank borrowings are through the Queensland Treasury Corporation (QTC) Australia and includes a 3 year, 6 year, 12 year and 15 year debt pool. Interest on the loans calculated based on the rate charged by QTC on the principal borrowings are from 5.92% to 7.21% fixed as at 31 December 2012. Expected final payment dates vary from 11 May 2014 to 13 December 2025. 10. Current liabilities -Accrued employee benefits Long Service Leave 1,174,322 970,906 Annual Leave 253,414 245,785 1,427,736 1,216,691 11. Non- Current Liabilities- Other financial liabilities Secured Queensland Treasury Corporation - Bank loan secured (QTC) 13,020,144 14,253,300 13,020,144 14,253,300 16 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 11. Non- Current Liabilities. Other financial liabilities (continued) a) Secured bank borrowings are through the Queensland Treasury Corporation (QTC) Australia and includes a 3 year, 6 year, 12 year and 15 year debt pool. Interest on the loans calculated based on the rate charged by QTC on the principal borrowings are from 5.92% to 7.21% fixed as at 31 December 2012. Expected final payment dates vary from 11 May 2014 to 13 December 2025. 2012 2011 $ $ 12. Non- Current Liabilities- Accrued employee benefits Long Service Leave 717,701 570,053 13. Reserves and retained profits (a) Reserves Asset revaluation surplus 13,028,150 11,026,399 Building Fund 1,082, 109 905,546 Endowment Fund 206,182 199,414 Trust Fund Prize Capital 224,635 207,570 Trust- Wilkins Bursary 250,000 250,128 Trust- Hughes Family Bursary 1,073,806 1.,015,831 Trust- Rheuben Bursary 8,864 8,863 Trust- Hopkins Bursary 204,366 202,268 "16,078,113 13,816,020 Movements $ $ $ Asset Revaluation Surplus by Class Land Buildings Total Balance 1 January 2012 3,232,331 7,794,068 11,026,399 Revaluation increments 340,000 1,661,751 2,001 '751 Balance 31 December 2012 3,572,331 9,455,819 13,028,150 Balance 1 January 2011 3,232,331 7,794,068 11 ,026,399 Revaluation increments Balance 31 December 2011 3,232,331 7,794,068 11,026,399 The asset revaluation surplus represents the net effect of upwards and downwards revaluations of assets to fair value. 2012 2011 Building Fund $ $ Opening Balance 905,546 705,750 Transfers to-(from) trust fund- Building Fund 144,000 175,000 Interest 32,563 24,796 Balance 31 December 1,082,109 905,546 17 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 2012 2011 $ $ 13. Reserves and retained profits (continued) (a) Reserves movement (continued) Endowment Fund Opening Balance 199,414 195,495 Interest 6,768 3,919 Balance 31 December 206,182 199,414 Trust fund prize capital Opening Balance 207,570 194,231 . Transfers to trust fund - Prizes 10,000 5,000 Interest 7,065 8,339 Balance 31 December 224,635 207,570 Trust Wilkins Bursary Opening Balance 250,128 250,178 Transfers to (from) trust fund - Bursary prizes (3,800) (6,200) Interest 3,672 6,150 Balance 31 December 250,000 250,128 Trust Hughes Family Scholarship Opening Balance 1,015,831 Transfers to (from) trust fund - Bursary prizes 1,000,000.00 Interest 57,975 15,831.00 Balance 31 December 1,073,806 1,015,831.00 Trust Rlwuben Bursary Opening Balance 8,863 8,862 Interest 1 1 Balance 31 December 8,864 8,863 Trust Hopkins Bursary Opening Balance 202,268 199,777 Interest 2,098 2,491 Balance 31 December 204,366 202,268 (b) Retained Profits Movements in retained profits were as follows Balance 1 January: 23,072,260 20,547,148 Operating surplus attributable to School 2,801,846 3,760,440 Transfer from/(to) Capital Reserves (260,341) (1 ,235,328) Accumulated surplus at the end of the Financial Year 25,613,765 23,072,260 18 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 14. Financial Instruments a) Financial Risk Management The school's financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable. The school does not have any derivative instruments at 31 December 2012. i. Treasury Risk Management A finance committee consisting of senior committee members meet on a regular basis to analyse financial risk exposure and to evaluate treasury management strategies in the context of the most recent economic conditions and forecasts. ii. Financial Risks Exposures and Management The main risks the school is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk. · Interest rate risk At 31 December 2012 100% of debt is fixed interest rate (1 00% for 2011 ). Foreign currency risk The school is not exposed to fluctuations in foreign currencies. Liquidity risk . The school manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unulilised borrowing facilities are maintained. Credit risk The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The school does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by the school. Price risk The school is not exposed to any material commodity price risk. Categorisation of Financial Instruments and Interest Rate Risk b) Interest Rate Risk The following table represents the school's financial asset and liability categories, together with the school's exposure to interest rate risk. Interest rate risk, which is the risk that a financial instrument's value will fluctuate as a resull of changes in market interest rates and the effective weighted average interest rates on those financial assets and financial liabilities. 19 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 14. Financial Instruments Categorisation of Financial Instruments (continut:d) VJeighted Average Floating Interest Ftxed Interest Rate Non Interest Beanng Total Effective Interest Rate Rate Maturing NOTE 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 % % $ s s s $ Financial Assets ' ' ' Cash at bank 4 4.89 3.88 6,088,890 7,591.275 184,622 200,627 6,273,511 7,791.902 Cash on hand 4 2,260 2,260 2.260 2,260 Trade and other receivables 5 546,317 743,035 546,317 743,035 lnvestmenls & Inventory 4,6 3.3 4.68 1,491.758 1,552,758 647,712 606,966 2,139,470 2,159,724 Total Financial Assets 7,580.647 9,144,032 1,380,910 1.552.888 8,961,558 10,696,921 Financial Liabilities Payables 8 2,998,664 3,006,388 2,998,664 3,006,388 Other financialliabiliUes: QTC borrowing 9,11 6.08 6.25 • 15,498,506 14,260,171 15.498,506 14,260,171 Total Financial Liabilities 16,841,733 14,260,171 2,998,664 3,006,388 18.497.170 17,266,559 c) Credit Risk Exposure Credit risk exposure refers to the situation where the school may incur financial·ross as a result of another party to a financial instrument failing to discharge their obligation. The maximum exposure to credit risk at balance date in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any provisions for impairment. The following table represents the school's maximum exposure to credit risk based on contractual amounts net of any allowances: Maximum Exposure to Credit Risk Catogo~ Note 2012 2011 Financial Assets s $ Cash 4 9,355,784 7,776,393 Receivables 5 743,035 546,317 Total 10,098,819 8,322,710 No collateral Is held as security and no credit enhancements relate tO financial assets held by the school. The scho~l manages credit risk through the use of a credit management strategy. This strategy aims I~ reduce the exposure to credit default by ensuring that the school invests in secure assets and monitors all fund owed on a timely basis. ExposUre to credit risk is monitored on an ongoing basis. No financial assets arod financial liabilities have been offset and presented net in the Statement of Financial Position. The method for calculating any provision for impairment is based on past experience. The provision for impairment is $67,164 for the current year. This is an increase of $1,350 from 2011 and is due to an increase in financial hardship encountered by the school community. No financial assets have had their terms renegotiated so as to prevent them from being past due or impaired, and are stated at the carrying amounts as indicated. 2012 Financial Assets Past Due But Not Impaired Per aged debtors (after add back of Fees in Advance). Overdue Total Financial Assets Not Overdue 30-60 days 61-90 days More than Financial 90 days Assets s $ s s s Receivables 31 Dec 2012 132,001 8,529 206,362 32,556 379.448 Receivables 31 Dec 2011 51,487 51,034 22.649 104,167 229,337 d) Liquidity Risk Liquidity risk refers to the situation where the school may encounter difficulty in meeting obligationS associated with financial liabilities that are settled by delivering cash or another financial asset. . The school is exposed to liquidity risk in respect of its payables and borrowings from Queensland Treasury Corporation for capital work. The borrowings are based on the Queensland Government's gazetted floating rate. The school manages liquidity risk through the use of a liquidity management strategy. This strategy aims to reduce the exposure to liquidity risk by ensuring the school has sufficient funds available to meet employee and supplier obligations as they fall due. This is achieved by ensuring that minimum levels of cash are held within the various bank accounts so as to match the expected duration of the various employee and supplier liabilities. The following table sets out the liquidity risk of financial liabilities held by the school. It represents the contractual maturity of financial liabilities, calculated based on undiscounted cash flows relating to the liabilities at reporting date. The undiscounted cash flows in these tables differ from the amounts included in the Statement of Financial Position that are based on discounted cash flows. 20 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012. 14. Financial Instruments {continued) d) Liquidity Risk (continued) 2012 Payable in Total <1 year 1-5 years > 5 years Note s s $ s Financial Liabilities Payables 8 1,256,388 1,750,000 3,006,388 QTC borrowing 9,11 1,240,027 3,685,333 9,334,811 14,260,171 Total 2,496,415 5,435,333 9,334,811 17,266,559 2011 Payable in Total <1 year 1-5 years > 5 years Note $ $ $ $ Financial Liabilities Payables 8 998,664 2,000,000 2,998,664 QTC borrowing 9,11 1,245,206 4,249,636 10,003,665 15,498,507 Total 2,243,870 6,249,636 10,003,665 18,497,171 e) Market Risk The school does nol trade in foreign currency and is not materially exposed to commodity price changes. The school is exposed to inlerest rate risk through its borrowings from Queensland Treasury Corporation and cash deposited in interest bearing accounts. The school does not undertake any hedging in relation to interest risk and manages its risk as per the liquidity risk management strategy. Interest Rate Sensitivity Analysis The following interest rate sensitivity analysis is based on a report similar to that which would be provided to management, depicting the outcome to profit and loss if interest rates would change by +/- 1% from the year-end rates applicable to the school's financial assets and liabilities. With all other variables held constant, the school would have a surplus and equity increase/(decrease) of S33,000 {2011 :$62,000). This is mainly attributable to the school's exposure to variable interest rates on its borrowings from Queensland . Treasury Corporation. As at31 December 2012, the effect on profit and equity as a result of changes in the interest rate, with all other variables remaining constant, would be as follows: Financial Instruments Carrying 2012 Interest rate risk Amount -1% +1% Profit E uit Profit E uit $ $ $ $ $ Cash 9,355,784 (109,151) (109,151) 109,151 109,151 Borrowings 14,260,171 142,602 142,602 (142,602 142,602 Overall effect on profit and equity 33,451 33,451 -33,451 -33,451 The school's sensitivity to interest has decreased in the current period due to increased cash at balance date. Financial Instruments Carrying 20111nterest rate risk Amount -1% +1% Profit E uit Profit E uit $ $ $ $ $ Cash 4,689,062 (92,747) (92,747) 92,747 92,747 Borrowings 15,498,506 154,985 154,985 (154,985 (154,985 Overall effect on profit and equity 62,238 62,238 (62,238 (62,238 This sensitivity analysis has been performed on the assumption that all other variables remain unchanged. No sensitivity analysis has been performed for foreign exchange risk, as the school is not exposed to fluctuations in foreign exchange. f) Fair Value The school does not recognise any financial assets or frnancial liabilities at fair value. The fair value of trade receivables and payables is assumed to approximate the value of the original transaction, Jess any provision for impairment. Available for sale financial assets, that do not have a quoted market price in an active market, are measured at cost as fair value cannot be reliably measured. Therefore, no fair value is disclosed. The fair value of borrowings is nolifled by the Queensland Treasury Corporation. It is calculated using discounted cash flow analysis and the effective interest rate (refer to Note 9 and Note 11) and is disclosed below. 21 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 14. Financial Instruments (continued) f) Fair Value (continued) 2012 2011 Carrying Fair Carrying Fair Amount Value Amount Value $ $ $ $ Financial Liabilities Interest bearing liabilities: QTC borrowings 14,260,171 15,908,712 15,498,506 16,460,111 14,260,171 15,908,712 15,498,506 16,460,111. 2012 2011 15. COMMITMENTS $ $ (a) Capital commitments Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows: Payable within one year 269,285 375,250 Later than one year and not later than two years Later than two years and not later than five. years 269,285 375,250 (b) Lease commitments: Operating Leases Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: Within one year 143,879 172,899 Later than one year and not later than two years 66,771 97,034 Later than two years and not later than five years· 0 42,631 Commitments not recognised in the financial statements 210,650 312,564 Operating leases are entered into as a means of !easing motor vehicles for the operations of the school. Lease payments are generally fixed, but with inflation escalation clauses on which contingent rentals are determined. 16. Events occurring after the balance sheet date There were no material subsequent events occurring after the balance date. 17. Related party transactions The following Trustees held office during the Year Ended 31 December 2012. S.Durward, J.Johnson, K.Biomberg, D.Giudes, B.McKay, G. Bell, A.Johnson. All dealings with Trustees were within normal trading terms and conditions. 22 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 18. Boarders" Amenities accounts The school maintains an account for boarders' pocket money placed on deposit by parents. The balance of this account at 31 December 2012 is $29,027.67 and is not recognized as a cash asset by the School. Monies held in this account are for student's own use and any balances are refunded at completion of schooling. 2012 2011 $ $ 19. Reconciliation of operating surplus to net cash inflow from operating activities Operating Surplus for the year 2,801,846 3,760,440 Depreciation 1,568,930 1,847,459 Provision for impairment of receivables 1,350 17,824 Capital Receipts transferred to reserves (260,341) (1 ,235,328) Changes in Assets and Liabilities Decrease/( Increase) in Trade Receivables (151,461) 23,459 Decreasel(lncrease) in Inventories 40,746 (346,260) Decreasel(lncrease) in Prepayments (46,607) (26,023) lncreasei(Decrease) in Fees in Advance 95,316 17,278 lncreasei(Decrease) in Trade Payables 257,725 (612,551) lncreasei(Decrease) in Accrued Employee Benefits 3.58,694 325,829 Net cash inflow from operating activities 4,666,196 3,772,128 20. Capital Management Management control the capital of the school to ensure that adequate cash flows are generated to fund its school operations and that returns from investments are maximised. The finance committee ensures that the overall risk management strategy is in line with this objective. The finance committee operates under policies approved by the Board of Trustees. Risk management policies are approved and reviewed by the board on a regular basis. These include credit risk policies and future cash flow requirements. The school's capital consists of financial liabilities, supported by financial assets. Management effectively manage the school's capital by assessing the school's financial risks and responding to changes in these risks and in the market. These responses may include the consideration of debt levels. There have been no changes to the strategy adopted by management to control the capital of the school since the previous year. The strategy of the school is to maintain a gearing ratio of between 20-30%. The gearing ratios for the years ended 31 December 2012 and 31 December 2011 are as follows: $ $ Financial liabilities 14,260,171 15,498,506 Trade and other payables 3,006,388 2,998,664 Total 17,266,559 18,497,170 Less: Cash and cash equivalents (9,355,784) (7,776,393) Net debt 7,910,775 10,720,777 Total equity (reserves+ retained earnings) 41,691,877 36,888,280 Total capital 49,602,651 47,609,057 Gearing ratio 16% 23% 23 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 21. KEY EXECUTIVE REMUNERATION The School has assessed the key executive management personnel positions in context of the School being constituted under the Grammar Schools Act 1975. Details of executive management personnel positions, responsibilities, appointment date and remuneration are detailed below. Further information on these positions can be found in the body of the Annual Report under the section relating to Governance. Contract classification and Date appointed Positions Responsibilities appointment authority (current to oosition Trustee Elected Trustee 18Nov2010 Trustee Elected Trustee 3 June 2005 To supervise, maintain and control the Trustee Elected Trustee 24 March 1995 conduct of the School. To make rules Trustee Government Appointed Trustee 14 March 2008 with regards to the management and Trustee Government.Appointed Trustee 14 June 2012 control of the School. Trustee Government Appointed Trustee 16 June 1996 Trustee Government Appointed Trustee 3 June 2005 Principal Three year contract 1 January 1998 The Principal is responsible for the implementlon of plans and strategies as approved by the Board of Trustees. Deputy Principal~ Permanent 1 January 1996 The Deputy Principal- Curriculum Curriculum supports the Principal in implementation of plans and strategies as delegated by the Principal. Deputy Principal ~ Five year contract 1 January 20~ 2 The Deputy Principal- Operations Operations supports the Principal in implementation of plans and strategies as delegated by the Principal. Business Manager/ Permanent 20 May 2004 To ensure best practice deployment of Board Secretary the School's financial resources. Director of Boarding The Director Boarding assumes Two year contract 25 August 1997 responsibility for all matters relating to th emanagement and leadership of Boarding at the School. The remuneration and other terms of employment for the key executive management personnel are specified in employment contracts. For the 2012 year, remuneration of key executive management personnel increases were based on performance assessments. The percentage increases are tied to the achievement of pre-determined individual performance targets. Remuneration packages for key executive management personnel comprise the following components: Short term employee benefits which include: o Base- consisting of base salary, allowances and leave entitlements paid and provided for the entire year or for that part of the year during which the employee occupied the specific position. Amounts disclosed equal the amount expensed in the Statement of Comprehensive Income. o Non-monetary benefits- consisting of provision of remission for School fees and motor vehicles together with fringe benefits tax applicable to the benefit. Long term employee benefits include long service leave accrued. Post employment benefits include superannuation contributions. Redundancy payments are not provided for within individual contracts employment. Contracts of employment provide only for notice periods or payment in lieu of notice on termination, regardless of the reason for termination. No performance bonuses were paid. Description Short Term Long Post Termination Total Employee Benefits Term Employee Benefits Remuneration Total aggregate Employee Benefits remuneration for Benefits executive management Base Non- personnel positions Monetary noted above. Benefits $ $ $ $ $ $ 2012 883,431 159,302 21,354 111,606 1,175,693 2011 795,394 228,119 20,268 101,780 1,145,561 24 BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL STATEMENT BY BOARD OF TRUSTEES OF THE TOWNSVILLE GRAMMAR SCHOOL These general purpose financial statements have been prepared pursuant to section 62( 1) of the Financial Accountability Act 2009 (the Act), relevant sections of the Financial and Performance Management Standard 2009, and other prescribed requirements. In accordance with section 62(1 )(b) of the Act we certify that in our opinion: a) the prescribed requirements for establishing and keeping the accounts have been complied with in all material respects; and b) the statements have been drawn up to present a true and fair view, in accordance with prescribed accounting standards, of the transactions of Townsville Grammar School for the financial year ended 31 December 2012 and of the financial position of the School at the end of that year S.G.DURWARD G.WAL(j CHAIRMAN SECRETARY 26/02/2013 26/02/2013 25 ------·------INDEPENDENT AUDITOR'S REPORT To the Board of Trustees of the Townsville Grammar School Report on the Financial Report I have audited the accompanying financial report of the Board of Trustees of the Townsville Grammar School, which comprises the statement of financial position as at 31 December 2012, the .statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and certificates given by the Chairman and Secretary. · The Board's Responsibility for the Financial Report The Board is responsible for the preparation of the financial report that gives a true and fair view in accordance with prescribed accounting requirements identified in the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, including compliance with Australian Accounting Standards. The Board's responsibility also includes such internal control as the Board determines is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor's Responsibility My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance about whether the financial report is free from material misstatement. · An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's 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, the audilor 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, other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board, as well as evaluating the overall presentation of the financial report including any mandatory finanda I reporting requirements approved by the Treasurer for application in Queensland. I believe that the audit evidence obtained is sufficient and appropriate to provide a basis lor my audit opinion. Independence The Auditor-General Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-General is the auditor of all Queensland public sector entities and can be removed only by Parliament. The Auditor-General may conduct an ·audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General's opinion are significant. Opinion In accordance with s.40 of the Auditor-General Act 2009- (a) I have received all the information and explanations which I have required; and (b) in my opinion - (i) the prescribed requirements in relation to the establishment and keeping of accounts have been complied with in all material respects; and (ii) the financial report presents a true and fair view, in accordance with the prescribed accounting standards, of the transactions of the Board of Trustees of the Townsville Grammar School for the financial year 1 January 2012 to 31 December 2012 and of the financial position as at ihe end of that year. Other Matters - Electronic Presentation of the Audited Financial Report This auditor's report relates to the financial report of the Board of Trustees of the Townsville Grammar School for th·e year ended 31 December 2012. Where the financial report is included on the Board of Trustees of the Townsville· Grammar School's website the Board is responsible for the integrity of the Board of Trustees of the Townsville Grammar School's website and I have not been engaged to report on the integrity of the Board of Trustees of the Townsville Grammar School's website. The auditor's report refers only to the subject matter described above. It does not provide an opinion on any other information which may have been hyperlinked to/from these statements or otherwise included with the financia I report. If users of the financial report are concerned with the inherent risks arising frorn publication on a website, they are advised to refer to the hard copy of the audited financial report to confirm the information contained in this website version of the financial report. These matters also relate to the presentation of the audited financial report in other electronic media including CD Rom. B R STEEL CPA (as Delegate of the Auditor-General of Queensland) Queensland Audit Office Brisbane