ANNUAL REPORT 2013
TABLE OF CONTENTS
2013
Chairman’s Report...... 2
Regional General Manager’s Report / AFL NEB 2013 Achievements...... 3
Game Development / Region by Numbers 2013...... 4
AFL NEB Umpiring / Umpires by Numbers 2013...... 5
Financial Statements...... 6
Directors Report...... 7
Auditors Independence Declaration ...... 11
Directors Declaration...... 12
Statement of Profit and Loss ...... 13
Statement of Financial Position...... 14
Statement of Changes in Equity...... 15
Statement of Cash Flow ...... 16
Notes to and Forming Part of the Financial Statement ...... 17
Independent Auditors Report...... 23
AFL North East Border Annual Report 2013 1 CHAIRMANS REPORT
JOHN BYRNE On behalf of the AFL NEB 2013
It is with much pleasure that I present the inaugural AFL participation and ultimately the game. With the additional North East Border Chairman' s report. In what is the most resources invested into Regions through the significant development in the management and appointment of Football Development Managers, for the governance of country Football, the establishment of the first time, country football is equipped to manage the Region Comm ission model across Country Victoria game locally but still requires local cooperation. provides a consolidated platform for the future. Significant time has been invested into the development AFL North East Border were successful in identifying and of a region Strategic Plan which will guide the subsequently appointing individuals to the commission Commission over the next 3 years and focuses on the 7 who brought a wealth of knowledge and the experience key Development areas identified by AFL Victoria. sough t by AFL Victoria when designing the model. Both Participation, Community, Engagement, Facilities, Fan individually and collectively each Commissioner has Development, People and Culture and Second Tier accepted the responsibility afforded to the position. competition are priorities in the growth of the game.
Pivotal to the success of the region is the AFL NEB Whilst developing strategies for the future, the Regional Administration Centre which now combines Commission has also shown commitment and courage, league management of 75% of the Regions addressing immediate issues which were impacting on competitions, Game and Club Development and Umpire the region. An AFLNEB sub committees examined our Management staff in one structure with further umpiring model and quickly identified the need for developments planned. change which led to the appointment of the state' s first Umpire Development Manager who shall oversee the In its initial stages of development during 2013, the newly created AFL NEB Umpire department from 2014. commission has been focusing on establishing an This is a significant occurrence in umpiring having operational and financial platform on which the Region identified the critical need for action. can implement game development initiatives in future years. With the scope of the Regions responsibilities The commission has also endorsed the 5, 2013 OKFNL being broad, there is a need to identify priorities which the Review recommendations and the inclusion of both commission has commenced. Benalla and Mansfield clubs into the Wangaratta District Junior Football League. Whilst some difficult decisions A detailed Region Report has been completed which have been made, the commitment and expectation from included an economic impact report, a facilities audit, a a Regional perspective is to act in the best interests of the participation analysis of all clubs, leagues, schools, game with integrity and consistency. Auskick centres and future participation and population projections against facility requirements. We As an organisation AFL NEB is still in its infancy and will acknowledge that not all areas of the Region can continue to grow and develop over time with its impact on experience year on year growth however, the Region local football to increase in the coming years. As Report clearly identifies Local Government Areas where Chairman I look forward with confidence in the there is opportunity to influence participation levels which commission ability to influence the football landscape as can significantly influence member clubs and we equipped for the challenges that lay ahead. competitions.
The partnerships the Region creates and maintains with clubs and our communities will be critical to impacting on
2 AFL North East Border Annual Report 2013 REGION GENERAL MANAGER’S REPORT
JOHN O’DONOHUE Region General Manager - AFL NEB 2013
The year 2013 will be recorded as a significant time in the Development Manager position and its own Umpire governance and management of country football with the Department for 2014, an acknowledgement of the establishment of the Region Commission model. importance of addressing the current umpire situation.
In March, AFL North East Border inducted 8 commissioners The NEB Region is in a unique position covering NE Victoria to govern the game in the Region following the 2011 R eview and Southern NSW and faces increasing challenges from into Country football and the subsequent integration of the other codes such as Rugby and Soccer who are also Victorian Country Football League and AFL Victoria. Whilst seeking participants and supporters. Our challenge is to the new governance structures are being embedded across represent AFL in our communities, develop our traditional the state, we are still in a transitional period as the rate in participation programs, and explore new participation which 8 commissions have been established has occurred opportunities such as Youth Girls, AFL 9's and Multi Cultural faster than expected. and Indigenous programs whilst continually developing our partnerships. Rules and regulations which have governed country football for over 80 years under the VCFL are under review to ensure Clubs, Leagues, Primary and Secondary Schools, L ocal they reflect the regional structure and to provide Governments and a variety of community groups have all Commissions with authority to manage the game locally. welcomed a coordinated approach to the management of the game which the Commission model provides and we will On any given weekend, the general football public may not continue to work with neighbouring AFL organisations in be aware of the role of the Commission, suffice to say, AFL NSW and AFL Goulburn Murray as well as Netball establishing a platform for the future health and prosperity of Victoria. the game is a high priority. We acknowledge that the North East Border Region has been a traditionally strong football The AFL North East Border Commission has shown in its area, but as we experience a change in community needs, infancy an acceptance of its responsibility to act in the best the game itself must also change to reflect and remain as interests of the game and will continue to support and work relevant in the future and create new fans of the game. with members as our structure further develops. In establishing a platform for the future, the commission Significantly, additional Human Resources have been acknowledges the vital role which Auskick centres and club invested into region with AFL NEB now having 3 Football and league committees play along with their countless Development Managers (FDM' s) who will be the first point of volunteers who deliver the game. With additional resources contact for members and are responsible for both Game and a coordinated approach to managing and promoting and Club Development. Further supporting the game the game, we look forward to supporting and developing all locally, the Commission has created an Umpire aspects of AFL in the North East Border Region. AFL NEB ACHIEVEMENTS in 2013 - First Region in country Victoria to establish a Commission - Authorised and completed a Review of the OKFNL - Appointment of a Region G eneral Manager - Established an Umpire Development Manager Position - Established a Region Administration Centre with offices - Appointed an Umpire Development Manager in Wangaratta and Albury. - Established an AFL NEB Umpire Department - Inducted 2 additional, 3 in total, Football Development - Developed an AFL NEB website Managers - Had player payments placed on the state-wide agenda - Completed a Regional Report on participation including as a major issue facing country football Auskick centres, Clubs, Umpires, Schools, new participation programs - Established strong working relationships with Netball Victoria Regional Management - Conducted a Regional Facilities Audit - Commenced a Strategic Planning Program - Commissioned an independent Economic Impact Report on Country Football in the Region - Completed individual Local Government Area participation, growth and facility requirement projections
AFL North East Border Annual Report 2013 3 GAME DEVELOPMENT
2013
With the significant changes implemented under the Region club may have. The delivery of tailored volunteer training Commission model, game and club development across seminars for club administrators have been planned with a the state will now be the responsibility of Football recent club survey identifying the areas where assistance is Development Managers and the game Development sought including club umpire support and training. Department. AFL NEB have been allocated 3 full time FDM's who had all commenced in their roles by mid July 2013 all The FDM's are also equipping themselves with the bringing a range of skills and experiences. knowledge to assist clubs in the management and implementation of AFL Victoria Country rules, in particular The second half of 2013 has seen the Game Development the National Transfer regulations. With an average of 20 Department focused on collating relevant data and statistics clubs each, the FDM's will be the first point of contact for on current participation, analysing existing structures and affiliated clubs and Auskick centres for a range of issues transition program's between the various football bodies as which require assistance or clarification. well as establishing working relationships with clubs. Whilst the most critical appointment in a club structure, we The AFL NEB Region Report has identified priority Local have identified that Coaching in the region has a relatively Government Areas where our participation penetration is low profile and our plans are to recognise our local coaching below state averages which will become a focus of the talent with Coach of the Year awards whilst supporting FDM's work plans into 2014. Key partnerships in game coach education with regular scheduled coaching seminars Development will be with schools, clubs and community and additional professional development opportunities. groups as we strive to develop not only more participants, but fans of the game. We will continue to manage the V/Line Cup program, known locally as the OM U15 School Boys, which competes Plans have been established to present an offering to all annually in the AFL Victoria Country V/Line Cup Carnival and these groups to partner with AFL NEB to promote, deliver is an introduction into the talented player pathways of the and monitor game participation initiatives including Murray Bushrangers. traditional program's such as Auskick and new game segments, Youth Girls, AFL 9's and Indigenous and Multi- We are fortunate to have significant football knowledge Cultural inclusion. within the Game Development Department with 20 years collective experience in North East Border football which Game Development will work closely with clubs to provide equips the Region to support game development. strategic and operational advice to maximise the potential a THE REGION BY NUMBERS 2013
6 - The number of AFL Player Visitation Programs delivered 61 - Clubs senior and junior in the Region during 2013. Teams included Essendon, North Melbourne, Carlton, Hawthorn, St.Kilda and 5,122 - Registerd footballers in 2013 87 - Number of primary and secondary schools 182 -The number of coaches in 2013. 11,000 - the number of people who attend the AFL NAB 19 - The number of Female participants Cup game Essendon v Richmond at Wangaratta 2 - Premier facilities capable of hosting AFL pre season 1770 - Auskick Victorian participants games 21 - The Number of Vic Auskick centres $31.1 million - The Economic impact of football in the North East Border Region 1055 - Auskick participants in NSW centres 6 - Auskick centres in NSW centres
4 AFL North East Border Annual Report 2013 AFL NEB UMPIRING
2013
It has been no secret that umpiring in the North East in country football and is a significant milestone in the Border has been on decline over a number of years. The commissions short existence. Mark came to the role Commission moved quickly to appoint a sub committee having umpired at AFL, SANFL and country level and to examine our umpiring model and where appropriate worked in the SANFL Umpiring Department and has design a model which can best improve the current contributed significantly to the establishment of the AFL trends. NEB Umpire Department.
The subcommittee comprised individuals with a wealth of Umpire Plans under the AFLNEB umpire Model for 2014 both umpiring and football experience who worked include a pay increase of more than 3 times the diligently throughout 2013 meeting on average every 3 prescribed AFL Victoria Country rates, new uniforms to weeks. Having identified that the current NEUB model be provided free to all registered umpires, increased was not successful, the group started with the end in coaching and feedback including the use of video mind. If we could start again, what would umpiring look analysis, fitness testing and reporting, streamlined like and what resources are needed? coaching panel for consistency in coaching messages and a commitment to the development of an all inclusive Whilst we have a long way to go, AFLNEB has adopted an culture for males and females of all ages. umpire program which is void of any second or third parties and full responsibility for umpiring will stay with the Whilst an exciting time in umpiring, we have a long way to region. The recommendations presented by the Umpire go and results aren't necessarily expected in 2014, Sub Committee to the commission identified that the however, with accountability accepted by the region, we influences of secondary umpiring bodies had been are looking forward to the challenge and in working with detrimental as no one body accepted responsibility and clubs to improve club umpire skills and the match day for the betterment of umpiring, the region accept total environment. responsibility for all facets.
The appointment of Mark Bywater as AFLNEB Umpire Development Manager is the first full time umpire position
THE UMPIRE’S BY NUMBERS 2013
179 - The number of Umpires registered with the umpiring body, excluding club umpires 91 - The number of field umpires 53 - The number of boundary umpires 35 - The number of goal umpires 48% - the percentage of registered with the umpiring body in 2013 over 50 years of age 30% - aged between 40 - 49 years of age
AFL North East Border Annual Report 2013 5 2013
AFL North East Border Ltd ABN 83 160 416 188
Special Purpose Financial Statements
For the period ended 31 October 201 3
Contents
Directors’ report 2 !uditors’ independence declaration 6 Directors’ declaration 7 Statemen t of profit and loss and other comprehensive income 8 Statement of fi nancial position 9 State ment of changes in equity 10 Statement of cash flows 12 Notes to and forming part of the financial statements 12 Independent auditor’s report to the members 18
6 AFL North East Border Annual Report 2013 AFL North East Border Ltd – ABN 83 160 416 188 Directors’ report For the period ended 31 October 2013
Your direc tors present their report on AFL North East Border Ltd for the period ended 31 October 201 3 .
Directors The following persons were directors of the Company during the whole of the financial year and up to the date of this report, unless otherwise stated:
Director Position John Byrne Chairman - Diploma of Education (Primary School) - Former Councillor Shire of Wangaratta - Former Murray Bushrangers TAC Regional Manager (12 yrs) - Former VFL Development Manager - NMFC premie rship player, O&MFL interleague coach, coach of VCFL state teams - Former president of Wangaratta & District Junior FL - Chairman of NEB Working Party Stephen Deputy Chairman Clarke - Partner Johnsons MME Chartered Accountants - Treasurer Wodonga Auskick Centre - W odonga Raiders FNC president, past player and life member - 2012 inductee O&MFNL Hall of Fame Jason Dudenas - Masters in Financial Planning - Senior Financial Planner – Crowe Horwarth Albury - Current North East Umpires Board Chairman - 8 time O&MFNL Gran d Final um pire (retired) - All Australian umpire at ACFC 2008 Kath Evans - Principal at Crowe Horwarth Albury - Former president of Tallangatta & District Netball Association Geoff Lowcock - Retired teacher and principal (33 years) - Small business operator in Mitta valley (vealer breeder) David - Senior partner at Harris Lieberman Solicitors Koschitzke - Former director of Hume Football League (9 years) - Former director of Ovens & Murray Football/Netball League (5 years) - Current chair of Albury Northside Chamber of Commerce - Pre sident Albury & District Law Society Mark Florence - Worked in local government for past 14 years - Current general manager Sustainable Communities at Indigo Shire Council - Former manager Recreation and Youth Services at Wodonga City Council Phil Nolan - Direc tor of Nolan Media and Events - 30 years as editor of the Wangaratta Chronicle - Ovens & Murray Football/Netball League board member (15yrs) - Wangaratta FNC premiership coach, past player and life member - OAM recipient
AFL North East Border Annual Report 2013 7
AFL North East Border Ltd – ABN 83 160 416 188 Directors’ report For the period ended 31 Oct ober 2013
Meetings of directors The number of meetings of the Company’s directors held during the period ended 31 October 2013, and the numbers of meetings attended by each director were:
Director No. of Meetings Attended No. of Meetings Held* John Byrne 13 13 Stephen Clarke 12 13 Jason Dudenas 12 13 Kath Evans 6 8 Geoff Lowcock 8 8 David Koschitzke 8 8 Mark Florence 5 8 Phil Nolan 5 8
* reflects the number of meetings held during the time the director held office during the year.
Company Secretary The Company’s secretary is Mr John O’Don ohue who was appointed on 1 February 2013. He is the Company’s Region General Manager .
Results & Review of Operations 2013 $ Operating surplus after income tax 158,252
The company has posted a profit of $158,252 for the 9 month period ended 31 October 2013. This significant profit has been due to: - 2 o ne off seed funding amounts received from the Victorian Country Football League and !FL Victoria during the company’s start - up phase; - The accounting period only being for a 9 month period which coin cided with the income generating period of the company. The period from November to February will generate very little income but fixed costs will continue to be incurred and existing cash reserves will be reduced to fund this period of operation. - Establi shing of a trading surplus in the initial business development phase
Significant Changes in the State of Affairs There have been no significant changes in the state of affairs of the Company during the financial year.
Principal Activities The principal activities of the Company during the period were to oversee the growth and sustainability of AFL football in the North East of Victoria . This included providing administration services to the Wangaratta & District Junior Football League , Ovens & King Foo tball/Netball League, Tallangatta & District Football League, Upper Murray Football League and the Albury Netball Association.
8 AFL North East Border Annual Report 2013 AFL North East Border Ltd – ABN 83 160 416 188 Directors’ report For the period ended 31 Oct ober 2013
Matters Subsequent to the End of the Financial Year At the date of this report no matter or circumstance has arisen since 31 October 201 3 that has significantly affected or may significantly affect:
(a) the Company’s operations in future financial years- (b) the results of those operations in future financial years; (c) the state of the Company’s affairs in future financial y ears.
Likely Developments and Expected Results of Operations Likely developments in the operations of the company and the expected results of those operations in future financial years have not been included in this report as the inclusion of such inform ation is likely to result in unreasonable prejudice to the Company.
Environmental regulations The company’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a state or territory.
Dividends The AFL North East Border is a Company limited by guarantee. It has no share capital and is therefore prohibited by law from paying dividends.
Membership The company is limited by guarantee. If the company is wound up, the constitution states that each memb er is required to contribute a maximum of $1.00 each towards meeting any outstanding obligations of the entity. At 3 1 October 2013 , the total amount that members of the company are liable to contribute if the company is wound up is $1.00.
There were 76 m embers as of 31 st October, 2013.
Auditors Independence Declaration ! copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out below .
Proceedings on behalf of the company No person has applied to the court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for a ll or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the Corporations Act 2001.
Insurance of Officers No premiums were paid or were payable during the fin ancial year to insure officers of the Company for costs and expenses that may be incurred in defending civil or criminal proceedings that may be brought against such officers in their capacity as officers of the Company.
AFL North East Border Annual Report 2013 9
AFL North East Border Ltd – ABN 83 160 416 188 Directors’ report For the period ended 31 Oct ober 2013
Auditor Dougald J. Frederick cont inues as auditor of the company in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of the
Director
Albury 29 January 2014
10 AFL North East Border Annual Report 2013
AFL North East Border Ltd – ABN 83 160 416 188 Auditors’ Independence Declaration For the period ended 31 October 2013
!uditors’ Independence Declaration
As lead auditor for t he audit of AFL North East Border Ltd for the period ended 31 October 201 3 , I declare that, to the best of my knowledge and belief, there have been:
a) No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b) No contraventions of any applicable code of professional conduct in relation to the audit.
Dougald J. Frederick Albury 29 January 2014
AFL North East Border Annual Report 2013 11
AFL North East Border Ltd – ABN 83 160 416 188 Directors’ declaration Fo r the period ended 31 October 2013
!s stated in Note 1(a) to the financial statements, in the directors’ opinion, the Compa ny is not a reporting entity because there are no users dependent on general purpose financial statements. These are special purpose financial statements that have been prepared to meet the requirements of the Corporations Act 2001 .
The directors declare that the financial statements set out on pages 8 to 1 7 :
(a) comply with Accounting Standards and other mandatory professional reporting requirements as detailed above, and the Corporations Regulations 2001 ;
(b) give a true and fair view of the Company’s financi al position as at 31 October 201 3 as represented by the results of its operations and its cash flows for the period ended on that date;
In the directors’ opinion.
(a) the financial statements and notes are in accordance with the Corporations Act 2001 ; and
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the directors.
12 AFL North East Border Annual Report 2013 AFL North East Border Ltd – ABN 83 160 416 188 Statement of profit and loss and other comprehensive income Fo r the period ended 31 October 2013
2013 Notes $
Revenue 2 667,836
Employee costs 160,026 Cost of sales 3 76,499 Depreciation 3 4,125 Umpire Costs 182,278 Finance Costs 817 Administration Costs 85, 83 9
Surplus/(deficit) before income tax expense 158,252
Income tax expense 1(b) -
Net surplus 158,252
Other comprehensive income -
Total comprehensive result for the period 158,252
The above statement of profit and loss and other comprehen sive income should be read in conjunction with the accompanying notes.
AFL North East Border Annual Report 2013 13 AFL North East Border Ltd – ABN 83 160 416 188 Statement of financial position As at 31 October 2013
2013 Notes $ ASSETS Current assets Cash and cash equivalents 4 106,802 Trade and other receivables 5 58,056 Other 6 29,000 Total current assets 19 3,85 8
Non - current assets Plant and equipment 7 39,168 Total non - current assets 39,168
Total assets 233,02 6
LIABILITIES Current liabilities Payables 8 43,790 Provisions 9 5,811 Borrowings 10 8,085 Total current liabilities 57,686
Non - current liabilities Borrowings 11 17,088 Total current liabilities 17,088
Total liabilities 74,774
Net assets 158,252
EQUITY Retained earnings 158,252 Total e quity 158,252
The above statement of financial position should be read in conjunction with the accompanying notes.
14 AFL North East Border Annual Report 2013 AFL North East Border Ltd – ABN 83 160 416 188 Statement of changes in equity Fo r the period ended 31 October 2013
Note Retained Total Earnings $ $ Balance as at 31 October 2012 - -
Surplus for the period 158,252 158,252
Balan ce at 31 October 2013 158,252 158,522
The above statement of changes in equity should be read in conjunction with the accompanying notes.
AFL North East Border Annual Report 2013 15 AFL North East Border L td – ABN 83 160 416 188 Statement of cash flows Fo r the period ended 31 October 2013
2013 Notes $ Cash flows from operating activities Receipts from customers 5 68,980 Payments to suppliers and employees (455,040) Interest received 398 Finance costs (817) Net cash inflow/(outflow) from operating activities 12 113,521
Cash flows from investing activities Purchase of property, plant & eq uipment (24,666) Proceeds from sale of property, plant and - equipment Net cash inflow/(outflow) from investing (24,666) activities
Cash flows from financing activities Proceeds from borrowings 20,991 Repayment of borrowing s (3,044) Net cash inflow/(outflow) from financing 17,947 activities
Net increase/(decrease) in cash and cash 106,802 equivalents held
Cash and cash equivalents at the beginning of - the financial year
Cash and cash equiva lents at the end of the financial year 4 106,802
The above statement of cash flows should be read in conjunction with the accompanying notes.
16 AFL North East Border Annual Report 2013 AFL North East Border Ltd – ABN 83 160 416 188 Notes to and forming part of the financial statements Fo r the period ended 31 October 2013
Note 1. Summary of significant accounting policies
Background The company was incorporated as a unl isted public company limited by guarantee on 1 February 2013, therefore the period ended 31 October 2013 represents the first year of the company’s operations. Consequently no comparative information is disclosed.
(a) Basis of Accounting AFL North East Border Ltd is not a reporting entity because in the opinion of the Directors there are no users dependent upon general purpose financial statements.
These are special purpose financial statements that have been prepared for the sole purpose of complying with th e requirements of the Corporations Act 2001 to prepare and distribute financial statements to the members and must not be used for any other purpose. The Directors have determined that the accounting policies adopted are appropriate to meet the needs of th e members. The financial statements have been prepared in accordance with applicable Accounting Standards and Australian Accounting Interpretations with the exception of the disclosure requirements of the following:
AASB 7 - Financial Instruments: Disclos ures AASB 124 - Related Party Disclosures AASB 132 - Financial Instruments: Presentation Interpretation 1031 - Accounting for the Goods and Services Tax (GST)
Under Australian Accounting Standards , there are requirements that apply specifically to not - fo r - profit entities that are not consistent with International Reporting Standards requirements. The company has analysed its purpose, objectives and operating philosophy and determined that it does not have profit generation as a prime objective. Consequent ly, where appropriate the Company has elected to apply options and exemptions within the Accounting Standards which are applicable to not - for - profit entities.
The financial statements are prepared in accordance with the historical cost convention. Unless otherwise stated, the accounting policies adopted are consistent with those of the previous year. Comparative information has been reclassified where appropriate to enhance comparability.
(b) Income tax The Company is exempt from income tax and will remain so whilst its activities remain the same as at present and the income tax legislation does not change in relation to the exemption provisions.
(c) Cash and cash equivalents For the purposes of the statement of cash flows, cash includes deposits at call, which are readily convertible to cash on hand and which are used in the cash management function on a daily basis.
AFL North East Border Annual Report 2013 17 AFL North East Border Ltd – ABN 83 160 416 188 Notes to and forming part of the financial statements Fo r the period ended 31 October 2013
(d) Trade and other receivables Trade and other receivables include amounts due from customers for goods sold and services performed in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non - current assets. A provision for doubtful debts is raised when some doubt as to collection exists.
Note 1. Summary of significant accounting policies (continued)
(e) Plant and Equipment The cost method of accounting is used for all acquisitions of assets. Cost is determined as the fair value of the assets given up or lia bilities undertaken at the date of acquisition plus incidental costs directly attributable to the acquisition.
All plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is calculated using the prime cost method to write off the cost of the asset over its expected useful life. The rates of depreciation applied are as follows:
Furniture equipment 10 years Computer equipment 5 ye ars Motor vehicles 5 years
(f) Impairment of assets Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or cha nges in circumstances indicate that the carrying amount may not be recoverable. !n impairment loss is recognised for the amount by which the asset’s carrying value exceeds its fair value. The recoverable amount is the higher of an assets fair value less c osts to sell and value in use. As the Company is deemed a not - for - profit entity for the purposes of the Accounting Standards , the value in use is the depreciated replacement cost.
(g) Payables These amounts represent liabilities for goods and services provid ed to the Company prior to the end of the financial year and which remain unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
(h) Employee benefits ! provision is made for the Company’s liability for employee benefits arising from services rendered by employees at balance date. Employee benefits expected to be settled within 12 months are recognised in the current provision for employee benefits and have been measured at amounts expected to be paid when the liability is settl ed, plus related on - costs.
(i) Revenue and Other Income Income is recognised to the extent that it is probable that the economic benefits will flow to the entity and the income can be reliably measured.
18 AFL North East Border Annual Report 2013 AFL North East Border Ltd – ABN 83 160 416 188 Notes to and forming part of the financial statements Fo r the period ended 31 October 2013
(i) Sales Income Sales income is recognised when control of the goods has passed to the buyer or services have been rendered to the customer.
(ii) Interest Interest income is recognised on an accrual basis taking into account the interest rates applicable to the financial assets.
All revenue is stated net of the amount of goods and services tax (GST).
(j) Goods and services tax (GST) Income, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office (ATO) . In these circumsta nces 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 statement of financial position are shown inclusive of GST.
(k) Comparative Figures When required by Accounting Stand ards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.
(l) Critical Accounting Estimates and Judg e ments The directors evaluate estimates and judgments incorporated into the financial statements 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 company.
(m) Adoption of New and Revised Acc ounting Standards The Australian Accounting Standards Board has issue d new, revised and amended Standards and Interpretations that have mandatory application dates for future reporting periods. The Board of Directors has reviewed the requirements and has assessed that the future application of these changes is unlikely to have any material impact on the presentation of the Company’s financial statements.
Note 2. Revenue 2013 $
Sale of Goods 90,291 Grant Funding 147,013 Sponsorship 1 4,000 Administration and Registration Fees 155,482 Umpire Fees 181,574 Other Income 79,476
Total revenue 667,836
AFL North East Border Annual Report 2013 19 AFL North East Border Ltd – ABN 83 160 416 188 Notes to and forming part of the financial statements Fo r the period ended 31 October 2013
Note 3. Profit
Profit before income tax expense includes the following s pecific net gains and expenses:
Expenses Cos t of sales - Victor Sports 32,828 - Cougar Sportswear 28,115 - Russell Sportswear 15,556 76,499 Depreciation - Office furniture & equipment 2,013 - Motor vehicles 2,112 4,125
Note 4. Current assets – Cash and cash equivalents 201 3 $ General Cheque Account 65,42 4 GST Bank Account 41,223 Petty Cash Debit Card 15 5 106,802
Note 5. Current assets – Trade and other receivables
Trade receivables 58,056
Note 6. Current assets – Other
Accrued cont ribution from North East Umpires Board 29,000
Note 7 . Non - current assets – Plant and equipment
Plant and Equipment At cost 47,704 Less: Accumulated Depreciation (8,536) Total property, plant and equipment 39,168
20 AFL North East Border Annual Report 2013 AFL North East Border Ltd – ABN 83 160 416 188 Notes to and forming part of the financial statements Fo r the period ended 31 October 2013
Reconciliations of property, plant and equipment Reconciliations of the carrying amount of each class of property, plant and equipment at the beginning and end of the current financial year are set out below:
Plant & Equipment Total WDV 1 November 2012 - - Additions 2 4,664 24,668 Disposals - - Transfers 18,629 18,629 Depreciation (4,125) (4,125) WD 31 October 2013 39,168 39,168
Note 8 . Current liabilities - Payables 2013 $ Trade Payables 11,139 GST Payable 2,258 PAYG Withholding Payable 68 Sup erannuation Payable 2,065 A ccrued expenses 28,260 43,790
Note 9. Current liabilities - Provisions 2013 $ Provision for annual leave 5,811
Note 10 . Current liabilities - Borrowings
WAW Car Loan 5,188 Toyota Finance lease 2,897 8,085 Security The above loans are secured over the specific assets subject to finance.
Note 11. Non - current liabilities - Borrowings
Toyota Finance lease 17,088
AFL North East Border Annual Report 2013 21 AFL North East Border Ltd – ABN 83 160 416 188 Notes to and forming part of the financial statements Fo r the period ended 31 October 2013
Note 1 2 . Reconciliation of net cash flow to operating cash flows
Net Surplus for the year 158,252 Non - cash items : - Depreciation 4,125 - Non cash contribution on transfer of assets (11,401) Changes in assets and liabilities: - Decrease/(Increase) in trade and other ( 58,056 ) receivables - Decrease/(I ncrease) in other assets (29,000) - (Decrease)/Increase in trade and other 43,790 payables - (Decrease)/Increase in provisions 5,811 Net cash inflow from operating activities 113,521
Note 1 3 . Remuneration of auditors
Remuneration of the Aud itor of the Company for: Audit of the financial statements 3,000 Other services - 3,000
Note 1 4 . Contingent Liabilities The directors are not aware of any contingen t liabilities as at 31 October 201 3 .
Note 1 5 . Events After Balance Date There are no significant events occurring after the reporting date likely to impact the affairs of the company in the future.
Note 1 6 . Company Details The registered office and principal place of business of the company is:
AFL North East Border Ltd Wangarat ta Sports Development Centre Wangaratta Showgrounds Golf Links Lane Wangaratta VIC 3677
PO Box 1132 WANGARATTA VIC 3676
22 AFL North East Border Annual Report 2013
Independent auditor’s report to the members of AFL North East Border Ltd
Report on the Financial Statements We have audited the fina ncial statements, being special purpose financial statements, of AFL North East Border Ltd (the Company), which compri se the statement of fi nancial position at 31 October 201 3 , the statement of profit and loss and other comprehensive income, statement of c hanges in equity and statement of cash flows for the period ended on that date, a summary of accounting policies, other explanat ory notes and the d irectors’ declaration.
The Director s ’ Responsibility for the Financial Statements The Directors are respon sible for the preparation and fair presentation of the financial statements and have determined that the accounting policies described in Note 1 to the financial statements, are appropriate to meet the requirements of the Corporations Act 2001 and are appr opriate to meet the needs of the members. The Director s ’ responsibility also includes designing, implementing and maintaining internal control s relevant to the preparation and fair presentation of financial statements that are free from material misstatem ent, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
!uditor’s Responsibility My responsibility is to express an opinion on the financial sta tements based on our audit. I have conducted my audit in accordance with Australian Auditing Standards. These Auditing Standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparati on and fair presentation of the financial statements 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/ !n audit also inclu des evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Director s , as well as evaluating the overall presentation of the financial statements.
The financial statements have been prepared for distribution to members for the purpose of fulfilling the Director s ’ financial reporting requirements under the Corporations Act 2001 . I disclaim any assumption of responsibility for any reliance on this report or on the financial statements to which i t relates to any person other than the members, or for any purpose other than that for which it was prepared.
I believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Independence In con ducting my audit I have complied with the independence requirements of the Corporations Act 2001.
AFL North East Border Annual Report 2013 23
Independent auditor’s report to the members (continued)
!uditor’s Opinion In my opinion the financial statements of the Company is in accordance with the Co rporations Act 2001, including :
a) giving a true and fair view of the Company’s financial position as at 31 October 201 3 and of its performance for the period ended on that date in accordance with the accounting policies described in Note 1; and
b) Complying w ith Australian Accounting Standards to the extent described in note 1 and complying with the Corporations Regulations 2001 .
Basis of Accounting Without modifying our opinion, I draw attention to Note 1 to the financial statements which describe the basis of accounting. The financial report has been prepared for the purpose of fulfilling the directors’ financial reporting responsibilities under the Corporations Act 2001 . As a result, the financial statements may not be suitable for another purpose
Do ugald J. Frederick Chartered Accountant
Dougald J. Frederick Albury 29 January 2014
24 AFL North East Border Annual Report 2013
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