Annual Report 2019 - 2020

Sunraysia Rural Counselling Service Inc ANNUAL REPORT 2019 - 2020

Supported by the Australian and Victorian Governments ACKNOWLEDGMENTS The Sunraysia Rural Counselling Service Inc. wishes to acknowledge and sincerely thank the following organisations for their funding, contributions and support during the 2019-20 financial year:

GRANTS Department of Agriculture • Australian Government funding for Murray-Darling Basin Economic Development Program - Small Business Project

Department of Agriculture, Water and the Environment • Australian Government funding for the - Rural Financial Counselling Service Program - Small Business Financial Counselling Program

Department of Jobs, Precincts and Regions • Victorian Government funding for the - Rural Financial Counselling Service Program - Small Business Financial Counselling Program - Employment of a Senior Rural Financial Counsellor Coordinator

DONATIONS & CASH CONTRIBUTIONS NSW Department of Planning, Industry and Environment Murray Valley Winegrowers’ Inc Swan Hill Rural City Council . Y TASCO Petroleum H Wentworth Shire Council T - Cash contributions to SunRISE Mapping & Research A P IGA Community Chest and Victorian Lions Clubs

M - Food vouchers to assist farmers in need E Mildura Millewa Country Women’s Association & - Fuel vouchers to assist Millewa farmers in need Y T ANZ Bank and Mildura Regional Development I - Funds raised from 2019 Sunraysia Agribusiness Conference to support primary producers R G E T PHOTOGRAPHIC IMAGES

N Chris O’Connell Photography (Cover photo) I

Gingerhouse Photography ,

T Philip Down S Darren Seiler

U Andy Banks Photography R Imagine Pictures T

: DESIGN

NewsAlert PR / Sunni Studios

T T

O PRINTING

M Sunnyland Press

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SUNRAYSIA RURAL COUNSELLING SERVICE 2 O 2019 - 2020 3 TABLE OF CONTENTS ACKNOWLEDGMENTS...... 03 ABOUT US...... 06 VISION, PHILOSOPHY, MOTTO...... 09 STRUCTURES & SERVICES...... 10 OUR TEAM...... 13 OUR BOARD...... 14 2019 - 2020 SNAPSHOT...... 16 CHAIR’S REPORT...... 18 EXECUTIVE OFFICER’S REPORT...... 20 CASE STUDIES ...... 22 RURAL FINANCIAL COUNSELLING...... 22 SMALL BUSINESS SUPPORT...... 23 RURAL FINANCIAL COUNSELLING SERVICE...... 25 REPORT...... 26 SERVICES...... 27 HOW WE WORK...... 28 THE FEEDBACK...... 29 RURAL BUSINESS CONNECTIONS...... 31 REPORT...... 32 SMALL BUSINESS FINANCIAL COUNSELLING REPORT ...... 33 HOW WE WORK...... 34 SunRISE MAPPING & RESEARCH...... 37 REPORT...... 38 MAPPING...... 39 BOARD MEETING REPORT...... 42 GENERAL PURPOSE FINANCIAL REPORTS...... 45 INDEPENDENT AUDITOR’S REPORT...... 66

4 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 5 ABOUT US... OUR ORGANISATION We are a free financial counselling service for farmers and small town businesses in North West Victoria.

Sunraysia Rural Counselling Service (Inc) was formed in 1984 in response to the downturn in the dried vine fruit industry. In the 35 years since, there have been name changes, funding changes and amalgamation of services – but the primary objective of assisting primary producers and rural businesses has never changed.

After successfully tendering for the Rural Financial Counselling Service (RFCS) across an expanded region in 2016, SunRCS transitioned to establish Rural Financial Counselling Service Victoria - North West.

Our service is now across 11 local government areas:

• Mildura Rural City; • Swan Hill Rural City; • Yarriambiack Shire; • Hindmarsh Shire; • Buloke Shire; • Gannawarra Shire; • Loddon Shire; Our financial counsellors provide outreach across north west Victoria from offices in Mildura, • Central Goldfields Shire; Swan Hill, Donald and Bendigo. • Greater Bendigo City; • Mount Alexander Shire; and SunRISE Mapping and Research is based at the Mildura office. • Macedon Ranges Shire. Rural Business Connections is based at Mildura and outreaches to five Murray Darling Basin

communities.

6 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 7 OUR VISION To be the leader in the provision of information and support services to build resilient rural communities.

OUR PHILOSOPHY To provide a community driven responsive service which is innovative, flexible and accessible to those in need.

OUR MOTTO Trust, Integrity & Empathy.

8 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 9 OUR STRUCTURES AND SERVICES...

RURAL FINANCIAL SMALL BUSINESS COUNSELLING FINANCIAL COUNSELLING

Rural Financial Counselling Service Small Business Financial Counselling Victoria – North West, is a free financial provides assistance to rural small counselling service for farmers. businesses.

Our rural financial counsellors work with Our counsellors can assist with businesses you to provide information and develop experiencing or anticipating financial options, while you make the decisions. difficulty, providing analysis and the tools for business operators to make informed Rural financial counsellors meet on farm or financial and business decisions. elsewhere if required. Small Business Financial Counselling The service is free and confidential. The service is free and independent and

confidentiality is assured.

RURAL BUSINESS SunRISE MAPPING CONNECTIONS

Rural Business Connections began in SunRISE Mapping & Research is a October 2019 and assists clients in the community-based organisation specialising Murray River regions with starting and in mapping and spatial information growing their small business or community services. initiative. Since 1995, SunRISE Mapping has Rural Business Connections provides been developing its spatial information access to free and low-cost training and expertise and capacity to provide powerful support through communication, management and planning tools to individual property owners, industry organisations, businesses and government • Small group workshops agencies. • Online digital solutions • Appointments with a Small Business Financial Consultant

This project is funded by the Australian Government under the Murray–Darling Basin Economic Development Program.

11 10 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 11 OUR TEAM... SunRCS: Organisational Chart 2019 - 2020

SUNRAYSIA RURAL COUNSELLING SERVICE INC BOARD Jack Forbes | Chair Andrew Pickles Kylie Zanker | Vice Chair John Senior Leo Tellefson | Secretary John Tesoriero Lyn Heaysman | Treasurer (appointed 6/11/19)

RFCS VICTORIA - AUDIT & RISK COMMITTEE NORTH WEST PROJECT BOARD

Jack Forbes | Chair Andrew Pickles FINANCE COMMITTEE Kylie Zanker John Senior Leo Tellefson John Tesoriero GOVERNANCE COMMITTEE Lyn Heaysman (appointed 6/11/19) CENTRAL ADVISORY GROUP

EXECUTIVE OFFICER Patrick Timmons EXECUTIVE ASSISTANT SUNRISE MAPPING Lorraine Argus SERVICES MANAGER Sue Argus GIS PROJECT OFFICER SENIOR RURAL FINANCIAL Julie Hawtin COUNSELLOR COORDINATOR Stephanie Ferdelja

ADMINISTRATION OFFICERS RURAL BUSINESS MILDURA CONNECTIONS MANAGER Joan Polwarth RURAL FINANCIAL Dianne Johnstone COUNSELLORS (program commenced 1/10/19) BENDIGO BENDIGO Erin Bottomley Anna McGee Chris Young (commenced 19/8/19)

DONALD SMALL BUSINESS James Goldsmith FINANCIAL COUNSELLORS BENDIGO SWAN HILL Lauren Fowler Jim Chamouras Marg McKenzie Marty Sammon (commenced 26/8/19) (commenced 4/5/20) Scott Sanders

MILDURA John Keogh (commenced 20/8/19) 12 Ashley Kuhl 12 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 13 David Talbot

OUR BOARD... The diverse activities and programs of SunRCS are overseen by a seven- JACK FORBES CR KYLIE ZANKER LEO TELLEFSON member board of agricultural, rural Chairperson Vice Chairperson Secretary industry and community representatives. Mildura Warracknabeal Donald Board member since 1985, Board member since 2013 Board member since 2012 The board exists to provide sound corporate Chairperson since 2008 Leo is involved in farming through his governance, accountability for government A family background in farming motivates Kylie is a member of Australian Institute of Jack’s commitment to rural and farm Company Directors. She is a Yarriambiack family farm and also owns the local butcher funding, employ staff according to need, issues. Shire Councillor (elected 2008) and has shop in his home town of Donald. meet all reporting requirements and ensure served two terms as Mayor. all statutory obligations are met. He is a member of the Australian Institute He is currently Chair of the Johnson-Goodwin of Company Directors, and has completed Kylie is an Early Childhood Years teacher and Homes Aged Care Facility in Donald, Chair of financial planning and accounting course has a special interest in children, youth and the Donald Community Centre/Neighbourhood Rural Financial Counselling Service Victoria segments. community-minded projects. House, board member of Buloke Community – North West was created under SunRCS’s Enterprises (Bendigo Community Bank franchise) and committee member of Donald umbrella specifically to provide a rural Jack has skills in succession planning, In addition to working as a teacher, Early Years retirement planning and aged care issues, program coordinator and university lecturer in Racing Club. financial counselling service across north superannuation, government assistance social sciences, Kylie has also worked part- west Victoria. It is overseen by a Project programs and rural financial issues through time with the Victorian Responsible Gambling Leo has previously served as a Councillor Board, comprising the same seven board experience as a former Financial Information Foundation’s Gamblers Help Program, in the on Buloke Shire Council including two terms health sector and in project management with as Mayor and on the Donald Hospital/East members as the SunRCS Board. Service Officer with Centrelink Mildura. Jack is now semi-retired but continuing to pursue the Department of Education & Training and the Wimmera Health Service Board. his interest in seeing rural Australia grow and Department of Justice & Regulation. flourish.

LYN HEAYSMAN JOHN SENIOR ANDREW PICKLES JOHN TESORIERO Treasurer Board Member Board Member Board Member Mildura Mallee Bendigo Bendigo Board member since 1998 Board member since 2008 Board member since 2016 Board member since 2019

Lyn’s interest in agriculture stems from John has extensive experience in the Andrew’s rural background stems from the John is an experienced Board Director and 21 years of owning a family vineyard in management of small and medium enterprises, family farm in North Central Victoria. He is a Executive Manager in the water and agricultural Sunraysia. has been a member of boards of management partner in law firm Robertson Hyetts Solicitors at sectors in Victoria and New South Wales. in the business services and aged care sector Bendigo, specialising in commercial work and a She has served on the Australian Dried Fruits for over ten years and is currently consulting in former president of the Bendigo Law Association. Previous Board roles include Chair of Lower Murray Association Board, and as a Director of the the Government funded health and community Water and the Murray Valley Citrus Board while Victorian Dried Fruits Board, a position she sector. Andrew was a committee member of a former Rural recent executive roles include General Manager, held for ten years. Lyn is currently Chair of Financial Counselling service for over ten years Water Supply with Southern Rural Water and Chief Princes Court Homes Board. Lyn has been self- John has a continuing interest in quality assurance and has had extensive community involvements, Executive of the Murray Valley Citrus Board. His key employed in her financial planning business for and a commitment to the delivery of services in including Bendigo Apex, Bendigo-Sandhurst Rotary, skills are strategy formulation, corporate governance, over twenty-three years. support of health and wellbeing in remote and Golden Square JFC Committee, Bendigo Art Gallery communication and negotiation. He holds a Graduate rural areas of Australia. His qualifications include and Foundation, Bendigo Chamber Choir and Diploma of Business Administration and is a Graduate Lyn’s qualifications include a Masters in Applied a Certificate in Management Services and a Castlemaine Art Museum. of the Australian Institute of Company Directors. Finance and Certificate in Business Accounting postgraduate Diploma in Management Studies. and she has undertaken the Australian Institute As well as Arts and Law degrees, and a Master of John’s community work has comprised membership of of Company Directors course. John is a Member of the Australian Institute of Laws, Andrew holds mediation accreditation from the Mildura Base Hospital Community Advisory Board Company Directors. Bond University, and has been appointed an arbiter and he is currently doing voluntary work with Vision under the Local Government Act. He has a particular Australia; he is also a member of the Maiden Gully/ interest in corporate governance in non-profit Marong Lions Club. 14 SUNRAYSIA RURAL COUNSELLING SERVICE organisations. 2019 - 2020 15

2019 2020 SNAPSHOT REORGANISING TO MEET CLIENT NEEDS As circumstances change, and new challenges occur, our workforce and leadership is responsive to meeting client needs.

We prioritised responses to key areas when required, as evidenced in our targeted support to individual farmers in the Millewa. We based our staff in “hubs” throughout North West Victoria to 2019- provide a more local footprint and more immediate outreach responses.

In July 2019 we opened an office in Swan Hill, increasing our availability, initially to support local dairy communities and more recently accommodating additional Small Business Financial Counselling staff.

COVID-19 SUPPORT FOR EVOLVING TO MEET COVID-19 WHERE DO OUR CLIENTS COME FROM? CHALLENGES BUSINESS 2020... Overwhelmingly, clients heard about RFCS Victoria - North West either from a previous Stage three lockdowns were initially Many small businesses have their cash flow client, from a current client, or they were a previous client themselves. imposed in March 2020, withdrawn in late severely impacted and will continue to feel April, then imposed again in May. these impacts with the ongoing COVID-19 Other significant referral sources were: crisis. Stage three lockdowns meant our office doors were closed to the public, but inquiries Our small business support is highly relevant in for services continued to come in. However, the current uncertain climate. a flexible and committed workforce and an The tools and resources we provide to small agile approach to managing and meeting the businesses (including working with our Small 14% 12% 11% challenges allows services to continue. Business Financial Consultant, accessing expert training, online webinars, 1:1 advice, Counsellors operated mainly from home, cash flow and budgeting tools) will continue to and their usual face-to-face practices were assist businesses to manage their finances in successfully substituted with increased use the present. ACCOUNTANT OR BANK GOVERNMENT AGENCY COMMUNITY of technology. The result was an expansion of the It will also prepare them with the skills and counsellor “toolbox” with Zoom meetings knowledge to deal with future shocks and HOW DO OUR CLIENTS FEEL ABOUT OUR SERVICE?** between clients and Counsellors becoming provide invaluable insights for them on the path **Portal data common practice. to recovery.

REORGANISING TO MEET CLIENT NEEDS Our data records show 63% of clients accessed the service in 2019-20 due to a “decrease in cash-flow from an event”. The most common “event” was drought. 95% 82%

Drought impacts included: OF CLIENTS HAVE DEVELOPED STRATEGIES OF RESPONDENTS HAD IMPROVED • Reduced water availability for irrigators and increased water price produced difficulty and reduced CONFIDENCE IN MAKING DECISIONS profitability for horticulture. Extremely difficult conditions for irrigated fodder producers led to FOR THEIR BUSINESS widespread fodder shortages and high prices. This in turn led to increased costs for livestock producers and dairy farmers. WORKING ON OUR CLIENTS’ STRENGTHS** • Low rainfall conditions for many dryland producers, with impacts most pronounced in the Millewa where there were two consecutive failed seasons. No rain means no crop, no on farm fodder **Comments from client feedback availability. In some instances water needed to be carted for livestock (down south) and the “It has given us huge confidence going forward” increased demand for fodder meant supplies were scarce and expensive. Farm businesses without livestock, had less costs but no income. “They have taken a lot of the stress away by assisting with difficult financial loans and have given us confidence by making us feel like we are a team in this” • Financial difficulty typically characterised by an inability to meet all financial commitments “Increase in confidence and having full access to updated information at all times” including trade creditors. This is usually accrued over several years of unprofitable trading and often triggered by a decrease in commodity prices (dairy or wine grapes), drought (high water or “Teaching us new skills and gave us confidence to attempt new areas of expertise” fodder prices), or other events (frost, etc).

16 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 17 CHAIR’S REPORT... JACK FORBES Chairperson

The 2019/20 year has been a tough but rewarding Our service was able to accompany and inform year for Rural Financial Counselling Service visiting politicians as they travelled to see the Victoria - North West. devastating conditions first hand, including Agriculture Minister, David Littleproud; Victorian Premier, Daniel Like the rest of Victoria, our work this year has Andrews; State Agriculture Minister, Jaclyn Symes; been challenged by the impacts of COVID-19. And and the Mildura Rural City Council Mayor and “Escalating while this created additional risks to viability for Councillors. regional and rural farms and business, and added We have a documented commitment to providing complications to service delivery, I am proud of how In November 2019 we were invited to meet with Mick costs will continue strong governance and are on track to strengthen our team has continued to put clients first. Keelty, Inspector General for the Murray Darling our practices over the next six months through Basin. In March 2020 Shane Stone, Coordinator to impact on the advancing to a Company Limited by Guarantee And while we have grappled with the new COVID-19 General for the National Flood and Drought Recovery governance model. We take pride in promoting landscape, traditional and existing challenges did not agency visited our Mildura Office. dairy, livestock our continued ISO 9001:2015 accreditation – an abate. The impact of the drought in the Millewa was important measure in our commitment to recognised extreme, and in stark contrast to neighbouring areas. These less formal meetings enabled us to promote and horticulture standards. our services to key stakeholders and to secure We continued to develop the expertise and As the Millewa community sought additional recognition of their responsibilities across our region. industries” geographical representation of our board during this resources and support, all levels of government It also gives these important stakeholders first- From an organisational sustainability perspective, we year. After advertising in the south of our region, responded. hand ‘grass roots’ feedback on the issues faced by have long argued around the difficulties that come John Tesoreiro was appointed to a board vacancy in individual communities. with insecure funding and the limitations it creates November 2019. for developing a robust and responsive workforce - funding in twelve month increments compromises John is based in Bendigo and brings a wealth of recruitment and development of our workforce. knowledge and experience in rural water industry matters to our Board. We will continue to increase The initial funding offer for 2020/21 was an extremely the skills of our board members and seek a healthy worrying matter for our board and threatened our geographical spread and industry expertise of capacity to deliver adequate services across North members. West Victoria.

Changes to provide stability of funding in the next tender round rather than existing on a time-limited contingency funding model are welcome and we believe the inequities of the core funding model have finally been recognised.

18 18 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 19 EXECUTIVE OFFICER REPORT... PATRICK TIMMONS Executive Officer

The past 12 months has been one of the most challenging in our service’s history.

As accustomed as we are to managing and supporting our clients to manage external factors, in the case of COVID-19, the challenge materialised from an unfamiliar and unexpected source.

The pandemic has tested our communities Internally, we have renewed our strategic plan for significantly and at the same time it has challenged 2020 – 2023 with one of our key priorities being to ‘One of our key our staff and our service delivery systems. assist small business in our rural towns and rural We worked hard to send a clear message to communities. priorities is to our communities and stakeholders that despite But I am proud of the resilience shown in our team, being in financial difficulty or at risk of difficulty, The opportunity provided by Department of their willingness to innovate and find new ways support small farmers should not self-assess when considering Agriculture, Water and Environment through the to continue working to strengthen our region’s opportunities for grants or low interest loans, and Drought Communities Small Business Support communities, farm businesses and rural enterprises, business in to get in touch with RFCS to access assistance to Program to support small town businesses was despite the unfamiliarity of the landscape. make applications. Some came in because they most welcome. The Rural Business Connections were instructed to do so by other entities, while Program adds capacity and agility to that support. rural towns and This has also been a year of significant progress and others saw the oppurtunity to work with Rural Financial Counsellors to achieve their goals. a number of positive milestones which will impact Supporting small businesses is something that communities’ significantly on the long-term future sustainability our Board has sought for many years and we We had the Centrelink 132316 Farmer Hotline and and viability of Sunraysia Rural Counselling Service would love to be able to guarantee service to small Our data collection (see previous pages) illustrates Regional Investment Corporation both referring and our communities. businesses in our rural towns and communities that drought continues to be a key driver for clients callers direct to us regularly and often on a beyond June 2021. presenting for assistance. Almost two thirds of the clients who accessed our services this past year farmer’s initial enquiry. This ensured high numbers of transactional clients who were simply after experienced decreased cash flow from an event – most commonly, drought. But that’s not to say assistance to secure the grants or low interest loans drought was the only prompt for clients presenting. that may be available.

Water availability and escalating costs will continue Our SunRCS vision for “Building Resilient Rural to have impacts on client groups, particularly dairy Communities” remains front and centre of our focus and livestock industries with feed costs continuing and is now underpinned by our new Strategic Plan, to be a difficult issue. Many horticulturists are and by the prospect of a more sustainable and struggling with increased irrigation water costs viable funding base into the future. and there are concerns about the volume of new plantings being able to access enough irrigation water and increase price pressures for all irrigators.

20 20 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 21

SMALL BUSINESS CASE RURAL FINANCIAL CASE STUDY COUNSELLING... STUDY SUPPORT

More than just the numbers. Planning for success in business. The Smiths** are a third and fourth generation mixed farming family. The family’s positive Josie and Keith** are a hard-working husband and wife who were able to turn the tables on approach to farming and their property’s historic profitability had served them well in the their struggling rural business, with help from the Small Business Financial Counsellor. past. But struggling with the impacts of drought, they became aware of a new interest free Replanting and Restocking Loan that presented a second chance for their farm business. They realised they would need a hand to apply, but were apprehensive, having not THE ISSUES CRUNCHING THE NUMBERS previously accessed the Rural Financial Counselling Service (RFCS). The business was behind in both its By registering for GST, the business reporting and financial obligations to could claim credits for any expenditure THE ISSUES CRUNCHING THE NUMBERS the Australian Tax Office (ATO) and which incurred GST. Additionally, it and the circumstances was not registered for the Goods & could claim Fuel Tax Credits. The Smiths were facing significant Services Tax (GST). financial challenges – with a failed The Smiths’ accountant and bank was Josie and Keith were also advised to crop, generous fodder stocks of fully supportive of their new Business Josie and Keith were struggling register for the ATO Business Portal two years previous all but gone and Plan and could see how the business to understand their income and as part of a new strategy to achieve a continuing lack of feed. Difficult would rebuild to again be self-sufficient. expenditure, and to stay on top better financial management, including decisions had already been made, with But with no formal succession plan in of record-keeping and financial managing historical debt online. stock numbers gradually reduced to place, the Rural Financial Counsellor management and taxation issues. core breeders. began exploring the family’s long-term The counsellor encouraged the plans and goals. Turnover has increased, and a business to be far more focused They took the decision to engage on record-keeping and financial with the RFCS, and working with their The conversations were a revelation bookkeeper has been engaged, management and work on new sources counsellor, were shocked to find their – everyone had different ideas on as well as a new staff member. of income streams to expand the cash flow budget showed a projected how it would be. And the kicker…the business. $200K deficit over the next 12 months. assumption that the kids would strive to continue the family’s farming tradition The Rural Financial Counsellor quickly was not on the agenda for any of the MAKING THE CHANGE identified that the couple would be kids! eligible to apply for Farm Household With help from SBFC, the business was registered for GST and now claims credits and Allowance (FHA) to provide some has boosted its cash flow. SBFC also helped Josie and Keith prepare business plan breathing space with living costs, and “We were so caught up in the day fundamentals, including vision, mission, goals, objectives, strategies, action plans, assisted them to access a Regional to day of farming and drought research, marketing and strengths and weaknesses. Investment Corporation (RIC) Drought management and educating kids, Loan that potentially offered two years The couple could then identify opportunities to expand and diversify their business, and interest free on half of their existing we’d never stopped to consider life successfully applied for bursary funding for diversification. Josie also completed a course debt. beyond the farm” to become a certified trainer.

CHANGING COURSE MAKING THE CHANGE As unsettling as it was for the parents, the tough conversations meant that the family could Josie is now able to conduct training courses as a new income source for the business. entertain a variety of options for the future that had previously been unmentionable – SBFC assisted her with necessary budget information and business plans to submit a including selling the farm. tender to a government agency to provide training, which she successfully won because of her additional skills. Alternatives to continuing farming were now very much ‘on the table’. The family investigated local farm prices and, despite drought, what might be achievable in The business continues to diversify, including online sales and regular market days. the medium term. Turnover has increased markedly, and a bookkeeper has been engaged, as well as a new staff member. Their business has significantly reduced its debt, diversified into new The outcome of their RIC Loan application now provides potentially a new purpose – some areas, is developing new product lines and is constantly exploring new marketing and breathing space while the family works with their solicitor, accountant and financial planner sales opportunities. Josie and Keith say the SBFC has been “a big part of the business”. to build a succession plan that now includes reviewing their estate and a plan for exiting (**Not their real names) from the farm.

(**Not their real names)

22 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 23 2019 - 2020 RURAL FINANCIAL COUNSELLING SERVICE Sunraysia Rural Counselling Service

24 25 24 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 25

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RURAL FINANCIAL COUNSELLING COUNSELLING FINANCIAL RURAL SERVICES... OUR have with claims and working closely with the farmer and their Farm part of our role. Compiling applications for and following up Regional Investment Corporation (RIC) Drought Loans also workload, constituted a large part of the RFC’s particularly a record number of RIC There were came into effect. applications lodged in the reporting period and RFCs were heavily involved with many of the applications. With their resources stretched, RIC frequently referred inquiries to their closest RFC Service increasing demand There were extended assessment times, on our service. and most farmers ensured their working capital was shored up with their existing lender rather than waiting for RIC to extend additional working capital. While we are widely known for helping farmers to access known for helping farmers to access While we are widely value is the decision support we assistance, of more farmers and businesses work with provide to clients. We in understand providing clarity around do this by We their stress levels. their to take control. developing an action plan to help them our clients to achieve many favourable have assisted We worked We year. outcomes over what was a challenging Mediation and with a few clients preparing for Farm Debt patience and a observed banks on the whole, display willingness successful Several assistance programs were highly farmers are in connecting farmers with services and overwhelmingly at many levels. helpful and effective Allowance, Assistance measures like Farm Household Water Assistance, On Farm Emergency Farm Business Resilience Infrastructure Rebates and On Farm Drought many of our Grants provided much needed relief to income reconciliation of the off-farm The removal clients. Allowance, increase of the off-farm for Farm Household and changes to the assets test broadened income offset of the program. Despite the the reach and effectiveness program having commenced in July 2014 we still FHA SUPPORT & ASSISTANCE

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lacked The high price of entitlement prompted prices climbed. sales the back paddock, this strategy course, like selling off to more longer- shifted the problem from being immediate term and recurring. were slightly Winegrape producers found their yields varieties were down on last year while prices for all major The increased prices were, to some extent, a result of up. reduced smoke taint in other parts of the State and Country. A Dried fruit producers faced a challenging season. burst of hot weather early in the growing season caused stress to vines and the crop was generally late maturing, meaning very little was harvested prior to rain in March April. Downgrading of quality occurred with the colour and going from light to dark, yields for the district were down close The big processors paid an additional $200 some degree. per ton to assist growers manage the increased water price and demand for dried fruit has reportedly increased as a consequence of COVID-19. Citrus continued to perform soundly and we assisted very few citrus producers as clients, a sign that their yields and commodity prices over the past few years remain solid. All irrigators faced reduced allocations and the worst and the worst All irrigators faced reduced allocations entitlement or those who had sold off were affected

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SUNRAYSIA RURAL COUNSELLING SERVICE RURAL SUNRAYSIA It has been an extremely busy year for the Rural It has been an extremely – North Service Victoria Financial Counselling dryland irrigated horticulture and Dairy, West. in the Millewa and parts farming and livestock were the key industries of the Mallee Track under pressure. Rural Financial Counselling 2019-20 Rural Financial Counselling The On-Farm Story supply as allocations started at 2 percent across our supply as allocations started at 2 percent across our region and reached 66 percent in the Murray and 80 percent in the Goulburn systems. Water water shortages of 2019, particularly where fodder was purchased to shore up supply for the year ahead. Many carry debts accrued from prior seasons and while the milk price was not low by historical standards, producers with high debt and high outgoings have a way to go to recover financially. IRRIGATION INDUSTRIES IRRIGATION Dairy having Elsewhere across our region dryland crops were average Elsewhere across our region dryland crops with some (Central region) to strong (Southern Mallee) Cohuna, failed cereal crops in several areas (around Livestock for hay. Gannawarra, etc) where they were cut in the reporting and wool performed well in price until later rain built up soil moisture to enable seeding Timely period. across the whole of our region, with those to the south the best start to a cropping season they’d declaring it’s seen in many years. Extended drought in the Millewa prompted increased Extended drought in the Millewa prompted of 2019, virtually demand for our service in the second half The 2018 crop results had been to saturation point. then To Millewa. disappointing in the Northern Mallee and not planting, not have no crop at all in 2019, through either the second surviving or to graze stock on was for many, of drought were a The effects consecutive failed season. growers and severe depletion of cash reserves for many trying to retain their increased costs for livestock producers best breeding stock.

REPORT... RURAL FINANCIAL COUNSELLING SERVICE COUNSELLING FINANCIAL RURAL DRYLAND INDUSTRIES DRYLAND 26

HOW RURAL FINANCIAL COUNSELLING SERVICE WE RURAL FINANCIAL WORK COUNSELLING... THE FEEDBACK... Asking the hard questions to restructure (Case Study) Data received from the Australian Government Department of Agriculture, Water and Environment rural financial counselling Craig and Alyce** had a vision to move out of the city and try farming – “buying a job” until survey clearly demonstrates that clients perceive they receive retirement and securing a country lifestyle for their extended family. An appealing idea – but COMMENTS there were red flags – no advice prior to buying an irrigated horticultural property in 2013, useful and high-quality services from RFCS Victoria – North West. no prior knowledge of farming and no understanding of the complexities of water trade and • Exceptional support in time of costs. The good capital base Craig and Alyce began with eroded quickly. drought and dealing with a family tragedy. The counsellor became HAS WORKING WITH THE RFC BEEN OF BENEFIT TO YOU? a backstop, in case we couldn’t THE WORKING THROUGH THE function in grief, or something ISSUES PROBLEMS 54 YES untoward arose that needed Craig and Alyce contacted the RFCS Additional issues emerged when advocacy. He also gained an in 2017 in severe financial difficulty. Craig became ill. He couldn’t continue 2 NO overview and was ready to assist They had paid too much for their farm, working off-farm and was limited in with budgeting if needed. Very 56 RESPONSES it wasn’t performing in yield or fruit what he could do on-farm. welcome assistance and clear quality, and prices were poor. thinking in a most vulnerable The RFC supported the couple to work period that has now improved. There was no water entitlement on through the issues, looking at the HAVE YOU STARTED IMPLEMENTING STRATEGIES FOR YOUR the property, meaning every drop of impacts of the changed circumstances BUSINESS, ASSISTED THROUGH THE RFC PROCESS water needed for irrigation had to be and identifying their available options. • The service gave us a purchased on the highly fluctuating Alyce wanted to cut their losses and better understanding of our temporary water market. reduce stress by selling – but Craig was business. They allowed robust unwilling to exit. At this point they didn’t conversation and provided The business suffered successive require any further RFCS assistance. 43 4 8 invaluable advice to support us losses and there was difficulty paying YES UNABLE TO IMPLEMENT NOT YET bills – but the final catalyst to reach They hung on and a change in family through the drought. It gave us out to the RFCS was a dispute with the circumstances prompted them to 55 RESPONSES confidence to run our business former owners over vendor finance for reconnect with RFCS 18 months later. and provided us with the tools to farm plant and equipment. continue into the future.

‘We worked to evaluate the options and explore the viability OVERALL I NOW HAVE A BETTER UNDERSTANDING IN BUSINESS • We have benefited greatly in AREAS COMPARED TO WHEN I STARTED WITH RFCS and sustainability of new arrangements’ understanding all aspects of our farming operation mainly 28 STRONGLY AGREE CASE MANAGEMENT SOLUTIONS in bookkeeping ie, budgeting, keeping better records etc, 21 AGREE Support from their children resulted in three families living on the farm and the family had we also benefited from their applied successfully for Farm Household Allowance. In November 2019 they wanted to re- knowledge passed to us on engage with RFCS to evaluate their options and explore the viability and sustainability of 2 NEITHER the new arrangements. profit and loss, sustainable 2 DISAGREE planning also support accessing Using the RFCS case management model, we developed task sharing plans and set government support. Without shared goals. An audit of available resources found the children were able to contribute 1 STRONGLY DISAGREE their support I am sure we would labour, management and modest capital, taking considerable pressure off the parents. not be farming now. Tough questions were asked as to why yield and quality were so poor and a local 54 RESPONSES agronomist was engaged to evaluate the farm operations. • Has helped us to know where The agronomist’s assessment of the irrigation and fertiliser program found crucial water our funds are being spent. Has savings which almost halved the annual farm water use. The agronomist provided further AS A RESULT OF ASSISTANCE FROM RFCS WHEN MAKING taught us how to do budgets and input on growing, pruning, watering and plant health and irrigation scheduling. BUSINESS DECISIONS I FEEL compare with actuals. Has given us strategies when going to the THE OUTCOME bank. We are extremely grateful Since implementing the new strategies and improved practices, the farm is profitable and for all the help over the years viable, supporting the three families together on the one farm enterprise. 24 20 10 and we can finally see the light at MORE CONFIDENT MUCH MORE SAME LEVEL OF the end of the tunnel. (**Not their real names) CONFIDENT CONFIDENCE AS BEFORE 54 RESPONSES

28 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 29 2019 - 2020 RURAL BUSINESS CONNECTIONS

Sunraysia Rural Counselling Service

30 31 30 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 31

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Small Business Financial Counsellor above holes in your bucket, procedures and processes”. Businesses are most likely eligible to seek our if they Victoria assistance in rural North-West are established and experiencing or anticipating financial their available for those who have recently opened a new business or are intending to do so. Assistance balance sheets, preparing budgets, record- keeping, debt management, taxation issues, online services, useful website links, dealing with lending institutions and identifying government and industry support services. A checklist of areas/topics of assistance is checklist of areas/topics of assistance is A now used as part of the case management achieving process to observe and identify clients knowledge and skills. competency, called them One client commented to us: “We to make in for a health check on our business It’s sure we were heading in the right direction. checking important to make sure that you’re just seek regularly on your business and don’t help when you can no longer keep your head

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SBFC 17 new clients and conducted 39 face-to-face was highly visits. Feedback about service provision who sought Almost 90 per cent of those positive. assistance issues were the major Taxation budgeting tools. concern for business. Other topics dealt with include benchmarking, File Number auditing, worker’sTax compensation, online contractors, v employees declarations, (TFN) reporting, stock management. SBFC updated its internal Throughout the year, tools to ensure procedures and client data reporting useful and its information to clients is relevant, user-friendly. With social distancing requirements in place and business closures during COVID-19, work was undertaken to ensure our clients could access pertinent information about assistance measures available, eligibility criteria and links to relevant government websites. Performance appraisals were conducted to receive any necessary professional ensure staff development training to ensure SBFC effectively achieves its stated objectives and outputs. After direct client contact ceased in March, the program was adapted to include communication and technological platforms such as Zoom and to ensure ongoing contact. Viewer Team As part of a philosophy of implementing change practices through a client-centred approach, each client received a registration form to complete to capture information about their needs. COVID-19 exacerbated issues for rural and COVID-19 exacerbated already suffering from regional communities the most significant issue for drought and was the program. information and assistanceBusinesses sought obligations, debt and record-to manage their tax for relevant government aid. keeping and apply RURAL SMALL BUSINESS SUPPORT BUSINESS SMALL RURAL COUNSELLING FINANCIAL BUSINESS SMALL REPORT... to Connections DIANNE JOHNSTONE Rural Business Connections Group Rural Business Connections Group Program Manager Rural Business take part in our free training. monthly through is being conducted Training during the the Facebook group. One session viewers. COVID-19 restrictions attracted 40 recognising Sessions are kept to about an hour, people, but that small business owners are busy be viewed at the details are maintained, and can any time by new or existing clients. Our training sessions thus far have included topics as diverse as creating simple social media videos, time management, how to set up an Instagram account and develop potential posts, how to use Pinterest, marketing tips, how to establish a Facebook presence, develop a social media content calendar and why small business should consider using social media. Further details can be obtained by visiting our website at: www.ruralbusinessconnections.com.au Facebook - Rural Business Connections Instagram - Rural Business Connections We invite clients to join our growing Facebook invite clients to join our growing Facebook We group

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REPORT... RURAL SMALL BUSINESS SUPPORT BUSINESS SMALL RURAL CONNECTIONS BUSINESS RURAL We are funded by the Commonwealth are funded by the Commonwealth We Basin Government through the Murray-Darling Economic Development Program. Our Rural Business Connections program was Our Rural Business 2020. launched in January, clients starting, or growing, The aim is to assist or community initiative. their small business developed to provide free and The program was and support. low-cost training We recognise that now, more than ever, there there ever, more than recognise that now, We is a need to provide assistance during these challenging times for small business. Despite the COVID-19 pandemic, Rural Business Despite the COVID-19 pandemic, Rural Business Connections has been actively working to reach out to potential clients. Jim can also walk our clients through the use of Jim can also walk our clients through the use of Business Portal and ATO online systems for the by phoning Appointments can be made myGovID. 1300 769 489. Australian Through Jim, Rural Business Connections can provide small businesses with free resource Tax materials such as our Small Business Essentials booklet. Discussions can cover a range of subjects, Discussions can cover a range of subjects, including understanding business structures, record-keeping, income tax, employer obligations, (goods and small business benchmarks, GST services tax), BAS (business activity statements) with the and dealing easily and effectively A nominal fee is applicable to those living just nominal fee is applicable to those living just A Small Business outside or near our service areas. can be Financial Consultant Jim Chamouras appointments contacted direct for free one-on-one in all our service areas. Our services are available at no cost to small to small Our services are available at no cost a small businesses, those thinking of starting members and business, farmers, community group Colignan, Merbein, volunteers living in Red Cliffs, Rochester and Wakool. face-to-face consultant. Rural Business Connections can assist clients clients Rural Business Connections can assist and through small workshops, online training 32

HOW WE SMALL BUSINESS WORK SUPPORT...

Keeping the doors open. ( Case Study ) Jeff** is a small business owner/operator in a rural town whose business was struggling financially. Jeff was “stressed and feeling negative” when he was referred to the SunRCS Small Business Financial Counselling program by a local church.

THE WORKING THROUGH THE ISSUES PROBLEMS Turnover at Jeff’s business had After a wide-ranging discussion, Jeff declined dramatically as a result of and the counsellor worked together Sunday trading, the opening of a new to address the financial position of high-profile take-away food outlet and the business, and identify areas for the ongoing impact of the drought on improvement. The first step was to local incomes. engage with the ATO to negotiate a repayment plan and ensure appropriate For 18 months, Jeff had struggled to paperwork was submitted in a timely pay overdue accounts and meet the fashion. demands of the bank and the Australian Tax Office (ATO) – the business was When SBFC examined the ratio of accumulating debt to the ATO, failing cost to sales based on the previous to lodge its required paperwork on time and an inadequate record-keeping financial year, it identified a shortfall of system was not helping. more than $50,000 based on industry benchmarks.

This led to important discussion with ‘The support stopped Jeff about pricing, the critical need for good record-keeping and use of the me from closing the cash register for recording sales and door and walking away’ identifying potential errors or misuse.

SETTING A PATH FOR THE FUTURE Jeff began to monitor and review the business’s price structure to ensure he was purchasing its wholesale products competitively and selling at a price which ensured its financial viability. Jeff accepted the advice and assistance provided and has since confidently reported to SBFC that “things are turning around” and he personally is in a much better frame of mind. The income stream has improved, and the business is finding it easier to meet its financial commitments. The business has implemented a number of key changes, including more stringent processes around use of the cash register, proper record-keeping for income and expenditure, regular review of prices and profit margins and regular negotiation with suppliers. The current COVID-19 crisis has thrown up another huge challenge and caused significant business downturn, but the SBFC assisted Jeff to navigate this crisis by helping him apply for and access assistance he was eligable to receive from both the Victorian and Commonwealth Governments. (**Not his real name)

34 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 35 2019 - 2020 SunRISE MAPPING & RESEARCH

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a 5,590 HA In 2019-20, customised maps were also prepared to assist Parks Victoria with its rabbit counts to assist Parks Victoria maps were also prepared In 2019-20, customised distribution of solar farm developments. to show the Development Victoria and for Regional properties to were provided for 154 individual both digital and hard-copy formats Property maps in registration and system design work, export market and development, irrigation assist with planning programs. quality assurance to to the Coordinated Imagery Program (CIP), DELWP An expression of interest was submitted The high-resolution planned for early 2021. of aerial photography, participate in the next acquisition its mapping of irrigated horticulture and prepare scale accurate imagery allows SunRISE to update maps. Shire Wentworth agencies including Lower Murray Water, SunRISE partnered with regional interest. and NSW DPIE in the expression of CMA Murray Irrigation, Mallee Council, Western and to June 2020, was completed for almonds, table grapes, citrus Mapping of 2020 irrigated areas, The Geographic and New South Wales. region of Victoria wine grapes in the Lower Murray-Darling is undertaken in consultation with regional irrigators, industry Information Systems (GIS) mapping management agencies. bodies, service providers and resource plantings across the Lower The data generated demonstrated the extent of expansion in almond Murray-Darling region. financial years to the end of June Another 5,590 hectares of almonds were planted in the two grapes, 650 ha to citrus and 230 2020. Mapping also revealed a further 1,225 ha planted to table ha to wine grapes. PLANTED IN THE TWO FINANCIAL YEARS FINANCIAL PLANTED IN THE TWO to the end of June 2020 2019 - 2020... - 2019 • Dried Fruits Australia • Dried Fruits 2018 Database Project. SunRISE liaised with the three processors, Australian Premium Sunbeam Foods, Dried Fruits and Murray River Organics to consolidate a database (based on the SunRISE crop mapping) on dried grape plantings. • Swan Hill Rural City Council 1997 to Irrigated crops in the Swan Hill LGA 2018. This report was prepared for Swan Hill Rural City Council to provide accurate information on the status of irrigated horticulture in the Swan provide an from 1997 to 2018 and Hill LGA estimate of the value of irrigation production in 2018. SUE ARGUS Manager SunRISE Mapping Services

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RISE MAPPING unRISE SUNRAYSIA RURAL COUNSELLING SERVICE RURAL SUNRAYSIA All this was achieved through collaboration with regional irrigators, their service providers and industryAll this was achieved through collaboration from partner organisations including local government, statebodies, and with continued support management agencies and private enterprise. government agencies, land and water Numerous spatial information and mapping reports were commissioned and completed during theNumerous spatial information and and our mapping of irrigated of customised maps were prepared for a range of clients, hundreds year, Australia. to include South horticulture was updated and extended The 2019-20 year was a busy and productive one for SunRISE.The 2019-20 year was a busy and 2019 Addendum to the 2018 Mallee 2019 Horticulture Crop Report. The 2018 Crop Report was also prepared by Addendum provided SunRISE and the 2019 information on the main changes that occurred from 2018 to 2019. • Mallee Catchment Management Authority • Mallee Catchment Management South Australia was completed by SunRISE. South Lower A report on the change in irrigation areas A and crop types from 2003 to 2018 across the New Lower Murray-Darling region of Victoria, Australia. and South South Wales SunRISE undertook the mapping of 2018 irrigation areas across the three States in the • Murray-Darling Basin Authority: • Murray-Darling Basin THE MAIN CONSULTANCIES WERE: THE MAIN CONSULTANCIES

REPORT... S 38

2019 1997- 2020 SunRISE MAPPING... 2020 A STORY IN NUMBERS: SNAPSHOT The changing face of horticulture in the Lower Murray Region VIC & NSW LOWER MURRAY-DARLING SunRISE Mapping’s work provides an accurate data source for the important planning and Key point: in 2020 non-bearing areas (plantings less than five management tasks of land and resource management. Key data sets have been produced years old) made up 37% of plantings since SunRISE was established in 1997, providing an informative resource for individual property owners, industry organisations, businesses and government agencies in planning and • Almond plantings decision making. increased by 31,040 hectares from 1,755 to 32,795.

• Table grape plantings increased by 6,675 ha from 5,560 to 12,235.

• Citrus plantings dropped Key point: In 2020 non-bearing areas (plantings less than three years old) made up 16% of plantings from 7,680 ha in 1997 to 6,590 in 2015, but increased to 7,760 by 2020.

• Wine grape plantings increased by 1,570 ha from 13,925 to 15,495. Plantings peaked in 2006 at 22,075 ha then progressively declined until 2018. Plantings appear to be on the rise again with a net increase of 230 ha between Key point: In 2020, non-bearing areas (plantings less than six years old or top-worked plantings less than three years old) 2018 and 2020. made up 25% of plantings

2018 mapping of irrigated horticulture undertaken by SunRISE Mapping across the Lower Murray-Darling region of Vic., NSW and SA

Key point: Plantings are rising again, up by 230 ha between 40 SUNRAYSIA RURAL COUNSELLING SERVICE 2018-20. In 2020, non-bearing areas (plantings less than three 2019 - 2020 41 years old) made up 8% of plantings.

BOARD MEETING REPORT

SunRCS RFCSV-NW Governance Finance Audit & Risk Board Project Board Committee Committee Committee MEMBERS Eligible Eligible Eligible Eligible Eligible To Attended To Attended To Attended To Attended To Attended Attend Attend Attend Attend Attend

Jack Forbes Board Chair 4 4 4 4 6 6

Lyn Heaysman Finance Chair 4 4 4 4 6 5

John Senior 4 3 4 3 2 2

Andrew Pickles 4 3 4 3 2 2 2 2

Leo Tellefson 4 4 4 4 2 2

John Tesoriero appointed 6/11/19 3 2 3 2 1 1

Kylie Zanker 4 4 4 4 2 2 6 2 Governance Chair

EXTERNAL APPOINTMENTS

Ian Ballantyne | Audit & Risk Committee Chair 2 2

Linda Nalder 1 1 2 2

Graeme Matotek 6 5

Peter Twaddle | appointed 19/8/19, resigned 16/3/20 4 2

MEETING DATES

SunRCS RFCSV-NW Governance Finance Audit & Risk Board Project Board Committee Committee Committee

5/9/19 5/9/19 9/10/19 19/8/19 23/10/19 14/11/19 14/11/19 6/5/20 30/9/19 13/5/20 26/3/20 26/3/20 28/10/19 18/6/20 18/6/20 24/2/20 16/3/20 25/5/20

42 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 43 2019 - 2020 GENERAL PURPOSE FINANCIAL REPORTS Sunraysia Rural Counselling Service Incorportated ABN 70 870 481 312

CONTENTS Board Report Statement of Profit or Loss & Other Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements Statement by Members of the Board Independent Auditor’s Report

44 45 44 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 45

47 2019 - 2020

FOR THE YEAR ENDED 30 JUNE 2020 30 JUNE YEAR ENDED FOR THE PRINCIPAL ACTIVITIES ACTIVITIES PRINCIPAL to provide rural Association during the financial year were The principal activities of the region of Victoria. to customers within the North West financial counselling services RESULTS OPERATING to $270,178 (2019: $75,213). The operating surplus for the financial year 2020 amounted Signed on behalf of the Board. Chairperson Dated: 5th October 2020 At Mildura, Victoria. Sunraysia Rural Counselling Service Incorporated Sunraysia Rural 312 ABN 70 870 481 STRATEGY FOR ACHIEVING THE OBJECTIVES ACHIEVING FOR STRATEGY can be met by objectives believes it’s Counselling Service Incorporated Sunraysia Rural following four strategies: implementing the Strategy 1: PEOPLE assistance to farmers, rural towns and communities under Provide benevolent support and who are part of a reliable service. trained staff stress, through diverse and well Strategy 2: PROMOTIONS and stakeholders know and understand what we do. Ensure that our rural communities Strategy 3: FUNDING to support building of resilient rural communities. Pursue sustainable funding streams Strategy 4: GOVERNANCE practice. gorvernance, focused on ‘next’ Build strong, resilient and adaptable by ( appointed 6/11/2019 ) ( appointed 6/11/2019

Member Member Chairperson Chairperson Vice Secretary Treasurer Member

Provide support and encouragement to farmers, small farming business operators and business operators and Provide support and encouragement to farmers, small farming Free, independent and confidential financial counselling services; SUNRAYSIA RURAL COUNSELLING SERVICE RURAL SUNRAYSIA

FINANCIAL REPORTS... FINANCIAL GENERAL PURPOSE GENERAL Sunraysia Rural Counselling Service Incorporated Sunraysia Rural 312 ABN 70 870 481 The Board members present their report, together with the financial statements, on the on the with the financial statements, present their report, together The Board members Incorporated for the year ended 30 June 2020. Sunraysia Rural Counselling Service BOARD REPORT BOARD REPORT 2020 Ended 30 June Year For the Andres Pickles John Senior John Tesoriero Kylie Zanker Leo Tellefson Heaysman Lyn Jack Forbes The following persons were Board members of the Sunraysia Rural Counselling Service Board members of the Sunraysia Rural Counselling Service The following persons were financial year and up to the date of this report, unless Incorporated during the whole otherwise stated: BOARD MEMBERS BOARD MEMBERS Conduct research and to publish reports and periodicals, books or other information which the or other information which the Conduct research and to publish reports and periodicals, books and interest groups across Board may consider appropriate. Consult widely with community referance groups that provide representative members those the region including, specifically, on the Board. their families. (c) Information and referral to the various services available to farmers, small farming farmers, small farming (b) Information and referral to the various services available to business operators and their families; and (a) OBJECTIVES small business families Assist in alleviating poverty and hardship within farming and Maintain development philosophy. adopting social and systemic change through a community policy direction for rural financial high service delivery standards to eligible clients. Develop recommendations to all levels counselling services within the designated region and to make Assist farmers, small economy. the regional farming of Government on issues affecting or provide: and to offer business operators and their families under stress or in difficulty 46

49 2019 - 2020

$ Total - - 728,199 803,412 270,178 1,073,590 2019 $ 2019 $ 160,957 642,455 803,412 1,456 74,809 761,146 184,772 1,456

$ General 160,957 - 75,213 160,957 Reserves - 160,957

160,957 912,633 1,073,590 92,383 715,297 205,355 91,544 1,079,478 1,020,727 7,496 84,887 1,171,861 1,022,183 1,073,590 803,412

$ Note 2020 $ Note 2020 $ Note 2020 13 9 67,282 10 11 12 11 12 Surplus 567,242 75,213 642,455 642,455 160,957 803,412 270,178 912,633 Retained Retained EQUITY 2019 LIABILITIES 2020 Reserves Retained Surplus EQUITY TOTAL Balance at 1 July 2018 Surplus for the year Balance at 30 June 2019 CURRENT LIABILITIES payables and other Trade Unearned income Short term provisions Lease liability CURRENT LIABILITIES TOTAL NON-CURRENT LIABILITIES Long term provisions Lease liability NON-CURRENT LIABILITIES TOTAL LIABILITIES TOTAL NET ASSETS Balance at 1 July 2019 Surplus for the year Balance at 30 June 2020 The accompanying notes form part of these financial reports. ABN 70 870 481 312 FOR THE YEAR ENDED 30 JUNE 2020 30 JUNE YEAR ENDED FOR THE STATEMENT OF FINANCIAL POSITION CONT. OF FINANCIAL STATEMENT 2020 As at 30 June STATEMENT OF CHANGES IN EQUITY STATEMENT Ended 30 June 2020 Year For the

- - 2019 $ 2019 $ 75,213 (83,080) - (65,191) 75,213 (121,270) - - 343,171 1,055,052 343,171 1,825,595 427,372 427,372 1,482,424

592,392 270,178

(71,672) (25,770) (173,305) (232,706) (148,417) 270,178 2,484,152 1,971,076 2,484,152 (1,472,793) (1,321,732) (49,452) (9,154) (30,852) (137,033) (124,499) (31,674) (11,237) 1,626,794

174,308 2,245,451 26,265 1,653,059

Note 2020 $ Note 2020 Note 2020 $ 3 2 7 418,084 8 6 for the year ASSETS Revenue Employee expenses Administration expenses Lease liability interest Program expenses expenses Vehicle Board expenses training & recruitment expenses Staff Special project expenses Depreciation expenses Other expenses Surplus for the year Other comprehensive income income comprehensive Total CURRENT ASSETS Cash and cash equivalents and other receivables Trade CURRENT ASSETS TOTAL NON-CURRENT ASSETS plant & equipment Property, Right of use asset NON-CURRENT ASSETS TOTAL ASSETS TOTAL

SUNRAYSIA RURAL COUNSELLING SERVICE RURAL SUNRAYSIA As at 30 June 2020 STATEMENT OF FINANCIAL POSITION OF FINANCIAL STATEMENT STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME OR LOSS & OTHER OF PROFIT STATEMENT 2020 Ended 30 June Year For the ABN 70 870 481 312

FINANCIAL REPORTS... FINANCIAL GENERAL PURPOSE GENERAL 48 GENERAL PURPOSE FINANCIAL REPORTS... ABN 70 870 481 312

STATEMENT OF CASH FLOWS For the Year Ended 30 June 2020

Note 2020 $ 2019 $

Cash Flows from Operating Activities Operating grant receipts and donations 3,089,147 1,745,399 Payments to suppliers and employees (2,260,954) (1,711,277) Interest received 6,282 10,891 Interest paid (9,154) - Net cash provided by operating activities 16(b) 825,321 45,013

Cash Flows from Investing Activities

Purchase of property, plant and equipment (232,290) (202,674) Sale of property, plant and equipment 64,190 42,230 Net cash (used in) investing activities (168,100) (160,444)

Cash Flows from Financing Activities Repayment of Borrowings (85,479) - Net cash (used in) financing activities (85,479) -

Net increase / (decrease) in cash held 571,742 (115,431) Cash and cash equivalents at the beginning of the year 1,055,052 1,170,483

Cash and cash equivalents at the end of thie year 16(a) 1,626,794 1,055,052

The accompanying notes form part of these financial reports.

50 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 51

GENERAL (c) Revenue from contracts PURPOSE NOTES TO THE FINANCIAL with customers CONT. (f) Cash and cash equivalents When a performance obligation is satisfied Cash and cash equivalents includes cash FINANCIAL by transferring a promised good or service on hand, deposits held at call with financial REPORTS to the customer before the customer pays institutions, other short-term, highly liquid STATEMENTS consideration or the before payment is due, the investments with original maturities of three Association presents the contract as a contract months or less that are readily convertible to ABN 70 870 481 312 asset, unless the Association’s rights to that known amounts of cash and which are subject For the Year Ended 30 June 2020 amount of consideration are unconditional, to an insignificant risk of changes in value. in which case the Association recognises a NOTE 1: SIGNIFICANT ACCOUNTING POLICIES receivable. (g) Trade and other receivables The principal accounting policies adopted in the preparation of the financial statements are set out When an amount of consideration is received The Association makes use of a simplified below. These policies have been consistently applied to all the years presented, unless otherwise from a customer prior to the entity transferring a approach in accounting for trade and other stated. good or service to the customer, the Association receivables and records the loss allowance presents the contract as a contract liability. at the amount equal to the expected lifetime credit losses. In using this practical expedient, (a) New or amended Accounting (c) Revenue from contracts Contract cost assets the Association uses its historical experience, with customers: external indicators and forward-looking Standards and Interpretations adopted: The Association recognises assets relating information to calculate the expected credit The Sunraysia Rural Counselling Service The core principle of AASB 15 is that revenue is to the costs of obtaining a contract and the losses using a provision matrix. Incorporated has adopted all of the new recognised on a basis that reflects the transfer costs incurred to fulfil a contract or set up / or amended Accounting Standards and of promised goods or services to customers at mobilisation costs that are directly related to the Interpretations issued by the Australian an amount that reflects the consideration the contract provided they will be recovered through (h) Property, plant and equipment performance of the contract. Accounting Standards Board (‘AASB’) that are Association expects to receive in exchange for Plant and equipment is stated at historical cost mandatory for the current reporting period. those goods or services. less accumulated depreciation and impairment. Other income Historical cost includes expenditure that is Any new or amended Accounting Standards Revenue is recognised by applying a five step Other income is recognised on an accruals basis directly attributable to the acquisition of the or Interpretations not yet mandatory have not model as follows: when the Association is entitled to it. items. been early adopted. 1. Identify the contract with the customer, Depreciation is calculated on a diminishing value basis to write off the net cost of each item of (d) Income tax: property, plant and equipment (excluding land) 2. Identify the performance obligations, As the Sunraysia Rural Counselling Service over their expected useful lives as follows: (b) Basis of preparation: Incorporated is a charitable institution in terms of These general purpose financial statements have 3. Determine the transaction price, subsection 50-5 of the Income Tax Assessment Class of Fixed Assets Depreciation Rate been prepared in accordance with Australian Act 1997, as amended, it is exempt from paying Plant and equipment 30 - 40% Accounting Standards and Interpretations 4. Allocate the transaction price to the income tax. Motor vehicles 22.50% performance obligations; and issued by the Australian Accounting Standards Board (‘AASB’), the Australian Charities and (e) Current and non-current The residual values, useful lives and Not-for-profits Commission Act 2012 and the 5. Recognise revenue as and when control of the depreciation methods are reviewed, and adjusted Associations Incorporation Reform Act 2012 , as performance obligations is transferred. classification: if appropriate, at each reporting date. appropriate for not-for-profit oriented entities. Assets and liabilities are presented in the An item of property, plant and equipment is These financial statements also comply with Generally the timing of the payment for sale of derecognised upon disposal or when there is goods and rendering of services corresponds statement of financial position based on current International Financial Reporting Standards as and non-current classification. no future economic benefit to Sunraysia Rural issued by the International Accounting Standards closely to the timing of satisfaction of the Counselling Service Incorporated. Gains and performance obligations, however where there is Board (‘IASB’). An asset is classified as current when: it is either losses between the carrying amount and the a difference, it will result in the recognition of a disposal proceeds are taken to profit or loss. receivable, contract asset or contract liability. expected to be realised or intended to be sold Historical cost convention or consumed in the Sunraysia Rural Counselling Service Incorporated’s normal operating cycle; The financial statements have been prepared None of the revenue streams of the Association (i) Impairment of non-financial assets have any significant financing terms as there is it is held primarily for the purpose of trading; under the historical cost convention. it is expected to be realised within 12 months Non-financial assets are reviewed for impairment less than 12 months between receipt of funds whenever events or changes in circumstances and satisfaction of performance obligations. after the reporting period; or the asset is cash Critical accounting estimates or cash equivalent unless restricted from being indicate that the carrying amount may not be exchanged or used to settle a liability for at least recoverable. An impairment loss is recognised Contract assets and liabilities The preparation of the financial statements 12 months after the reporting period. All other for the amount by which the asset’s carrying requires the use of certain critical accounting assets are classified as non-current. amount exceeds its recoverable amount. estimates. It also requires management to Where the amounts billed to customers are based on the achievement of various milestones exercise its judgement in the process of applying A liability is classified as current when: it is Recoverable amount is the higher of an asset’s the Association’s accounting policies. The established in the contract, the amounts fair value less costs of disposal and value-in- recognised as revenue in a given period do not either expected to be settled in the incorporated areas involving a higher degree of judgement association’s normal operating cycle; it is held use. The value-in-use is the present value of the or complexity, or areas where assumptions necessarily coincide with the amounts billed to estimated future cash flows relating to the asset or certified by the customer. primarily for the purpose of trading; it is due to and estimates are significant to the financial be settled within 12 months after the reporting using a pre-tax discount rate specific to the statements, are disclosed in Note 2. period; or there is no unconditional right to asset or cash-generating unit to which the asset defer the settlement of the liability for at least belongs. Assets that do not have independent 12 months after the reporting period. All other cash flows are grouped together to form a cash- liabilities are classified as non-current. generating unit. 52 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 53

GENERAL (o) Change in Accounting Policy: (p) Financial instruments: PURPOSE NOTES TO THE FINANCIAL Revenue from Contracts with Customers - Financial assets and financial liabilities are Adoption of AASB 15 recognised when the Association becomes FINANCIAL a party to the contractual provisions of the REPORTS The Association has adopted AASB 15 Revenue financial instrument, and are measured initially STATEMENTS from Contracts with Customers and AASB 1058 at fair value adjusted by transactions costs, Income of Not for Profit Entities for the first except for those carried at fair value through ABN 70 870 481 312 time in the current year with a date of initial profit or loss, which are measured initially at fair For the Year Ended 30 June 2020 application of 1 July 2019. value. Subsequent measurement of financial The Association has applied AASB 15 and AASB assets and financial liabilities are described 1058 using the cumulative effect method which below. NOTE 1: SIGNIFICANT ACCOUNTING POLICIES CONT. means the comparative information has not been restated and continues to be reported under Financial assets are derecognised when the AASB 111, AASB 118, AASB 1004 and related contractual rights to the cash flows from the (j) Trade and other payables: (l) Fair value measurement CONT: interpretations. All adjustments on adoption of financial asset expire, or when the financial These amounts represent liabilities for goods orderly transaction between market participants AASB 15 and AASB 1058 have been taken to asset and all substantial risks and rewards are and services provided to the Sunraysia Rural at measurement date; assuming the transaction retained earnings at 1 July 2019. transferred. A financial liability is derecognised Counselling Service Incorporated prior to will take place either: in the principal market; when it is extinguished, discharged, cancelled or the end of the financial year and which are or in the absence of that market, in the most Leases - Adoption of AASB 16 expires. unpaid. Due to their short-term nature they advantageous market. are measured at amortised cost and are not Fair value is measured using the assumptions The Association has adopted AASB 16 Leases All financial assets are measured at the discounted. The amounts are unsecured and that market participants would use when pricing using the modified retrospective (cumulative transaction price and all financial assets are are usually paid within 30 days of recognition. the asset or liability, assuming they act in their catch up) method from 1 July 2019 and therefore initially measured at fair value adjusted for economic best interests. For non-financial the comparative information for the year ended transaction costs (where applicable). assets, the fair value measurement is based on 30 June 2019 has not been restated and has (k) Employee benefits: its highest and best use. Valuation techniques been prepared in accordance with AASB 117 For the purpose of subsequent measurement Short-term employee benefits that are appropriate in the circumstances and for Leases and Accounting interpretations. financial assets are classified into the following which sufficient data are available to measure Liabilities for wages and salaries, including categories upon initial recognition: fair value, are used, maximising the use of non-monetary benefits, annual leave and long The impact of adopting AASB 16 on the relevant observable inputs and minimising the service leave expected to be settled wholly financial statements gave rise to three Right- - amortised cost; use of unobservable inputs. within 12 months of the reporting date are of-use Assets for office leases situated in Swan - fair value through profit or loss (FVPL); and measured at the amounts expected to be paid Hill, Mildura and Bendigo. The future lease when the liabilities are settled. (m) Goods and Services Tax: (‘GST’) commitments for these leases has also been - equity instruments at fair value through other Revenues, expenses and assets are recognised recognised under lease liabilities and split comprehensive income (FVOCI). Other long-term employee benefits net of the amount of associated GST, unless the between current and non-current classification as required. All income and expenses relating to financial The liability for annual leave and long service GST incurred is not recoverable from the tax authority. In this case it is recognised as part of assets that are recognised in profit or loss are leave not expected to be settled within 12 Under AASB 117, the Association assessed presented within finance costs, finance income months of the reporting date are measured at the cost of the acquisition of the asset or as part of the expense. whether leases were operating or finance or other financial items, except for impairment of the present value of expected future payments leases based on its assessment of whether trade receivables which is presented within other to be made in respect of services provided by the significant risks and rewards of ownership expenses. employees up to the reporting date using the Receivables and payables are stated inclusive of the amount of GST receivable or payable. had been transferred to the Association or projected unit credit method. Consideration remained with the lessor. Under AASB 16, Classifications are determined by both: is given to expected future wage and salary The net amount of GST recoverable from, or payable to, the tax authority is included in other there is no differentiation between finance and levels, experience of employee departures and operating leases for the lessee and therefore all - The entities business model for managing the periods of service. Expected future payments receivables or other payables in the statement of financial asset; and financial position. leases which meet the definition of a lease are are discounted using market yields at the recognised on the statement of financial position reporting date on national government bonds - The contractual cash flow characteristics of the Cash flows are presented on a gross basis. (except for short term leases and leases of low financial assets. with terms to maturity and currency that match, value assets). as closely as possible, the estimated future The GST components of cash flows arising cash outflows. from investing or financing activities which All income and expenses relating to financial are recoverable from, or payable to the tax The Association has used the following assets that are recognised in profit or loss are expedients on transition to AASB 16: Defined contribution superannuation authority, are presented as operating cash flows. presented within finance costs, finance income expense Commitments and contingencies are disclosed or other financial items, except for impairment net of the amount of GST recoverable from, or •lease liabilites have been discounted using of trade receivables, which is presented within Contributions to defined contribution payable to, the tax authority. the entity’s incremental borrowing rate at 1 July other expenses. superannuation plans are expensed in the 2019; period they are incurred. Amortised cost (n) Adoption of new and revised •right of use assets at 1 July 2019 have been accounting standards: measured at an amount equal to the lease Assets measured at amortised cost are financial (l) Fair value measurement: liability; assets where: The Association has adopted all standards which When an asset or liability, financial or non- became effective for the first time at 30 June - the business model is to hold assets to collect financial, is measured at fair value for •a single discount rate was applied to all leases 2020, the adoption of these standards has not with similar characteristics; contractual cash flows; and recognition or disclosure purposes, the fair value caused any material adjustments to the reported is based on a price that would be received to - the contractual terms give rise on specified financial position, performance or cash flow of •used hindsight when determining the lease term sell an asset or paid to transfer a liability in an the Association. dates to cash flows are solely payments of if the contract contains options to extend. principal and interest on the principal amount 54 SUNRAYSIA RURAL COUNSELLING SERVICE outstanding. 2019 - 2020 55

GENERAL (q) Critical accounting judgements, (s) Comparatives: PURPOSE NOTES TO THE FINANCIAL estimates and assumptions: (CONT.) Where necessary, comparative information has been FINANCIAL The judgements, estimates and assumptions that have reclassified and repositioned for consistency with a significant risk of causing a material adjustment to current year disclosures. REPORTS the carrying amounts of assets and liabilities (refer to STATEMENTS the respective notes) within the next financial year are (t) Financial Risk Management: discussed below. ABN 70 870 481 312 The Association is exposed to a variety of financial For the Year Ended 30 June 2020 Estimation of useful lives of assets risks through its use of financial instruments. The Association‘s overall risk management plan seeks The Association determines the estimated useful lives to minimise potential adverse effects due to the NOTE 1: SIGNIFICANT ACCOUNTING POLICIES CONT. and related depreciation and amortisation charges unpredictability of financial markets. The principal for its property, plant and equipment and finite life categories of financial instruments used by the intangible assets. The useful lives could change Association is Trade receivables, Cash at bank and significantly as a result of technical innovations or Trade and other payables. (p) Financial instruments: (CONT.) The Association uses the presumption that a financial some other event. The depreciation and amortisation asset is in default when: charge will increase where the useful lives are less The most significant financial risks to which the Amortised cost CONT. than previously estimated lives, or technically obsolete Association is exposed to are liquidity and interest - the other party is unlikely to pay its credit obligations or non-strategic assets that have been abandoned or rate risk which are described below in detail: to the Association in full, without recourse to the The Association’s financial assets measured at sold will be written off or written down. Association to actions such as realising security (if amortised cost comprise trade and other receivables (i) Liquidity risk and cash and cash equivalents in the statement of any is held); or Impairment of non-financial assets other than financial position. goodwill and other indefinite life intangible assets - the financial assets is more than 90 days past due. Liquidity risk arises from the Association’s The Association assesses impairment of non-financial management of working capital and the finance Subsequent to initial recognition, these assets are Credit losses are measured as the present value charges and principal repayments on its debt carried at amortised cost using the effective interest assets other than goodwill and other indefinite life of the difference between the cash flows due to the intangible assets at each reporting date by evaluating instruments. It is the risk that the Association will rate method less provision for impairment. Interest Association in accordance with the contract and the encounter difficulty in meeting its financial obligations income and impairment are recognised in profit or conditions specific to the incorporated association and cash flows expected to be received, applied using a to the particular asset that may lead to impairment. If as they fall due. loss. Gain or loss on derecognition is recognised in probability weighted approach. profit or loss. an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value The Association’s policy is to ensure that it will always Donated financial assets have sufficient cash to allow it to meet its liabilities as Fair value through other comprehensive income less costs of disposal or value-in-use calculations, and when they fall due. The Association monitors and Financial assets donated to the Association are which incorporate a number of key estimates and controls this risk through the following mechanisms: The Association does not hold any equity instruments recognised at value at the date the Association assumptions. or debt investments, therefore no financial instruments obtains control over the assets. are measured using the fair value through other Employee benefits provision - Preparing forward looking cash flow analysis in relation to its operational, investing and financing comprehensive income method. Other financial assets measured at amortised cost As discussed in Note 1, the liability for employee activities; Financial assets through profit or loss Impairment of other financial assets measured at benefits expected to be settled more than 12 months amortised cost are determined using the expected from the reporting date are recognised and measured - Maintaining a reputable credit profile; All financial assets not classified as measured credit loss model in AASB 9. On initial recognition of at the present value of the estimated future cash flows at amortised cost or fair value through other the asset, an estimate of the expected credit losses to be made in respect of all employees at the reporting - Managing credit risk related to financial assets; and comprehensive income as described above are for the next 12 months is recognised. Where the asset date. In determining the present value of the liability, measured at FVTPL. has experienced significant increase in credit risk then estimates of attrition rates and pay increases through - Only investing surplus cash with major financial The Association does not hold any financial assets the lifetime losses are estimated and recognised. promotion and inflation have been taken into account. institutions. recognised under this criteria. At the reporting date, the Association expected to Impairment of financial assets (r) Leases: (q) Critical accounting judgements, have sufficient liquid resources to meet its obligations At the lease commencement, the Association Impairment of financial assets is recognised on estimates and assumptions: under all reasonably expected circumstances and will an expected credit loss (ECL) basis for applicable recognises a right-of-use asset and associated lease not need to draw upon any of the financing facilities. financial assets measured at amortised cost. The preparation of the financial statements requires liability for the lease term. The lease term includes management to make judgements, estimates and extension periods where the Association believes it is (ii) Interest rate risk When determining whether the credit risk of a assumptions that affect the reported amounts in reasonably certain that the option will be exercised. financial asset has increased significantly since initial the financial statements. Management continually The Association is only exposed to interest rate risk recognition and when estimating ECL, the Association evaluates its judgements and estimates in relation to A Right-of-use asset is measured using the cost on cash assets as there are no borrowings held which considers reasonable and supportable information assets, liabilities, contingent liabilities, revenue and model where cost on initial recognition comprises of have interest rate risk. The Association’s policy is to that is relevant and available without undue cost or expenses. the lease liability, initial direct costs, prepaid lease minimise interest rate cash flow risk. Cash and cash effort. This includes both quantitative and qualitative payments, estimated cost of removal and restoration equivalents are invested on varying fixed terms to information and analysis based on the Association’s Management bases its judgements, estimates and less any lease incentives received. secure fixed rates to minimise interest rate risk. historical experience and informed credit assessment assumptions on historical experience and on other The Right-of-use asset is depreciated over the and including forward looking information. various factors, including expectations of future lease term on a straight line basis and assessed for Exposure to interest rate risk on cash and cash events, management believes to be reasonable impairment in accordance with the impairment of equivalents is $1,626,794 (2019: $1,055,052) where The Association uses the presumption that an asset under the circumstances. The resulting accounting assets accounting policy. $1,541,268 (2019: $990,754) is interest bearing at which is more than 30 days past due has seen a judgements and estimates will seldom equal the The lease liability is initially measured at the a weighted average effective interest rate of 0.74% significant increase in credit risk. related actual results. present value of the remaining lease payments at (2019: 1.05%). the commencement of the lease. The discount rate is the rate implicit in the lease, however where this cannot be readily determined then the Association’s 56 SUNRAYSIA RURAL COUNSELLING SERVICE incremental borrowing rate is used. 2019 - 2020 57

59 2019 - 2020

$ $ Total Total 287,137 (125,578) (86,646) 418,084 343,171 256,145 202,674 (50,458) (65,190) 343,171 419,815 7,557 - 427,372 (23,423) 37,373 440,410 (134,612) 305,798 60,796 2019 $ 2019 $

$ $ Motor Motor 43,729 Vehicles Vehicles 264,247 (117,273) (76,540) 376,232 305,798 237,588 170,390 (46,316) (55,864) 305,798 4,609 7,557 14,099 26,265 (13,199) 30,530 502,321 (114,767) 387,554 418,084 343,171 2020 $ 2020 $

$ $ Plant & Plant & 22,890 (8,305) (10,106) 41,852 37,373 18,557 32,284 (4,142) (9,326) 37,373 Equipment Equipment deposit

security

lease

Accounts receivable Office Prepaid expenses Plant & equipment (at cost) Less accumulated depreciation Motor vehicles (at cost) Less accumulated depreciation Property Plant & Equipment Total the year 1 July 2019 the year 1 July 2018 Additions Disposals Depreciation expense Balance at the end of Balance at the beginning of Balance at the beginning of Additions Disposals Depreciation expense Balance at the end of the year 30 June 2020 the year 30 June 2019 2020 2019 (a) Movements in carrying amounts ABN 70 870 481 312 ABN 70 870 FOR THE YEAR ENDED 30 JUNE 2020 30 JUNE YEAR ENDED FOR THE NOTE 6: TRADE AND OTHER RECEIVABLES NOTE 6: TRADE PLANT & EQUIPMENT NOTE 7: PROPERTY,

196,754 1,966,393 2,000 10,891 104 (8,312) 4,683 1,971,076 1,727,639 18,657 61,063 3,078 35,832 20,806 148,417 65,191 8,312 42,000 101,408 107,954 8,981 894,095 160,957 1,055,052 2019 $ 2019 $ 2019 $ 2019 $

11,597 2,484,152 2,068,505

281,830 42,000 59,250 2,409,585 25,769 6,282 50,000 (7,484) 74,567 18,899 79,656 5,371 94,520 22,663 232,706 85,703 7,804 48,000 15,149 118,722 1,462,134 164,660 1,626,794 2020 $ 2020 $ 2020 $ 2020 $ assets

fixed

expenses

disposal

lease

NOTES TO THE FINANCIAL THE TO NOTES STATEMENTS Operating activities - Government grants services - Mapping and other program lease - Vehicle Non-operating activities - Donations and sponsorships - Interest received - Other income - Loss on disposal of plant and equipment REVENUE TOTAL Office Superannuation contributions Depreciation Loss Motor vehicle lease expenses Surplus has been determined after deducting following expenses: Insurance Internet and telephone expenses IT Mapping Promotion Miscellaneous expenses Cash at bank Short term deposits SUNRAYSIA RURAL COUNSELLING SERVICE RURAL SUNRAYSIA NOTE 2: REVENUE REPORTS NOTE 4: SURPLUS FOR THE YEAR NOTE 4: SURPLUS FOR THE NOTE 3: OTHER EXPENSES ABN 70 870 481 312 ABN 70 870 GENERAL PURPOSE NOTE 5: CASH AND CASH EQUIVALENTS AND NOTE 5: CASH FINANCIAL 58

61 the

and

detailed 2019 - 2020

method as

9 market

Commonwealth

AASB

catch-up) money the

176,431 incl. in the incl. in the to Statement of

with

Lease liabilities Lease liabilities local

Financial Position 419,815 1,474,867 74,809 74,809 1,055,052 2019 $

returned (cumulative

banks,

be 1 - 5

accordance Years

below: with

84,887 in

report.

must 1,626,794

4,609 1,631,403 67,282 67,282 2020 $ retrospective deposits

financial assets,

measured

summarised

this

1 Year are fixed 91,544

in modified Less than

mainly

and the

instruments,

consist

hand, using

elsewhere statements,

on 16

below:

still financials

of AASB financial

recorded

table instruments

funds

the

been these

in applied

to category

financial certain

has

already shown each

Financial assets Cash and cash equivalents receivables Trade Financial liabilities Financial liabilities at amortised cost: and other payables Trade -

Lease Liabilities case, is policies

2020

not for

the

has is

flows,

totals Association Association’s

this

ABN 70 870 481 312 ABN 70 870 FOR THE YEAR ENDED 30 JUNE 2020 30 JUNE YEAR ENDED FOR THE NOTE 13: RESERVES instruments, short-term investments, accounts receivable and payable. The accounting NOTE 12: LEASE LIABILITIES NOTE 12: LEASE The AASB 117. under restated and continues to be reported information has not been therefore the comparative undiscounted right-of-use assets, based on contractual of lease liabilities pertaining to The maturity analysis cash funds “earmarked” and set aside for the wind up of the service should The general reserve records surplus this occur at any point in future. RISK MANAGEMENT NOTE 15: FINANCIAL The NOTE 14: CONTINGENT LIABILITIES be renewed after 2021. Association is conscious that Funding Contracts may expire and not The If the amount at this stage. Government. It is not possible to quantify up costs created a Reserve and put aside an amount of funds to cover wind Association has, however, The contingent or otherwise, 2020, the Board are unaware of any other liability, At 30 June should this eventuate. which

and

method

$ Total catch-up)

261,910 (87,602) 174,308 9,155 6,648 16,509 42,497 74,809 1,456 1,456 59,400 186,228 384,401 376,745 761,146 125,372 184,772 2019 $ 2019 $ 2019 $

(cumulative

$ Office 261,910 Buildings 58,657 7,496 7,496 74,786

(87,602) 174,308 12,441 15,937 (19,753) 67,282

212,851 659,810 55,487 715,297 130,569 205,355

2020 $ 2020 $ 2020 $ retrospective

modified

the

using

AASB

applied

has

NOTES TO THE FINANCIAL THE TO NOTES STATEMENTS Accounts payable and accrued expenses card NAB Visa tax payable PAYG payable Net GST Federal government funds government funds Victorian CURRENT Annual Leave Employee entitlements - Employee entitlements - Long Service Leave NON-CURRENT Employee entitlements - Long Service Leave Aggregate provision for employee entitlements Balance recognised on adoption at beginning of the year Balance recognised on Depreciation charge Balance at end of the year Association

SUNRAYSIA RURAL COUNSELLING SERVICE RURAL SUNRAYSIA REPORTS GENERAL The AASB 117 under restated and continues to be reported information has not been therefore the comparative NOTE 8: RIGHT-OF-USE ASSETS NOTE 8: RIGHT-OF-USE PURPOSE NOTE 9: TRADE AND OTHER PAYABLES NOTE 9: TRADE ABN 70 870 481 312 ABN 70 870 NOTE 11: PROVISIONS NOTE 11: NOTE 10: UNEARNED INCOME FINANCIAL 60

financial affected

For

and

state

the

2019 - 2020 the

pandemic significantly

Association. preparing

the in $152,212.

the

of is which

on operations,

year year

extent

those

assumption the

pandemic

year.

financial financial and

the stated:

the the concern results of

for evolve the

financial

to going end

impact the

otherwise

the the

personnel

during

unless (appointed 6/11/2019) adopt since continues financial Association,

the the

years.

parties of arisen

report,

pandemic

this continue management

have

quantify

financial of related

The to

Member Chairperson Chairperson Vice Secretary Treasurer Member Member

key

operations

to with date

future

the members

in unable the

paid

are

statements. circumstances affect

Board

transactions the

and

Association

financial members

remuneration the matters year

statements.

the significantly

of were reasons,

of total Board

other

may

ABN 70 870 481 312 ABN 70 870 FOR THE YEAR ENDED 30 JUNE 2020 30 JUNE YEAR ENDED FOR THE John Tesoriero (b) Key management personnel and controlling the activities of Any person(s) having authority and responsibility for planning, directing key management including committee members of the entity is considered directly or indirectly, the entity, personnel. The with related parties (c) Transactions between related parties are on normal commercial terms and conditions no more favourable Transactions than those available to other parties unless otherwise stated. There NOTE 19: EVENTS SUBSEQUENT TO REPORTING DATE REPORTING SUBSEQUENT TO NOTE 19: EVENTS of a global health emergency relating declaration Organisation’s Health of the World Association is aware The considered that this is a “non The Board members have 19 on 31 January 2020. to the spread of COVID this event in the disclosed all known information about event and have appropriately adjusting” subsequent financial has adequate Association expectation that the whether there is reasonable The Board has considered year from the approval future, a period not less than one to operate for the foreseeable resources to continue date it is uncertain. measures to counter The these 2020. statement for the year ended 30 June No or affairs DISCLOSURE PARTY NOTE 20: RELATED (a) Board members members of the incorporated association during the whole of the The following persons were Board financial Jack Forbes Kylie Zanker Leo Tellefson Heaysman Lyn Andrew Pickles John Senior NOTE 21: ENTITY INFORMATION NOTE 21: ENTITY Association is: The registered office of the Sunraysia Rural Counselling Service Incorporated Mildura VIC 3500. Avenue, 139 Lime

the

fishing

items

farmers,

2019 $ eligible

1,055,052 for

75,213 65,190 8,227 (419,854) (583) 281,146 35,673 45,013 2019 $

reconciled

is service

2020 $ free

flows

cost 825,321

270,178 173,305 7,484 401,107 (7,527) (45,849) 26,623 2020 $ cash

of and

1,626,794 confident

statement

the

independent, follows: shown

an as as

report. year

the position,

providing

financial

NOTES TO THE FINANCIAL THE TO NOTES STATEMENTS end

Cash at Bank Surplus for the year result Add/(Less) non cash items in operating Depreciation Loss on disposal of plant and equipment Changes in assets/liabilities (Increase)/decrease in receivables Increase/(decrease) in trade and other payables Increase/(decrease) in unearned income Increase/(decrease) in provisions Cashflow from operations this financial

sector the in

SUNRAYSIA RURAL COUNSELLING SERVICE RURAL SUNRAYSIA enterprises, forest growers, and small farm related business in the North West region of Victoria. region of West enterprises, forest growers, and small farm related business in the North NOTE 17: SEGMENT REPORTING in one business and geographical segment being in the community Association operates predominantly The assistance b) Reconciliation of cash from operating activities to accounting result b) Reconciliation of cash from operating elsewhere NOTE 18: CAPITAL COMMITMENTS NOTE 18: CAPITAL have not already been recorded At 30 June 2020, the Board is unaware of any capital commitments, which REPORTS statement NOTE 16: CASH FLOW INFORMATION NOTE 16: CASH of cash a) Reconciliation Cash GENERAL PURPOSE ABN 70 870 481 312 ABN 70 870 FINANCIAL 62 STATEMENT BY THE MEMBERS OF THE BOARD... ABN 70 870 481 312

The Board Members declare that:

1 The attached financial statements and notes comply with the Accounting Standards, the Australian Charities and Not-for-profits Commission Act 2012 and Victorian legislation the Associations Incorporation Reform Act 2012;

a) comply with Australian Accounting Standards as issued by the Australian Accounting Standards Board as described in note 1 to the financial statements; and

b) give a true and fair view of the Association’s financial position as at 30 June 2020 and of its performance for the year ended on that date.

2 In the opinion of the Board, there are reasonable grounds to believe that the Association 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 Members of the Board.

Mrs Lynette Heaysman

Dated: 5th October 2020 At Mildura, Victoria.

64 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 65 Crowe Murray Darling ABN 27 161 274 861 133 Langtree Avenue Mildura VIC 3500 Australia PO Box 1608 Mildura VIC 3502 Australia Tel 03 5023 9700 Fax 03 5021 1430 https://www.crowe.com/au AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF INDEPENDENT AUDITOR’S REPORT THE FINANCIAL REPORT TO THE MEMBERS OF SUNRAYSIA RURAL COUNSELLING SERVICE INCORPORATED Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that Report on the Audit of the Financial includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material REPORT AUDITOR’S OPINION misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, We have audited the financial report of Sunraysia Rural Counselling Service Incorporated, which individually or in the aggregate, they could reasonably be expected to influence the economic decisions comprises the statement of financial position as at 30 June 2020, the statement of comprehensive of users taken on the basis of this financial report. income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the As part of an audit in accordance with the Australian Auditing Standards, the auditor exercises statement and report by members of the board. professional judgement and maintains professional scepticism throughout the audit. The auditor also: In our opinion, the accompanying financial report of the Association has been prepared in accordance with Association’s Incorporation Reforms Act (2012), including: x Identifies and assesses the risks of material misstatement of the financial report, whether due to fraud or error, designs and performs audit procedures responsive to those risks, and obtains audit evidence (a) giving a true and fair view of the Association’s financial position as at 30 June 2020 and of its that is sufficient and appropriate to provide a basis for the auditor’s opinion. The risk of not detecting financial performance for the year then ended; and a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. (b) complying with Australian Accounting Standards and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013. x Obtains an understanding of internal control relevant to the audit 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. BASIS FOR OPINION x Evaluates the appropriateness of accounting policies used and the reasonableness of accounting We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under estimates and related disclosures made by the board. those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Association in accordance with the Australian x Concludes on the appropriateness of the board’s use of the going concern basis of accounting Charities and Not-for-profits Commission Act 2012 (ACNC Act) and the ethical requirements of the and, based on the audit evidence obtained, whether a material uncertainty exists related to events or Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If the Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also auditor concludes that a material uncertainty exists, the auditor is required to draw attention in the fulfilled our other ethical responsibilities in accordance with the Code. auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for to modify the auditor’s opinion. The auditor’s conclusions are based on the audit evidence obtained up our opinion. to the date of the auditor’s report. However, future events or conditions may cause the entity to cease to continue as a going concern. RESPONSIBILITIES OF THE BOARD OF MANAGEMENT FOR x Evaluates the overall presentation, structure and content of the financial report, including the THE FINANCIAL REPORT disclosures, and whether the financial report represents the underlying transactions and events in a The board is responsible for the preparation of the financial report that gives a true and fair view manner that achieves fair presentation. in accordance with Australian Accounting Standards and for such internal control as management determines is necessary to enable the preparation of the financial report that gives a true and fair view We communicate with the board regarding, among other matters, the planned scope and timing of the and is free from material misstatement, whether due to fraud or error. audit and significant audit findings, including any significant deficiencies in internal control that the auditor identifies during the audit. In preparing the financial report, the board is responsible for assessing the Association’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intend to liquidate the Association or to cease operations, or have no realistic alternative but to do so. CROWE MURRAY DARLING The board are responsible for overseeing the Entity’s financial reporting process.

The title ‘Partner’ conveys that the person is a senior member within their respective division, and is among the group of persons who hold an equity interest (shareholder) in its parent entity, Findex Group Limited. The only professional service offering which is conducted by a partnership is the Crowe Australasia external audit division. All other professional services offered by Findex Group Limited are conducted by a privately owned organisation and/or its subsidiaries. Liability limited by a scheme approved under Professional Standards Legislation. Findex (Aust) Pty Ltd, trading as Crowe Australasia is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a separate and independent legal entity. Findex (Aust) Pty Ltd and its affiliates are not responsible or liable for any acts or omissions of Crowe Global or any other member of Crowe Global. Crowe Global does not render any professional Josh Porker services and does not have an ownership or partnership interest in Findex (Aust) Pty Ltd. Services are provided by Crowe 5 October 2020 Murray Darling, an affiliate of Findex (Aust) Pty Ltd. Senior Manager – Audit & Assurance Mildura, Victoria © 2020 Findex (Aust) Pty Ltd

66 SUNRAYSIA RURAL COUNSELLING SERVICE 2019 - 2020 67 GENERALGENERALGENERAL PURPOSEPURPOSEPURPOSE FINANCIALFINANCIALFINANCIAL REPORTSREPORTS Sunraysia Rural Counselling Service REPORTS

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