ARACY Annual Report 2018
Our Mission
To improve the wellbeing of children and young people by collaboratively transforming evidence into policy and practice.
Our Vision
An Australia where ‘All young people are loved and safe, have material basics, are healthy, learning, participating, and have a positive sense of culture and identity’
Our History The Australian Research Alliance for Children and Youth (ARACY) was established in 2002 to harness the expertise and resources of individuals and organisations in developing innovative solutions to the range of complex problems affecting the health, development and wellbeing of increasing numbers of young Australians.
ARACY continues to build the capacity to connect people and establish networks that will enable the sharing of ideas, information and knowledge across previously discrete boundaries of expertise and endeavour.
The collaborations that are established make it possible to more effectively and comprehensively address the “big picture” issues that are impacting on the quality of life of children and young people growing up in Australia.
This collaborative approach can enhance the nation’s capacity to achieve outcomes that are significantly better than could be achieved from the more fragmented approaches practised in the past.
ARACY is a Company Limited by Guarantee and has registered charity status with the Australian Charities and Not-for-profit Commission.
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SECTION 1 AN OVERVIEW OF ARACY
ABOUT US
The Australian Research Alliance for Children and Youth (ARACY) is a research and results focused, apolitical organisation. We work with government, researchers and those providing services to children and their families.
Our aim is to help children achieve a better life. We focus on heading off problems before they arise.
ARACY is unique in making the link between all areas of wellbeing for young Australians. We also make the link between all areas of government, policy making, research and service delivery to address the issues young Australians face.
We work on these through a national action plan called The Nest.
The Nest
The Nest Action Agenda is Australia’s first evidence-based framework for national child and youth wellbeing, (0-24 years), focussed across six wellbeing domains:
• Loved and Safe • Material Basics • Healthy • Learning • Participating • Positive Sense of Culture & Identity
Like any roadmap or blueprint for change, The Nest Action Agenda relies on the collective efforts of those working towards the same outcome – population level changes in child and youth health and development.
This means that individuals, agencies, programs and services, collective impact and place-based initiatives, government departments and policy makers, research institutions, advocacy groups and representative organisations across the country bring The Nest to life, when they use it to frame their work.
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SECTION 1 AN OVERVIEW OF ARACY
OUR PEOPLE
Our Board
Ms Elaine Henry OAM - BSc (Hons 1) DLitt (h.c.) Elaine Henry has been the Chair of ARACY since 2011, having served on the Board since its inception in 2001. Elaine also Chairs the National Breast Cancer Foundation and is a member of several boards and committees such as the Australian Government Financial Literacy Board, Financial Literacy Australia, the Early Start Advisory Committee of the University of Wollongong, the Vice-Chancellor’s Industry Advisory Board of the University of Technology Sydney, and the Advisory Board of the Centre for Social Impact. Elaine was awarded first-class honours in Science at Oxford Brookes University in the UK.
On returning to Australia, Elaine became the Executive Director of the Cancer Council (NSW) from 1985-1997 and she was awarded a Medal in the Order of Australia (OAM) for her work in cancer control in 1994. She was also recognised with an honorary Doctorate of Letters from UNSW in 2006. In 1998, as CEO of The Smith Family, she led a comprehensive transformation of the organisation focusing it on the power of education to change the lives of disadvantaged children, families and communities across Australia. As part of a social movement, she was a founding member of Social Ventures Australia, inaugural chair of Nonprofit Australia Ltd and Director of the Australian Social Innovation Exchange. Throughout her career, Elaine has served on a wealth of committees and boards at the state, national and international levels, including as chair of the Australian Government’s Stronger Families and Communities Partnership, which had a major role in the development of the Communities for Children initiative, and as a member of the former Prime Minister’s Community Business Partnership. Elaine’s leadership skills have been recognised by many awards including the Lifetime Achievement Award from Research Australia in 2008. She is a Member of the Australian Institute of Company Directors and Chief Executive Women.
Professor Ngiare Brown Ngiare is a Yuin nation woman from the south coast of NSW. She is a senior Aboriginal medical practitioner with qualifications in medicine, public health and primary care, and has studied bioethics, medical law and human rights. She was the first identified Aboriginal medical graduate from NSW and is one of the first Aboriginal doctors in Australia. Over the past two decades she has developed extensive national and international networks in Indigenous health and social justice, including engagement with the UN system.
Ngiare is a founding member and Foundation CEO of the Australian Indigenous Doctors’ Association (AIDA); is a founding member of the Pacific Region Indigenous Doctors’ Congress (PRIDoC); and is Chair of the Health, Rights and Sovereignty committee of PRIDoC. Professor Brown is undertaking doctoral research in law, addressing Aboriginal child protection systems and practice, and has made extensive contributions to Aboriginal and Torres Strait Islander health, research process, bioethics, policy, translation and practice. Ngiare currently runs a small not-for-profit dedicated to Aboriginal child and adolescent wellbeing, supporting communities to develop child-centric, strength based, trauma informed initiatives, reclaim positive cultural practices, and breaking the intergenerational cycles of disparity.
Professor Gervase Chaney - MBBS FRACP FAIM Gervase Chaney is the Dean of the School of Medicine Fremantle, University Notre Dame Australia and a general paediatrician at Perth Children’s Hospital. He was previously the Executive Director of Perth Children's Hospital (responsible for commissioning) in the Child and Adolescent Health Service (CAHS) in Western Australia from 2016 – 2017. He was Executive Director of Princess Margaret Hospital (PMH) in CAHS from 2015 – 2016; Chairman of the PMH Paediatric Medicine Clinical Care Unit 2011 - 2014; and Co-Lead of the Child and Youth Health Network for WA Health from 2005 – 2010. He is Secretary of the Academy of Child and Adolescent Health (ACAH), is on the Stan Perron Charitable Foundation Board and was previously on the Board of Kidsafe WA from 2004 – 2015. He is a past President of the Paediatrics and Child Health Division of the Royal Australasian College of Physicians (RACP) 2010 – 2012 and was on the Board of the RACP from 2008 - 2012. He has been on the Board of ARACY since 2013.
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Mr Tim Goodwin – LL.M BA and Law (Hons) Tim Goodwin is a member of the Yuin nation, an Aboriginal nation that occupies the southeast coast of NSW. Tim is currently a barrister in Melbourne. He graduated with bachelor’s degrees in Arts and Law (with Honours) from the Australian National University in 2007 and with a Master of Laws from Harvard Law School in 2012. Tim was the Associate to The Hon Justice AM North of the Federal Court of Australia from 2008 to 2009 and to the Hon Justice M Bromberg of the Federal Court of Australia from 2009 to 2010. From 2008 to 2010, he was a member of the Steering Committee for the establishment of a National Indigenous Representative Body. This work resulted in the creation of the National Congress of Australia’s First Peoples. Tim is currently a trustee of the Sharing Stories Foundation, and a Board Member of the Victorian Equal Opportunity and Human Rights Commission and Human Rights Law Centre.
Professor Kristy Muir - PhD Professor Kristy Muir is the CEO of the Centre for Social Impact (CSI) and a Professor of Social Policy at UNSW Sydney Business School. She is an elected member of UNSW Sydney’s Council, Chair of Allan & Gill Gray Philanthropy Australasia, a Director of ARACY, and member of the NSW Premier’s Council on Homelessness.
Kristy has worked for almost three decades with for-purpose organisations. She is driven to help understand and find solutions to complex social problems and measure whether and where they are making a difference. She has partnered with dozens of not-for-profit, corporate and philanthropic organisations, and government departments on more than 70 projects to help increase social impact. Her research and capacity building projects have attracted almost $16m. She teaches non-executive directors, facilitates strategic workshops, gives invited keynotes and has published widely in academic journals and popular media.
Kristy was formerly CSI’s Research Director, the Associate Dean (Research) for the Faculty of Arts and Social Sciences and the Director of the Disability Studies and Research Centre at UNSW Sydney. She has a PhD in social history, is a graduate of the AICD and previously worked in the not-for-profit sector.
Ms Lisa Paul – AO PSM FAIMF FAICD FIPAA FACEL FANZSOG BA (Hons) (resigned 14 December 2018) Lisa Paul AO PSM is a prominent Australian policymaker. As a Chief Executive (Secretary) in the Australian Federal Government from 2004 until 2016, she held national responsibility for all aspects of education from childhood to post graduate and international education, research, science, employment, workforce and workplace relations among others, and was the principal adviser to government on these matters. Since moving to the private sector, Lisa has continued her long-standing interests in all matters educational; the development of a stronger philanthropic focus on social services and policy; and developing further the relationship between education, leadership and productivity.
Along with her role at ARACY, Lisa is a Melbourne University Enterprise Professor and Bond University Councillor, and in December 2016 was appointed as a member of the Federal Government’s Naval Shipbuilding Advisory Board. Lisa also serves on the Boards of Navitas, Australia America Leadership Dialogue, Schools Plus, High Resolves, APM, Social Ventures Australia, and was formerly a member of Programmed and the Melbourne Accelerator Program. In 2011, Lisa was made an Officer of the Order of Australia for distinguished service to public sector leadership in key policy and program implementation. In 2003, Lisa was awarded a Public Service Medal for leading the Australian Government's domestic response to the Bali bombings. Lisa is a fellow of the Australian Institute of Company Directors, a fellow of the Australian Council for Educational Leaders, National Fellow of the Institute of Public Administration Australia, a Fellow of the Australian Institute of Management, an Australian National University Public Policy Fellow, a Fellow of the Australian and New Zealand School of Government and is a member of Chief Executive Women.
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Dr Norman Swan – MBChB FRCP MD (Hons) Causa DCH Host of the Health Report, on the Australian Broadcasting Corporation’s Radio National, and Tonic on ABC News24, Dr Norman Swan was one of the first medically qualified journalists in Australia. He was born in Scotland, graduated in medicine from the University of Aberdeen and later obtained his postgraduate qualifications in paediatrics. Norman also edits his own newsletter, The Choice Health Reader, which is published in partnership with CHOICE, Australia’s leading consumer advocacy organisation.
On television, Dr Swan has hosted ABC Television’s science program, Quantum, and been a guest reporter on Catalyst and Four Corners. He hosted Health Dimensions on ABC Television, and created, wrote and narrated a four- part series on disease and civilisation, “Invisible Enemies”, made for Channel 4 (UK) and SBS Television. He also co- wrote and narrated “The Opposite Sex”, a four-part series for ABC Television. Norman Swan has been the Australian correspondent for the Journal of the American Medical Association and the British Medical Journal and has consulted for the World Health Organization in Geneva. He is also co-founder of Tonic Health Media, a company which focuses on communicating to patients and accompanying persons at the point of care promoting evidence-based care.
Professor Stephen Zubrick - MSc MA PhD FASSA FAAMHS Stephen Zubrick currently holds a professorial appointment in the Centre for Child Health Research at the University of Western Australia and is also a Senior Principal Research Fellow at the Telethon Kids Institute where he is Head of the Brain and Behaviour Research Focus Area. From 2002 to 2018 he Chaired the Consortium Advisory Group for the National Longitudinal Study of Australian Children. He is currently a Member of the Steering Committee for the Longitudinal Study of Indigenous Children.
In 2014 he was appointed Deputy Director of the Australian Research Council Centre of Excellence for Children and Families Across the Lifecourse. In 2010 he received a Western Australian Citizen of the Year Award for lifetime contributions to children and young people. Stephen holds several national and international competitive research grants and his research interests include the study of the social determinants of health and mental health in children, studies of the genetic and environmental determinants of language development, and large-scale psychosocial survey work in non-Indigenous and Indigenous populations. Over the past 20 years he has been instrumental in designing and implementing the leading Australian studies (national and state) of child and adolescent mental health.
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SECTION 1 AN OVERVIEW OF ARACY
Our Staff
Name Position Penny Dakin Acting Chief Executive Officer Dr Rebecca Goodhue General Manager, Projects & Networks Diana Harris General Manager, Projects and Programs Paul Kindermann General Manager, Communications Barbara Barker Research Manager Narelle Barrie Executive Assistant and Office Manager, Events Manager and Company Secretary Dale Cook Digital Communications Manager Caitlin Currie Administration Officer Maureen Ghirardello Membership Officer Dr Kristy Noble Principal, Collaboration and Engagement Lauren Renshaw Research Officer Kate Sollis Research Data Analyst
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SECTION 1 AN OVERVIEW OF ARACY
Our Volunteers
ARACY is supported by volunteer coordinators in each Australian jurisdiction—passionate people working in the child or youth sector with broad networks who help articulate and advance ARACY’s work.
If you would like to connect with ARACY coordinators in your region please visit the ARACY website.
States/Territories Coordinators
Victoria Barbara Minuzzo Jane Price
Queensland Geraldine Harris
Giselle Olive
Australian Capital Territory Wendy Cave Liam McNicholas
Anna Whitty
Northern Territory Sarah Brittle Catherine Phillips Jasmine Lyons
New South Wales Ross Beaton
Rachael Sowden
Western Australia Marianne Knaus
Tasmania Catherine Robinson Lindsay Smith
South Australia Kiran King Julie Petersen
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SECTION 1 AN OVERVIEW OF ARACY
OUR SUPPORTERS
ARACY gratefully acknowledges the support of the following in allowing us to continue our work on behalf of our members and young Australians in 2018.
• Commonwealth Department of Social Services • Commonwealth Department of Health • Commonwealth Department of Education • Commonwealth Department of Prime Minister & Cabinet • Ian Potter Foundation • Vincent Fairfax Family Foundation • Sidney Myer Fund • BUPA Foundation
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SECTION 2 GOVERNANCE
Board Chair’s Report: Elaine Henry OAM
The past year has been one of significant change and renewal for ARACY.
In June CEO Stephen Bartos left the organisation. A number of staff have also moved on during 2018. The Board thanks each for their significant contribution to ARACY.
In June Penny Dakin, a former deputy CEO of ARACY returned and took on the role of Acting CEO. Penny has done a great job in building stability for ARACY and in helping the organisation to reengage with stakeholders. The Board is very grateful to Penny for the work she has done in helping ARACY prepare for its future.
The Board and Penny have also been busy throughout the year, working with our financial advisers Bellchambers Barret and our Human Resources advisers, Spinach Ventures, to get the fundamentals right in order to ensure ARACY’s effectiveness in the quest to improve the lives of young Australians.
We have also worked with two experienced and reputable executive search firms to help us ensure that our next permanent CEO is the right fit for the future.
Despite the inevitable challenges that follow a change in leadership, 2018 has been a year of achievement. Our reputation is intact, the future is promising. We leave behind a difficult year with much brighter prospects for 2019. This is a testament to the dedication of our staff.
During 2019 ARACY has much new policy work to release, including a paper to help better define and measure Positive Sense of Culture and Identity, a Nest-based deprivation report, a Parent Engagement Toolkit, a Youth Aspirations report, and a suite of Careers Transitions case studies.
Off the back of highly successful consultations held in Melbourne, Sydney, and Perth, ARACY is developing the National Child Health Action Plan which is due to be handed to the Government in early 2019. This work is likely to form a key part of the national debate in the lead up to the General Election.
Additionally, we are due to jointly launch in March (along with our Strong Foundations Collaboration partners) a new paper that will provide further strong evidence of the need to refocus the nation’s efforts and investments in the first 1,000 days.
With so much achieved, and much more ahead, I again take the opportunity on behalf of the Board to thank all our staff and volunteers for your ongoing efforts throughout 2018.
Finally, I wish to pay tribute to Lisa Paul AO PSM, who has decided to step down from the ARACY Board. The fact that ARACY has had someone of Lisa’s calibre willing to lend us not only her experience and intellect, but her reputation, has been a major advantage to ARACY and a strong assurance not only to governments, but to philanthropic organisations and our many non-government partners, that ARACY has been guided by someone who knows how to target scarce resources to get the best results for Australia’s young people.
Lisa’s contribution will be sorely missed and I thank her for her service to Australia’s young people, through ARACY and also throughout her distinguished career as a Public Servant.
______ARACY Annual Report 2018 10 SECTION 3 Highlights - 2018
A national role in policy development and thought leadership
ARACY, its members, and partners, continue to be called upon to develop national policy and lead thinking in crucial areas impacting the wellbeing of young Australians.
The National Child Health Action Plan 2020-2030
During the latter part of 2018 ARACY was approached by the Australian Government to consult on and develop a national Child Health Action Plan (CHAP) which is due to be handed to the Government in early 2019.
The CHAP will build on Healthy, Safe and Thriving, the National Strategic Framework for Child and Youth Health. It will identify what is required to improve health outcomes for children and young people and provide a framework for action.
ARACY was engaged to coordinate, consult and develop the Action Plan and has been supported in this work by the Royal Australasian College of Physicians (RACP).
Responding to a tight timeframe and a highly focussed brief, ARACY and the RACP hosted three consultations in Perth, Melbourne, and Sydney throughout November 2018. Each was well attended and provided rich source material from a broad cross-section of medical practitioners, policy makers and other stakeholders. ARACY also undertook online consulting.
The fact that ARACY was commissioned by the Australian Government to lead this important piece of work is indicative of the way ARACY has been able to reposition itself as a ‘safe pair of hands’. We are known as an organisation that has no agenda other than the wellbeing of young Australians. We are known as an organisation that can consult widely across networks to deliver complex and quality work on time and within budget.
A national strategy to promote early language and literacy
In September ARACY was delighted to announce that The Ian Potter Foundation had awarded $285,000 to the National Early Language and Literacy Coalition to develop a national strategy to promote early language and literacy.
Literacy and language skills develop from birth and form the bedrock of education. The capacity, confidence and disposition to use language in all its forms underpin learning and promote general child development and wellbeing. About 6.5% of Australian children start primary school vulnerable in the developmental area of language and cognition. This number is double for children from the most disadvantaged backgrounds.
Including ARACY, the National Early Language and Literacy Coalition comprises: • The Australian Library and Information Association (ALIA) • The Australian Literacy and Numeracy Foundation (ALNF) • The Australian Literacy Educators’ Association (ALEA) • Early Childhood Australia (ECA) • The Indigenous Literacy Foundation (ILF) • The Murdoch Children’s Research Institute (MCRI) • The National and State Libraries Australia (NSLA) • Speech Pathology Australia (SPA)
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SECTION 3 Highlights - 2018
right@home recognised in international publications
Back: Tracey Bruce, WSU | Penny Dakin, A/g CEO ARACY | Prof Sharon Goldfeld, MCRI Front: Susan Perlen, MCRI | Prof Lynn Kemp, WSU | Diana Harris, ARACY
The right@home consortium made up of ARACY, Western Sydney University, and the Murdoch Children’s Research Institute has grown more cohesive and effective as 2018 has progressed.
right@home is a Sustained Nurse Home Visiting program which supports families experiencing risk or adversity, building the capacity of parents to provide safe, responsive care and a home environment that supports children’s learning. The program's primary goal is to help ensure kids from families facing tough times are well prepared to start school and therefore don't find themselves behind the eight ball from day one.
The consortium is conducting a gold standard Randomised Control Trial (RCT) of right@home across eight sites in Victoria. The trial, which began in 2012, included a control group of around 350 mothers and babies, who received the standard state nurse-home visiting program.
After two years both the intervention and control groups were assessed across 13 outcomes by a nurse and through parental feedback. There was strong evidence of benefit, with right@home resulting in more regular child bedtimes, safer homes, warmer and less hostile parenting, and a more nurturing home learning environment. Participating mothers also reported that it improved their capacity to care for their children and themselves.
During 2018 right@home was featured in the Annals of the New York Academy of Sciences, in their special invitation-only issue Implementation Research and Practice for Early Childhood Development. Also in late 2018 the consortium was advised the program would feature in Pediatrics, the official journal of the American Academy of Pediatrics in early 2019.
ARACY and its consortium partners remain in discussions with several jurisdictions regarding the roll out of the program to a number of communities in need.
To find out more about right@home visit our website.
______ARACY Annual Report 2018 12 2018 Report Card: The wellbeing of young Australians
In February ARACY released its 2018 Report Card: The wellbeing of young Australians which used the latest information available to track how young Australians are faring in international comparisons against 75 indicators of health and wellbeing.
The Report generated extensive national media coverage and copies were mailed to each member of the Australian Parliament.
The Report Card was officially launched on ARACY’s behalf at Parliament House Canberra by The Hon Ken Wyatt AM, MP, Minister for Aged Care and Minister for Indigenous Health.
______ARACY Annual Report 2018 13 SECTION 3 Highlights - 2018
Other activities
ARACY staff have been busy throughout 2018 working on many projects scheduled to be delivered in 2019. These include: • The development of a deprivation report based on The Nest and the Longitudinal Study of Australian Children (LSAC) • The development of a disability report card, looking at the wellbeing of children with disability and identifying gaps in the data • The development of a document to help better define and measure the Sense of Culture and Identity • The development of a Parent Engagement Toolkit • The development of a Youth Aspirations report and a suite of Careers Transitions case studies commissioned by the Australian Government • The development (along with the Strong Foundations: Getting it Right in the First 1000 Days Partners) a new paper that will provide further strong evidence of the need to refocus the nation’s efforts and investments in the first 1,000 days
Our staff have also been busy engaging with members, supporters, stakeholders and influencers through ongoing communications and events activities including: • The continuation of our successful webinar series including contributions from beyondblue, the Parenting Research Centre, and Kathryn Mandla, inaugural Head of the National Office for Child Safety • Coordinating major events such as the national launch of Child Protection Week (in association with NAPCAN), other events such as a sector post-budget briefing and facilitating meetings and providing secretariat for several partnerships including right@home and The Strong Foundations: Getting it Right in the First 1000 Days Partnership • A constant review of our membership offering and ensuring ARACY is meeting membership needs including through a survey conducted mid-2018 • The issuance of weekly eBulletins as well as the management of the full suite of online and social media channels.
______ARACY Annual Report 2018 14 SECTION 4 OUR FINANCES
Notes 2018 2017 $ $ ASSETS
Current Assets
Cash and cash equivalents 3 1,694,577 2,041,216 Trade and other receivables 4 525,329 73,705 Term deposits 5 35,951 35,951 Prepayments 6 36,773 31,881
Total Current Assets 2,292,630 2,182,753
Non-current Assets
Property, plant and equipment 7 16,574 21,320
Total Non-current Assets 16,574 21,320
Total Assets 2,309,204 2,204,073
LIABILITIES
Current Liabilities
Trade and other payables 8 719,839 248,365 Contract liabilities 9 703,060 946,364 Employee benefit liabilities 10 36,079 56,957 Total Current Liabilities 1,458,978 1,251,686
Non-current Liabilities
Trade and other payables 8 28,072 - Employee benefit liabilities 10 3,980 3,804
Total Non-current Liabilities 32,052 3,804
Total Liabilities 1,491,030 1,255,490
NET ASSETS 818,174 948,583
MEMBER’S FUNDS
Retained surpluses attributable to Members 818,174 948,583
Total Member’s funds 818,174 948,583
This statement should be read with the accompanying notes.
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Notes 2018 2017 $ $ CONTINUING OPERATIONS
Revenue from Contracts with Customers 11 3,639,898 4,218,798
Interest Revenue 33,200 40,148
Expenses
Employee benefits expense (1,570,184) (1,600,716)
Research partners expense (1,419,956) (2,040,071)
Research projects expense (305) (19,634)
Travel expense (103,893) (89,959)
Communications expense (46,944) (40,486)
Premises expenses (150,494) (149,419)
Information technology expense (64,852) (113,771)
Insurance expense (15,735) (18,044)
Depreciation expense (7,598) (3,479)
Professional fees expense (335,786) (27,332)
Conferences and events expense (45,195) (474,855)
General expense (42,565) (44,968)
Total Expenses (3,803,507) (4,622,734)
Net (deficit)/surplus from continuing (130,409) (363,788) operations
Other Comprehensive Income - -
Total comprehensive (loss)/income attributable to members of Australian Research Alliance for (130,409) (363,788) Children and Youth Limited
This statement should be read with the accompanying notes.
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Notes Retained earnings $
At 1 January 2017 1,312,371
Deficit for the year (363,788)
At 31 December 2017 948,583
At 1 January 2018 948,583
Surplus/Deficit for the year (130,409)
At 31 December 2018 818,174
This statement should be read with the accompanying notes.
Notes 2018 2017 $ $
OPERATING ACTIVITIES
Receipts from grants and gifts 2,933,391 4,260,945 Receipts from conferences and events 276,026 396,720 Interest received 34,169 40,148 Payments to suppliers and employees (3,587,373) (5,049,149) Net cash flow (used in) operating activities (343,787) (351,336)
INVESTING ACTIVITIES
Proceeds from / (Payments for) investments in term - 1,374,082 deposits (Payments for) property, plant & equipment (2,852) (24,798) Net cash flow (used in) investing activities (2,852) 1,349,284
Net increase/(decrease) in cash and cash (346,639) 997,948 equivalents
Cash and cash equivalents at 1 January 2,041,216 1,043,268 Cash and cash equivalents at 31 December 3 1,694,577 2,041,216
This statement should be read with the accompanying notes.
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1. CORPORATE INFORMATION
The financial report of the Australian Research Alliance for Children and Youth Limited for the year ended 31 December 2018 was authorised for issue in accordance with the resolution of Directors dated 28 February 2019.
The entity is a company limited by guarantee incorporated in Australia and the liability of members is limited to an amount not exceeding $1. The Directors may impose an annual subscription on any class of membership from time to time and the member within a class which is subject to an annual subscription is liable to pay the subscription. The entity is a not for profit entity for financial reporting purposes.
The entity is established for the charitable purpose of facilitating, co-ordinating and supporting the development of knowledge through scientific research and the effective use of that knowledge which is or may prove to be of value to Australia by enhancing the well being and the life chances of children and young people.
The entity’s principal place of business is 3/60 Marcus Clarke Street, Canberra, Australia.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
The financial report is a general purpose financial report which has been prepared in accordance with the requirements of the Australian Charities and Not-for-profit Commission Act 2012 and Australian Accounting Standards – Reduced Disclosure Requirements. Other mandatory professional reporting requirements and relevant Accounting Interpretations have also been complied with.
The financial statements, except for the cash flow information, have been prepared on an accrual basis and are based on historical costs. The financial report has been presented in Australian dollars.
The financial report has been prepared on the going concern basis.
Statement of Compliance
The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the Australian Charities and Not-for-profit Commission Act 2012, Australian Accounting Standards – Reduced Disclosure Requirements and other authoritative pronouncements of the Australian Accounting Standards Board. The Company is a not-for-profit private sector entity which is not publicly accountable. Therefore, the financial statements for the Company are tier 2 general purpose financial statements which have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements (AASB – RDRs).
New Accounting Standards & Interpretations
The Directors assessed all new and amended accounting standards issued and effective for financial reporting periods beginning on or after 1 January 2019. The Company has early adopted AASB 1058 Income of Not-for-Profit Entities. Any other new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted and Directors are still finalising any impact assessments on the financial statements.
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AASB 1058 Income of Not-for-Profit Entities The Company has adopted AASB 1058 from 1 January 2018. The standard provides a single comprehensive model for revenue recognition for not-for-profit entities. The core principle of the standard is that a Not-for-Profit entity shall recognise revenue to depict the enforceable rights/obligations to transfer a good or service that is sufficiently specific within an agreement or contract. The standard also extends fair value measurement to assets with consideration that is significantly below fair value principally to enable the Not-for-Profit entity to further its objectives, but excludes asset acquisition at distress sales or sales with bulk discounts.
AASB 9, AASB 15 and AASB 1058 were adopted using the modified retrospective approach and as such comparatives have not been restated. The impact of adoption on opening retained profits as at 1 January 2018 was nil.
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the Company is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Company: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised. Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are initially recognised as in the form of a separate liability.
Grants Grant revenue is generated from both government and private agreements for the delivery of specific projects. Performance obligations are identified within individual contracts which then drive the basis for revenue recognition (i.e. either “over time” or “point in time”). When the performance obligation/s identified within the contract is/are satisfied revenue is recognised. Payments are generally received in line with payment or milestone schedules on a 30-day term, upon presentation of an invoice. Payments are normally receipted in advance of meeting performance obligations; therefore, revenue is initially deferred as a contract liability.
Membership Subscriptions Membership subscriptions revenue is generated from ARACY’s membership platform. Because membership subscriptions are non-refundable, the performance obligation is satisfied and revenue recognised upon receipt in bank of the membership subscriptions.
Training Training revenue is generated from the rendering of training services. Payments are normally receipted in advance of providing the services, therefore revenue is initially deferred as a contract liability. The performance obligation is satisfied and revenue recognised when the services are provided.
Conferences and events Conference and event revenue is generated from the rendering of conference or event services. Payments are normally receipted in advance of providing the services, therefore revenue is initially deferred as a contract liability. The performance obligation is satisfied and revenue recognised when the services are provided.
All revenue is stated net of the amount of goods and services tax
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Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.
Current vs Non-Current Classification
The Company presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is current when it is: • Expected to be realised or intended to be sold or consumed in the normal operating cycle • Held primarily for the purpose of trading • Expected to be realised within twelve months after the reporting period
Or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period
All other assets are classified as non-current.
A liability is current when: • It is expected to be settled in the normal operating cycle • It is held primarily for the purpose of trading • It is due to be settled within twelve months after the reporting period
Or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period
The Company classifies all other liabilities as non-current.
Cash and Cash Equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short term deposits with an original maturity of three months or less, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Trade and Other Receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days.
The Company has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue. Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Term Deposits
Term deposits in the statement of financial position comprise term deposits with an original maturity of more than three months, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Term deposits may be held as security for Rental Bond arrangements included in lease agreements.
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Income Tax
Under Section 50-5 of the Income Tax Assessment Act 1997, the income of the entity is exempt from income tax.
GST
Revenues, expenses and assets are recognised net of the amount of GST except: • when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and • receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
Property, Plant and Equipment
Plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is calculated on a straight line basis over the estimated useful life of the asset. The depreciation rates used for plant and equipment range between 20% and 33% pa.
All asset residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end.
Impairment The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the entity were deprived of the asset, its value in use is taken to be its depreciated replacement cost.
Trade and Other Payables
Trade payables and other payables are carried at amortised cost. They represent liabilities for goods and services provided to the entity prior to the end of the financial year that are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
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Employee Leave Benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled within 12 months of the reporting date are recognised in employee benefit liabilities in respect of employees’ services up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled.
Liabilities for leave expected to be taken in greater than 12 months of the balance date are shown at the present value of the expected future payments to be made in respect of employees’ services, based on the projected unit credit method. In calculating the liabilities, consideration is given to expected future wage and salary levels, experience of employee departures and periods of service, as well as estimated average discount rates applicable to adjust gross values calculated to net present values. The amounts calculated are treated as non-current liabilities and included in employee benefit liabilities.
Leases
The determination of whether an arrangement is or contains a lease is based in the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.
Operating lease payments are recognised as an operating expense in the income statement on a straight-line basis over the lease term. Operating lease incentives are recognised as a liability when received and subsequently reduced by allocating lease payments between rental expense and reduction of the liability.
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2018 2017 $ $
3. CASH AND CASH EQUIVALENTS
Cash at bank and in hand 469,287 585,926 Short-term deposits 1,225,290 1,455,290 1,694,577 2,041,216
Cash at bank earns interest at floating rates based on daily bank deposit rates. The carrying amounts of cash and cash equivalents represent fair value.
Short-term deposits are made for varying periods of between one and three months, depending on the immediate cash requirements of the entity, and earn interest at the respective short-term deposit rates.
4. TRADE AND OTHER RECEIVABLES
Trade receivables 519,703 18,946 Allowance for expected credit losses - - 519,703 18,946
Other debtors 739 339 Bank interest receivable 4,887 5,856 GST refundable - 48,216 FBT refundable - 348 525,329 73,705
5. TERM DEPOSITS
Rental bond 35,951 35,951 35,951 35,951
6. PREPAYMENTS
Prepaid expenses 28,003 20,600 Prepaid insurance 8,770 11,281 36,773 31,881
7. PROPERTY, PLANT AND EQUIPMENT
Plant and equipment At cost 36,607 33,755 Less accumulated depreciation (20,033) (12,435) 16,574 21,320 Movements in carrying amounts: Plant and equipment Balance at the beginning of financial year 21,320 - Purchase of new plant and equipment 2,852 24,799 Depreciation expense (7,598) (3,479) Carrying amount at the end of financial year 16,574 21,320
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2018 2017 $ $
8. TRADE AND OTHER PAYABLES
Current Trade payables 133,625 73,538 Other payables 4,881 - PAYG tax payable 21,549 6,043 GST payable 72,765 - FBT payable 2,735 - Lease liability 16,527 - Accrued expenses 467,757 168,784 719,839 248,365
Non-Current Lease liability 28,072 - 28,072 -
9. CONTRACT BALANCES
Trade receivables (Note 4) 512,506 18,946
Contract liabilities - deferred grant revenue At 1 January 946,364 880,100 Received during the year 2,801,859 1,872,727 Released to the statement of profit or loss (3,045,163) (1,806,463) At 31 December 703,060 946,364
10. EMPLOYEE BENEFIT LIABILITIES
Current Annual leave 36,079 51,265 Long service leave - 5,692 36,079 56,957
Non-Current Long service leave 3,980 3,804 3,980 3,804
11. REVENUE
Disaggregation of revenue: The disaggregation of revenue from contracts with customers is as follows:
Grants 3,405,609 3,858,144 Member subscriptions 107,481 - Training 36,868 - Conferences and events 89,940 360,654 Total revenue from contracts with customers 3,639,898 4,218,798
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11. REVENUE (continued)
Timing of revenue recognition:
For the year ended 31 December 2018 Revenue streams Grants Member Training Conferences Total Subscriptions and events Services transferred over time 3,405,609 - - - 3,405,609 Services transferred at a point in time - 107,481 36,868 89,940 234,289 Total revenue from contracts with customers 3,405,609 107,481 36,868 89,940 3,639,898
For the year ended 31 December 2017 Revenue streams Grants Member Training Conferences Total Subscriptions and events Services transferred over time 3,858,144 - - - 3,858,144 Services transferred at a point in time - - - 360,654 360,654 Total revenue from contracts with customers 3,858,144 - - 360,654 4,218,798
2018 2017 $ $
12. COMMITMENTS AND CONTINGENCIES Operating Lease Commitments
Non-cancellable operating lease contracted for but not capitalised in the financial statements for a multifunction photocopier Payable - not later than one year 11,316 11,316 - later than one year but not later than five years 8,487 19,803 19,803 31,119 Operating Lease of Office space at 60 Marcus Clarke Street, Canberra ACT, expiring February 2021 Payable - not later than one year 130,076 130,076 - later than one year but not later than five years 151,755 281,831 281,831 411,907
13. DIRECTOR AND KEY MANAGEMENT PERSONNEL DISCLOSURES
Details of Directors and Key Management Personnel
The following were Directors of the company during the period:
Ms Elaine Henry OAM Mr Tim Goodwin Dr Norman Swan Ms Lisa Paul AO PSM Dr Gervase Chaney Professor Stephen Zubrick Professor Ngiare Brown Professor Kristy Muir
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13. DIRECTOR AND KEY MANAGEMENT PERSONNEL DISCLOSURES (Continued)
The following staff were key management personnel during the period;
Mr Stephen Bartos, Chief Executive Officer (resigned 01 July 2018) Ms Penny Dakin, Acting Chief Executive Office (commenced 25 June 2018) Mr Christopher Wood, General Manager Corporate Services and Company Secretary (terminated 30 September 2018) Dr Rebecca Goodhue, General Manager Projects and Networks (leave from 24 July 2018) Ms Diana Harris, General Manager Projects and Networks (commenced 26 June 2018) Mr Simon Rosenberg, General Manager Policy (resigned 30 June 2018) Mr Paul Kindermann, General Manager Communications and Acting Company Secretary Ms Lori Rubenstein, Senior Policy and Research Advisor (resigned 23 February 2018)
Ms Narelle Barrie, Company Secretary (appointed 14 December 2018)
Director Compensation
The compensation made to Directors is set out below.
2018 2017 $ $ Compensation to directors of the Company Nil (8) Nil (8)
(number of directors)
No interests are held by Directors.
Key Management Personnel Compensation
The compensation made to staff who were key management personnel is set out below.
2018 2017 $ $ Compensation to staff who were key management personnel of the Company 853,310 (6) 733,766 (6)
(number of key management personnel)
No interests are held by Key Management Personnel.
14. EVENTS AFTER THE REPORTING PERIOD
There were no significant events after balance date.
15. AUDITOR REMUNERATION The auditor of the Australian Research Alliance for Children and Youth Limited is Ernst & Young.
Amounts received or due and receivable by Ernst & Young (Australia) is set out below.
2018 2017 $ $ Audit of the financial report of the entity 24,232 21,476
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In accordance with a resolution of the Directors of Australian Research Alliance for Children and Youth Limited, I state that:
In the opinion of the Directors:
(a) The financial statements and notes, of the company, are in accordance with the Australian Charities and Not-for-Profits Commission Act 2012, including:
(i) Giving a true and fair view of the company’s financial position as at 31 December 2018 and of the performance for the year ended on that date; and
(ii) Complying with Australian Accounting Standards Reduced Disclosure Requirements, and the Australian Charities and Not-for-Profits Commission Regulation 2013; and
(b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of Directors
Elaine Henry Director Date: 7 March 2019
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SECTION 5 Support ARACY – Support Australia’s Children and Youth
HOW YOU CAN GET INVOLVED
Join us – TOGETHER we can make a difference.
As an ARACY member, you will join an influential community of researchers, policymakers and practitioners. Visit our website at www.aracy.org.au to find out more about ARACY membership.
Support ARACY
ARACY needs your support to continue our important work to improve the wellbeing of children and youth. We seek reciprocal partnerships – either through financial support or your professional expertise – with Australian organisations that share our vision that, by investing together, we can improve the life chances of Australian children.
ARACY gratefully acknowledges the generous support of our current partners and supporters. Please contact us on 02 6248 2400 to discuss the possibility of a collaboration between ARACY and your organisation.
CONTACT US
Office: 3/60 Marcus Clarke St, Canberra ACT 2601 Mail: GPO Box 2807, Canberra, ACT 2601 Phone: +61 2 6248 2400 Email: [email protected] Website: aracy.org.au
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