Financial Report
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.(^) QSP' Australia UNITED WAY AUSTRALIA ABN 60 0028062,5 FINANCIAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2018 UNITED WAY AUSTRALIA ABN 60 0028062,5 CONTENTS Directors' Report 3-6 Declaration by Chief Executive Officer 7 Directors' Declaration 8 Auditor's Independence Declaration 9 Statement of Profit or Loss and Other Comprehensive Income 10 Statement of Financial Position 11 Statement of Changes in Equity 12 Statement of Cash Flows 13 Notes to the Financial Statements 14-20 Independent Auditor's Report 21-23 United Way Australia registered office and principal place of business is: United Way Australia Level I C 225 Clarence Street SYDNEY 2000 2 DIRECTORS' REPORT OF UNITED WAY AUSTRALIA (ABN 600028062,5) Purpose United Way Australia (UWA)'s purpose is to unite communities, business, government, philanthropy and social purpose organisations in collaborative action to improve outcomes in communities experiencing disadvantage. UWA is increasingly acknowledged for our role in mobilising the resources and skills of business and convening effective cross sector collaborations. Our focus remains on jin rovin early learning outcomes and school to work transitions for at-risk young people in communities of disadvantage. Approach Our fundraising strategy continues to focus on increasing revenue from deeper business partnerships and continuing to work with trusts, foundations and high net worth individuals to fund and develop innovative approaches to tackling community disadvanta e. We fund our work through multiple sources including donations through corporate partnerships. workplace corporate giving, monies raised from individual donors, philanthropic trusts, foundations and government. We also operate a broad based volunteering pro rain connecting volunteers from our corporate and foundation partners' workforces with UWA's community impact initiatives. Operational Structure and Status as DGR type I charity United Way Australia is an unlisted public company limited by guarantee. incorporated and domiciled in Australia. For the purposes of preparing the financial statements. the company is a not-for-profit company. The Company is a Type I Deductible Gift Recipient specifically listed under Sub Division 30-B of the Income Tax Assessment Act 1997 under the Welfare and Rights cate o of charitable entities. United Way Australia is also classified as a Public Benevolent Institution. Operations UWA's 2020 Strategic Direction guides our work in understanding local community issues, mobilising resources to tackle coin Iex social issues, partnering with others to strengthen communities. and influencing systems change. UWA is increasingly acknowledged for our role in mobilising the resources and skills of business, and convening effective cross sector collaborations to improve earl childhood development and youth transitions to employment. To build a sustainable organisation to support our work in a volatile funding environment is a key focus. UWA is focused on increasing revenue through deeper business partnerships and working with trusts, foundations, high net worth individuals and government to deve!op innovative approaches to tackling community disadvantage. In particular, we are partnering with both state and federal departments to support our collective impact work. Results The organisation had an operating profit of $152,174 during 2018 (2017: loss of $21 1,841). During the year the net revenue (including non-monetary donations) of the company reduced by 10% to $2,815,573 (2047 net revenue: $3,125,151). However, the Directors note the costs of the company decreased by 20% to $2,663,399 (2017 costs: $3,336,992) Total Equity was $331,850 (2017: $179,677) being $168, ,, 9 for UWA Network Purposes (2018: $168, ,19) and $163,731 for General Purposes (2017: $11,558). During 2018, management continued to improve the organisation's financial position. The targeted approach to our impact work resonated with donors and we saw our relationships strengthened with individuals, corporations. trusts, foundations and government. We focused on building stronger connections through more direct engagement, better messaging, and strengthening our impact measurement. UWA's P&L also improved through a disciplined review of our cost base, resulting in labour efficiencies and rocess improvements. The last two years has seen a shift in UWA's business model via billty and a more intentional approach to our community impact work. The organisation is well positioned 10 scale our place and program work and multiply our SOCietal impact. Names, qualifications and experience of Directors of United Way Australia that held office throughout the ear: Denise Brotherton BEc. CPA MTax is a Partner with Emst & Young, specialising in the provision of business tax adviso services including services to the not-for-profit sector. Denise has worked with Ernst & Young for 24 years, Denise has worked with United Wa in Australia for almost 9 years and is Chair of the United Way Australia Melbourne Council. Liz Dibbs LLM (Cantab), BA LLB (Syd) has held senior legal positions throughout her career, including General Counsel and Partner of PricewaterhouseCoopers, prior to her retirement. Liz now focuses her energy on the government and not-for-profit sectors. She is Deputy Chancellor of Western Sydney University and Chair of its Audit & Risk Committee. She is the Western City District Commission on the Greater Sydney Commission. She is also a Governor of the Centenary Institute of Cancer Medicine and Cell Biolo , a member of its Audit & Risk Committee and a trustee of the Centenary's Foundation. Liz is a past Chair of YVVCA NSW and past director of YWCA Australia. She is a member of Chief Executive Women and the Institute of Company Directors, Liz was appointed Chairman of United WayAustralia in December 2015. Anne Myers MBA AGSM. GAICD Anne is a non-executive director with extensive executive level experience spanning retail bankin , insurance, funds management and superannuation. In addition to her non-executive director role at United Way, she is currently a nori- executive director of Defence Bank (and Chair of Audit Committee) and Integrated Research Ltd. She is also a Coundl member of the University of New England and works as an advisor and mentor to early stage technology companies 3 DIRECTORS' REPORT OF UNITED WAY AUSTRALIA (ABN 60 002806215) Andy BERRY is the Managing Director of Ricoh Australia. Previously he was Managing Partner of consultancy firm Trivium Solutions and Principal Consultant with 2ND ROAD where he led strategic innovation engagements. Prior to that Andy was Chief Customer Officer at Fuji Xerox and led their Global Services business, spedalising in the provision of IT and business process outsourcing (BPO) services. In addition to this, Andy Chairs the United Way Sydney Council and its transition to a fundraising and connecting committee He has a deep understanding of the corporate market and how United Way operates in that space. Robert Moodie BEG(ACcg), CFA, is a Director of Rodgers Reldy. a reconstruction and advisory firm where he has worked for the past 18 years' Rob has a strong background in corporate and strategic advice, Robjoined United Way's Sydney council in 2013 and joined the board in September 2016. Rob was the chairman of the United Way Ball Committee in 2015,2016 and 2017. Rob has served as the chairman of the Audit and Finance Committee since December 2017. Directors appointed in 2018 Mark Wlossak is a General manager in Group Credit Structuring of Commonwealth Bank of Australia. In this role Mark leads a national team responsible for overseeing the management of GBA and Bankwest's troubled and impaired customers. Prior to this, Mark was a Director with PricewaterhouseCoopers working most notably in South East Asia during the "Asian Financial Crisis" (, 996 - 2001). During Ihis period he led large cross discipline and multi-cultural teams restructuring a number of financial companies, valuing distressed loan assets as well as reviewing the credit worthiness and operating procedures of some of the region's largest banks. Nicole Wearne is a partner at Norton Rose. Nicole's diverse expertise in insurance law includes professional indemnity, D&0, construction PI. major torts and securities class actions. She advises Australian and London market insurers in defence, coverage and product development. NICole acts in defence of financial institutions, accountants and tax agents, brokers and coverholders, engineering and architect firms, international construction firms, and has extensive experience representing associations in inquiries including recent Royal Commissions. She also acts for Australian and Victorian government departments and statutory authorities in c!aims which regularly involve political sensitivities and have broader strategic implications. Nicole has advised on numerous PI and D&O notifications made by F1s arising from investigations by ASIC, including in respect of reinediation programs imposed on banks under their licence conditions. Directors appointed in 2019 Jenny Abood BEc. Hon. is a founding partner of Crestone Wealth Management, an employee-owned firm, which provides wealth advice and portfolio management services, established in 2016 and is a continuation of the firm started by Sir Ian Potter in 1935 Jenny started her career in I 995 at the Commonwealth Bank of Australia. before moving to ABN Amro and subsequently establishing a fixed income desk for the firm's private wealth division, ABN AMRO Morgans in 2004.