.(^) 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. In 2010, she moved to UBS Weallh Management to meet the needs of her increasingly diverse client base. Jenny is a member of the Catholic Archdiocese of Sydney Investment Committee, Committee Member for the Apostles hip of the Sea, Australia which represents the Catholic Church's missionary work for seafarers and is a member of the UTS Business School Advisory Board. Gary Metcalf Gary is the Managing Director of Metcalf Group SA, a family owned South Australian business that has been in operation for more than 20 years' Gary provides experience in leading and growing all divisions of a business to create a dynamic and progressive organisation. As previous President of The Glenelg Football Club 2004-2013 Gary's 3 top achievements were growing membership from 1000 to 3000 members, increasing sponsorship funds by 200% and the number of sponsors by 50%. Emma Brooke Emma Brookejoined the board of United Way South Australia June 2014, and is an avid supporter of Not-For Profit Organisations. Emma was appointed as CEO of United Way South Australia in 2018. Through Emma's retail, and banking/finance management career before children, Emma worked as a Bank Manager with ANZ through different regions on The Gold Coast and Sydney. A large amount of this time spent leading people and their careers, as well as building a strategy for customers that made sense to their financial goals. Being no stranger to diversity, Emma has spent several years at ANZ trying to make a difference around specific issues surrounding diversity. with particular focus on gender, cultural and age based diversity. Some of her work included a duration of time in arguab!y one of the most culturalIy diverse areas of Sydney, Lakemba.
4 DIRECTORS' REPORT OF UNITED WAY AUSTRALIA
{ABN 60 0028062t5) Director resigned in 2018 Geoffrey Vogt, B EC, FCPA, ANZllF (Assoc, Life), FGIA, FIGS, CFTP(srir), SF FIN, FAICD RFD, has extensive experience in the financial services and insurance industries. He is currently CEO of the Industry Leaders Fund Inc. which identifies and invests in the development and realisation of the potential of future industry leaders in South Australia. He is Chairman of Centennial Park Cemete Authority, a Director of Keylnvest Limited, and a director of three other organisations. He is also a Lieutenant Colonel in the Australian Army Reserve. For nearly 12 years until July 2008, Geoffrey was Chief Executive Officer of the Motor Accident Commission in South Australia, a Statutory Authority which had responsibility for the monopoly compulsory third party insurance scheme in the state and has Julie Keene FCA, GAICD is the CEO of Integra, an organisation providing support services to the disability sector in Australia. Prior to that Julie has held a number of senior executive roles within the health, higher education and financial services sectors, most recently as Chief Financial Officer at HBF Health Limited until August 2017. Julie is currently the Chair of United Wa West Australia and has previously held a number of other Board roles with organisations including Silver Chain Nursing Association, Perth Convention Bureau and Murdoch College Inc. Julie has a keen interest in helping communities to build capacity and to work with or an is ations who have this as their purpose. Liz Gillies BCOM, GRADDIP (Bus), MPP Liz brings more than 20 years experience working towards social impact, including the Trust Company Research Fellowship at the Asia Pacific Social Impact Centre at Melbourne Business School, and roles at the Victorian Farmers Federation, Deakin Universit , the Parliament of Victoria and the HeIen Macpherson Smith Trust. In addition she is Founder and Director of Elvie & Leo Pt Ltd, an online fashion retailing portal and with her husband, owns and manages Yal Yal Estate, a vineyard on the Morning ton Peninsula. Liz has recently accepted a role as Interim CEO of the Menzies Foundation. Liz has been involved with a number of Not-For-Profit Boards including the Public Galleries Association of Victoria, Social Firms Australia and Uniting Care LifeAssist, In addition to the United Wa Australia Board. Liz is on the Development Committee of the Towards A Just Society Foundation. Directors Meetings During the year, the directors met on 5 occasions for Board meetings. Members of the Audit and Finance Committee met on 5 occasions and the Performance and Nominations Committee met on 2 occasion. Some matters of performance and nominations were dealt with within the full Board meetings. The following table summarises the details of each director's attendance at meetings having regard to the term of their appointment as a director.
Audit and Board Performance Finance meetings and Number Committee Number Number held while Nominations attended meetings I attended attended Board Committee Member eligible to Name attend meetings held
Mr Andy Berry 5 5 Ms Denise Brotherton 5 3 5 3 2 Ms Liz Dibbs 5 5 5 5 2 2 Ms Liz Gillies 2 2 Ms Julie Keene 5 5 2 Mr Robert Moodie 5 4 5 5 Mr Rainsay Moodie (Company Secretary only) 5 3 5 4 Ms Anne Myers 5 5 2 2 Mr Geoff Vogt 5 3 5 3 Ms NICole We ame 5 5 Mr Mark Wlossak 5 5 Contribution in winding up The Company is limited by guarantee. If the Company is wound up, the constitution states that each member is required to contribute a maximum of $50 each toward meeting any outstanding obligations of the entity. At 31 December 2018, the total amount that members are liable to contribute if the Company wound up is $350 (2047: $350)
Dividends No dividends have been paid, declared or proposed by the Company during the financial period. The Company's constitution forbids the payment of dividends. Significant Changes in State of Affairs Other than as outlined elsewhere in this report there have been no significant changes in the state of affairs of the coin an .
5 DIRECTORS' REPORT OF UNITED WAY AUSTRALIA
(ABN 60 0028062,5) Significant Events after Balance Sheet Date In the opinion of the directors, since the end of the financial period to the date of this report no matter or circumstance has arisen th t has significanUy affected or may significantly affect the operations of the company, the results of those operations or the state of if ' of the company in future financial years,
Remuneration of Directors NO Director of the Company has received or become entitled to receive any remuneration or an benefit because of a co t t th t Ih The Company has not during or since the end of the financial year, except to the extent permitted by law. indemnified or a reed t Auditor's Independence declaration The auditor's independence declaration is included on page 9 of the annual report This directors' report is signed in accordance with a resolution of directors made pursuant to s298(2) of the Corporations Act 2001. For and on behalf of the board
Liz Dibbs Chairman
Sydney, 08 May 2019
6 DIRECTORS' REPORT OF UNITED WAY AUSTRALIA
(ABN 600028062,5) Significant Events after Balance Sheet Date In the opinion of the directors, since the end of the financial period to the date of this report no matter or circumstance has arisen that has significantly affected or may significantly affect the operations of the company, the results of those operations or the state of affairs of the company in future financial years'
Remuneration of Directors NO Director of the Company has received or become entitled to receive any remuneration or any benefit because of a contract that the The Company has not during or since the end of the financial year. except to the extent permitted by law, indemnified or agreed to Auditor's Independence declaration The auditor's independence declaration is in duded on page 9 of the annual report This directors' report is signed in accordance with a resolution of directors made pursuant to s298(2) of the Corporations Act 2001. For and on behalf of the board 4:11 Chairman
Sydney, 08 May 2019
6 UNITED WAY AUSTRALIA
ABN 60 0028062,5
Declaration by Chief Executive Officer in respect of Fundraising Appeals
I, Clayton Noble, Chief Executive Officer of United Way Australia declare, in my opinion:
(a) the financial statements present fairly all income and expenditure of United Way Australia with respect to fundraising appeal activities for the financial year ended 31 December 2018;
(b) the statement of financial position presents fairly the state of affairs of the company as at 31 December 2018;
to) the provisions of the Charitable Fundraising Act 1991 (NSW), the Fundraising Act 1998 (Vic) and the Collections Act I 966 (Qld), the regulations under those Acts and the conditions attached to the relevant authority have been complied with during the period from I January 2018 to 31 December 2048,
(d) the internal controls exercised by United Way Australia are appropriate and effective in accounting for all income received and applied from any fundraising appeals. 1/1 Clayton Noble CEO
Sydney, 08 May 2019
7 UNITED WAY AUSTRALIA
ABN 60 0028062,5
DIRECTORS' OF UNITED WAY AUSTRALIA DECLARATION
The Directors of United Way Australia declare that:
(a) the financial statements and notes, set out on pages to to 20, are in accordance with the Charitable Fundraising Acts in NSW, Victoria and Queensland including (i) complying with Australian Accounting Standards as stated in note I to the financial statements;
(ii) and giving a true and fair view of the financial position and performance of the company;
(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;
(c) the provisions of the Charitable Fundraising Act 1991 (NSW), the Fundraising Act 1998 (Vic) and the Collections Act I 966 (Qld), the regulations under those Acts and the conditions attached to the relevant authority have been complied with during the period from I January 2018 to 31 December 2018
This declaration is signed in accordance with a resolution of the Board of Directors of United Way Australia made pursuant to the relevant sections of the Charitable Fundraising Acts. ,^;;,^i;^;~ Liz Dibbs Chairman
Sydney, 08 May 2019
8 Debitte* Deloitte Touche Tohmatsu A. B. N. 74490121 060
Grosvenor Place 225 George Street Sydney NSW 2000 PO Box N250 Grosvenor Place Sydney NSW 1217 Australia
DX 10307SSE Tel: +61 (0) 293227000 Fax: +61 (0) 293227001 WWW. deloitte. comau The Board of Directors United Way Australia Suite 3, Level I, 225 Clarence Street, Sydney NSW 2000
8 May 2019
Dear Board Members,
United Way Australia
In accordance with Subdivision 60-C of the Australian Charities, Not-for-profits Commission Act 2012, and Chari'table Fundraisi'rig Acts, I am pleased to provide the following decia ration of independence to the directors of United Way Australia.
As lead audit partner for the audit of the financial statements of United Way Australia for the financial Year ended 31 December 2018, I declare that to the best of my knowledge and belief, there have been no contraventions of:
(1) the auditor independence requirements of the AUStral^^n Charities, Not-for- profits Coinmissi'on Act 20Z2, and Charitable Fundraising Acts in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit,
Yours sincerely
DC I ,^, t, }e 76u ck ^. To. ^ ,*, o. 1< u
DELOiTrE TOUCHE To HMATsu
, 10^^^./^, t^
Pooja Patel Partner Chartered Accountants
Liability limited by a scheme a pproved under Professional Standards Legislation. Member or Deloitte Asia PaciFC Limited and the 0.10itte Network 9 UNITED WAY AUSTRALIA
ABN 60002806215
STATEMENT OF PROFIT OR Loss AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2018
Note 2018 2017 $ $
Revenue 3 2,344,831 2,743,248
Interest income I6,885 9,322 Non monetary donations 453,857 372,581 Total Revenue 2,815,573 3,125,151
Expenses Administration & general 4 444,524 611,615 Community impact & programs 1,604,653 2.01 1,052 Special event fundraising 160,365 341,744 Non monetary donations expensed 4 453,857 372,581 Total Expenses 2,663,399 3,336,992
Excess of operations (expenses) over operations revenue 152,174 (214,841)
Income tax
Gain I (Loss) for the year 152,174 (211,841)
Other comprehensive income
Total comprehensive gain/(loss) for the year 152,174 (211,841)
The above Statement of profit or loss and other comprehensive income should be read in conjuction with the accompanying notes. 10 UNITED WAY AUSTRALIA
ABN 600028062,5
STATEMENT OF FINANCIAL POSITION
As AT 31 DECEMBER 20.8
Note 2018 20.7 $ $ ASSETS CURRENT ASSETS Cash and cash equivalents fib I, 098,052 1,174,563 Receivables 5 99,305 167,907 Inventory 20,000 20,000 TOTAL CURRENT ASSETS 1,217,357 1,362,470
NON. CURRENT ASSETS
Property, plant and equipment 6 72,826 99,676 TOTAL NON-CURRENT ASSETS 72,826 99,676
TOTAL ASSETS 1,290,183 1,462,346
LIABILITIES CURRENT LIABILITIES
Payables and accrued expenses 7a 188,715 102,479 Related parties 10 1,582 1,462 Deferred revenue 8 762,162 1,171,134 TOTAL CURRENT LIABILITIES 952,459 1,275,075
LONG TERM LIABILITIES
Provision for long service leave 7b 5,874 7,394 TOTAL LONG TERM LIABILITIES 5,874 7,394
TOTAL LIABILITIES 958,333 1,282,469 NET ASSETS 331,850 179,677
EQUITY - for United Way Australia network purposes 168,119 168.1 19 - for general purposes 163,731 I 1,558
TOTAL EQUITY 331,850 179,677
The above Statement of Financial Position should be read in conjunction with the accompanying notes. 11 UNITED WAY AUSTRALIA
ABN 60 0028062,5
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 20.8
Total United Way General Purpose Australia Network Purposes
$ $ $
Balance at t January 2047 233,398 168,119 401,517
Net Movement (224,841) (221,841 )
Balance at 3t December 2017 I I, 557 168, I 19 179,676
Net Movement I52.1 74 152,174
Balance at 31 December 2008 163,731 168,119 331,850
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes. 12 UNITED WAY AUSTRALIA
ABN 600028062,5
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 34 DECEMBER 2018
Note 2018 20.7 $ $
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from donors 2,004,461 3,678,046 Interest received 16,884 9,322 Payments to suppliers & employees (2,094,593) (3,262,590) Payments for Inventory (10,200) Net cash (used in)IProvided by operating activities It a (73,248) 4I 4,578
CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment (5,914) (7,198) Net cash (used in) by investing activities (5,914) (7,198)
Net (decrease)jincrease in cash held (76,511 ) 407,380 Cash at beginning of financial year t , 174,563 767,183 Cash at end of financial year lib I, 098,052 1,174,563
The above Statement of Cash Flows should be read in conjunction with the accompanying notes. 13 UNITED WAY AUSTRALIA
ABN 600028062,5
NOTES To THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 3, DECEMBER 2018
,. Statement of Significant Accounting Policies
The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations. and other authoritative pronouncements of the Australian Accounting Standards Board applicable to not for profit organisations, the Charitable Fundraising Acts in NSW. Victoria and Queensland.
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 category of charitable entities.
The following is a summary of the material accounting policies adopted by the company in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise slated.
The financial report has been prepared on an accruals basis and is based on historical costs and does not take into account changing money values or, except where specifically stated. current valuations of non-current assets.
The financial report has been prepared on the basis of historical cost. Non current assets are not stated at value in excess of their recoverable amounts
(a) Revenue Recognition
The company generates revenues from two key streams: - Monetary donations which are provided by individuals and corporations with on attached performance obligations, and - Program revenues when derived donations from the fulfilment of specific performance obligations within a set contract
Revenue's for each of these key streams is recognised as follows: - Monetary donations
Revenue is recognised at the point in time when the cash is received. - Program revenues Revenue is recognised when (or as) a performance obligation is satisfied, i. e. when 'control' of the services underlying the particular performance obligation is Iransferred to the customer, this can be at a point in time or over a period of time. depending on the nature of the contract. Any cash received in advance of the satisfaction of the performance obligation is recognised as deferred revenue.
Ib) Non Monetary Donations
The company receives various forms of in-kind support from organisations for professional services such as fixed assets, legal advice, consulting, audit and services such as printing, office accommodation. function rooms and catering. Goods and Services provided to the company are recognised upon receipt at their fair value where this can be reliably measured. The va!ue of volunteers' time donated to the company or beneficiary charities through the auspices of United Way Australia has riot been brought to account.
(c) Expense Recognition - Donations
Donation expenses are recognised as expenses when paid.
(d) Income Tax
The company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997
(e) Cash and cash equivalents Cash on hand and in banks and short-torn deposits are stated at nominal value. For the purpose of the Statement of Cash Flows, cash includes cash on hand and in banks but excludes cash on deposit with terms longer than 3 months.
in Receivables
Receivables relate to programme revenue and project income which have been committed to cover the cost of administration.
14 UNITED WAY AUSTRALIA
ABN 60 0028062,5
NOTES To THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 20.8
(9) Inventory
Inventory valuation is at cost
(h) Properly, Plant and Equipment
Property, plant and equipment is initially recorded at cost. Donated assets are recognised at its fair value as at the date acquired. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on me basis of the expected net cash flows that win be received from the assets' employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.
Depreciation
Plant and equipment is depreciated based on diminishing value method and the prime cost method (as appropriate) over their useful lives to the company. The rates used range between 16% and 40% per annum
Donated Assets
Plant and equipment donated to United Way will be recognised as a asset in the financial statements and will be depreciated according to the organisations policy.
01 Payables
Liabilities are carried at cost which is the fair value of the consideration to be paid in the future for goods or services received, whether or not billed 10 the company.
01 Employee entitlements
Liabilities for wages, salaries and annual leave are recognised and are measured as the amount unpaid at the reporting date at current pay rates in respect of employees' services up to that date
Long service leave A liability is recognised for benefits accruing 10 employees in respect of long service leave when it is probable that settlement will be required and they are capable of being measured reliably. Liabilities recognised in respect of long term employee benefits are measured as the present value of the estimated future cash oufflows to be made by the company in respect of services provided by employees up to the reporting date (k) Goods and Services tax (GST) Revenue (where applicable), expenses and assets ate recognised net of GST, except where GST incurred is not recoverable from, or payable to. the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the assets or as part of an item of the expenses. Revenue from monetary and non monetary donations is GST-free. Receivables and payables in the balance sheet are shown inclusive of GST where applicable
(1) Comparative figures
Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current year (in) Related Parties In this report, related parties refer to registered fundraising entities that are members of Ihe Company and that operate using the United Way name but act wholly independently in running their affairs and are governed by their own management and elected Boards. Notes 10(a) and 10(b) summarise all donations received and distributions made during 2018 and amounts payable to these entities as at 31 December 2018.
15 UNITED WAY AUSTRALIA
ABN 60 0028062,5
NOTES To THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(n) Critical Accounting and Key Sources of Estimation Uncertainty In the application of A-IFRS management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgements. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported
16 UNITED WAY AUSTRALIA
ABN 600028062,5
NOTES To THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 20.8
2 Application of new and revised Accounting Standards At the date of authorisation of the financial statements. the Standards and Interprelations in issue but not yet effective are:
Effective for annual reporting periods Expected to bainilially applied in Standardllnterpretation beginning on or after Iho financial year Griding
AASB 2016-7 Amendments to AUSlralian Accounting Standards - Deferral of I January 2019 31 December 2019 AASB 15 for Not. for. rofit entities AASB 2016-8 Amendments to Australian Accounting Standards- Australian I January 2019 31 December 2009 Im Iementaiion Guidance for NOHor- tom entities AAS89 & AASB 15
AASB 9 Financial instruments United Way Australia has adopted AASB 9 from I January 2018. The standard introduced new classification and measurement models for financial assets and hedge accounting. As at 31 December 2018, the company has no complex financial instruments and does not apply hedge accounting. As a result, these changes have not impacted the company. The calculation of impairment losses in accordance with AASB 9 impacts the way in which the company calculates the provision for impairment losses, now termed 'credit loss allowance'. The company applies the AASB 9 simplified approach to measure expected credit losses ('ECL'), which uses a lifetime expected loss allowance for all Irade receivables. To measure ECL, trade receivables and contract assets have been grouped based on shared credit risk characteristics such as aging of the assets and an assessment has been made for each group of customers to adjust for expected changes in future credit risk. On this basis. no material change has been identified between AAS8139 and AASB 9, and therefore. the company has elected to apply the exemption available under AASB 910 nor restate comparatives.
MSB I058 Income of Not - for - profit entities and AASB 15 Revenue of Contracts with Customers AASB 1058 clarifies and simplifies the income recognition requirements that apply to not-for-profit (NFP) entities, in conjunction with AASB 15. The timing of income recognition depends on whether such a transaction price gives rise to a liability or other performance obligation (a promise to Iransfer a good or service), or a contribution by owners, related to an asset (such as cash or another asset) received by the entity.
The Standard applies when a NFP entity enters receives volunteer services or enters into other transactions where the consideration to acquire an asset is significantly less than the fair value of the asset principalIy to enable the entity to further its objectives. In the latter case. the entity recognises the measures the asset at fair value. United Way Australia has early adopted AASB 15 from a January 2018. The standard provides a single comprehensive model for revenue recognition. The core principal of the standard is that an entity shall recognise revenue 10 depict the transfer of promised goods and services to customers at an amount that reflects the consideration to which the entity expects to be entitled 10 in eXchange for those goods or services. The standard introduced a new contract-based revenue recognition model with a measurement approach that is based on the allocation of the transaction price. This is described further in the accounting policies for revenue recognition. Credit risk is presented separately as an expense rather than adjusted against revenue. Contracts with a receivable are presented in Ihe company's statement of financial position as a contract liability, or contract asset, or a receivable depending on the relationship between the entity's performance and the customer's payment Management have completed their assessment of the impac! of the AASB 1058 and AASB 15 standards and note that the early adoption of the new standards, does not have a material impact on management's revenue recognition
2018 2017 $ $ 3. Revenue - Corporate 544,895 571,730 - Individuals 536,156 484,941 - Trusts & Foundations 827,115 888,791 - Government 376,357 260,525 - Special Event 278,247 508,887 - Other Income 252,803 410,277 2,815,573 3,125,151
17 UNITED WAY AUSTRALIA
ABN 600028062,5
NOTES To THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 20.8
2018 2017 $ $ 4, Administration Expenses Audit & accounting fee* 42,172 55,878 Depreciation 32,764 30,115 Information Management & Communications* 95,709 99,916 Office accommodation' 71,532 72,257 Printing, Postage & Stationery' 9,912 6,814 Salaries and employee benefits 155,074 153,394 Other administration expenses* 216,402 304,747 623,565 723,121
* These expenses include donated goods and services of $179,041 (2017: $115,506) relating to administration expenses. which has been included within total nori. monetary donations.
2018 2017 $ $ 5. Receivables Trade receivables 37,362 81,502 Receivables from other United Way entities in Australia 28,760 49,617 Receivable from United Way Worldwide 1,947 Others 31,236 36,788 99,305 167,907
2018 2017 $ $ 6. Property, Plant and Equipment At cost 202,518 196,604 Accumulated depreciation (129,692) (96,928) 72,826 99,676
Reconciliation Carrying amount at beginning 99,676 122,592 Additions including non-monetary donations 5,914 7,198 Depreciation expense (32,764) (30,114) 72,826 99,676
2018 2017 $ $ 7. (a) Payables and Accrued Expenses Trade creditors & accruals 45,180 45,105 ATO - Integrated Client Account 8,318 6,973 Provision for annual leave 60,233 50,401 Other current liabilities 74,984 188,715 to2,479
2018 2017 $ $ (b) Long Service Leave Liability Provision for long service leave 5,874 7,394 5,874 7,394
8. Deferred Revenue The company has received program and project funding of $762,162 (2017: $1,171,134) which has not been brought to account as income as it relates to activities committed to occur in the following year and in respect of which expenses are yet to be incurred.
18 UNITED WAY AUSTRALIA
ABN 60 0028062,5
NOTES To THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 3t DECEMBER 20.8 9. Subsequent Events In the opinion of the directors, since the end of the financial period to the date of this report no matter or circumstance has arisen that has significantly affected or may significantly affect Ihe operations of the company. the results of those operations or the state of affairs of the company in future financial years'
IO. Related Party Disclosure 2018 2017 $ $
(a) Payable to other United Way entities in Australia: - United Way Western Australia 1,024 814 - United Way South Australia 558 648 t. 582 1,462
(b) United Way Australia transactions on behalf of United Way entities in Australia which have their own Deductible Gift Recipient Status.
2018 20.7
$ $
Balance I January 1,462 7,523 Revenue received on behalf of other United Way entities in Australia during the year 6,306 8,814 Distributed to other United Way entities' beneficiaries (6,186) (14,875)
Balance 31 December 1,582 1,462
(c) During the year some of the directors or their director related entities have made donations to the company. The directors act in an honorary capacity and receive no compensation for their services.
11. Cash Flow Information 2018 2017 $ $ (a) Reconciliation of cash flow from operations ProfiV(loss) for the year I52.1 74 (211,841) Non-cash flows in profit Depreciation and other nori cash items 31,244 30,114 Decrease I (Increase) in receivables 68,602 25,594 Increase I (Decrease) in payables and accruals 86,236 (31 0,587) Increase I (Decrease) in deferred revenue (408,972) 909,203 Increase I (Decrease) in related party payables 120 6,061 Decrease I (Increase) in inventory (, 0,200) Cashflows (used in)Ifrom operating activities (70,596) 438,344
19 UNITED WAY AUSTRALIA
ABN 60 002806215
NOTES To THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 34 DECEMBER 2018
20.8 2017 (b) Reconciliation of cash and cash equivalents $ $
Cash on hand 590 Cash at bank -Operating accounts * 575,302 451,222 -Three month Term Investments 522,750 722,750 1,098,052 1,174,562
Cash and cash equivalents of $553,017 are restricted for specific of certain development projects
12. Financial Risk Management The company financial assets and liabilities comprise cash, Irade receivables and payables. The cash equivalent is interest bearing with floating interest rates of 0.01V" to 2.75% (2017: 0.01% to 2.8V, ).
The company activities may expose it to a variety of financial risks: market risk (including interest rate risk), credit rate risk and liquidity risk a) Interest rate risk
Interest rate risk is the risk that a financial instrument's value will fluctuate as a result of changes in market interest rates. The Company has no significant exposure to interest rate risk as cash is the only financial asset or liability with interest rate exposure.
by Credit risk
Credit risk refers 10 the risk that a counterparty will default on its contractual oofgalions resulting in financial loss to the company. The maximum exposure to credit risk at the balance date is the carrying value of cash. cash equivalents and receivables as disdosed in the financial statements. These are considered to have low credit risk. There are no material amounts that are past due or impaired. All liquid funds are held with Authorised Deposit Taking Institutions (ADls) regulated by the Australian Prudential Regulatory Authority subject to a limit of; $2 million in respect of institutions rated at Standard and Poor's Long Term rating of 88 or better or in the case of lesser rated entities to a limit of $250,000 subject to such company qualifying for support under the Financial Claims Scheme administered by APRA Any exceptions to the credit policy, is subject to Board approval. c) Liquidity risk The company manages liquidity risk by maintaining sufficient cash at bank and bank facilities to meet its liabilities. Management monitors these cash requirements. Trade payables as disclosed in note 7 are typically settled within 30 days
I3. Controlled entities
At balance date the Company had no controlled entities.
14. Contribution in winding up The Company is limited by guarantee. If the Companyis wound up, the constitution slates Iha! each member is required to contribute a maximum of $50 each toward meeting any outstanding obligations of the company. At 31 December 2018. the total amount that members are liable to contribute if the Company wound up is $350 (2017: $350).
20 Deloitte Touche Tohmatsu Debitte* A, s. N. 74490121 060
Grosvenor Place 225 George Street Sydney NSW 2000 PO Box N250 Grosvenor Place Sydney NSW 1219 Australia
DX 10307SSE Tel: +61 (0) 293227000 Fax: +61 (0) 293227001 WWW. deloitte. coin. au
^ridependent Auditor's Report to the members of United Way Australia
Qualified Opinion
We have audited the financial report of United Way Australia (the *'Entity"), which comprises the statement of financial position as at 31 December 2018, the statement of profit or less and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, a rid notes to the financial statements, including a summary of significant accounting policies and other explanatory information, and the Director's declaration as set out on pages 8 to 20. In addition, we have audited the Entity's compliance with specific requirements of the Charitable Fundra^sing Act 1991,
In our opinion, a) the accompanying financial report of the Entity is in accordance with Division 60 of the Australian Charities and Not-for-profits Commission Act 201.2 (the "ACNC Act"), including :
(i) giving a true and fair view of the Entity's financial position as at 31 December 2018 and of its financial performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards to the extent described in Note I, and Division 60 of the ACNC Act; b) the financial report agrees to the underlying financial records of the Entity, that have been maintained, in all material respects, in accordance with the Charitable Fundraising Act 1991. and its regulations for the year ended 31 December 2018; and c) monies received by the Entity as a result of fundraising appeals conducted during the year ended 31 December 2018, have been utilised for, and applied, in all material respects, in accordance with the Charitable Fundraising Act 1991 and its regulations,
We have obtained all the necessary information required in connection with our audit in respect of the financial year ended 31 December 201.8.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Audrtor^ Responsibilities for the Audit of the Financial Report and Coinpli^rice with Specific Requirements of the Charitable Fundrai^rig Act 1991 section of our report. We are independent of the Entity in accordance with the auditor independence requirements of the ACNC Act and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 11.0 Code of Ethics for Pro/I^ssiona/ Accountants (the **Code") that are relevant to our audit of the financial report and compliance with specific requirements of the Charitable Fundraising Act 1991 in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Llablli!y limited by a scheme approved under Pro, eggiona! Standards Legislation. Member DIDelo!!re Asia Pacific L, mited and the Debite Network. 21 Debitte*
Other Jnformation
(a) The Directors are responsible for the other information. The other information comprises of the supplementary information to the financial statements relating to the donations distributed to charities and community impact partners for the Year ended 31. December 201.8, but does not include the financial report and our auditor's report thereon.
Our opinion on the financial report does not cover the other information and we do riot express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is material Iy inconsistent with the financial report or our knowledge obtained in the audit, or otherwise appears to be material Iy misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the F1hancial Report and for Compliance with the Charitable Fundraising Act 199Z
The Directors of the Entity are responsible for compliance with the Charitable Fundral:sing Act 2991 and the preparation of the financial report that gives a true and fair view, and have determined that the basis of preparation described In Note I to the financial report is appropriate to meet the requirements of the ACNC Act and the Charitable Fundraising Act 1991 and the needs of the members. The Directors' responsibility also includes such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error, and to enable compliance with the Charitable Fundraising Act I 991.
In preparing the financial report, the Directors are responsible for assessing the ability of the Entity to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Entity or to cease operations, or has no realistic alternative but to do so.
Auditor(s Responsihiffties for the Audrt of the Fibancial Report and Compliance with Specific Requirements of the Charitable Fundra:SIhg Act 1991
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 the Entity complied, in all material respects, with specific requirements of the Charitable FundralsingAct199Z, and to issue an auditor's report that 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 misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
. Identify and assess the risks of nori-compliance with the specific requirements of the Charitable Fundra'Sing Act 1,991 and the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting 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.
. Obtain 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.
22 Debitte*
. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors,
. Conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion, Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Entity to cease to continue as a going concern.
. Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
Because of the inherent limitations of any compliance procedure, it is possible that fraud, error or non-compliance with the Charitable Fundra^sing Act Z991 may occur and riot be detected. An audit is not designed to detect all weaknesses in the Entity's compliance with the Charitable Fundraising Act 1991 as an auditis not performed continuously throughout the period and the tests are performed on a sample basis. Any projection of the evaluation of the compliance procedures to future periods is subject to the risk that the procedures, may become inadequate because of changes in conditions, or that the degree of compliance with them may deteriorate.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies mintsmalcontrol that we identify during our audit.
DC1, '"1.18 16u c}^@. Toffy, ,c!-,^u
DELOiTrE TOUCHE To HMATSU
. 10^^^./^, t^
Pooja Patei Partner Chartered Accountants Sydney, 8 May 201.9
23