HAILEYBURY RENDALL SCHOOL

ABN 84 325 837 304

Annual report for the financial year ended 31 December 2019

Special purpose financial report For the financial year ended 31 December 2019

Contents

Directors’ Report ...... 2

Auditor’s Independence Declaration ...... 6

Independent audit report to the members of Rendall School ...... 7

Directors’ Declaration ...... 10

Statement of profit or loss and other comprehensive income for the financial year ended 31 December 2019 ...... 11

Statement of financial position at 31 December 2019 ...... 12

Statement of changes in equity for the financial year ended 31 December 2019 ...... 13

Statement of cash flows for the financial year ended 31 December 2019 ...... 14

Notes to the Financial Statements ...... 15

1 Directors’ Report

Directors’ Report

The Directors of Haileybury Rendall School (the “Company”) submit herewith the annual report of Haileybury Rendall School for the financial year ended 31 December 2019. In order to comply with the provisions of the Australian Charities and Not-for-profits Commission Act 2012 (Cth), the Directors report as follows:

Directors The names of the Directors of the Company during or since the end of the financial year are:

Name Particulars Richard Tom Poulton Retired lawyer, Chairman Derek Grant Scott CEO, Principal of Haileybury Mark Spain Lawyer Simon Gregory Terry Consultant Pauline Claire Turner Former Principal and consultant

The above-named Directors held office during and since the end of the financial year unless otherwise stated.

Company Secretary

Collette Margaret Laing

Objectives The Company’s objectives are to provide a superior education to boys and girls aged 3 to 18 in Darwin, and to operate a boarding school (particularly for those of indigenous descent) that provides general and special education facilities.

Strategies to achieve objectives Haileybury Rendall School has adopted the following long-term strategies: • Operation of a well-resourced school in Darwin. • Delivery of quality academic and co-curricular programs in a co-educational model. • Building strong engagement with our community. • Focussing on sustainability.

Achievement of objectives Haileybury Rendall School has met its objectives in 2019.

2 Directors’ Report (Continued)

Principal activities during the year Haileybury Rendall School’s principal activities during the year continued to be the provision of education services to students from the Early Learning Years to Year 12, together with associated residential boarding facilities for students in Years 7 to 12 from remote communities.

Haileybury Rendall School facilities must be used for educational purposes for at least five years from 1 January 2018, with re-zoning not permitted for 20 years.

Review of operations The income statement shows a loss of $1,820,834 for the year ended 31 December 2019 (2018 surplus: $457,819). Net assets as at 31 December 2019 were $41,233,895 (2018: $43,130,354).

Haileybury Rendall School is exempt from paying income tax.

The Northern Territory and Commonwealth governments have agreed to provide support (in addition to normal school funding) to Haileybury Rendall School in its early years, including with respect to any shortfall in operating results.

Changes in state of affairs There was no significant change in the state of affairs of Haileybury Rendall School during the financial year.

Subsequent events On 30 January 2020, the spread of novel coronavirus (“COVID-19”) was declared a Public Health Emergency of International Concern by the World Health Organisation (“WHO”). Subsequently, on 11 March 2020, WHO characterised COVID-19 as a worldwide pandemic.

As this declaration was made after the reporting period, the entity believes it constitutes a “Non-Adjusting Subsequent Event” as defined in AASB 110 Events after the Reporting Period.

The entity will continue to monitor the impact of COVID-19 but at the date of this report it is too early to determine the full impact this virus may have on the entity. Should this emerging macro-economic risk continue for a prolonged period, there could be an adverse financial impact on the entity, including volatility within the Company’s investment portfolio and access to revenue streams.

There has not been any other matter or circumstance occurring subsequent to the end of the financial year that has significantly affected, or may significantly affect, the operations of Haileybury Rendall School, the results of those operations, or the state of affairs of Haileybury Rendall School in future financial years.

Future Developments Certain changes are to be introduced to the system of school funding by the Australian government. Under the changes, the amount of an ’s funding is to be reduced for the anticipated capacity of the school community to contribute financially to the school’s operating costs, and this is to be based on a “Direct Measure of Income”. Certain adjustments are then to be made in appropriate circumstances. The revised system is to be introduced in 2020, and Haileybury Rendall School is scheduled to transition to that system by 2029. A preliminary assessment has been made of Haileybury Rendall School’s “Direct Measure of Income” which, if implemented, would result in a material reduction in its funding by the Australian government. The new system contains provisions for a review of its application to a particular school, and Haileybury Rendall School will be seeking such a review.

3 Directors’ Report Continued

Environmental regulations The Directors are of the opinion that Haileybury Rendall School has complied with all relevant environmental legislation so far as it concerns the operations of Haileybury Rendall School.

Dividends Haileybury Rendall School does not have any share capital and is precluded from the payment of any dividends.

Indemnification of officers and auditors Haileybury has insured each of the Directors of Haileybury Rendall School against liability which may be incurred by such persons with respect to any alleged loss caused by them in the management of Haileybury Rendall School.

Haileybury Rendall School has not otherwise, during or since the end of the financial year (except as permitted by law), indemnified or agreed to indemnify an officer or auditor of Haileybury Rendall School or of any related body corporate against a liability incurred by such an officer or auditor.

Members Haileybury Rendall School is a public company limited by guarantee. The contribution of each member to its debts and liabilities in the event of winding up is restricted to an amount not exceeding $100. There was 1 member at 31 December 2019 (2018: 1 member).

Directors’ meetings The following table sets out the number of Directors’ meetings held during the financial year and the number of meetings attended by each Director. During the financial year five (5) Directors’ meetings were held.

Directors’ Meetings Directors Held Eligible for Attended T Poulton 5 5 5 D Scott 5 5 5 M Spain 5 5 4 S Terry 5 5 4 P Turner 5 5 5

Information on Directors

Name: Richard Tom POULTON Age: 70 Qualifications: LLB (Hons) Experience: Director for 2 years Chairman

Name: Derek Grant SCOTT Age: 55 Qualifications: BA (Politics) (Auckland), Dip Ed (Mon), M Ed Mgt (Melb) Experience: Director for 2 years

4 Directors’ Report Continued

Name: Simon Gregory TERRY Age: 51 Qualifications: LLB (Hons) B.Com (Hons) GAICD Experience: Director for 2 years

Name: Mark SPAIN Age: 51 Qualifications: LLB (Hons), BEc (Mon) Experience: Director for 3 years

Information on Directors (continued)

Name: Pauline Claire TURNER Age: 71 Qualifications: BA (Hons), LittM, PhD, Hon DUniv, AMusA. Experience: Director for 2 years

Information on Company Secretary

Name: Collette Margaret LAING Qualifications: BSc, ACA Experience: Business Manager for 7 years

Auditor’s independence declaration The auditor’s independence declaration is included on page 6 of the financial statements.

Signed in accordance with a resolution of the Board of Directors.

______Signature Signature

Richard Tom Poulton Derek Grant Scott

Director Director Melbourne, 28 April 2020 Melbourne, 28 April 2020

5 Deloitte Touche Tohmatsu ABN 74 490 121 060

550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001

DX: 111 Tel: +61 (0) 3 9671 7000 Fax: +61 (0) 3 9671 7001 www.deloitte.com.au

28 April 2020

Board of Directors Haileybury Rendall School 6057 Berrimah Rd, Berrimah NT 0828

Dear Directors

Haileybury Rendall School

In accordance with subdivision 60-C of the Australian Charities and Not-for-Profits Commission Act 2012 (Cth), I am pleased to provide the following declaration of independence to the Directors of Haileybury Rendall School.

As lead audit partner for the audit of the financial statements of Haileybury Rendall School for the financial year ended 31 December 2019, I declare that to the best of my knowledge and belief, there have been no contraventions of:

(i) the auditor independence requirements of the Australian Charities and Not-for-Profits Commission Act 2012 (Cth) in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit.

Yours sincerely

DELOITTE TOUCHE TOHMATSU

Rachel Smith Partner Chartered Accountants

Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Asia Pacific Limited and the Deloitte Network Deloitte Touche Tohmatsu ABN 74 490 121 060

550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001 Australia

DX: 111 Tel: +61 (0) 3 9671 7000 Fax: +61 (0) 3 9671 7001 www.deloitte.com.au

Independent Auditor’s Report to the Members of Haileybury Rendall School

Opinion

We have audited the financial report, being a special purpose financial report, of Haileybury Rendall School (the “Entity”) which comprises of the statement of financial position as at 31 December 2019, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the declaration by the Directors as set out on pages 10 to 33.

In our opinion, the financial report of the Entity is in accordance with Division 60 of the Australian Charities and Not-for-profits Commission Act 2012 (the ACNC Act), including:

(a) giving a true and fair view of the Entity’s financial position as at 31 December 2019 and of its financial performance for the year ended on that date; and

(b) complying with Australian Accounting Standards to the extent described in Note 3, and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Entity in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report 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.

Emphasis of Matter – Basis of Accounting and Restriction on Distribution and Use

We draw attention to Note 3 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the Directors’ financial reporting responsibilities under the ACNC Act. Our report is intended solely for the members, the Directors and the Australian Charities and Not-for-profits Commission (ACNC) and should not be distributed to or used by parties other than the members, the Directors and the ACNC. As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter.

Other Information

The Directors are responsible for the other information. The other information obtained at the date of this audit report comprises the Directors’ Report 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 not express any form of assurance conclusion thereon.

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Asia Pacific Limited and the Deloitte Network

Other Information (Continued)

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 materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially 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.

The Responsibilities of the Directors for the Financial Report

The Directors are responsible for the preparation of the financial report that gives a true and fair view and have determined that the basis of preparation described in Note 3 to the financial report is appropriate to meet the requirements of the ACNC Act and is appropriate to meet 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.

In preparing the financial report, the Directors are responsible for assessing the Entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Entity or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that 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 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 Company’s internal control.

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management

 Conclude on the appropriateness of management’s 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 Company 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 Company 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.

We communicate to the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

DELOITTE TOUCHE TOHMATSU

Rachel Smith Partner Chartered Accountants

Melbourne, 28 April 2020

Directors’ Declaration As detailed in Note 3 to the financial statements the Company is not a reporting entity because in the opinion of the Directors there are unlikely to exist users of the financial report who are unable to command the preparation of reports tailored so as to satisfy specifically all of their information needs.

Accordingly, this special purpose financial report has been prepared to satisfy the Directors’ financial reporting requirements under the Australian Charities and Not-for-profits Commission Act 2012.

The Directors declare that: (a) in the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; and

(b) in the Directors’ opinion, the attached financial statements and notes thereto satisfy the requirements of the Australian Charities and Not-for-profits Commission Act 2012, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the Company as at and for the year ended 31 December 2019.

Signed in accordance with a resolution of the Directors made pursuant to s.60.15 of the Australian Charities and Not-for-profits Commission Regulation 2013.

On behalf of the Directors

______Director

______Director

Melbourne, 28 April 2020

10

Statement of profit or loss and other comprehensive income for the financial year ended 31 December 2019

2019 2018 Note $ $

Total revenue 5 19,184,840 18,601,224 Employee benefits expenses (12,457,374) (10,107,254) Boarding expenses (905,092) (1,012,144) Tuition expenses (574,681) (399,323) Depreciation and amortisation expenses 6 (2,867,214) (2,745,189) Finance costs (5,542) (11,233) Buildings and grounds expense (2,306,673) (2,351,729) Administration expense (943,766) (619,009) Information technology expense (601,257) (500,476) Marketing expense (254,906) (258,659) Bad debts written off (44,649) - Other expenses (44,520) (138,389) (DEFICIT)/SURPLUS FOR THE YEAR (1,820,834) 457,819

Other comprehensive income Revaluation gain - buildings - 217,637

TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR (1,820,834) 675,456

The accompanying notes form part of these financial statements.

11

Statement of financial position at 31 December 2019

2019 2018 Note $ $ Assets Current assets Cash and cash equivalents 7 3,388,075 1,944,782 Trade and other receivables 8 145,077 551,974 Other assets 9 118,626 242,126 Total current assets 3,651,778 2,738,882

Non-current assets Property, plant and equipment 10 42,191,602 44,435,070 Right of use assets 11 118,427 - Total non-current assets 42,310,029 44,435,070 Total assets 45,961,807 47,173,952

Liabilities Current liabilities Trade and other payables 12 1,352,660 1,090,358 Income received or billed in advance 13 1,135,055 864,930 Borrowings 14 805,525 805,525 Lease liabilities 15 148,338 59,052 Provisions 16 739,493 731,507 Total current liabilities 4,181,071 3,551,372

Non-current liabilities Income received or billed in advance 13 68,635 - Lease liabilities 15 155,642 182,466 Provisions 16 322,564 309,760 Total non-current liabilities 546,841 492,226 Total liabilities 4,727,912 4,043,598

Net assets 41,233,895 43,130,354

Equity Reserves 29,345,770 29,932,569 Retained earnings 11,888,125 13,197,785 Total equity 41,233,895 43,130,354

The accompanying notes form part of these financial statements.

12

Statement of changes in equity for the financial year ended 31 December 2019

Asset Capital revaluation Retained Reserves reserve earnings Total Note $ $ $ $ Retained earnings Balance at 1 January 2018 24,073,768 6,243,008 12,138,122 42,454,898 Surplus for the year - - 457,819 457,819 Comprehensive income Revaluation gain - buildings - 217,637 - 217,637 Total comprehensive income for the year - 217,637 457,819 675,456 Reserve transfer (601,844) - 601,844 - Balance at 31 December 2018 23,471,924 6,460,645 13,197,785 43,130,354

Adjustment implementation AASB 15/1058 2.1 - - (75,625) (75,625) Revised Balance at 1 January 2019 23,471,924 6,460,645 13,122,160 43,054,729 Loss for the year - - (1,820,834) (1,820,834)

Total comprehensive loss for the year - - (1,820,834) (1,820,834) Reserve transfer (586,799) - 586,799 - Balance at 31 December 2019 22,885,125 6,460,645 11,888,125 41,233,895

The accompanying notes form part of these financial statements.

13

Statement of cash flows for the financial year ended 31 December 2019

Note 2019 2018 $ $

Cash flows from operating activities Receipts from customers 4,406,295 2,819,670 Receipts from Abstudy 1,807,260 1,425,234 Payments to suppliers and employees (17,061,837) (15,000,572) Government funding 12,968,889 14,121,148 Net cash generated by operating activities 17(a) 2,120,607 3,365,480

Cash flows from investing activities Interest received 2,397 2,893 Payments for property, plant and equipment (534,733) (4,000,039) Net cash used in investing activities (532,336) (3,997,146)

Cash flows from financing activities Repayment of borrowings and lease liabilities (144,978) (59,381) Net cash used in financing activities (144,978) (59,381)

Net increase/(decrease) in cash and cash equivalents held 1,443,293 (691,047)

Cash and cash equivalents at the beginning of the year 1,944,782 2,635,829

Cash and cash equivalents at the end of the year 17(b) 3,388,075 1,944,782

The accompanying notes form part of these financial statements.

14

Notes to the Financial Statements

Notes to the Financial Statements

1. General information

Haileybury Rendall School (the “Company”) is a company limited by guarantee incorporated in Australia. The ultimate parent entity of the Company is Haileybury.

The Company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. The Company’s registered office and its principal place of business are as follows:

Registered Office Principal Place of Business:

855 Springvale Road 6057 Berrimah Rd Keysborough VIC 3173 Berrimah NT 0828 AUSTRALIA AUSTRALIA

2. Adoption of new and revised Accounting Standards

2.1 Amendments to Accounting Standards that are mandatorily effective for the current reporting period

The Company has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for an accounting period that begins on or after 1 January 2019.

New and revised Standards and amendments thereof and Interpretations effective for the current year that are relevant to the entity include:

AASB 1058 Income of Not-for-Profit Entities and AASB 15 Revenue from Contracts with Customers

In the current year, the Company has applied AASB 1058 Income of Not-for-Profit Entities and AASB 15 Revenue from Contracts with Customers which are effective for an annual period that begins on or after 1 January 2019.

The Company has applied AASB 1058 and AASB 15 in accordance with the modified retrospective (cumulative catch up) method where the comparative figures are not restated. Instead, the Company has recognised the cumulative effect of initially applying AASB 1058 and AASB 15 for the first time for the year ending 31 December 2019 against retained earnings as at 1 January 2019. The Company has also elected to apply AASB 1058 and AASB 15 retrospectively only to contracts and transactions that are not ‘completed contracts’ as at 1 January 2019.

AASB 1058 clarifies and simplifies the income recognition requirements that apply to not-for-profit (NFP) entities, in conjunction with AASB 15. The new income recognition requirements shift the focus from a reciprocal/non-reciprocal basis to a basis of assessment that considers the enforceability of a contract and the specificity of performance obligations.

The core principle of the new income recognition requirements in AASB 1058 is when a NFP entity enters into transactions where the consideration to acquire an asset is significantly less than the fair value of the asset principally to enable the entity to further its objectives, the excess of the asset recognised (at fair value) over any ‘related amounts’ is recognised as income immediately.

15 Notes to the Financial Statements

2. Adoption of new and revised Accounting Standards (cont’d)

2.1 Amendments to Accounting Standards that are mandatorily effective for the current reporting period (cont’d)

AASB 1058 Income of Not-for-Profit Entities and AASB 15 Revenue from Contracts with Customers (cont’d)

An example of a ‘related amount’ is AASB 15 and in cases where there is an ‘enforceable’ contact with a customer with ‘sufficiently specific’ performance obligations, income is recognised when (or as) the performance obligations are satisfied under AASB 15, as opposed to immediate income recognition under AASB 1058.

Under AASB 15, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e. when 'control' of the goods or services underlying the particular performance obligation is transferred to the customer. AASB 15 introduces a 5-step approach to revenue recognition, which is more prescriptive than AASB 118.

• Step 1: Identify the contract(s) with a customer. • Step 2: Identify the performance obligations in the contract. • Step 3: Determine the transaction price. • Step 4: Allocate the transaction price to the performance obligations in the contract. • Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation.

The adoption of these standards resulted in enrolment fees received totalling $75,625, that had been allocated to revenue when received, being reclassified to income in advance as the monies are to be recognised over time as the performance obligation of providing education services is met.

AASB 118 Adjustments AASB 1058/15 1/1/2019 1/1/2019 $ $ $ Statement of financial position Current Liabilities Income received or billed in advance 864,930 13,389 878,319 Non-Current Liabilities Income received or billed in advance - 62,236 62,236 Equity Retained earnings 43,130,354 (75,625) 43,054,729

There were no other material changes resulting from the adoption of AASB 1058 and AASB 15.

16

Notes to the Financial Statements

2. Adoption of new and revised Accounting Standards (cont’d)

2.1 Amendments to Accounting Standards that are mandatorily effective for the current reporting period (cont’d)

AASB 16 – Leases

In the current year, the Company has applied AASB 16 Leases, which is effective for annual periods that begin on or after 1 January 2019.

AASB 16 introduces new or amended requirements with respect to lease accounting. It introduces significant changes to lessee accounting by removing the distinction between operating and finance lease and requiring the recognition of a right-of-use asset and a lease liability at commencement for all leases, except for short-term leases and leases of low value assets. In contrast to lessee accounting, the requirements for lessor accounting have remained largely unchanged. Details of these new requirements are described in note 3. The impact of the adoption of AASB 16 is described below.

Impact of the new definition of a lease

The Company has made use of the practical expedient available on transition to AASB 16 not to reassess whether a contract is or contains a lease. Accordingly, the definition of a lease in accordance with AASB 117 Leases and Interpretation 4 -Determining whether an Arrangement contains a Lease, will continue to be applied to those contracts entered or modified before 1 January 2019.

The change in definition of a lease mainly relates to the concept of control. AASB 16 determines whether a contract contains a lease on the basis of whether the customer has the right to control the use of an identified asset for a period of time in exchange for consideration. This is in contrast to the focus on 'risks and rewards' in AASB 117 and Interpretation 4.

The Company applies the definition of a lease and related guidance set out in AASB 16 to all contracts entered into or changed on or after 1 January 2019.

Former operating leases

AASB 16 changes how the Company accounts for leases previously classified as operating leases under AASB 117, which were off balance sheet.

Applying AASB 16, for all leases (except as noted below), the Company: • Recognises right-of-use assets and lease liabilities in the statement of financial position, initially measured at the present value of the future lease payments, • Recognises depreciation of right-of-use assets and interest on lease liabilities in profit or loss, and

Lease incentives (e.g. rent-free period) are recognised as part of the measurement of the right-of-use assets and lease liabilities whereas under AASB 117 they resulted in the recognition of a lease incentive, amortised as a reduction of rental expenses generally on a straight-line basis.

Under AASB 16, right-of-use assets are tested for impairment in accordance with AASB 136 Impairment of Assets.

17 Notes to the Financial Statements

2. Adoption of new and revised Accounting Standards (cont’d)

2.1 Amendments to Accounting Standards that are mandatorily effective for the current reporting period (cont’d)

AASB 16 – Leases (cont’d)

On transition, for leases previously accounted for as operating leases with a remaining lease term of less than 12 months and for leases of low-value assets (such as tablet and personal computers, small items of office furniture and telephones) the Company has applied the optional exemptions to not recognise right- of-use assets but to account for the lease expense on a straight-line basis over the remaining lease term.

The adoption of this standard resulted in leases previously classified as operating leases, being recognised in the statement of financial position as a lease liability and right to use asset totalling $207,440. Further assets with a written down value of $43,639 in connection with finance leases were transferred to a right to use asset.

AASB 117 Adjustments AASB 16 1/1/2019 1/1/2019 $ $ $ Statement of Financial Position Motor Vehicles – cost 449,814 (379,240) 70,574 Motor vehicles – accumulated depreciation (405,157) 335,601 69,556 Intangible - Right of use asset - 251,079 251,079 Lease Liability – current (59,052) (177,105) (236,157) Lease Liability – non current (155,642) (30,335) (185,977)

2.2 New and revised Australian Accounting Standards in issue but not yet effective

At the date of authorisation of the financial statements, the Company has not applied the following new and revised Australian Accounting Standards, Interpretations and amendments that have been issued but are not yet effective: Effective for annual reporting periods Standard/amendment beginning on or after AASB 2019-4 Amendments to Australian Accounting Standards – 1 January 2020 Disclosure in Special Purpose Financial Statements of Not-for-Profit Private Sector Entities on Compliance with Recognition and Measurement Requirements

18 Notes to the Financial Statements

3. Significant accounting policies

Financial reporting framework

Haileybury Rendall School is not a reporting entity because in the opinion of the Directors there are unlikely to exist users of the financial report who are unable to command the preparation of reports tailored so as to satisfy specifically all of their information needs. Accordingly, this special purpose financial report has been prepared to satisfy the Company’s reporting requirements under the Australian Charities and Not- for-profits Commission Act 2012.

Statement of compliance

The financial report has been prepared in accordance with the Australian Charities and Not-for-profits Commission Act 2012, the recognition and measurement requirements specified by all Accounting Standards and Interpretations, and the disclosure requirements of Accounting Standards AASB 101 ‘Presentation of Financial Statements’, AASB 107 ‘Statement of Cash Flows’, AASB 108 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ and AASB 1054 ‘Australian Additional Disclosures’.

Basis of preparation

The financial statements have been prepared on the basis of historical cost, except for certain non-current assets and financial instruments that are measured at revalued amounts or fair values as explained in the accounting policies below. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for leasing transactions that are within the scope of AASB16.

The principal accounting policies are set out below.

3.1 Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments with original maturities 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.

19 Notes to the Financial Statements

3. Significant accounting policies

3.2 Employee benefits

Short-term and long-term employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and 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 short-term employee benefits are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Liabilities recognised in respect of long-term employee benefits are measured as the present value of the estimated future cash outflows to be made by the Company in respect of services provided by employees up to the reporting date.

3.3 Financial instruments

Recognition and Derecognition

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument.

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.

Classification of Financial assets

Debt instruments that meet the following conditions are measured subsequently at amortised cost: • The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Debt instruments that meet the following conditions are measured subsequently at fair value through other comprehensive income (FVTOCI): • The financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

By default, all other financial assets are measured subsequently at fair value through profit or loss (FVTPL).

Despite the foregoing, the entity may make the following irrevocable election / designation at initial recognition of a financial asset: • The entity may irrevocably elect to present subsequent changes in fair value of an equity investment in other comprehensive income if certain criteria are met; and • The entity may irrevocably designate a debt investment that meets the amortised cost or FVTOCI criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch.

20 Notes to the Financial Statements

3. Significant accounting policies

3.3 Financial instruments (cont’d)

Initial measurement of financial assets

Financial assets are classified according to their business model and the characteristics of their contractual cash flows. Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price, all financial assets are initially measured at fair value adjusted for transaction costs.

Subsequent measurement of financial assets

For the purpose of subsequent measurement, financial assets, other than those designated and effective as hedging instruments, are classified into the following four categories: • Financial assets at amortised cost • Debt instruments at fair value through other comprehensive income (FVTOCI) • Equity instruments at FVTOCI • Financial assets at FVTPL

(i) Amortised cost and effective interest method The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period.

(ii) Debt instruments at fair value through other comprehensive income (Debt FVTOCI) Debt FVTOCI initially measured at fair value plus transaction costs. Subsequently, changes in the carrying amount of these as a result of foreign exchange gains and losses, impairment gains or losses, and interest income calculated using the effective interest method are recognised in profit or loss.

(iii) Equity instruments at fair value through other comprehensive income (Equity FVTOCI) Investments in equity instruments at FVTOCI are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the investments revaluation reserve. The cumulative gain or loss is not reclassified to profit or loss on disposal of the equity investments, instead, it is transferred to retained earnings.

(iv) Financial assets at fair value through profit or loss (FVTPL) Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any fair value gains or losses recognised in profit or loss to the extent they are not part of a designated hedging relationship. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset and (if applicable) is included in the ‘other gains and losses’ line.

Impairment of financial assets

The Company recognises a loss allowance for expected credit losses on investments in debt instruments that are measured at amortised cost or at FVTOCI, lease receivables, trade receivables and contract assets, as well as on financial guarantee contracts. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.

21 Notes to the Financial Statements

3. Significant accounting policies 3.3 Financial instruments (cont’d)

Trade and other receivables and contract assets

The Company makes use of a simplified approach in accounting for trade and other receivables as well as contract assets and records the loss allowance at the amount equal to the expected lifetime credit losses. In using this practical expedient, the Company uses its historical experience, external indicators and forward-looking information to calculate the expected credit losses using a provision matrix.

Financial liabilities and Equity

Classification as debt or equity

Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the entity are recognised at the proceeds received, net of direct issue costs.

Repurchase of the entity’s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the entity’s own equity instruments.

Financial liabilities

Financial liabilities at FVTPL

Financial liabilities at FVTPL are measured at fair value, with any gains or losses arising on changes in fair value recognised in profit or loss to the extent that they are not part of a designated hedging relationship. The net gain or loss is recognised in profit or loss incorporates any interest paid on the financial liability and is (if applicable) included in the ‘other gains and losses’ line item in profit or loss.

Financial liabilities measured subsequently at amortised cost

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.

22

Notes to the Financial Statements

3. Significant accounting policies 3.3 Financial instruments (cont’d)

Financial guarantee contract liabilities Financial guarantee contract liabilities are measured initially at their fair values and, if not designated as at FVTPL and do not arise from a transfer of an asset, are measured subsequently at the higher of: • The amount of the loss allowance determined in accordance with AASB 9 • The amount recognised initially less, where appropriate, cumulative amortisation recognised in accordance with the revenue recognition policies set out above.

3.4 Goods and services tax

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except: i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or ii. for receivables and payables which are recognised inclusive of GST.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

3.5 Impairment of tangible assets

At each reporting date, the Directors review the carrying value of the Company’s tangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use (based on depreciated replacement cost), is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed in profit or loss.

If the recoverable amount of an asset (cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the profit or loss, unless the relevant asset is carried at revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is immediately recognised in profit or loss, unless the relevant asset is carried at fair value, in which case the reversal of the impairment loss is treated as a revaluation increase.

23 Notes to the Financial Statements

3. Significant accounting policies

3.6 Property, plant and equipment

Land and buildings held for use in the supply of goods or services, or for administrative purposes, are carried in the statement of financial position at their revalued amounts, being the fair value at the date of revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are performed with sufficient regularity such that the carrying amounts do not differ materially from those that would be determined using fair values at the end of each reporting period.

Any revaluation increase arising on the revaluation of such land and buildings is recognised in other comprehensive income and accumulated in equity, except to the extent that it reverses a revaluation decrease for the same asset previously recognised in profit or loss, in which case the increase is credited to profit or loss to the extent of the decrease previously expensed. A decrease in the carrying amount arising on the revaluation of such land and buildings is recognised in profit or loss to the extent that it exceeds the balance, if any, held in the properties revaluation reserve relating to a previous revaluation of that asset.

Depreciation on revalued buildings is recognised in profit or loss. On the subsequent sale or retirement of a revalued property, the attributable revaluation surplus remaining in the properties revaluation reserve is transferred directly to retained earnings.

Fixtures and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

Depreciation

Depreciation is recognised so as to write off the net cost or valuation of assets (other than freehold land and properties under construction) less their residual values over their expected useful life using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, with the effect of any changes recognised on a prospective basis.

The depreciation rates used for each class of depreciable assets are:

Class of property, plant and equipment Depreciation rate Buildings and improvements 2.5% Plant and equipment 20% to 25% Motor vehicles 20% to 25% Right of use assets 33% to 55%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.

The gain or loss on disposal of all property, plant and equipment is determined as the difference between the carrying amount of the asset at the time of disposal and the proceeds of disposal, and is included in the profit or loss in the year of disposal.

24 Notes to the Financial Statements

3. Significant accounting policies

3.7 Revenue recognition

Revenue from tuition fees, subject levies and other receipts from parents are recognised upon delivery of the service or goods. Tuition fees are billed in advance (each invoice being for one quarter of the annual tuition charge) and therefore any prepaid portion is recognised as deferred revenue at reporting date.

When the Company receives government grants, donations and bequests that are in the scope of AASB 1058 (being a transaction where the consideration paid to acquire an asset is significantly less than fair value principally to enable the Company to further its objectives), it performs an assessment to determine if the contract is ‘enforceable’ and contains ‘sufficiently specific’ performance obligations.

In cases where there is an ‘enforceable’ contract with a customer with ‘sufficiently specific’ performance obligations, the transaction is accounted for under AASB 15 where income is recognised when (or as) the performance obligations are satisfied. In all other cases the transaction is accounted for under AASB 1058 where the income is recognised upon receipt.

Dividend revenue is recognised when the right to receive a dividend has been established. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

All revenue is stated net of the amount of goods and services tax (GST).

3.8 Taxation

The Company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

3.9 Going concern

The financial report has been prepared on the going concern basis.

The future operations of the Company are dependent on achieving and maintaining appropriate student enrolment numbers, receiving adequate funding from the Australian and Northern Territory Governments in respect of operational and capital grants and the achievement of operating surpluses and positive operating cash flows.

Although the Statement of Financial Position discloses a net current asset deficiency of $529,293 (2018: $812,490), the Directors believe that the going concern basis of preparation is nevertheless appropriate due to the following factors:

(i) The current liabilities include tuition fees and government funding received or billed in advance of $1,135,055 (2018: $864,930) which will be utilised in the operations of the Company in the following and future years; and (ii) The current liabilities also include $739,493 (2018: $731,507) being the amount of annual and long service leave entitlements, but only a small portion of this amount is expected to be paid within the next 12 months.

25 Notes to the Financial Statements

3. Significant accounting policies

3.10 Leased assets The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items of office furniture and telephones). For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise: • Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable • Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date • The amount expected to be payable by the lessee under residual value guarantees • The exercise price of purchase options, if the lessee is reasonably certain to exercise the options • Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The lease liability is presented as a separate line in the statement of financial position.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease. The right-of-use assets are presented as a separate line in the statement of financial position.

The Company applies AASB 136 Impairment of Assets to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in the ‘Property, plant and equipment’ policy.

3.11 Comparative balances

To ensure comparability between reporting periods, where necessary comparative figures have been adjusted.

26

Notes to the Financial Statements

4. Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company’s accounting policies, which are described in note 3, management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. 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.

Critical judgements in applying the entity’s accounting policies

The following are the critical judgements, apart from those involving estimations, which are dealt with below, that management has made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements:

Useful lives of property, plant and equipment The Company reviews the estimated useful lives of property, plant and equipment at the end of each annual reporting period. During the financial year, management has determined that useful lives attributed to each of the non-current assets are appropriate and should not be amended.

Provision for doubtful debt/calculation of loss allowance When measuring the expected credit loss (ECL) allowance for the financial assets, the Company uses reasonable and supportable forward looking information, which is based on the assumptions for the future movement of the different economic drivers and how these drivers will drive each other.

Expected credit loss is an estimate of the loss arising on default. It is based on the difference between the contractual cash flows due and those that the creditor would expect to receive, taking into account cash flows from collateral and integral credit enhancements.

Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate of the likelihood of default over a given time horizon, the calculation of which includes historical data, assumptions, and expectations of future conditions.

27 Notes to the Financial Statements

2019 2018 $ $ 5. REVENUE AND OTHER INCOME

Revenues from Recurrent Activities

Revenue from services – tuition fees 3,699,479 2,431,412 Revenue – Abstudy Government funding 1,807,260 1,425,234 Recurrent Government - other funding 8,543,983 6,020,505 14,050,722 9,877,151 Revenue from non-recurrent activities

Special Assistance Government Grants 2,500,000 2,500,000 Commonwealth – Literacy and Numeracy Grant 1,500,000 1,500,000 Territory Government Capital Grant 424,906 4,023,720 4,424,906 8,023,720

Interest received 2,397 2,893 Other revenue 706,815 697,460

Total revenue 19,184,840 18,601,224

6. DEPRECIATION AND AMORTISATION

Buildings and structural improvements 2,594,733 2,589,397 Plant and machinery 139,320 79,390 Motor vehicles 509 76,402 Right of use asset 132,652 - Total depreciation and amortisation 2,867,214 2,745,189

7. CASH AND CASH EQUIVALENTS

Cash on hand 2,190 6,832 Cash at bank 3,385,885 1,937,950 Total cash and cash equivalents 3,388,075 1,944,782

28 Notes to the Financial Statements

2019 2018 $ $

8. TRADE AND OTHER RECEIVABLES

Trade receivables 220,983 432,478 Loss allowance (76,208) (72,824) 144,775 359,654 Other receivables 302 192,320 Total current trade and other receivables 145,077 551,974

9. OTHER ASSETS

Accrued income - 43,216 Prepayments 118,626 198,910 Total other assets 118,626 242,126

10. PROPERTY, PLANT AND EQUIPMENT

Carrying amounts of: Land 59,384 59,384 Buildings and improvements 41,265,267 43,860,000 Plant and equipment 451,072 471,029 Motor vehicles 509 44,657 Work in progress 415,370 - Total property, plant and equipment 42,191,602 44,435,070

29

Notes to the Financial Statements

10. PROPERTY, PLANT AND EQUIPMENT (continued) Land Capital Development Plant & Motor Work in Costs Buildings Equipment vehicles Progress TOTAL $ $ $ $ $ $ Gross carrying amount: Balance at 1 January 2018 59,384 66,468,772 6,809,787 449,814 - 73,787,757 Additions - 3,653,771 346,268 - - 4,000,039 Revaluation - 217,637 - - - 217,637 Balance at 31 December 2018 59,384 70,340,180 7,156,055 449,814 - 78,005,433

Balance at 1 January 2019 59,384 70,340,180 7,156,055 449,814 - 78,005,433 Adjustment implementation AASB 16 - - - (379,240) - (379,240) Additions - - 119,363 - 415,370 534,733 Disposals - - - (35,424) - (35,424) Balance at 31 December 2019 59,384 70,340,180 7,275,418 35,150 415,370 78,125,502

Accumulated depreciation: Balance at 1 January 2018 - (23,890,783) (6,605,636) (328,755) - (30,825,174) Depreciation expense - (2,589,397) (79,390) (76,402) - (2,745,189) Disposals ------Balance at 31 December 2018 - (26,480,180) (6,685,026) (405,157) - (33,570,363)

Balance at 1 January 2019 - (26,480,180) (6,685,026) (405,157) - (33,570,363) Adjustment implementation AASB 16 - - - 335,601 - 335,601 Depreciation expense - (2,594,733) (139,320) (509) - (2,734,562) Disposals - - - 35,424 - 35,424 Balance at 31 December 2019 - (29,074,913) (6,824,346) (34,641) - (35,933,900)

Net Book Value: As at 31 December 2018 59,384 43,860,000 471,029 44,657 - 44,435,070 As at 31 December 2019 59,384 41,265,267 451,072 509 415,370 42,191,602

30 Notes to the Financial Statements

2019 2018 $ $ 11. RIGHT OF USE ASSETS Lease assets - at cost 251,079 - Accumulated depreciation (132,652) - Total right of use assets 118,427 -

12. TRADE AND OTHER PAYABLES

Trade payables 392,253 353,607 Accrued expenses 440,008 470,654 Other payables 103,900 157,941 Goods & Services Tax payable 416,499 108,156 Total trade and other payables 1,352,660 1,090,358

13. INCOME RECEIVED OR BILLED IN ADVANCE

Current Fees in advance 948,867 717,782 Enrolment fees in advance 14,714 - Other 171,474 147,148 Total current borrowings 1,135,055 864,930

Non Current Enrolment fees in advance 68,635 -

14. BORROWINGS

Current Loan Uniting Church 805,525 805,525 Total current borrowings 805,525 805,525

15. LEASE LIABILITIES

Current Lease liability (secured) 148,338 59,052 148,338 59,052 Non-Current Lease liability (secured) 155,642 182,466 155,642 182,466 Total current and non-current lease liabilities 303,980 241,518

The liability is secured over the assets leased.

31

Notes to the Financial Statements

2019 2018 $ $ 16. PROVISIONS

Current Employee benefits – annual leave 426,421 448,448 Employee benefits – long service leave 313,072 283,059 Total current provisions 739,493 731,507

Non-Current Employee benefits – long service leave 322,564 309,760 Total current and non-current provisions 1,062,057 1,041,267

17. NOTES TO THE STATEMENT OF CASHFLOWS

a) Reconciliation of (loss)/surplus for the year to net cash flows from operating activities:

2019 2018 $ $

Net (loss)/surplus (1,820,834) 457,819 Interest income (2,397) (2,893) Depreciation and amortisation expense 2,867,214 2,745,189

Decrease/ (increase) in assets: Trade and other receivables 406,897 (282,508) Other assets 123,500 1,039,762

(Decrease)/ increase in liabilities: Trade and other payables 262,302 256,951 Income received or billed in advance 313,135 (1,075,055) Provisions 20,790 226,215

Net cash generated by operating activities 2,120,607 3,365,480

b) Reconciliation of cash and cash equivalents Cash on hand 2,190 6,832 Cash at bank 3,385,885 1,937,950 Total cash and cash equivalents 3,388,075 1,944,782

32

Notes to the Financial Statements

2019 2018 $ $ 18. COMMITMENTS FOR EXPENDITURE (a) Other expenditure commitments Non-cancellable operating lease payments

Not longer than 1 year - 75,037 Longer than 1 year and not longer than 5 years - 74,152 - 149,189

Low value leased assets Not longer than 1 year 142,352 - Longer than 1 year and not longer than 5 years 95,479 - 237,831 - (b) Capital commitments There were no capital commitments at 31 December 2019.

(c) Contingent liabilities

Block Grant Authority (BGA) grants are provided by the Australian Government to assist colleges and schools with capital development. BGA funding is dependent of the asset continuing to be used for educational purposes for at least twenty years. If educational services were to cease within twenty years, a portion of the BGA funding may be repayable to the Australian Government.

Haileybury Rendall School, under The Uniting Church in Australia, became a voluntary member of the National Redress Scheme on 29 March 2019. The National Redress Scheme came into effect on 1 July 2018 and whilst it is possible future claims may be made against Haileybury Rendall School, there is no way of determining whether claims will arise and therefore it is not possible to reliably estimate the quantum of any payments that may arise as a result of participation in the National Redress Scheme.

In the event that claims are lodged in the future and it is probable that a payment will be required, it is anticipated that a provision will be raised in the financial statements based on the average Scheme claim payment rate as advised under the Scheme.

There were no other contingent liabilities at 31 December 2019 (2018: $nil).

19. AUDITOR’S REMUNERATION 2019 2018 $ $

Auditing the financial report 22,000 21,500 Other services – financial statements preparation 1,550 1,500 23,550 23,000 The auditor is Deloitte Touche Tohmatsu.

20. KEY MANAGEMENT PERSONNEL COMPENSATION

Short term employment benefits 687,099 526,228 Post-employment benefits 73,481 55,646 Total key management personnel compensation 760,580 581,874

33

Notes to the Financial Statements

21. SUBSEQUENT EVENTS

On 30 January 2020, the spread of novel coronavirus (“COVID-19”) was declared a Public Health Emergency of International Concern by the World Health Organisation (“WHO”). Subsequently, on 11 March 2020, WHO characterised COVID-19 as a worldwide pandemic.

As this declaration was made after the reporting period, the entity believes it constitutes a “Non-Adjusting Subsequent Event” as defined in AASB 110 Events after the Reporting Period.

The entity will continue to monitor the impact of COVID-19 but at the date of this report it is too early to determine the full impact this virus may have on the entity. Should this emerging macro-economic risk continue for a prolonged period, there could be an adverse financial impact on the entity, including volatility within the Company’s investment portfolio and access to revenue streams.

There has not been any other matter or circumstance occurring subsequent to the end of the financial year that has significantly affected, or may significantly affect, the operations of Haileybury Rendall School, the results of those operations, or the state of affairs of Haileybury Rendall School in future financial years.

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