Financial Report for the Year Ended 31 December 2019

Financial Report For the year ended 31 December 2019

ABN: 60 002 806 215

Directors’ Report

Page 3

Auditor’s Independence Declaration

Page 10

Financial Statements

Page 11 Statement of Profit or Loss and Other Comprehensive Income Page 12 Statement of Financial Position Page 13 Statement of Changes in Equity Page 14 Statement of Cash Flows

Notes to the Financial Statements About this Business Operating assets Related parties Other report performance and liabilities disclosures Page 15 Page 16-17 Page 18-20 Pages 21 Pages 22-23 1 Reporting entity 3 Revenue 6 Reconciliation of 12 Related parties 14 Financial risk cash and cash management 2 Basis of preparation 4 Administration equivalents 13 Controlled entities expenses 15 Subsequent events 7 Receivables 5 Non-monetary 16 Contribution in donations 8 Plant & Equipment winding up 9 Payables and 17 New standards and accrued expenses interpretations not yet adopted 10 Commitments 11 Contingent liabilities

Directors’ Declaration

Page 24

Independent Auditor’s Report

Page 25

Directors’ Report

Annual Financial Report 31 December 2019

The Directors of United Way Australia (“UWA” or “the Company”) present their report together with the financial statements of the Company, for the financial year ended 31 December 2019 and the auditor’s report thereon. Board of Directors

Name, qualifications and Experience, special responsibilities and other Directorships independence status

Ms Liz Dibbs Liz Dibbs is a non-executive director in the government and for-purpose sectors. LLM (Cantab), BA LLB (Syd) In addition to her role as Chair of United Way Australia, Liz is the Western City District Commissioner on the Greater Sydney Commission, Deputy Chancellor of Chairperson since May 2013 Western Sydney University and Chair of its Audit & Risk Committee and a Governor of the Centenary Institute of Cancer Medicine and Cell Biology. She was Independent Non-Executive the President of YWCA NSW from 2007-2011, a board member of YWCA NSW Director since May 2012 from 2000-2007 and a director of YWCA Australia from 2009 to 2013. Liz has also previously served as a Council Member of Chief Executive Women and Chair of its Scholarship Committee. Liz was a partner and General Counsel of PwC until 2005 and also previously worked with major law firms Mallesons Stephen Jaques (Sydney) and Linklaters & Paines (London).

Mrs Jenny Abood Jenny Abood is a founding partner of Crestone Wealth Management, an BEc. Hon. 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 Independent Non-Executive Potter in 1935. Jenny started her career in 1995 at the Commonwealth Bank of Director since February 2019 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 Wealth 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 Apostleship 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.

Mr David Baynham David Baynham is a communications consultant with global experience advising B.Lit major corporations and NGOs on communications strategy. David is currently Senior Manager, Messaging Strategy at National Australia Bank. Previously he Independent Non-Executive has managed the Asia Pacific office of global communications consultancy Director since July 2019 maslansky + partners. David holds a BA Literature from the University of Bristol.

Mr Andy Berry 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 Independent Non-Executive Andy was Chief Customer Officer at Fuji Xerox and led their Global Services Director since August 2016 business, specialising 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.

Directors’ Report

Annual Financial Report 31 December 2019

Board of Directors (continued)

Name, qualifications and Experience, special responsibilities and other Directorships independence status

Mr David Harrison David Harrison has been self-employed for the past 30 years. In 1996 he founded BPropEc and is current CEO of AustCorp Executive, a national recruitment & executive search firm which employs in excess of 200 staff. David is also the founding Independent Non-Executive Director and investor in two innovative technology companies: Click to Cloud Director since July 2019 Property and Click to Cloud People, producing technology for the HR & Real Estate markets. David understands the importance of revenue generation alongside a defined business strategy and helps guide start-ups and social purpose organisations exceed their goals. He is also a firm believer that a company’s most powerful resource is its people.

Mr Robert Moodie Robert Moodie BEc(Accg), CPA, is a Director of Rodgers Reidy, a reconstruction BEc(Accg), CPA and advisory firm where he has worked for the past 18 years. Rob has a strong background in corporate and strategic advice. Rob joined United Way’s Sydney Independent Non-Executive council in 2013 and joined the board in September 2016. Rob was the chairman Director since September 2016 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.

Mr Brett McGrath Brett McGrath is a Senior Associate in the Family & Relationship Law team at LLB, GDLP Gadens in Sydney, practising in family law. Brett is currently on secondment as a Registrar at the Family Court of Australia and Federal Circuit Court of Australia for Independent Non-Executive 12 months. After graduating with a Bachelor of Laws from Western Sydney Director since July 2019 University, Brett was admitted to practice in 2012 and began his legal career in South Western Sydney, where he was elected the President of the Macarthur Law Society from 2014 to 2018. In 2018, Brett was elected as a Councillor to the Law Society of New South Wales, and currently serves on the Family Law Committee and Professional Conduct Committees. In addition to his practice at Gadens, Brett lectures at Western Sydney University, coordinating the university’s Family Law and Advanced Family Law subjects. He is also currently on the board of the Camden Women’s Shelter, and has recently received a statutory appointment to the board of Legal Aid New South Wales.

Mr Gary Metcalf Gary Metcalf is the Managing Director of Metcalf Group SA, a family owned South Independent Non-Executive Australian business that has been in operation for more than 20 years. Gary Director since February 2019 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%. Gary is the Chairman of United Way South Australia.

Ms Anne Myers Anne Myers is a non-executive director with extensive executive level experience MBA AGSM, GAICD spanning retail banking, insurance, funds management and superannuation. In addition to her non-executive director role at United Way, she is currently a non- Independent Non-Executive executive director of Defence Bank (and Chair of Audit Committee) and Integrated Director since July 2015 Research Ltd. She is also a Council member of the University of New England and works as an advisor and mentor to early stage technology companies.

Directors’ Report

Annual Financial Report 31 December 2019

Board of Directors (continued)

Name, qualifications and Experience, special responsibilities and other Directorships independence status

Mr Jon Paparsenos Jon Paparsenos is the Vice President Philanthropy and CEO UNSW Foundation at MBA Intl Bus, B.L.A. UNSW Sydney. He has more than 16 years’ experience in the planning and execution of fundraising campaigns. Prior to joining UNSW, he served in the position of Independent Non-Executive Executive Director of Development, Academic Divisions and Regions for Caltech (the Director since December 2019 California Institute of Technology), with Marquette University in Wisconsin and with Community Counselling Co., LLC in New York.

Jon also serves as Chair of the GO8 Leadership Group (since 2018), and chairs and is a member of faculty for the CASE APIEF Institute in Melbourne.

Ms Nicole Wearne LL.B, B.A., GradDipIL Nicole Wearne is a partner at Clyde & Co. Nicole's diverse expertise in insurance law includes professional indemnity, D&O, construction PI, major torts and Independent Non-Executive securities class actions. She advises Australian and London market insurers in Director since February 2018 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 claims which regularly involve political sensitivities and have broader strategic implications. Nicole has advised on numerous PI and D&O notifications made by FIs arising from investigations by ASIC, including in respect of remediation programs imposed on banks under their licence conditions. Nicole enjoys respectful working relationships with her peers and colleagues which benefit her insurer clients both in her representation of their interests and in building and maintaining their relationships with brokers and their insureds. Nicole has previously sat on the governance board of a large law firm. She was engaged with her former firm's CSR program and is a strong supporter of pro bono services.

Mr Mark Wlossak Mark Wlossak is a General Manager at the Commonwealth Bank of Australia. In BCom this role Mark leads a national team responsible for overseeing the management of CBA and Bankwest corporate customers. Independent Non-Executive Prior to this, Mark was a Director with PricewaterhouseCoopers working most Director since February 2018 notably in South East Asia. During this period he led large cross discipline and multi-cultural teams restructuring a number of financial companies, valuing loan portfolios as well as reviewing the credit worthiness and operating procedures of some of the region’s largest banks.

Mrs Denise Brotherton Denise Brotherton is a Partner with Ernst & Young, specialising in the provision BEc, CPA MTax of business tax advisory services including services to the not-for-profit sector. Denise has worked with Ernst & Young for 24 years. Denise has worked with United Way in Australia for almost 9 years and is Chair of the United Way Australia Melbourne Council.

Appointed as a Director in July 2010, Denise retired as a Director of United Way Australia with effect from September 2019.

Directors’ Report

Annual Financial Report 31 December 2019

Company Secretary

Mr Ramsay Moodie was appointed to the position of Company Secretary on 11 May 2010.

Directors’ meetings

Director Board Meetings Audit and Risk Performance and Rem Committee Meetings

Meetings Number Meetings Number Meetings Number held whilst attended held whilst attended held whilst attended member member member Mrs Jenny Abood 5 5 Mr David Baynham# 3 2 Mr Andy Berry 5 4 1 1 Mrs Denise Brotherton* 4 4 4 4 2 1 Ms Liz Dibbs 5 5 5 5 2 2 Mr David Harrison# 3 2 Mr Brett McGrath# 3 3 Mr Gary Metcalf 4 4^ Mr Robert Moodie 5 3 5 4 Ms Anne Myers 5 4 2 2 Mr Jon Paparsenos# 1 1 Ms Nicole Wearne 5 4 Mr Mark Wlossak 5 5 * Retired during the year # Appointed during the year ^2 meetings attended by delegate

Directors’ Report

Annual Financial Report 31 December 2019

Corporate governance

United Way Australia is committed to proper and effective corporate governance arrangements. As a registered charity regulated by the Australian Charites and Not-for-profit Commission (ACNC), United Way Australia applies the ACNC Governance Standards and in applying them is guided by the Not-for-Profit Governance Principles established by the Australian Institute of Company Directors.

Operational structure and DGR status

United Way 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 1 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. United Way Australia is also classified as a Public Benevolent Institution. United Way Australia also acts as the National Office for other local United Way affiliates in Australia, however these other organisations are separate legal entities.

Our Vision

That every Australian community should thrive.

Our Purpose

Unite community, business, philanthropy, government, and social purpose organisations in collaborative action with us, to improve education and employment outcomes in communities.

Our Belief

The postcode people are born in should not determine their destiny, that the causes of entrenched community disadvantage in Australia are complex, that no single organisation can solve these issues alone, and that the first five years of a child’s life are a critical period of brain development and that early intervention during this time can significantly enhance a child's life chances.

Our Focus

The early years and youth to work transitions where we believe we can have the most impact.

Approach

UWA identified that early intervention was key to addressing generational disadvantage and we determined to focus on a “cradle to career” approach enabling communities to thrive through supporting children and their families from birth to independence.

Central to our approach is understanding local community issues, mobilising resources to tackle complex 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 early childhood development and youth transitions to employment.

Diversification of funders

UWA has developed a diversified revenue stream to maximise funding opportunities and to de-risk an over-reliance on a few sources. Specifically we fund our work through donations by corporate partnerships, workplace corporate giving, monies raised from individual donors, philanthropic trusts, foundations, fundraising events and government.

Directors’ Report

Annual Financial Report 31 December 2019

Results

The organisation had an operating profit of $495,891 during 2019 (2018: 152,174). During the year the net revenue (including non-monetary donations) of the company increased by 4.9% to $2,954,082 (2018 net revenue: $2,815,573). However, the Directors note the costs of the company decreased by 7.7% to $2,458,191 (2018 costs: $2,663,399). Total Equity was $827,741 (2018: $331,850).

During 2019 UWA continued to strengthen the organisation’s financial position and significantly improved the Balance Sheet with additional cash reserves.

UWA’s mission effectiveness resonated with funders resulting in solid revenue growth whilst Management kept tight reins on back office costs. The clarity with which the organisation articulates its societal impact, and the simplicity, efficiency & viability of the business model provides confidence to existing and potential future funders.

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 company.

Significant Events after Balance Sheet Date

Since 31 December 2019, COVID-19 has impacted the global economy. Charitable programs continue, including the Dolly Parton Imagination Library and the Hive in Mount Druitt. Funding from Government and Trusts and Foundations will continue to be strong, whilst Corporate and Individual donations are expected to fall slightly. However, at this stage it is too early to determine the impact to those two revenue streams.

Other than the above, 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 and Indemnification 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 Director or a firm of which the Director is a member or an entity in which the Director has a substantial financial interest has made (during this or any other financial year) with the Company other than as disclosed in the accounts.

The Company has not during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to indemnify an officer or the auditor of the Company or of any related body corporate against a liability incurred as such by an officer or auditor.

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 2019, the total amount that members are liable to contribute if the Company wound up is $350 (2018: $350).

Auditor’s independence declaration

The auditor's independence declaration is included on page 10 of the annual report.

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Deloitte Touche Tohmatsu A.B.N. 74 490 121 060

Grosvenor Place 225 George Street Sydney NSW 2000 PO Box N250 Grosvenor Place Sydney NSW 1220 Australia

DX 10307SSE Tel: +61 (0) 2 9322 7000 Fax: +61 (0) 2 9322 7001 www.deloitte.com.au

The Board of Directors United Way Australia Suite 3, Level 1, 225 Clarence Street, Sydney NSW 2000

6 May 2020

Dear Board Members,

Auditor’s Independence Declaration to United Way Australia

In accordance with Subdivision 60-C of the Australian Charities, Not-for-profits Commission Act 2012, and Charitable Fundraising Acts, I am pleased to provide the following declaration 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 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, Not-for- profits Commission Act 2012, and Charitable Fundraising Acts in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit.

Yours sincerely

DELOITTE TOUCHE TOHMATSU

Pooja Patel Partner Chartered Accountants

Member of Deloitte Asia Pacific Limited and the Deloitte Network. Liability limited by a scheme approved under Professional Standards Legislation.

10 Statement of Profit or Loss and Other Comprehensive Income

Annual Financial Report 31 December 2019

For the year ended 31 December 2019

Note 2019 2018 Revenue 3 2,507,918 2,344,831 Interest income 17,788 16,885 Non-monetary donations 5 428,376 453,857 Total Revenue 2,954,082 2,815,573

Administration and general expenses 4 462,367 444,524 Community impact and programs 1,411,202 1,604,653 Special event fundraising 156,246 160,365 Non-monetary donations 5 428,376 453,857 Total Expenses 2,458,191 2,663,399

Surplus for the year 495,891 152,174

Other comprehensive income - -

Total comprehensive surplus for the year 495,891 152,174

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

Statement of Financial Position

Annual Financial Report 31 December 2019

As at 31 December 2019

Note 31 Dec 2019 31 Dec 2018 Assets

Cash and cash equivalents 6 1,828,748 1,098,052 Receivables 7 56,408 99,305 Inventories 37,528 20,000 Total current assets 1,922,684 1,217,357

Plant and equipment 8 3,445 72,826 Total non-current assets 3,445 72,826

Total assets 1,926,129 1,290,183

Liabilities

Payables and accrued expenses 9 230,315 188,715 Related party payables 12 1,472 1,582 Deferred revenue 860,415 762,162 Total current liabilities 1,092,202 952,459

Provision for long service leave 6,186 5,874 Total non-current liabilities 6,186 5,874

Total liabilities 1,098,388 958,333

Net assets 827,741 331,850

Equity

Reserves 179,676 179,676 Accumulated Surplus 648,065 152,174 Total Equity 827,741 331,850

The above statement of financial position should be read in conjunction with the accompanying notes.

Statement of Changes in Equity

Annual Financial Report 31 December 2019

As at 31 December 2019

General Accumulated reserves surplus Total Equity

Balance at 1 January 2018 179,676 - 179,676

Surplus for the year 152,174 152,174

Balance at 31 December 2018 179,676 152,174 331,850

Balance at 1 January 2019 179,676 152,174 331,850

Surplus for the year - 495,891 495,891

Balance at 31 December 2019 179,676 648,065 827,741

The above statement of changes in equity should be read in conjunction with the accompanying notes.

Statement of Cash Flows

Annual Financial Report 31 December 2019

For the year ended 31 December 2019

Note 2019 2018

Receipts donors 2,640,368 2,004,461 Payments to suppliers and employees (1,921,122) (2,094,593) Interest received 17,788 16,884 Interest paid (6,338) - Net cash flows from operating activities 6 730,696 (73,248)

Payment for plant and equipment - (5,914) Net cash flows from investing activities - (5,914)

Net movement in cash and cash equivalents 730,696 (76,511)

Cash and cash equivalents at the beginning of the period 1,098,052 1,174,563 Cash and cash equivalents at the end of the period 6 1,828,748 1,098,052

The statement of cash flows should be read in conjunction with the accompanying notes.

Notes to the Financial Statements

Annual Financial Report 31 December 2019

About this Report

1. Reporting entity

United Way Australia (“UWA” or “the Company”) is a company domiciled in Australia. The address of the Company’s registered office is 225 Clarence Street, Sydney, NSW 2000, Australia.

2. Basis of preparation

The Financial Report is a general purpose financial report, which has been prepared in accordance with the requirements of the Australian Charities and Not-for-profit Commission Act 2012, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board.

The Financial Report has been prepared on a historical cost basis, except for financial assets and liabilities measured at fair value. All amounts are presented in Australian dollars. The Financial Report is prepared on a going concern basis.

The accounting policies and methods of computation in the preparation of the financial report are consistent with those adopted and disclosed in United Way Australia’s financial report for the year ended 31 December 2018.

Certain comparative balances have been reclassified to ensure consistency with current year classifications.

Income tax

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

New accounting standards adopted

AASB 9 Financial Instruments, AASB 1058 Income of not-for-profit entities and AASB 15 Revenue from Contracts with Customers were early adopted in the 2018 Financial Statements.

Accounting estimates and judgements

Preparation of the Financial Report requires management to make judgements, estimates and assumptions about future events. Information on material estimates and judgements considered when applying the accounting policies can be found in the following notes:

Revenue Note 3

Plant & Equipment Note 8

Payables & Accrued Expenses Note 9

Notes to the Financial Statements

Annual Financial Report 31 December 2019

Business Performance

3. Revenue

31 Dec 2019 31 Dec 2018 Corporate 594,280 544,895 Individuals 202,152 170,127 Trusts & Foundations 615,828 827,115 Government 540,837 358,157 Special Event 176,248 225,319 Book Program Revenue 315,780 182,202 Other Income 62,793 37,016 2,507,918 2,344,831

Revenue from transfer of services over time 612,899 980,651 Revenue from transfer of services at a point in time 1,895,019 1,364,180 2,507,918 2,344,831 Accounting Policy

Donation/Fundraising Revenue

Donations and Fundraising Revenue is recognised on receipt of cash or credit card donations. Pledges are only recognised as income if they are enforceable.

Revenue is recognised when (or as) a performance obligation is satisfied, i.e. when ‘control’ of the services underlying the particular performance obligation is transferred to the beneficiary (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.

Grant Revenue

Grant Revenue is received from the Government or from Trusts and Foundations. The contractual terms, and the way in which the Company operates its grant agreements, is from projects containing one performance obligation. Under these performance obligations, our beneficiaries simultaneously receive and consume the benefits as the Company performs them. Therefore the Grant Revenue is recognised over time based on our output activities. Where we have not yet satisfied the performance obligations, the grant funds are held in the statement of financial position as a Deferred Revenue liability until the performance obligations are met.

Notes to the Financial Statements

Annual Financial Report 31 December 2019

4. Administration Expenses

31 Dec 2019 31 Dec 2018 Audit & accounting fee - 172 Depreciation 69,381 32,764 Information management and communications 13,940 55,477 Office accommodation 71,521 58,032 Printing, postage & stationary 5,643 9,912 Salaries & employee benefits 170,532 155,074 Other administration expenses 131,350 133,093 462,367 444,542

5. Non-monetary donations

31 Dec 2019 31 Dec 2018 Book supply costs 229,824 216,236 Volunteering services 52,770 7,880 Professional services 47,260 114,910 Audit & accounting fee 43,000 42,000 Information management and communications 39,222 41,132 Photography & printing 16,300 - Office accommodation - 31,700 428,376 453,857

Non-monetary Donations

The Company received various forms of in-kind support from organisations for professional services such as legal advice, consulting, audit and services such as printing, function rooms and catering, as well as plant and equipment from time to time. Goods and services provided in this way to the Company are recognised upon receipt at their fair value where this can be reliably measured.

Notes to the Financial Statements

Annual Financial Report 31 December 2019

Operating assets and liabilities

6. Reconciliation of Cash and Cash Equivalents

Reconciliation of cash flows from operating activities

31 Dec 2019 31 Dec 2018 Profit for the year 495,891 152,174

Depreciation and other non-cash items 69,381 31,244 Decrease / (Increase) in receivables 42,897 68,602 Decrease / (Increase) in inventory (17,528) - Increase / (Decrease) in payables and accruals 41,912 83,564 Increase / (Decrease) in deferred revenue 98,253 (408,972) Increase / (Decrease) in related party payables (110) 120 730,696 (73,248) Reconciliation of cash and cash equivalents

31 Dec 2019 31 Dec 2018 Cash 995,398 575,302 Short-term deposits 833,350 522,750 1,828,748 1,098,052

7. Receivables

31 Dec 2019 31 Dec 2018 Trade receivables 23,266 37,362 Receivables from other United Way entities in Australia 17,070 28,760 Receivable from United Way Worldwide - 1,947 Other receivables 16,072 31,236 56,408 99,305

Due to the short term nature of these receivables, the carrying amounts are estimated to represent fair values.

Notes to the Financial Statements

Annual Financial Report 31 December 2019

8. Plant and Equipment

31 Dec 2019 31 Dec 2018 At cost 122,229 202,518 Accumulated depreciation (118,784) (129,692) 3,445 72,826 Reconciliation

31 Dec 2019 31 Dec 2018 Carrying amount at beginning 72,826 99,676 Additions including non-monetary donations - 5,914 Impairment expense (48,763) - Depreciation expense (20,618) (32,764) 3,445 72,826 Accounting Policy

Recognition and measurement

Items of plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. Any gain or loss on disposal of an item of plant and equipment is recognised in profit or loss.

Depreciation

Depreciation is calculated to write off the cost of plant and equipment, less their estimated residual values, using the straight-line method over the estimated useful life and recognised in profit or loss. The estimated useful life of office equipment is 4 years and Computers 2 years.

Impairment

The carrying amount of the Company’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, an impairment expense is recognised.

Donated assets

Plant and equipment donated to United Way will be recognised as an asset in the financial statements and depreciated according to the above useful lives.

9. Payables and Accrued Expenses

31 Dec 2019 31 Dec 2018 Trade creditors and accruals 64,241 45,180 ATO payable 21,891 8,318 Provision annual leave 49,523 60,233 Other current liabilities 94,660 74,984 230,315 188,715

Notes to the Financial Statements

Annual Financial Report 31 December 2019

9. Payables and Accrued Expenses (continued)

Accounting Policy

Payables, accruals and other liabilities

Payables, accruals and other accounts payable are recognised when the Company becomes obliged to make future payments resulting from the purchase of goods and services.

Employee entitlements

Liabilities for wages, salaries and annual leave are recognised in respect of employee’s services up to the end of the reporting period. These liabilities are measured at the amounts expected to be paid when settled and include related on-costs, such as workers compensation insurance, superannuation and payroll tax.

Long service leave benefits are measured at the present value of estimated future payments for the services provided by employees up to the end of the reporting date.

10. Commitments

Operating leases as a lessee

Non-cancellable operating lease rentals are payable as follows:

31 Dec 2019 31 Dec 2018 Less than one year 58,103 56,410 Between one and five years 8,473 66,575 More than five years - - 66,576 122,985

Lease payments relate to the rental of our head office property. During the year ended 31 December 2019, the Company recognised $51,654 (2018: $48,583) as an expense in the statement of profit or loss and other comprehensive income in respect of operating leases.

11. Contingent Liabilities

The Company has no contingent liabilities as at 31 December 2019.

The Company does not have any commitments for acquisition of plant and equipment as at 31 December 2019.

Notes to the Financial Statements

Annual Financial Report 31 December 2019

Related Parties

12. Related Parties

Payable to other United Way entities in Australia

31 Dec 2019 31 Dec 2018 United Way Western Australia 698 1,024 United Way South Australia 774 558 1,472 1,582

United Way transactions on behalf of other United Way entities in Australia during the year

2019 2018 Balance at 1 January 1,582 1,462 Revenue received on behalf of other United Way entities in Australia 4,294 6,306 Distributed to other United Way entities in Australia (4,404) (6,186) Balance at 31 December 1,472 1,582

Director donations

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.

Accounting Policy

Related parties refer to registered fundraising entities that are members of the 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.

13. Controlled Entities

At reporting date, the Company did not have any controlled entities.

Notes to the Financial Statements

Annual Financial Report 31 December 2019

Other Disclosures

14. Financial Risk Management

The Company’s financial assets and liabilities comprise cash, trade receivables and payables.

Interest rate risk

The Company has no loans or borrowings, and as such no exposure to interest rate risk.

Credit risk

Credit risk refers to the risk that a financial counterparty will default on its contractual obligations, resulting in a financial loss to the Company. The maximum exposure to credit risk at the balance date is the carrying value of cash and cash equivalents and receivables as disclosed in the financial statements.

The Company’s policy is to deal only with credit worthy counterparties. Credit terms are 30 days. The ongoing credit risk is managed through regular review of ageing analysis, together with credit limits per customer. There are no material amounts which are past due or impaired.

We invest our cash and cash equivalents in short-term deposits high-rated financial institutions.

Liquidity risk

Liquidity risk is the risk that the Company might be unable to meet its obligations. Management aims to maintain an adequate cash balance to meet liabilities, and continually monitors forecast and actual cash flows.

15. Subsequent Events

Notes to the Financial Statements

Annual Financial Report 31 December 2019

16. 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 company. At 31 December 2019, the total amount that members are liable to contribute if the Company would up is $350 (2018: $350).

17. New Standards and Interpretations not yet adopted

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning on or after 1 January 2020 and have not been applied in preparing these consolidated financial statements. Of the new standards, only the below is expected to have a significant effect on the consolidated financial statements of the Company.

AASB 16 Leases

AASB 16 introduces a single, on-balance sheet lease accounting model for lessees. A lessee recognises a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. There are recognition exemptions for short-term leases and leases of low-value items. Lessor accounting remains similar to the current standard – i.e. lessors continue to classify leases as finance or operating leases. AASB 16 replaces existing leases guidance, including AASB 117 Leases (“AASB 117”) and IFRIC 4 Determining whether an Arrangement contains a Lease (“IFRIC 4”).

The Company has operating lease commitments as disclosed in Note 10. The disclosed amounts indicate that the impact of AASB 16 Leases will result in a material gross up of the total assets and liabilities of the group, however, the Company is still in the process of assessing the financial impact.

The Company plans to apply AASB 16 from 1 January 2020, using the modified retrospective approach, with no restatement of comparative information. The Company plans to apply the practical expedient to grandfather the definition of a lease on transition. This means that assessments of whether a contract contained a lease under AASB 117 and IFRIC 4 will not be reassessed.

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Deloitte Touche Tohmatsu A.B.N. 74 490 121 060

Grosvenor Place 225 George Street Sydney NSW 2000 PO Box N250 Grosvenor Place Sydney NSW 1219 Australia

DX 10307SSE Tel: +61 (0) 2 9322 7000 Fax: +61 (0) 2 9322 7001 www.deloitte.com.au

Independent Auditor’s Report to the members of United Way Australia

Opinion

We have audited the financial report of United Way Australia (the “Entity”), which comprises the statement of financial position as at 31 December 2019, 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, and 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 11 to 24. In addition, we have audited the Entity’s compliance with specific requirements of the Charitable Fundraising 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 2012 (the “ACNC Act”), including:

(i) 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

(ii) complying with Australian Accounting Standards to the extent described in Note 1, 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 2019; and c) monies received by the Entity as a result of fundraising appeals conducted during the year ended 31 December 2019, 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 2019.

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 and Compliance with Specific Requirements of the Charitable Fundraising 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 110 Code of Ethics for Professional 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.

Member of Deloitte Asia Pacific Limited and the Deloitte Network. Liability limited by a scheme approved under Professional Standards Legislation.

Other Information

(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 2019, 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.

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.

Responsibilities of the Directors for the Financial Report and for Compliance with the Charitable Fundraising Act 1991

The Directors of the Entity are responsible for compliance with the Charitable Fundraising Act 1991 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 1 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 1991.

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 Responsibilities for the Audit of the Financial Report and Compliance with Specific Requirements of the Charitable Fundraising 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 Fundraising Act 1991, 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 non-compliance with the specific requirements of the Charitable Fundraising Act 1991 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.

• 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 Fundraising Act 1991 may occur and not be detected. An audit is not designed to detect all weaknesses in the Entity’s compliance with the Charitable Fundraising Act 1991 as an audit is 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 in internal control that we identify during our audit.

DELOITTE TOUCHE TOHMATSU

Pooja Patel Partner Chartered Accountants Sydney, 6 May 2020