NorCen Financial Services Limited ABN 32 119 439 113 Bigger than a bank GLENAROUA PYALONG TRAWOOL TALLAROOK WILLOWMAVIN STRATH CREEK WANDONG UPPER PLENTY BEVERIDGE Wallan & Kilmore Community Bank Branches and Broadford Customer Service Centre Wallan & District Kilmore & District Broadford Customer Franchisee: NorCen Community Bank Branch Community Bank Branch Service Centre Financial Services Limited 1/51 High Street, Wallan VIC 3756 75A Sydney Street, Kilmore VIC 3764 63 High St, Broadford VIC 3658 PO Box 368, Wallan VIC 3756 Phone: (03) 5783 2422 Phone: (03) 5781 0066 Phone: (03) 5454 1233 ABN: 32 119 493 113 Wallan & Kilmore www.bendigobank.com.au/wallan www.bendigobank.com.au/kilmore SCALE TO MAP NOT Community Bank Branches Independent Audit Report (continued) The directors are responsible for the other information. The annual report is expected to be made available to us after the date of this auditor's report. Wally Mott David Wheeler Sue Marstaeller Greg Marshall David Ford Chairman Treasurer Director Director Director Our opinion on the financial report does not cover the other information and accordingly we will not express any form of assurance conclusion thereon. Our responsibility is to read the other information identified above when it becomes available 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 we identify that a material inconsistency appears to exist when we read the annual report (or become aware that the other information appears to be materially misstated), we will discuss the matter with the Kathleen Holland Terence Dobson Susan Langborne Brent Baker Sally Chadwick Kate Boulton Director Director Director Director Company Community directors and where we believe that a material misstatement of the other information exists, we will Secretary Engagement request management to correct the other information. Officer Directors’ responsibility for the financial report The directors of the company are responsible for the preparation of the financial report that it gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the company’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 company or cease operations, or have no realistic alternative but to do so. Auditor’s responsibility 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 Tracey Charry Simon Halman Leanne Paice Laura Moran Carol Ryan Wallan Kilmore Broadford Mobile Customer our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit Branch Manager Branch Manager Customer Relationship Relationship conducted in accordance with the Australian Auditing Standards will always detect a material misstatement Relationship Manager Manager Manager when it exists. Misstatement can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/home.aspx. This description forms part of our auditor’s report. Kirsty Galea Jasmyn Lang Jennifer Michelsson Natalie White Julie Cannon Jackie Ginefra Courtney Malesevich Customer Customer Customer Associate Mobile Customer Customer Customer Relationship Relationship Relationship Relationship Relationship Relationship Relationship Manager Manager Manager Manager Officer Officer Officer Andrew Frewin Stewart Joshua Griffin 61 Bull Street, Bendigo, 3550 Lead Auditor Dated: 18 September 2019 Louise Costa Amy George Kirsty Reid Tyeisha Oorloff Carmel Borg Andrea Lever Rochelle Geary Customer Customer Service Customer Service Customer Service Customer Service Customer Service Customer Service Relationship Officer Supervisor Supervisor Officer Officer Officer Officer 25 - Annual Report NorCen Financial Services Limited Contents Chairman’s Report 2 Treasurer’s Report 3 Branch Reports 4 Directors’ Report 6 Auditor’s Independent Declaration 8 Financial Statements 9 Notes to Financial Statements 10 Community Grants Night 11 Directors’ Declaration 23 Independent Audit Report 24 Annual Report NorCen Financial Services Limited - 1 Chairman’s Report For year ending June 30 2019 Our Community Bank continues to invest Branches. Tracey Charry, Wallan Manager and Simon Halman, profits into our Communities of Wallan Kilmore Manager have great teams who are continually being Kilmore and Broadford. We have just trained in all aspects of Banking so that they are best equipped passed the $3 million milestone since to assist with client inquiry. we opened Wallan Branch in 2007. The Wallan Branch re-location to our new building will take place We have helped nearly 200 Community at the end of November. We are very pleased with the building, Groups many of which are on a yearly and we are also excited to announce that we have all the other basis. In the last 12 months there were commercial space in the building leased. This is a signature 83 recipient groups. At our Grants Night building for Wallan, and it provides our local Federal Member on September 10th there were over 240 Rob Mitchell a new office in his electorate. The other space in attendance with representatives of the groups reporting on brings Tertiary Education to Wallan with a partnership between how those funds helped each group. The Directors of NorCen GoTafe and La Trobe University. This will allow tertiary courses all put a lot of time and effort into the management of this to take place in Wallan and encourage local students to further company and it’s a fantastic result that has been achieved. their education without the need to travel long distances. This is a great milestone for Wallan, which we are very pleased about. The stand out for this last year has been the Kilmore & District Hospital and the local CFA Brigades and SES. Note The Directors of the Company have many tasks and work our Community Bus is now located at the Kilmore & District cohesively together. The Building Committee led by Terry Hospital. Dobson along with David Wheeler, Sue Marstaeller and Greg Marshall have all taken on the building responsibility, with Terry All three Branches have traded profitably. The Kilmore Branch attending many days each week to keep the project moving. A did have a huge turnover of staff due to sea change, rural building of this size and quality requires constant supervision. change and personal reasons. Many of those staff obtained The new building is complicated and requires constant attention employment in the Bendigo network at their new locations. We to ensure it will work for us and our clients. have managed to replace and train new staff who have settled in very well led by manager Simon Halman. The commencement The long term growth of the Wallan, Kilmore and Broadford of our Mobile Banker Service with Laura Moran has been a great areas, continues to provide us with opportunities in the future. success, with Laura making appointments to see customers Wallan will grow to a township size of approximately 45,000 at other locations or after our normal banking hours. Laura is residents, Kilmore will continue to grow, and Broadford is available on 0477 577 006 for appointments. Wallan Branch is waiting on a Council land use review. There is constant growth led by Tracey Charry and they are looking forward to their move in Beveridge and Kal Kallo to the south. The Board will continue into the new Branch at 59 High Street Wallan. to review strategic planning of the area. Our staff are our greatest asset, and they are well trained by The Royal Commission findings were critical of commissions to Bendigo Adelaide Bank in all aspects of Banking. Jason Chuck financial advisor staff being paid for recommending products to who had been with us for 3 years has been appointed as the customers. At Bendigo Adelaide Bank, staff have always been Regional Manager for South West Victoria; we thank Jason for on fixed salaries so they recommended products that are best his valuable assistance with our company. I thank all staff for for the customer. their support and dedication to the banking business. The fact that NorCen have a branch network with real bankers Administration staff, Sally Chadwick our Company Secretary employed in those branches, and NorCen profits go back into has assisted greatly with the Building Project, and has improved our community are very important differences. our systems and record keeping, and Kate Boulton who looks after the Community Investment process, thank you to both for We look forward to another successful year ahead. your dedication and support. The Broadford Customer Service Centre is doing a great job in servicing Broadford, and we are pleased to announce that it will convert to the “Bendigo Bank Broadford Branch” on December 3rd 2019. Our senior banker Leanne Paice will lead a team of 3 all of whom are experienced bankers. Any other support Wally Mott required will come from our Kilmore or Wallan Community Chairman 2 - Annual Report NorCen Financial Services Limited Treasurer’s Report For year ending June 30 2019 2018/2019 has been another very total project cost including land purchase is $4.8 million.