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 Haileybury 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 independent school’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 Australia 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.