Certificate by Members of Board Management...accountants 60-64 Railway Road, Blackburn 3130 PO Box...

Light Melbourne Inc.

Certificate by Members of Board Management

Financial Statements Page

Board of Management's Report 2

Auditor's Independence Declaration 3

Statement of Profit or Loss and Other Comprehensive Income 4

Statement of Financial Position 5

Statement of Changes in Equity 6

Statement of Cash Flows 7

Notes to the Financial Statements 8

Independent Audit Report 18

Certificate by Members of Board of Management 20

accountants

60-64 Railway Road, Blackburn 3130PO Box 189, Blackburn 3130t: (03) 9878 1477 f: (03) 9894 [email protected]

ABN 84 164 947 290Liability limited by a scheme approved under Professional Standards Legislation

AUDITOR’S INDEPENDENCE DECLARATION UNDER DIVISION 60 OF THE AUSTRALIAN CHARITIES AND NOT-FOR-PROFITS COMMISSION ACT 2012 TO THE BOARD OF MANAGEMENT OF LIGHT MELBOURNE INC. I declare that, to the best of my knowledge and belief, during the year ended 31 December 2018 there have been:

i. no contraventions of the auditor independence requirements as set out in the Australian Charities and Not-for-profit Commission Act 2012 in relation to the audit; and

ii. no contraventions of any applicable code of professional conduct in relation to the audit.

Matthew Hung, CA rdl.accountants 14th February 2019 Blackburn, Victoria


Note 2018 2017$ $

Revenue 4 6,033,677 5,328,052 Cost of income (409,968) (383,023)Employee benefits expense (3,499,996) (2,953,807)Broadcast and promotion (703,630) (597,119)Consultants and other professional services (269,922) (225,521)Communications and technology (229,885) (150,523)Depreciation and Amortisation Expense (232,865) (194,416)Travel expenses (96,836) (66,070)Vehicle expenses (72,041) (68,693)Finance costs (22,556) (31,126)Management and administration (143,304) (165,343)Occupancy expense (246,230) (241,440)

(5,927,233) (5,077,081) Surplus before income tax expense 106,444 250,971Income tax expense - - Surplus after income tax expense for the year attributable to the members of Light Melbourne Inc. 15 106,444 250,971 Other comprehensive income for the year, net of tax - - Total comprehensive income for the year attributable to the members of Light Melbourne Inc. 106,444 250,971

Statement of Profit or Loss and Other Comprehensive IncomeFor the Year Ended 31 December 2018

The accompanying notes form part of these financial statements

Light Melbourne Inc

Note 2018 2017$ $

ASSETSCURRENT ASSETS Cash and cash equivalents 5 904,593 655,136 Trade and other receivables 6 210,305 301,846 Other current assets 7(a) 173,949 255,242 TOTAL CURRENT ASSETS 1,288,847 1,212,224

NON-CURRENT ASSETS Other financial assets 8 40,995 33,054Plant and equipment 9 628,654 707,387Intangible assets 10 195,455 207,003Other assets 7(b) 9,947 9,945TOTAL NON-CURRENT ASSETS 875,051 957,389

TOTAL ASSETS 2,163,898 2,169,613

LIABILITIES

CURRENT LIABILITIES Trade and other payables 11 527,688 461,117Borrowings 12(a) 16,782 303,417Provisions 13(a) 292,941 193,535Other liabilities 14 171,830 159,240TOTAL CURRENT LIABILITIES 1,009,241 1,117,309

NON-CURRENT LIABILITIES Borrowings 12(b) 272,965 284,377Provisions 13(b) 27,216 19,895TOTAL NON-CURRENT LIABILITIES 300,181 304,272

TOTAL LIABILITIES 1,309,422 1,421,581 NET ASSETS 854,476 748,032

EQUITYRetained surpluses 15 854,476 748,032

TOTAL EQUITY 854,476 748,032

Statement of Financial Position As At 31 December 2018



2018RetainedEarnings Total

$ $

Balance at 1 January 2018 748,032 748,032Surplus for the year 106,444 106,444Other comprehensive income for the year, net of tax - -

Total comprehensive income for the year 106,444 106,444

Balance at 31 December 2018 854,476 854,476

2017RetainedEarnings Total

$ $

Balance at 1 January 2017 497,061 497,061Surplus for the year 250,971 250,971Other comprehensive income for the year, net of tax - -

Total comprehensive income for the year 250,971 250,971

Balance at 31 December 2017 748,032 748,032

Statement of Changes in EquityFor the Year Ended 31 December 2018


Light Melbourne Inc

Note 2018 2017$ $

CASH FLOWS FROM OPERATING ACTIVITIES:Receipts from customers 6,359,763 5,033,874Payments to suppliers and employees (5,646,000) (4,710,292)Dividends received 2,432 1,886Interest received 4,391 5,485Interest paid (22,556) (31,126)

Net cash provided by/(used in) operating activities 19 698,030 299,827

CASH FLOWS FROM INVESTING ACTIVITIES: Payments for intangible assets (35,772) (171,255)Payments for property, plant and equipment (106,811) (160,154)Payments for investments (7,941) (6,197)Payments for security deposits (2) 0

Net cash provided by/(used in) investing activities (150,526) (337,606)

CASH FLOWS FROM FINANCING ACTIVITIES Repayment of borrowings (298,047) (104,901)

Net cash provided by/(used in) financing activities (298,047) (104,901)

Net increase/ (decrease) in cash and cash equivalents held 249,457 (142,680)Cash and cash equivalents at the beginning of year 655,136 797,816

Cash and cash equivalents at the end of financial year 5 904,593 655,136

Statement of Cash Flows For the Year Ended 31 December 2018



1 Basis of Preparation

In the opinion of the Board of Management, the Association is not a reporting entity since there are unlikely to exist users of the financial statements who are not able to command the preparation of reports tailored so as to satisfy specifically all of their informationneeds. These special purpose financial statements have been prepared to meet the reporting requirements of the AustralianCharities and Not-for-Profit Commission Act 2012.

The financial statements have been prepared in accordance with the recognition and measurement requirements of the Australian Accounting Standards and Accounting Interpretations, and the disclosure requirements of AASB 101 Presentation of Financial Statements , AASB 107 Statement of Cash Flows , AASB 108 Accounting Policies , Changes in Accounting Estimates and Errors , AASB 1048 Interpretation of Standards and AASB 1054 Australian Additional Disclosures.

2 Summary of Significant Accounting Policies

(a) Income Tax

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

(b) Leases

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legalownership that are transferred to the Association are classified as finance leases.

Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of theleased property or the present value of the minimum lease payments, including any guaranteed residual values. Leasepayments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the life of the lease term.

Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term.

(c) Revenue and other income

Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefitsassociated with the transaction will flow to the Association and specific criteria relating to the type of revenue as noted below,has been satisfied.

Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discountsand rebates.

Grant revenueGrant revenue is recognised in the statement of profit or loss and other comprehensive income when the entity obtains control of the grant, it is probable that the economic benefits gained from the grant will flow to the entity and the amount ofthe grant can be measured reliably.

When grant revenue is received whereby the entity incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt.

Light Melbourne Inc. receives non-reciprocal contributions of assets from the government and other parties for zero or a nominalvalue. These assets are recognised at fair value on the date of acquisition in the statement of financial position, with a corresponding amount of income recognised in the statement of profit or loss and other comprehensive income .

Notes to the Financial Statements For the Year Ended 31 December 2018

The financial statements cover Light Melbourne Inc. as an individual entity. Light Melbourne Inc. is a not-for-profit Association incorporated in Victoria under the Australian Charities and Not-for-Profit Commission Act 2012.

The functional and presentation currency of Light Melbourne Inc. is Australian dollars. Comparatives are consistent with prior years, unless otherwise stated.


2 Summary of Significant Accounting Policies(c) Revenue and other income

LegaciesLegacies are recognised when the Association is notified of an impending distribution or the legacy is received, whichever occursearlier. Revenue from legacies comprising bequests of shares or other property are recognised at fair value, being the market value of the shares or property at the date the Association becomes legally entitled to the shares or property.

DonationsDonations are recognised as revenue when received.

Interest revenueInterest is recognised when received.

Sponsorship feesFees charged for sponsorship provided to clients are recognised when the service is provided i.e. upon the commencement of air-time, net of cancellations, discounts and allowances.

Asset salesThe gain or loss on disposal of all non-current assets is determined as the difference between the carrying amount of the assetat the time of the disposal and the net proceeds on disposal.

In-kind donationsRevenue from contra agreements (i.e. where there is a reciprocal good or service) is recognised upon commencement of air-time.

No amounts are included in the financial statements for services donated by volunteers.

(d) Borrowing costsBorrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised aspart of the cost of that asset. All other borrowing costs are recognised as an expense in the period in which they are incurred.

(e) Goods and services tax (GST)Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payable are stated inclusive of GST.

(f) Property, plant and equipmentEach class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciationand impairment.

DepreciationProperty, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assets useful life to the Association, as follows:

Leasehold assets 5 yearsPlant and equipment 2 - 20 yearsLeasehold improvements 6 - 15 years

Leased assets and leasehold improvements are amortised over the shorter of either the unexpired period of the lease or their estimated useful life. For the purpose of amortisation, the unexpired period of the lease includes the current lease plus anyextension options provided for in that lease.

At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate.




(g) Financial instrumentsFinancial instruments are recognised initially using trade date accounting, i.e. on the date that the Association becomes party to the contractual provisions of the instrument.

On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for instrumentsmeasured at fair value through profit or loss where transaction costs are expensed as incurred).

Financial AssetsFinancial assets are divided into the following categories which are described in detail below:

• loans and receivables;

• available-for-sale financial assets; and

• held-to-maturity investments.

Financial assets are assigned to the different categories on initial recognition, depending on the characteristics of the instrumentand its purpose. A financial instrument's category is relevant to the way it is measured and whether any resulting income and expenses are recognised in profit or loss or in other comprehensive income.

All income and expenses relating to financial assets are recognised in the statement of profit or loss and other comprehensive income in the 'finance income' or 'finance costs' line item respectively.

Loans and receivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an activemarket. They arise principally through the provision of goods and services to customers but also incorporate other types ofcontractual monetary assets.

After initial recognition these are measured at amortised cost using the effective interest method, less provision for impairment. Any change in their value is recognised in profit or loss.

In some circumstances, the Association renegotiates repayment terms with customers which may lead to changes in the timingof the payments, the Association does not necessarily consider the balance to be impaired, however assessment is made on acase-by-case basis.

Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity. Investments are classified as held-to-maturity if it is the intention of the Association's management to hold them until maturity.

Held-to-maturity investments are subsequently measured at amortised cost using the effective interest method, with revenue recognised on an effective yield basis. In addition, if there is objective evidence that the investment has been impaired, thefinancial asset is measured at the present value of estimated cash flows. Any changes to the carrying amount of the investment are recognised in profit or loss.

Available-for-sale financial assetsAvailable-for-sale financial assets are non-derivative financial assets that do not qualify for inclusion in any of the other categoriesof financial assets or which have been designated in this category. The Association's available-for-sale financial assets compriselisted securities.

All available-for-sale financial assets are measured at fair value, with subsequent changes in value recognised in other comprehensive income.

Gains and losses arising from financial instruments classified as available-for-sale are only recognised in profit or loss when they are sold or when the investment is impaired.

In the case of impairment or sale, any gain or loss previously recognised in equity is transferred to the profit or loss.




Financial instrumentsLosses recognised in the prior period statement of profit or loss and other comprehensive income resulting from the impairmentof debt securities are reversed through the statement of profit or loss and other comprehensive income, if the subsequentincrease can be objectively related to an event occurring after the impairment loss was recognised in profit or loss.

Impairment of financial assetsAt the end of the reporting period the Association assesses whether there is any objective evidence that a financial asset or group of financial assets is impaired.

Available-for-sale financial assetsA significant or prolonged decline in value of an available-for-sale asset below its cost is objective evidence of impairment, in this case, the cumulative loss that has been recognised in other comprehensive income is reclassified from equity to profit or loss asa reclassification adjustment. Any subsequent increase in the value of the asset is taken directly to other comprehensive income.

(h) Intangibles Amortisation

AmortisationAmortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, from the date that they are available for use.

Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

SoftwareSoftware has a finite life and is carried at cost less any accumulated amortisation and impairment losses. It has an estimateduseful life of between four to five years.

(i) Cash and cash equivalentsCash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertibleto known amounts of cash and which are subject to an insignificant risk of change in value.

(j) Employee benefitsProvision is made for the Association's liability for employee benefits arising from services rendered by employees to the end ofthe reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at theamounts expected to be paid when the liability is settled .

Employee benefits expected to be settled more than one year after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements.




(k) ProvisionsProvisions are recognised when the Association has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

Provisions are measured at the present value of management's best estimate of the outflow required to settle the obligation at the end of the reporting period.

3 Critical Accounting Estimates and Judgments

The directors make estimates and judgements during the preparation of these financial statements regarding assumptions about currentand future events affecting transactions and balances.

These estimates and judgements are based on the best information available at the time of preparing the financial statements, howeveras additional information is known then the actual results may differ from the estimates.

The significant estimates and judgements made have been described below.

Key estimates - provisionsAs described in the accounting policies, provisions are measured at management's best estimate of the expenditure required to settle theobligation at the end of the reporting period. These estimates are made taking into account a range of possible outcomes and will vary as further information is obtained.

Key estimates - receivablesThe receivables at reporting date have been reviewed to determine whether there is any objective evidence that any of the receivablesare impaired. An impairment provision is included for any receivable where the entire balance is not considered collectible. The impairment provision is based on the best information at the reporting date.

Key estimates - useful lives of assets The incorporated association determines the estimated useful lives and related depreciation and amortisation charges for its property,plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations oror some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimatedlives, or technically obsolete or non-strategic assets that have been abandoned or sole will be written off or written down.

Key estimates - employee benefits provision As discussed in note 2, the liability for employee benefits expected to be settled more than 12 months from the reporting date arerecognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the reportingdate. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account.



4 Revenue and Other Income 2018 2017

$ $

Dividends 2,432 1,886Fundraising 3,407,877 2,962,769Sponsorship and promotion 1,987,735 1,839,634Audio Production 216,133 199,330Contra Income 189,883 203,927Other revenue 229,617 120,506

Total Revenue 6,033,677 5,328,052

5 Cash and Cash Equivalents 2018 2017

$ $

Cash at bank 904,593 655,136

904,593 655,136

6 Trade and Other Receivables 2018 2017

$ $

Trade receivables 209,013 291,075Provision for impairment (9,060) (9,060)

199,953 282,015GST receivables 0 16,798Other receivables 10,352 3,033

Total current trade and other receivables 210,305 301,846

7 Other Assets

(a) Other Current Assets 2018 2017

$ $

Prepayments 173,949 181,647Prepayments - Product and Brand Development Project 0 73,595

173,949 255,242

(b) Other Non Current Assets2018 2017

$ $Security deposits 9,947 9,945

9,947 9,945

8 Available-for-sale financial assets 2018 2017

$ $Equity Investments - fair value 40,995 33,054

40,995 33,054



Notes to the Financial Statements

9 Property, plant and equipment 2018 2017

$ $Leased assets At cost 58,969 170,222Accumulated depreciation (36,853) (85,963)Total lease assets 22,116 84,259

Plant and equipment At cost 1,348,191 1,130,568Accumulated depreciation (966,653) (764,620)Total plant and equipment 381,538 365,948

Leasehold Improvements At cost 437,828 437,388Accumulated depreciation (212,828) (180,208)Total leasehold improvements 225,000 257,180

Total property, plant and equipment 628,654 707,387

10 Intangible Assets 2018 2017

$ $

Trademarks at cost 17,032 7,373

Computer softwareCost 246,610 220,496Accumulated amortisation (68,187) (20,866)Net carrying value 178,423 199,630

Total Intangibles 195,455 207,003

11 Trade and Other Payables 2018 2017

$ $

Trade payables 372,637 295,979Accrued expenses 47,155 56,349Payroll liabilities 96,539 105,538Other payables 7,266 3,251GST payable 4,091 527,688 461,117

For the Year Ended 31 December 2018


12 Borrowings

(a) Current 2018 2017

$ $

Unsecured loans 4,574 258,322Lease liability 16 12,208 45,095Total current borrowings 16,782 303,417 (b) Non Current

2018 2017$ $

Unsecured loans 250,000 250,000Lease liability 16 22,965 34,377Total non- current borrowings 272,965 284,377

Unsecured loans:

The current unsecured loan of $250,000 was fully paid in July 2018.

Lease liability:Related to finance leases, see note 16(a)

13 Provisions

(a) Current provisions 2018 2017

$ $

Employee leave provisions 219,021 163,906Other employee provisions 73,920 29,629

292,941 193,535 (b) Non-current provisions

2018 2017$ $

Long service leave 27,216 19,895

27,216 19,895

14 Other Liabilities 2018 2017

$ $

Grant Income received in advance 0 21,428Revenue received in advance 171,830 137,812

171,830 159,240


The non-current unsecured loan of $250,000 has a 5 years term at the interest rate of 4.5% p.a. which is payable annually. This loan will be repaid in August 2020 or earlier by mutual agreement.



15 Retained Earnings

2018 2017$ $

Retained earnings at the beginning of the financial year 748,032 497,061Surplus after income tax expenses for the year 106,444 250,971Retained earnings at the end of the financial year 854,476 748,032

16 Capital and Leasing Commitments

(a) Finance Leases 2018 2017

$ $Minimum lease payments: Not later than one year 12,208 48,103 between one year and five years 22,965 36,718

Minimum lease payments 35,173 84,821Less: finance changes (2,091) (5,336)Present value of minimum lease payments 33,082 79,485

Assets pledged as security:

the event of default.

(b) Operating Leases 2018 2017

$ $Minimum lease payments under non-cancellable operating leases: Not later than one year 165,900 162,386 between one year and five years 402,382 76,806

568,282 239,192

Operating leases are in place for office premises, plant and equipment and normally have a term between 1 and 3 yearsLease payments typically increase on an annual basis to reflect market rentals.

17 Auditors' Remuneration

2018 2017$ $

Audit services- rdl.accountants Audit of the financial statements 13,133 12,758Other services - rdl.accountants Preparation of statutory accounts 1,275 1,238 Other services 2,108 0 Total 16,516 13,996

During the financial year the following fees were paid or payable for services provided by rdl.accountants, the auditor of the Association

Finance leases are in place for motor vehicles and normally have a term between 1 and 3 years. The leases have purchase options.

The lease liabilities are secured as the rights to the leased assets, recognised in the statement of financial position revert to the lessor



18 Contingencies

19 Cash Flow Information

2018 2017$ $

Surplus for the year 106,444 250,971Non-cash flows in surplus: depreciation and amortisation 232,865 194,415 revenue - non-cash (189,883) (203,927) Other expenses - non-cash 189,883 203,927Changes in assets and liabilities: (increase)/decrease in trade and other receivables 91,541 (135,522) (increase)/decrease in prepayments 81,293 (128,920) (increase)/decrease in trade and other payables 66,571 180,453 (increase)/decrease in provisions 99,406 (52,952) (increase)/decrease in employee benefits 7,321 1,731 (increase)/decrease in other operating liabilities 12,589 (10,349)Cashflows from operations 698,030 299,827

20 Events after the end of the Reporting Period

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the

21 Statutory Information

The registered office and principal place of business of the company is:

Light Melbourne Inc. 333 Mitcham Road MITCHAM VIC 3132

(a) Reconciliation of result for the year to cash flows from operating activities

Reconciliation of net income to net cash provided by operating activities:

operations of the Association, the results of those operations or the state of affairs of the Association in future financial years.

In the opinion of the Board of Management, the Association did not have any contingencies as at 31 December 2018 (31 December 2017: None).

accountants

60-64 Railway Road, Blackburn 3130PO Box 189, Blackburn 3130t: (03) 9878 1477 f: (03) 9894 [email protected]

ABN 84 164 947 290Liability limited by a scheme approved under Professional Standards Legislation

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF LIGHT MELBOURNE INC.

Report on the Financial Report Opinion

We have audited the accompanying financial report, being a special purpose financial report, of Light Melbourne Inc. (the association), which comprises the statement of financial position as at 31 December 2018, the statement of profit or loss and comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the statement by the members of the board of management.

In our opinion the financial report of Light Melbourne Inc. has been prepared in accordance with Division 60 of the Australian and Not-for-profits Commission Act 2012, including:

a. giving a true and fair view of the company’s financial position as at 31 December 2018 and of its performance for the year ended on that date; and

b. complying with Australian Accounting Standards to the extent described in Note 1 and complying with Division 60 of the Australian and Not-for-profits Commission Act Regulation 2013.

Basis for Opinion We have conducted our audit in accordance with the 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 company in accordance with the ethical requirements of the Australian and Not-for-profits Commission Act 2012 and 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 confirm that the independence declaration required by the Australian and Not-for-profits Commission Act 2012, which has been given to the board of management of the association, would be in the same terms if given to the board of management as at the time of this auditor’s report. 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 We draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the board’s financial reporting responsibilities under the Australian and Not-for-profits Commission Act 2012. As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter. Responsibilities of Board of Management for the Financial Report

The board members are responsible for the preparation of the financial report that gives a true and fair view and have determined that the bas is of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the Australian and Not-for-profits Commission Act 2012 and is appropriate to meet the needs of the members. The directors’ responsibility also includes such internal control as the board of management determine is necessary to enable the preparation of a 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 association’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the board members either intend to liquidate the association or to 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 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 Australian Auditing Standards, we exercise professional judgment 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'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 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 with those charged with governance 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. Matthew Hung, CA rdl.accountants 4th March 2019 Blackburn, Victoria

Certificate by Members of Board Management...accountants 60-64 Railway Road, Blackburn 3130 PO Box...

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