financial report 2015-16

Kay RundleBoard Chair

Michael O’NeillBoard DirectorChair, Finance and Audit Committee

Kay Rundle

Michael O’Neill

foreword

cohealth continues to deliver on its mission to improve the health and wellbeing for all and tackle inequality, in partnership with people and the communities they live in.

In 2015/16 cohealth reported a deficit of $774,318 in comparison to an operating deficit of $1,036,556 in the prior year.

The better than budget operating result was driven by strong growth in income, including a 5.8% growth in grants and increased productivity of our medical and dental clinics. The result represents a continued strong and growing relationship with Government and community.

Expenditure growth throughout 2015/16 was a combination of increased salary expenditure to support service delivery and programs, and a continued commitment to strategic investment including: • construction of the integrated health centre at 78 Paisley Street, Footscray; • development and launch of the AA accessibility-rated cohealth website; • trial of new models of care including streamlined intake and assessment; • conducting a client experience survey; • implementation of a single IT platform and improved key business systems; • completion of a capital infrastructure plan to develop contemporary spaces and places for staff and the community into the future; and • a significant contribution to the improvement and renewal of the physical infrastructure of the organisation.The financial position of cohealth remains strong with net assets of $23,421,564, a stable platform for ongoing operations and strategic investment.

We commend our Board colleagues, cohealth management and staff, and our many community advisors and representatives for their passion and commitment. This enables cohealth to continue to provide services and support that are responsive to individual and community need and promote health and wellbeing, prevent ill health and better manage health conditions.

We look forward to continuing to work together with communities and stakeholders to improve the health and wellbeing for all.

Crowe Horwath Melbourne is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omission of financial services licensees.

Auditor Independence Declaration under Section 60-40 of the Australian Charities and Not-for-profits Commission Act 2012 to the Directors of cohealth

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2016 there have been no contraventions of:

1) No contraventions of the auditor independence requirements as set out in Section 60-40 of the Australian Charities and Not-for-profits Commission Act 2012 in relation to the audit; and

2) No contraventions of any applicable code of professional conduct in relation to the audit.

CROWE HORWATH MELBOURNE

JOHN GAVENS

Partner

Melbourne, Victoria

Date:28 September 2016

Crowe Horwath Melbourne is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omission of financial services licensees.

Independent Auditor’s Report to the Members of cohealth

Report on the financial report

We have audited the accompanying financial report of cohealth, which comprises the Statement of Financial Position as at 30 June 2016, the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, notes comprising a summary of significant accounting policies, other explanatory information and the directors’ declaration.

Directors’ responsibility for the financial report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Act 2012 and for such internal control as the directors determine is necessary to enable the preparation of a financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation and fair presentation of the financial report 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

2

Independence

In conducting our audit, we have complied with the independence requirements of the Australian Charities and Not-for-profits Commission Act 2012. We confirm that the independence declaration required by the Australian Charities and Not-for-profits Commission Act 2012, which has been given to the directors of cohealth, would be in the same terms if provided to the directors as at the time of this auditor report.

Auditor’s opinion

In our opinion the financial report of cohealth is in accordance with the Australian Charities and Not-for-profits Commission Act 2012, including

a) giving a true and fair view of the company’s financial positions as at 30 June 2016 and of its performance for the year ended on that date; and

b) complying with Australian Accounting Standards – Reduced Disclosure Requirements (including Australian Accounting Interpretations) and the Australian Charities and Not-for-profits Commission Act 2012.

CROWE HORWATH MELBOURNE

JOHN GAVENS

Partner

Melbourne, Victoria

Date: 28 September 2016