NSCA Foundation Limited ABN 22 008 427 914 Financial Report For the Year Ended 30 …... · 2021....

NSCA Foundation Ltd Level 9, 418A Elizabeth Street

Surry Hills NSW 2010

NSCA Foundation Limited

ABN 22 008 427 914

Financial Report

For the Year Ended 30 June 2015



CONTENTS

Page

Financial Report

Directors' Report 1

Auditor’s Independence Declaration 6

Statement of Comprehensive Income 7

Statement of Financial Position 8

Statement of Changes in Equity 9

Statement of Cash Flows 10

Notes to the Financial Statements 11

Directors' Declaration 28

Independent Auditor’s Report 29



1

DIRECTORS’ REPORT

The Directors present their report together with the financial report of the NSCA Foundation Limited (“the

company”) for the financial year ended 30 June 2015 (“the financial period”) and the auditor’s report

thereon.

Directors

The names of the directors in office at any time during, or since the end of, the year are:

A Baldock (resigned 22nd August 2014)

C Berry

J Doak

B Doyle

R Thurlow

Directors have been in office since the start of the financial year to the date of this report unless otherwise

stated.

Information on Directors can be found on page 5.

Company Secretary

The following person held the position of company secretary throughout the financial year:

Ms Jasmine Doak

The company’s short term objectives were to:

Reduce debt in an effort to free up cash and improve cash flow and cash reserves;

Reduce expense and improve margins to assure continued provision of surplus;

Centralise operational systems for the provision of consistent high quality service;

Continued diversification of revenue streams to provide more services across more areas of risk in all

organisations and reduce NSCA dependency on training services nationally; and

Explore online and e-learning opportunities for the expansion of product offerings and revenue

growth.

The company’s long term objectives were to:

Consolidate debt and strengthen the balance sheet;

Improve the level of surplus and inject the surplus back into the organisation for the growth and

improvement of new services to our customers and members;

Assist Australian organisations to promote health and safety, make their workplaces some of the safest

in the world and protect their most important asset – people;

Expand resources geographically to ensure national service delivery; and

Provide forums to develop and improve knowledge in work health and safety throughout Australia.



2

Strategy for achieving the objectives

The strategy for achieving the company’s objectives is detailed in a three (3) year strategic plan that was

approved by the NSCA Board of Directors in May 2012. Large aspects of the strategic plan have been achieved

in year two through significant post financial period activities. These activities have consolidated the NSCAs

ability to achieve any outstanding strategic objectives in the final year of the plan. The key objectives of

this plan included:

Ensure NSCA Foundation continues to deliver an annual surplus through sound revenue growth, expense

management and therefore, repays debt;

Improve the NSCA Foundation’s level of professionalism, quality and service delivery;

Maintain a team of talented people that understand the business;

Maintain 100% transparency in all communication between NSCA Foundation staff (people cannot achieve

goals if they do not know what is happening);

Ensure all staff maintain a high level of knowledge relating to the Work Health & Safety legislation and

regulation;

Maintain strategic partnerships that can aid in the dissemination and delivery of key objectives;

Achieve all financial targets relating to revenue and expense to ensure all commitments are met and

growth targets are reached;

Grow capability in the area of training, consulting and risk services to increase revenue gathering

opportunities and achieve growth expectations;

Assure productivity by ensuring the health and safety of our people; and

Maintain business contingencies to ensure operational continuance in the face of disaster.

How principal activities have assisted in achieving the objectives

The NSCA Foundation carried out the following principal activities:

The provision of work health safety training through public, onsite and online forums;

Engagement of members and stakeholders through online media, the publishing of the National Safety

Magazine and the fortnightly E-Bulletin, provision of Breakfast and Networking functions and the

recognition of excellence in WHS through the Annual Safety Awards of Excellence; and

The provision of a range of benefits to individual and corporate members and Platinum Partners.

These principal activities have consolidated the NSCA Foundation’s drive for the vision:

These principal activities have sustained the NSCA Foundation’s for many years and whilst the NSCA

Foundation’s does not seek to abandon these core areas of business, it has been necessary to diversify these

service offerings and streams of revenue to ensure a sustainable future and consolidate the business

direction.

Business Direction

For 87 years the National Safety Council of Australia (NSCA) has worked to support Australian business,

industry and workers, provide safe working environments and return Australia’s most important assets –

people, safely home to their families every day.

That Australian Workplaces are the safest in the world and protect

their most important asset – people.



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Through these 87 years the NSCA has driven hard to provide continuously improving member benefits,

opportunities to educate, to obtain the latest information and to network with other industry professionals.

The NSCA responds to member feedback and strives to refine our events and services to meet the increasing

needs of our members.

A recent review of the NSCA business during FY13/14 identified that in order for the NSCA to concentrate

on its mission of providing information, inspiration and support to Australian industry, the NSCA needed to

separate the commercial and public service arms of the business.

The NSCA Board agreed that it could do this by separating the NSCA into a Training & Consulting Services

business and a separate Foundation or institution focusing on the member activities; website and information

provision, magazine, events and awards.

In order to do this the NSCA formed a strategic partnership with Wesfarmers Industrial & Safety (WIS) post

the financial period which resulted in WIS purchasing NSCA’s training and consulting services business. The

strategic partnership will see WIS provide all the Professional Training and Consulting Services of the NSCA,

thereby allowing the renamed NSCA Foundation to focus on improving its membership services and promoting

the safety message within the Australian community.

WIS is the division of Wesfarmers that has a specialist’s business stream that focusses on Work Health &

Safety, including Protector Alsafe, Greencap, Safety Source and NZ Safety. Together these entities provide

a diverse range of risk and safety services and equipment.

Together WIS and the NSCA Foundation value:

Satisfying the needs of customers on a competitive and professional basis through the provision of

solution-based products and services;

Providing a safe and fulfilling working environment to their staff;

Placing a strong emphasis on Safety in everything they do; and

Acting with integrity and honesty in dealings both inside and outside the company.

WIS has offices in all Australian States & Territories, including regional centres, and can provide expertise

in training and consulting across all areas of risk & safety management. It is committed to Safety, and is a

natural partner for NSCA Foundation to form a strategic relationship with.

The intention of this strategic partnership is for WIS to purchase the training & consulting assets of the NSCA;

and provide all the professional training & consulting services under the NSCA brand name to members on

the same discounted terms as they currently enjoy. The professional staffs of the NSCA have transitioned to

WIS where applicable and continue to provide the great service and products that our customers and

members have enjoyed to date. Members will also gain access to other WIS company services, including

integrated risk management through Greencap, and specialist safety services and equipment through

Protector Alsafe; as well as the surety of being supported by a large company that has a full presence across

Australia & New Zealand.

The Board is therefore pleased to advise that the NSCA entered into the proposed strategic partnership with

WIS on 22 August 2014.

The current NSCA membership component has been renamed the NSCA Foundation and continues to operate

as a not for profit charitable foundation; and all membership fees collected will continue to be used

exclusively by the Foundation for the benefit of its charter and membership. The same NSCA staff that has

provided the great member benefits to you will remain with the NSCA Foundation and the Board of Directors

will also remain consistent.



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The Board believes this approach will strengthen the NSCA Foundation, provide a greater range of services

to members through access to the WIS group of companies, and allow the Foundation to continue its work

in advocating safer communities.

The NSCA Foundation continues to build an enviable portfolio of sponsors (including GIO, Ansell Healthcare,

Sparke Helmore, Queensland Rail, Stowe and Provisual Publishing) for all of our functional assets; the

Awards, Breakfasts, Connects and training services.

The Directors are proud to report new and additional blue chip organisations to the Platinum Partnership

program. These blue chip organisations include, but not limited to:

Alphapharm

Ansells

Brookfield Multiplex

Qantas

Energex

GIO Workers Compensation

Leightons

Queensland Rail

Energex

SafeWork Australia

Serco

Sparke Helmore

Ansell Healthcare

Wesfarmers

News Limited

Stowe

Bunzl

Optus

These organisations now recognise the WHS leadership capabilities of the NSCA Foundation and partner with

us through a variety of mechanisms.

Revenue Generation

The 2014/15 financial year was a mixture of two (2) months of the whole organisation including the training

& consulting division, while the remaining ten (10) months without the training & consulting division. The

pleasing aspect was the Foundation is able to report a positive financial outcome for the year. While the

Directors acknowledge is was a year of transition and to some case a level of uncertainty, the outcome was

extremely pleasing. Acknowledgement of the support received from WIS is worth a mention.

Workplace Health and Safety

The following information is presented in accordance with the requirements of the Occupational Health and

Safety Act 1991 (OH&S Act 1991) and is provided under this act on the basis that Head Office for the

Foundation is now located in Sydney.

No. of Incidents (Reportable)

No. of Incidents (Not - Reportable)

Provisional Improvement Notices

Prohibition Notices

Improvement Notices

Investigations

Near Misses (Reported)

The NSCA Foundation continues to review the health and safety management system and is operating a

system that incorporates the relevant Acts and regulations within the jurisdictions of operation. The NSCA

Foundation will of course continue to improve their systems as required to ensure a best practice approach

to the protection of our people, members and customers.



5

Information on Directors

A Baldock, M.B.A., B.H.Sc. (OT), G.A.I.C.D.

Appointed Chief Executive Officer: 5 September 2011

Appointed Managing Director: 16 March 2012

National Safety Council of Australia (NSCA) – Victoria

Resigned August 2014

C Berry, B.Bus.

Appointed Director: 24 August 2004

NSCA Deputy President

Director of Networks and Infrastructure

TNT Australia Pty Ltd – Australia and New Zealand

J. Doak, L.L.B., G.A.I.C.D

Appointed Director: 1 June 2012

Group Manager - Human Resources

Linfox - Victoria

B Doyle

Appointed Director: 3 April 1997

NSCA President

Business Advisor

R Thurlow, C.M.C, JP(Qual), Dip.OHS, Dip.Bus., Dip.App.Sc., Dip.Cos, C.P.M.S.I.A, R.S.P (Aust)

Appointed Director: 27 November 2007

Senior Regional Manager

Global Environment, Health and Safety – Asia Pacific

Mylan – Queensland

Meeting of Directors

Name No. eligible to attend Number attended

A Baldock 1 1

B Doyle 6 6

C Berry 6 4

R Thurlow 6 6

J Doak 6 6

The auditor’s independence declaration for the year ended 30 June 2015 has been received and can be found on page 6.

Signed in accordance with a Resolution of the Board of Directors

Bernie Doyle

President and Chairman of the Board

19 November 2015

6

McLean Delmo Bentleys

Audit Pty Ltd

Level 3, 302 Burwood Rd Hawthorn, Vic 3122

PO Box 582 Hawthorn, Vic 3122

ABN 78 174 410 763 ACN 074 642 587

T +61 3 9018 4666

F +61 3 9018 4799

[email protected]

mcleandelmobentleys.com.au

Auditor’s Independence Declaration

To the Board of Directors of NSCA Foundation Limited:

As engagement partner for the audit of NSCA Foundation Limited for the year ended 30 June 2015, I declare that, to the best of my knowledge and belief, there have been:

i. No contraventions of the independence requirements of the Australian Charities and Not-for-profits Commission Act 2012 in relation to the audit; and

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

McLean Delmo Bentleys Audit Pty Ltd

Adam Roberts Partner Hawthorn 19 November 2015

mailto:[email protected]



7

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2015 Note 2015 2014 $ $

Continuing Operations

Revenue 2 778,092 689,481

Employee benefits expense 3 (331,916) (350,633)

Depreciation expense 3 (695) -

Finance costs 3 (1,277) (9,560)

Marketing (27,365) (27,561)

Operating expense 3 (217,704) (76,183)

Administration expenses 3 (92,654) (127,839) __________ __________

Total expenses (671,611) (591,776) __________ __________

Profit from continuing operations 106,481 97,705 __________ __________

Discontinued operations

Profit from discontinued operations 4 551,384 69,427 __________ __________

Profit attributable to members 657,865 167,133 __________ __________

Other comprehensive income - - __________ __________

Total comprehensive income for the year 657,865 167,133 __________ __________

The accompanying notes form part of the financial statements



8

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2015 Note 2015 2014 $ $

CURRENT ASSETS

Cash and cash equivalents 6 853,225 1,287,733

Trade and other receivables 7 73,932 731,955

Inventories 8 - 21,432 __________ __________

TOTAL CURRENT ASSETS 927,157 2,041,120 __________ __________

NON-CURRENT ASSETS

Property, Plant and Equipment 9 5,152 89,894

Intangible assets 10 - 161,909 __________ __________

TOTAL NON-CURRENT ASSETS 5,152 251,803 __________ __________

TOTAL ASSETS 932,309 2,292,923 __________ __________

CURRENT LIABILITIES

Trade and other payables 11 83,043 1,390,269

Other 12 886,141 859,692

Interest Bearing Liabilities 13 - 458,457

Provisions 14 7,888 266,934 __________ __________

TOTAL CURRENT LIABILITIES 977,072 2,975,352 __________ __________

NON-CURRENT LIABILITIES

Provisions 14 - 20,199 __________ __________

TOTAL NON-CURRENT LIABILITIES - 20,199 __________ __________

TOTAL LIABILITIES 977,072 2,995,551 __________ __________

NET ASSETS (44,763) (702,628) __________ __________ __________ __________

EQUITY

Retained earnings (44,763) (702,628) __________ __________

TOTAL EQUITY (44,763) (702,628) __________ __________ __________ __________




9

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2015

Note Retained Earnings Total

$ $

Equity as at 1 July 2013 (869,761) (869,761)

Profit attributable to members of the entity 167,133 167,133 __________ __________

Balance at 30 June 2014 (702,628) (702,628) __________ __________ __________ __________

Equity as at 1 July 2014 (702,628) (702,628)

Profit attributable to members of the entity 657,865 657,865 __________ __________

Balance at 30 June 2015 (44,763) (44,763) __________ __________ __________ __________




10

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2015 Note 2015 2014 $ $

CASH FLOW FROM OPERATING ACTIVITIES:

Receipts from members and customers 2,175,304 9,064,277

Payments to suppliers and employees (2,445,992) (9,092,945)

Interest received 11,461 43,012

Finance costs (14,548) (138,336) __________ __________

Net cash provided by operating activities (273,775) (123,992) __________ __________

CASH FLOW FROM INVESTING ACTIVITIES:

Cash transferred on sale of business (274,585) -

Purchase of property, plant & equipment and intangibles (7,994) (17,059) __________ __________

Net cash used in investing activities (282,579) (17,059) __________ __________

CASH FLOW FROM FINANCING ACTIVITIES: __________ __________

Net cash used in financing activities - - __________ __________

Net increase/(decrease) in cash held (556,354) (141,051)

Cash at beginning of year 829,276 970,327 __________ __________

Cash at end of year 6 272,922 829,276 __________ __________ __________ __________




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NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NSCA Foundation Limited has elected to adopt the pronouncements AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010-2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements to the annual reporting period beginning 1 July 2012.

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards Reduced Disclosure Requirements, Australian Accounting Interpretations

and other authoritative pronouncements of the Australian Accounting Standards Board and the Australian Charities and Not-for-Profits Commission Act 2012 and the Australian Charities and Not-for-Profits Commission Regulations 2013.

NSCA Foundation Limited is a not-for-profit company limited by guarantee, incorporated and domiciled in Australia. The functional and presentation currency used in this report is Australian Dollars (AUD).

The following is a summary of the material accounting policies adopted by the company in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

Basis of preparation

The accounting policies set out below have been consistently applied to all years presented.

Reporting Basis and Conventions

The financial report has been prepared on an accrual basis and is based on historical costs.

Going Concern

At 30 June 2015, the company has a working capital deficiency of $49,915 (2014: $934,232), net asset deficiency of $44,763 (2014: $702,628) and has earned a profit of $657,865 (2013: $167,133). The cash flow from operations shows a negative cash flow of $273,775 (2013: $123,992 positive) for the year to 30 June 2015. Notwithstanding these indicators the financial report has been prepared on a going concern basis.

Although the entity has a net asset deficiency, liabilities are primarily comprised of deferred membership revenue which does not represent a future cash out flow and will be recognised as revenue in future periods.

Following the sale of the training and consulting division of the business the company is expected to generate sufficient profits to meet its debts and obligations as and when they fall due.

Based on the above the directors believe that the company is a going concern

Accounting policies

(a) Income Tax

The company is exempt from income tax. Accordingly no income tax expense, deferred or otherwise, or income tax payable amounts are recorded in the financial statements.

(b) Inventories

Inventories are measured at the lower of cost and net realisable value. Costs are assigned on a first-in first-out basis.



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NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

(c) Property, plant & equipment

Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses.

Plant and equipment

Plant and equipment is measured on the cost basis less depreciation and impairment losses.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of financial performance during the financial period in which they are incurred.

Depreciation

The depreciable amount of all property, plant and equipment including capitalised leased assets is depreciated on a straight line basis over their useful lives commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or estimated useful lives of the improvements.

The depreciable rates used for each class of depreciable assets are:

Class of Fixed Assets Depreciation Rate

Leasehold improvements 20%-33%

Furniture & Fittings 15%

Office Equipment 33%

Leased Assets (excluding motor vehicles) 33%

Motor Vehicles 20%

IT Equipment 33%

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

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the statement of financial performance. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.



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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

(d) Leases

Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the assets, but not the legal ownership are transferred to the company, 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 the leased property or the present value of the minimum lease payments, including any guaranteed residual value. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the lease term.

Lease payments for the operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.

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



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(e) Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the statement of financial performance over the period of the borrowings using the effective interest rate method.

Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in other income or other expenses.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

(f) Employee entitlements

Provision is made for the company’s liability for employee benefits arising from services rendered by employees to reporting date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.

(g) Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts.

(h) Revenue

Revenue is recognised at the fair value of consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances and duties and taxes paid.

Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

Revenue from the sale of goods is recognised upon the delivery of goods to customers.

Revenue from membership fees is recognised upon delivery of the service to the members. Fees received

in advance for the next financial year are recognised as income in advance under other liabilities

Sponsorship and Platinum Partner income is recognised on receipt.

Interest revenue is recognised as interest accrues using the effective interest method. The effective interest method uses the effective interest rate which is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial asset.



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(i) Goods and services tax (GST)

Revenue, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

(j) Impairment of assets

At each reporting date, the entity reviews the carrying value of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of that asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the statement of financial performance. Where it is not possible to estimate the recoverable amount of an individual asset, the entity estimates the recoverable amount of the cash-generating unit to which the asset belongs.

(k) Receivables

Trade receivables are recognised at original invoice amounts less and allowance for uncollectible amounts and have repayment terms between 14 and 30 days.

Collectability of trade receivables is assessed on an ongoing basis. Debts which are known to be uncollectible are written off. An allowance for impairment of trade receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 35 days overdue) are considered indicators that the trade receivable is impaired. The amount of the allowance is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. The amount of the allowance is recognised in the statement of financial performance in other expenses.

(l) Payables

Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the company. Trade Creditors are usually settled within 30 days. No interest is applicable to these accounts.

(m) Comparative figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

(n) Critical judgements and significant accounting estimates

The preparation of financial statements requires the directors to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. There are no areas involving a high degree of judgement or complexity, or area where assumptions and estimates are significant to the financial statements. Where estimates and assumptions are applied these are detailed in the applicable accounting policy.



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2015 2014 $ $

NOTE 2: REVENUE AND OTHER INCOME

Total revenue from operating activities

Memberships 392,345 419,278

Sponsorship/Platinum Partners 175,843 116,918

Debt forgiveness 284,684 -

Sundry 198,443 110,273

Interest received 11,461 43,012 __________ __________

Total revenue 1,062,776 689,481 __________ __________ __________ __________

NOTE 3: PROFIT FROM OPERATING ACTIVITIES

Expenses

Employee benefits expense

Salaries & wages 281,237 287,904

Superannuation 27,851 25,696

Other employee costs 22,828 36,760 __________ __________

Total Employee benefits expense 331,916 350,633 __________ __________

Finance Costs

Third parties 1,277 9,560 __________ __________

Total Finance Costs 1,277 9,560 __________ __________

Depreciation

Property, plant & equipment 695 - __________ __________

Total Depreciation 695 - __________ __________

Bad and doubtful debts - -

Rental expense on operating leases 11,362 68,682



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2015 2014 $ $

NOTE 4: DISCONTINUED OPERATIONS

At the extraordinary general meeting held on 15 August 2014 the members resolved to sell the Training & Consulting business of NSCA. The sale was completed on 22 August 2014 and included all the sale of all the assets and intellectual property and the settlement or assumption of certain liabilities associated with these services.

Financial information relating to the discontinued operation to the date of sale is set out below.

The financial performance of the discontinued operation to the date of sale, which is included in profit/(loss) from discontinued operations per the statement of comprehensive income, is as follows:

Revenue 1,292,146 8,337,368

Expenses (1,250,390) (8,267,941) __________ __________

Profit attributable to members 41,756 69,427 __________ __________

Debt forgiveness 284,684 -

Profit on sale 224,944 - __________ __________

Total profit attributable to the discontinued operations 551,384 69,427 __________ __________

The net cash flows of the discontinued division, which have been incorporated into the statement of cash flows, are as follows:

Net cash inflow/(outflow) from operating activities (418,547) (206,391)

Net cash inflow/(outflow) from investing activities (2,147) (17,059)

Net cash (outflow)/inflow from financing activities - - __________ __________

Net cash decrease in cash generated by the discontinued operations (420,694) (223,450) __________ __________



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2015 2014 $ $ NOTE 5: RELATED PARTY TRANSACTIONS

(a) Under section 63 of NSCA Foundation Limited’s constitution no director may receive any remuneration for his or her services in his or her capacity as a director. The following amounts were paid to senior management personnel during the period (including amounts to director A Baldock in his capacity as Chief Executive Officer and other senior management personnel of the entity prior to the sale of the training and consulting division).

(a) Key management personnel compensation:

279,314 1,057,483 __________ __________ __________ __________

(b) Transactions with related parties

There were no transactions between NSCA Foundation Ltd and any companies, organisations or Parties related to any of the NSCA Foundation directors.



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2015 2014 $ $ NOTE 6: CASH AND CASH EQUIVALENTS

CURRENT

Cash on hand 640 2,850

Cash at bank 272,282 1,284,883

Monies held in trust 580,303 - __________ __________

853,225 1,287,733 __________ __________ __________ __________

Reconciliation of Cash

Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement of financial positions as follows:

Cash on hand 640 2,850

Cash at bank 272,282 1,284,883

Overdraft included in trade and other payables - (458,457) __________ __________

Cash and cash equivalents 272,922 829,276 __________ __________ __________ __________

Credit standby arrangements

Total facility of bank overdrafts - 550,000

Bank overdraft used at reporting date - (458,457) __________ __________

Bank overdraft unused at reporting date - 91,543 __________ __________ __________ __________

NOTE 7: TRADE AND OTHER RECEIVABLES

CURRENT

Trade receivables 40,706 738,123

Provision for impairment of receivables - (26,778) __________ __________

40,706 711,345

Other receivables - -

Prepayments 33,226 20,610 __________ __________

73,932 731,955 __________ __________ __________ __________



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2015 2014 $ $ NOTE 7: TRADE AND OTHER RECEIVABLES (Cont’d)

Analysis of allowance account

Opening balance 26,778 65,581

Provision (released)/raised during the year (26,778) (37,988)

Receivables written off during the year - (815) __________ __________

- 26,778 __________ __________ __________ __________

NOTE 8: INVENTORIES

CURRENT

Safety products and materials - 21,432 __________ __________

- 21,432 __________ __________ __________ __________



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2015 2014 $ $ NOTE 9: PROPERTY, PLANT & EQUIPMENT

Leasehold Improvements - 364,286

Less accumulated amortisation - (327,739) __________ __________

- 36,547 __________ __________

Plant and equipment

Plant and equipment

At cost 5,847 264,351

Less accumulated depreciation (695) (211,004) __________ __________

5,152 53,347 __________ __________

Total property, plant & equipment 5,152 89,894 __________ __________ __________ __________

Leasehold Plant &

Improvement Equipment Total

$ $ $

Balances brought forward 01/07/2014 36,547 53,347 89,894

Additions - 5,847 5,847

Disposals/discontinued operations (34,215) (51,201) (85,416)

Depreciation and amortization (2,332) (2,841) (5,173) ________ ________ ________

Carrying amount as at 30/06/2015 - 5,152 5,152 ________ ________ ________ ________ ________ ________



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2015 2014 $ $ NOTE 10: INTANGIBLE ASSETS

Website Development at cost - 958,204

Less accumulated amortisation - (796,295) __________ __________

- 161,909 __________ __________

Total intangibles - 161,909 __________ __________ __________ __________

Website

Development Total

$ $

Balances brought forward 01/07/2014 161,909 161,909

Additions - -

Disposals (150,911) (150,911)

Amortisation expenses (10,998) (10,998) ________ ________

Carrying amount as at 30/06/2015 - - ________ ________



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2015 2014 $ $ NOTE 11: TRADE AND OTHER PAYABLES

CURRENT

Trade Payables 18,932 1,174,173

Sundry payables and accrued charges 64,111 216,096 __________ __________

83,043 1,390,269

__________ __________

NOTE 12: OTHER LIABILITIES

Income Received in advance

Income received in advance 305,838 859,692

Monies held in trust 580,303 - __________ __________

886,141 859,692 __________ __________

NOTE 13: INTEREST BEARING LIABILITIES

CURRENT

Bank overdraft - 458,457 __________ __________

- 458,457 __________ __________ __________ __________



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2015 2014 $ $

NOTE 14: PROVISIONS

Current

Employee benefit – annual leave 7,888 243,665

Employee benefit – long service leave - 23,269 __________ __________

7,888 266,934 __________ __________ __________ __________

Non-current

Employee benefit – long service leave - 20,199 __________ __________

- 20,199 __________ __________ __________ __________

Employee benefits – annual leave


Amounts provided during the year 48,535 297,326

Amounts utilised/transferred* during the year (284,312) (289,236) __________ __________

Closing balance 7,888 243,665 __________ __________ __________ __________

Employee benefits – long service leave


Amounts provided during the year - 29,533

Amounts utilised/transferred* during the year (43,468) (21,238) __________ __________

Closing balance - 43,468 __________ __________ __________ __________

Current portion of long service leave - 23,269

Non-current portion of long service leave - 20,199 __________ __________

- 43,468 __________ __________ __________ __________

* Employee entitlements transferred as part of the sale of the training and consulting business.



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2015 2014 $ $

NOTE 15: CAPITAL AND LEASING COMMITMENTS

(a) Operating Lease Commitments

Non-cancellable operating leases contracted for, but not capitalised in the accounts.

Payable – minimum lease payments

Not later than 12 months - 1,029,730

Between 12 months and 5 years - 1,163,604

Later than 5 years - - __________ __________

- 2,193,334 __________ __________ __________ __________

As part of the sale of the training and consulting division of the entity, deeds of assignment were signed by the buyer in respect of the operating leases, extinguishing all future obligations of the NSCA Foundation.

NOTE 16: MEMBERS’ GUARANTEE 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 towards meeting any outstanding obligations of the company. At June 30, 2015 the number of members was 724 (2014: 1,056).



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NOTE 17: FINANCIAL INSTRUMENTS

Categories of financial instruments

2015 2014 $ $

Financial assets

Cash and cash equivalents 272,922 1,287,733

Loans and receivables 40,706 711,345 __________ __________

313,628 1,999,078 __________ __________ __________ __________

Financial liabilities

Trade and other payables 18,932 1,361,638

Interest bearing liabilities - 458,457 __________ __________

18,932 1,820,095 __________ __________ __________ __________

(a) Terms, conditions and accounting policies

The Company’s terms, conditions and accounting policies of financial instruments (cash at bank, debtors and creditors) are those adopted by businesses in Australia generally.

(b) Interest rate risk

The Company has no material exposure to interest rate risk on its financial instruments.

(c) Credit risk

The Company does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the Company.

(d) Liquidity risk

The Company manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained.

(e) Net fair values The net fair values of the Company’s financial assets and liabilities are not expected to be significantly different from each class of asset and liability as recognised in the balance sheet as at 30 June, 2015.



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NOTE 18: SIGNIFICANT EVENTS AFTER YEAR END No matters or circumstances have arisen since the end of the financial year which 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. NOTE 19: CONTINGENT LIABILITIES At 30 June 2015 the company has no contingent liabilities. NOTE 20: COMPANY DETAILS The registered office and principal place of business for the financial year 2015 was: 17 McNaughton Road Clayton, Victoria 3168.



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DECLARATION BY DIRECTORS

The directors of the company declare that: 1. The financial statements, comprising the statement of financial performance, statement of financial

position, statement of cash flows, statement of changes in equity, and accompanying notes, are in

accordance with the Australian Charities and Not-for-Profits Commission Act 2012 and:

(a) comply with Accounting Standards and the Australian Charities and Not-for-Profits Commission Regulations 2013.; and

(b) give a true and fair view of the company’s financial position as at 30 June 2015 and of its

performance for the year ended on that date. 2. There are reasonable grounds to believe that the company will be able to pay its debts as and when they

become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Bernie Doyle, Ray Thurlow,

President and Chairman of the Board Director

19 November 2015 23 November 2015

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McLean Delmo Bentleys

Audit Pty Ltd

Level 3, 302 Burwood Rd

Hawthorn, Vic 3122

PO Box 582 Hawthorn, Vic 3122

ABN 78 174 410 763

ACN 074 642 587

T +61 3 9018 4666 F +61 3 9018 4799

[email protected]

mcleandelmobentleys.com.au

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NSCA FOUNDATION LIMITED

Report on the financial report

We have audited the accompanying financial report of NSCA Foundation Limited, which comprises the balance sheet as at 30 June 2015, the statement of 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 directors’ declaration.

Directors’ responsibility for the financial report

The directors of NSCA Foundation Limited are responsible for the preparation of the financial report that gives a true and fair view of the financial report 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 the 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. Those 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 judgement, 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 entity’s preparation of the financial report that gives a true and fair view 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.

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 NSCA Foundation Limited, would be in the same terms if provided to the directors as at the time of this auditor’s report.

mailto:[email protected]

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NSCA FOUNDATION LIMITED

Opinion

In our opinion, the financial report NSCA Foundation Limited is in accordance with the Australian Charities and Not-for-profits Commission Act 2012, including:

(i) giving a true and fair view of NSCA Foundation Limited financial position as at 30 June 2015 and of its performance for the year ended on that date; and

(ii) complying with Australian Accounting Standards Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Regulation 2013.

Matters Relating to the Electronic Publication of the Audited Financial Report

This auditor's report relates to the financial report of NSCA Foundation Limited for the year ended 30 June 2015.

The Foundation’s directors are responsible for the integrity of the presentation of the financial report in an electronic form. We have not been engaged to report on the integrity of the Foundation’s website or any other electronic publication. The auditor's report refers only to the subject matter described above. It does not provide an opinion on any other information which may have been hyperlinked to/from these statements. If users of the financial report are concerned with the inherent risks arising from electronic publication, they are advised to refer to the hard copy of the audited financial report to confirm the information contained in an electronic version of the financial report. McLean Delmo Bentleys Audit Pty Ltd

A G Roberts Partner Hawthorn Dated this 23rd day of November 2015

NSCA Foundation Limited ABN 22 008 427 914 Financial Report For the Year Ended 30 …... · 2021....

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