Regional Housing Limited... · 2019-12-12 · Regional Housing Limited ABN: 14 139 284 647...

Regional Housing LimitedABN: 14 139 284 647

Financial Statements

For the Year Ended 30 June 2019


ContentsFor the Year Ended 30 June 2019

Page

Financial Statements

Directors' Report 1

Lead Auditor's Independence Declaration 10

Statement of Profit or Loss and Other Comprehensive Income 11

Statement of Financial Position 12

Statement of Changes in Equity 13

Statement of Cash Flows 14

Notes to the Financial Statements 15

Directors' Declaration 32

Independent Audit Report 33


Directors' ReportFor the Year Ended 30 June 2019

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&RPSDQ\´� for the year ended 30 June 2019.

Information on Directors

The names of Directors who held office at any time during, or since the end of the year are set out below

WRJHWKHU�ZLWK�WKH�LQIRUPDWLRQ�RQ�HDFK�'LUHFWRU¶V�area of expertise:

Names of Directors

Area of ExpertiseDate

AppointedDate of

Cessation

Lucinda Doughty Legal / Asset Management / Risk 04/09/2009 09/10/2018

Denise Tomlin Business / Human Resources 17/12/2012 20/05/2019

Jeffrey Kirchner Finance 04/09/2009 09/10/2018

Judy PetersCommunity / Social / Local

Government17/06/2013

Ross Hunter Asset Management 18/02/2013 09/10/2018

Sandra Holebrook

Business / Finance / Asset Management

13/10/2014

Cheryl Barrett Community / Business 20/06/2016

Brian Hayhurst Community / Social 20/03/2017

Nathan FreemanProperty Development / Town

Planning20/03/2017

Rahel Clarke Legal / Risk 09/10/2018

Benjamin BrownProperty Development / Asset

Management09/10/2018

Grant DaviesProperty Development &

Management09/10/2018

1



Meetings of Directors

During the financial year, 12 meetings of Directors were held. Attendances by each Director during the

year are as follows:

Directors MeetingsEligible to

AttendNumber Attended

Lucinda Doughty 3 3

Denise Tomlin 10 8

Jeffrey Kirchner 3 1

Judy Peters 12 10

Ross Hunter 3 3

Sandra Holebrook 12 11

Cheryl Barrett 12 10

Brian Hayhurst 12 12

Nathan Freeman 12 11

Rahel Clarke 9 7

Benjamin Brown 9 9

Grant Davies 9 8

Corporate Information

7KH�&RPSDQ\�LV�D�µQRW�IRU�SURILW¶�HQWLW\��UHJLVWHUHG�DV�D�FRPSDQ\�OLPLWHG�E\�JXDUDQWHH��,W�GRHV�QRW�LVVXH�

shares to its members. Under its constitution it does not have the capacity to issue dividends to its

members. Any surplus on winding up will be distributed to an organisation which has similar objects as

dictated by the Constitution.

The Company has varying classes of membership as set out below:

If the Company is wound up, the Constitution states that each member is required to contribute a

maximum of $50 each towards any outstanding obligations of the Company. At 30 June 2019 the number

of members was 20 (2018:20).

Details on Members

Each class of membership in the Company

Class Number Liability of Members on Wind up

2019 2018 2019 2018

Ordinary Members

17 17 $850 $850

Life Members 3 3 $150 $150

Total 20 20 $1,000 $1,000

2



Principal Activities

The principal activities of Regional Housing Limited during the financial year were to develop, manage

and facilitate housing and support for people in need with a range of communities and partners.

There have been no significant changes in the nature of 5HJLRQDO�+RXVLQJ�/LPLWHG¶V�SULQFLSDO�DFWLYLWLHV�

during the year.

Strategic Objectives

RHL aspires through these Strategic Objectives to achieve far beyond high quality housing, supports and services for people with housing needs. It is about changing the environment within the community that makes living a fulfilling life possible for every person.

The 2016 - 2019 organisation's strategic objectives are:

x To Develop, Manage and Facilitate Housing for People in Need

o This year we:

� Had the new purpose-built Youth Shelter in Hervey Bay approved by Department of

Housing & Public Works as a result of our submission

� Nominated for Community Organisation of the Year for 2019 at the Bundaberg

Regional Chambers of Commerce

� Housed 1,067 individuals during 2018/2019

� Managed 527 properties in Bundaberg, Hervey Bay and South Burnett

� Continued to use SPM Assets, an Asset Management/Portfolio Condition

Management system to ensure the highest level of maintenance on our properties

for our tenants to reside

� Continued our formal partnership with South Burnett CTC Incorporated to provide a

satellite service for South Burnett tenants

� Implemented the Board decision to shift focus to pursue Tier One registration and

increase scale of operations

� Developed a 5-year Growth Plan in conjunction with the Department of Housing &

Public Works Partnering for Growth and Partnering for Impact initiatives.

� Continued working with Department of Housing & Public Works and Fraser Coast

Regional Council to take on management of 40 properties currently owned and

managed by the Council.

� Signed Management Agreement with Disability Services Queensland to manage

Disability Housing in Bundaberg, and Fraser Coast.

x To provide Support for People in Need

o This year we:

� Provided frontline homelessness support to 1,760 clients

� Assisted 510 households in immediate crisis with Emergency Relief Funding

� 99% of customers surveyed were satisfied (or better) with the overall quality of

services provided by RHL

� 96% of tenants surveyed were either satisfied or very satisfied with the maintenance

of their property during their tenancy

� 99% of tenants surveyed felt that RHL had supported them to maintain their tenancy

� Supported 26 young people in the Youth Shelter

� Continued the monthly Breakfast Stop in partnership with the Rapid Relief Team

providing 280 free meals during 2018/2019

� Continued partnerships with Edon Place Domestic and Family Violence Centre

Incorporated, HeadSpace Bundaberg and Lifetec Australia Limited

3



� Continued the Tenant Participation Advisory Group to share information and ideas

to assist RHL to improve standards of service while providing better outcomes for

our tenants and community

� Introduced the inaugural RHL Spring Garden Competition

� Partnered with Department of Housing & Public Works to deliver the One Home

Pilot

� Continued the delivery of the Home Safety Security Upgrade program in partnership

with Edon Place Domestic and Family Violence Centre Incorporated

� Continued the delivery of the Home Assist Secure (HAS) program for Hervey Bay

providing 4,586 hours of repairs & maintenance to over 753 eligible clients in

2018/2019.

� Ensured RHL is an effective advocate for affordable housing supply in our

geographical footprint boasting a strong, transparent and respectful relationship with

government and key community stakeholders

x To develop Community Support and Awareness

o This year we:

� Engaged with Queensland Police Service to educate tenants on safety, reporting

threats/ violence and community awareness

� Distributed quarterly RHL newsletters to tenants and stakeholders

� Actively participated in Community Events held within the region

� Conducted Property Maintenance Planning (PMP) assessments on portfolios of

other community housing providers under a fee for service arrangement

� Continued the Tenant Participation Advisory Group to share information and ideas

to assist RHL to improve standards of service and better outcomes

� Introduction of the RHL Spring Garden Competition

� Introduction of the Empowering Tenants Forum

� Hosted and facilitated the annual Wide Bay Burnett Regional Housing Forum

� Provided regular updates on Website to ensure our strong reputation is maintained

and information is shared with our tenants and community

� Ensured that RHL was represented by Staff, Management and Directors at key

platforms including advisory groups, Boards, peak bodies, forums, councils and

conferences at a local, State and National level

� Informed relevant stakeholders and elected members on current issues within the

sector

x To partner with other Industry Support Providers

o This year we:

� Ensured that RHL was represented by Staff, Management and Directors at key

platforms including advisory groups, Boards, peak bodies, forums, councils and

conferences at a local, State and National level

� Engaged with Queensland Police Service to educate tenants on safety and

community awareness

� Continued partnerships with YHARS, Red Cross, Community Lifestyle Solutions,

Open Minds, South Burnett CTC Inc., HeadSpace Bundaberg to provide a

complimentary service to RHL

� Continued partnership with Rapid Relief Team to provide monthly Breakfast Stop

� Continued the delivery of the Home Safety Security Upgrade program in partnership

with Edon Place Domestic and Family Centre Incorporated

� Ongoing partnership with RAW Business Advisory

� Developed relationships with the National Housing Finance & Investment

Corporation (NHFIC), Westpac, NAB and Auswide Bank

4



x To ensure the Organisations Financial Sustainability

o This year we:

� Convened 100% of all Board Meetings scheduled as RHL is committed to the

highest standards of corporate governance and financial review

� Independently chaired quarterly Audit & Risk Committee meetings to provide

independent oversight and assistance to the Board of RHL on risk management,

control, governance and external accountability responsibilities

� Held bi-annual meetings of the Viability & Sustainability Committee which focus on

long term financial sustainability of the organisation

� Maintained registration with the National Regulatory System Community Housing by

successfully completing the annual compliance review

� Reviewed the Business Continuity Plan

� Maintained registration as a NDIS Provider for Specialist Disability Accommodation

(SDA) and Home Modifications and have now a number of SDA properties.

� Was successful in the funding application to deliver Commonwealth Financial

Counselling (CFC)

� Was successful in the funding application to continue to deliver Emergency Relief

(ER) funding.

x Developing the Organisations Cultural Sustainability

o This year we:

� Completed all requirements and retained registration with the National Regulatory

System Community Housing (NRSCH),

� Rollout of new organisational structure to enable planned future growth

� Actively applied continuous improvement practices to ensure compliance with

contractual agreements, statutory obligations, organisation safety and health.

� Maintained the Human Services Quality Framework (HSQF) Self-Assessment and

Continuous Improvement Plan as per contractual requirements.

� Conducted bi-annual Staff Performance appraisals providing all staff with

constructive feedback on their performance and the opportunity to in turn provide

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� Continued professional development of staff including a multitude of training,

workshops, conferences and forum opportunities

� Retained an external HR Consultant to effectively manage HR regulations and

maintain a high standard as a quality employer

� Promoted our achievements and ensured RHL is recognised as an innovative

leader following good business practice while maintaining a positive image of the

Community Housing Sector

� Reviewed the Business Continuity Plan and Succession Plan

� Proactively engaged in Contract Performance Review meetings with the Department

of Housing and Public Works

x Monitoring the Strategic Plan

o This year we:

� Completed a Progress Achievement Report against the Strategic Plan in September

2018 and March 2019.

5



$XGLWRU¶V�,QGHSHQGHQFH�'HFODUDWLRQ

The DXGLWRU¶V independence declaration for the year ended 30 June 2019 has been received and can be found on page 10 of the financial report.

This Report of the Directors is signed in accordance with a resolution of the Board of Directors.

Director: ...............................................................

Director: ................................................................

Dated this 16th day of September 2019

6



Board of Directors

Brian Hayhurst | Chairperson

Brian was DSSRLQWHG�WR�5+/¶V�%RDUG�RI�'LUHFWRUV�LQ�0DUFK��+LV�YLVLRQ�is that all people have the opportunity to make choices that can create positive outcomes in their lives. He intends to use his skills to educate others and to support avenues that create opportunities to assist the GLVDGYDQWDJHG��%ULDQ�EULQJV�D�ZHDOWK�RI�H[SHULHQFH�WR�5+/¶V�%RDUG��KDYLQJ�already served as a director for three other not-for-profit organisations. He also understands the frontline challenges of community housing better than most, having previously worked as a Tenancy Manager for Bundaberg Housing Services Inc.

x Bachelor of Social Work (MAASW)x Justice of the Peace Qualifiedx Authorised Mental Health Practitionerx Qualified Mental Health Instructor

Benjamin Brown | Vice Chairperson

%HQ�ZDV�DSSRLQWHG�DV�5+/¶V�ILUVW�<RXWK�,QWHUQ�WR�WKH�%RDUG�RI�'LUHFWRUV�LQ�September 2017, joined the Board as a Director in October 2018 and was elected as Vice-Chairperson in May 2019. Ben brings to RHL experience as a member of a number of tertiary councils and committees, and has a background in Engineering. Ben is passionate about strategic planning and helping to further his local community.

x Bachelor of Civil Engineering (Hon)x Member of Engineers Australiax Graduate of the Australian Institute of Company Directors x Regional Advisory Committee Member of the Institute of Managers

and Leaders

Judy Peters | Secretary

Judy has a background in government and corporate business, policy development and stakeholder engagement with extensive experience in corporate governance and financial sustainability. She is a Life Member of ALGWA (Qld) empowering women in leadership. As a member of the Board RI�5HJLRQDO�+RXVLQJ�/LPLWHG�KHU�YLVLRQ�LV�WR�µGHOLYHU�VXVWDLnable appropriate KRXVLQJ�IRU�UHVLGHQWV�WR�OLYH�FRPIRUWDEO\�DQG�DIIRUGDEO\¶�

x Diploma Local Government (Administration)x Diploma Business (Frontline Management)x Justice of the Peace Qualifiedx Advanced Diploma Community Sector Management

7



Sandra Holebrook | Treasurer

Sandra is a business professional with over 25 years of commercial experience in Business Management, Business Development, and Project Management spanning the retail, distribution, wholesaling and manufacturing sectors. She has a track record of successfully deploying complex solutions and business change with an absolute focus on the realisation of tangible business benefits. She is a strategic thinker with effective implementation skills and understands the importance of stakeholder management. Holding a number of Board positions has provided Sandra with the opportunity to utilise her diverse portfolio of skills and experience at a governance level. Formerly the Secretary of Youthcare +HUYH\�%D\�,QF��6DQGUD�MRLQHG�5+/¶V�%RDUG�RI�Directors in October 2014 during the successful merger of Youthcare and RHL.

x Qualified Chartered Accountantx Graduate Diploma in Marketing Managementx Licensed Real Estate Agent

Nathan Freeman | Director

1DWKDQ�KDV�EHHQ�D�PHPEHU�RI�5+/¶V�3ODQQLQJ��Development committee since 2014 and was appointed to the Board of Directors in March 2017. Nathan brings to the Board his knowledge and skills as a qualified Town Planner along with a wealth of experience from his involvement in a number of not-for-profit organisations and committees within the greater Wide Bay FRPPXQLW\��1DWKDQ¶V�YLVLRQ�IRU�5HJLRQDO�+RXVLQJ�/LPLWHG�LV�WR�VHH�WKH�organisation grow and expand sustainably while gaining a better understanding of the issues facing our youth, those who are socially disadvantaged and persons living with disability in our community.

x Bachelor of Regional and Town Planning (Hons)x Certified Practicing Planner with the Planning Institute of Australiax Member of the Urban Development Institute of Australiax Auxiliary Firefighter with Queensland Fire and Emergency Servicesx Committee Member for Across the Waves Sports Club Inc.

Cheryl Barrett | Director

&KHU\O�MRLQHG�5+/¶V�%RDUG�RI�'LUHFWRUV�LQ�-XQH��EULQJLQJ�DSSUR[LPDWHO\�30 years of experience from the community housing industry, Local and State Government and private business. Her knowledge of the housing and social services sector combined with her skills in leadership and previous experience as Secretary for a not-for-profit board, make Cheryl a valuable addition to the RHL team. Cheryl is passionate about ensuring that those less fortunate can access safe and affordable housing in their own community. Cheryl is currently working as the Chief Executive Officer for Southern Cross Support Services, is the Chair of the PHN Wide Bay Community Advisory Council and is a Chartered Fellow of the Institute of Managers and Leaders.

x Graduate Certificate of Social Science in Housing Management & Policy

x Diploma of Managementx Diploma of Population Healthx Cert IV in Business Managementx Cert IV in Training & Assessment

8



Grant Davies | Director

*UDQW¶V�MRXUQH\�ZLWK�5+/�EHJDQ�LQ��ZKHQ�KH�MRLQHG�DV�ERWK�DQ�RUGLQDU\�PHPEHU�DQG�D�PHPEHU�RI�5+/¶V�3ODQQLQJ�DQG�'HYHORSPHQW�&RPPLWWHH��+H�ZDV�DSSRLQWHG�WR�5+/¶V�%RDUG�RI�Directors in 2018 where his experience in the real estate and development sectors, negotiation skills and passion for community advocacy are welcome additions. Grant believes there is a growing need for social and affordable housing in our region and across the State, presenting opportunities for RHL to expand well into the future. As a Real Estate Agent with interests and experience in residential sub-division development, Grant is passionate about projects and services that benefit regional communities and assist them to grow. Grant is an advocate for sustainable development and understands both the social impacts of residential living design for end users and its impact on the environment. With a background in IT and Web development, Grant is also keen to see RHL take full advantage of current and emerging technologies to reduce paper waste and further streamline the business.

x Licenced Real Estate Agentx Active member of the Urban Developers Institute of Australia (UDIA)x Volunteer Rural Fire Brigade Member (National Service Medal ± 20

Years)x Chief Flying Instructor of the Bundaberg Gliding Clubx Certificate IV in Graphic Design

Rahel Clarke | Director

Rahel joined the Board of Directors at the 2018 Annual General Meeting bringing extensive and invaluable legal experience to RHL. Her vision is for RHL to meet the needs of the community, particularly in relation to affordable housing, in a way which facilitates ongoing growth for the organisation. Rahel is the Principal Lawyer and owner of Miller Street Lawand co-IRXQGHU�RI�WKH�*HQHUDWRU�ZKLFK�SURYLGHV�LQQRYDWLYH�µVWDUW-XS¶�services for small businesses. She also volunteers at the Taylor Street Community Legal Centre and is in the process of finalising yoga instructor qualifications.

x Bachelor of Commerce (Accounting Major)x Bachelor of Laws (Hons), Master of Laws

9

Level 11 | 42-60 Albert Street | Brisbane | QLD 4000GPO Box 2876 | Brisbane | QLD 4000

t: +61 7 3210 5500 | f: +61 7 3229 [email protected]

www.uhyhnbrisbane.com.auABN 76 898 082 094 | AFSL 483056

Liability Limited by a scheme approved under Professional Standards Legislation.

UHY Haines Norton, a partnership[p in Brisbane (ABN 76 898 082 094) is an independentmember of UHY Haines Norton an association of independent firms in Australia and NewZealand and a member of UHY, an international association of independent accounting andconsulting firms.

Not your averagebean counters…

LEAD AUDITOR’S INDEPENDENCE DECLARATIONTO THE DIRECTORS OF REGIONAL HOUSING LIMITED

In accordance with the requirements of section 60-40 of the Australian Charities and Not-for-profitsCommission Act 2012, as lead auditor for the audit of Regional Housing Limited for the year ended30 June 2019, I declare that, to the best of my knowledge and belief, there have been:

(i) No contraventions of the auditor independence requirements of the Australian Charities andNot-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.

UHY Haines Norton Reece JoryChartered Accountants Partner

Brisbane, 10 September 2019

10


Statement of Profit or Loss and Other Comprehensive IncomeFor the Year Ended 30 June 2019

Note

2019

$

2018

$

Revenue 3 6,130,868 5,862,637

Other income 3 288,361 106,367

Client support services (84,700) (132,133)

Employee benefits expense 4 (2,609,416) (2,418,090)

Insurance expense (332,146) (302,574)

IT and telecommunications expense (113,939) (113,384)

Professional fees (161,798) (81,998)

Rates expense (889,817) (865,462)

Rent expense (712,782) (702,597)

Repairs and maintenance expense (893,265) (535,364)

Tenancy and property supplies and services (78,765) (75,282)

Other expenses (207,752) (188,548)

Bad and doubtful debts expense (98,984) (69,048)

Depreciation and amortisation expense (241,809) (239,058)

Finance costs (9,154) (8,511)

Surplus for the year (15,098) 236,955

Other comprehensive income

Other comprehensive income for the year - -

Total comprehensive income for the year (15,098) 236,955

The Company has not restated comparatives when initially applying AASB 9, the comparative information has beenprepared under AASB 139 Financial Instruments: Recognition and Measurement.

The accompanying notes form part of these financial statements.11


Statement of Financial PositionAs At 30 June 2019

Note

2019

$

2018

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 5 1,949,624 2,073,994

Trade and other receivables 6 32,523 29,535

Inventories 34,427 40,767

Other assets 7 295,961 306,711

TOTAL CURRENT ASSETS 2,312,535 2,451,007

NON-CURRENT ASSETS

Property, plant and equipment 8 7,738,080 7,427,124

Intangible assets 9 28,841 73,515

TOTAL NON-CURRENT ASSETS 7,766,921 7,500,639

TOTAL ASSETS 10,079,456 9,951,646

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 10 565,739 525,598

Borrowings 11 47,578 29,421

Employee benefits 12 218,737 181,053

Other liabilities 13 179,110 178,878

TOTAL CURRENT LIABILITIES 1,011,164 914,950

NON-CURRENT LIABILITIES

Borrowings 11 118,876 87,059

Employee benefits 12 111,582 96,705

TOTAL NON-CURRENT LIABILITIES 230,458 183,764

TOTAL LIABILITIES 1,241,622 1,098,714

NET ASSETS 8,837,834 8,852,932

EQUITY

Reserves 14 1,544,589 1,379,666

Retained surpluses 7,293,245 7,473,266

TOTAL EQUITY 8,837,834 8,852,932

The Company has not restated comparatives when initially applying AASB 9, the comparative information has beenprepared under AASB 139 Financial Instruments: Recognition and Measurement.



Statement of Changes in EquityFor the Year Ended 30 June 2019

2019

Note

RetainedSurpluses

$

EquityContribution

Reserve

$

PlannedMaintenance

Reserve(Department)

$

PlannedMaintenance

Reserve(RHL)

$

Total

$

Balance at 1 July 2018 7,473,266 447,664 882,002 50,000 8,852,932

Comprehensive income for the year

Surplus for the year (15,098) - - - (15,098)

Total comprehensive income for the year (15,098) - - - (15,098)

Net transfers from retained surplus toreserve

14(164,923) - 130,381 34,542 -

Balance at 30 June 2019 7,293,245 447,664 1,012,383 84,542 8,837,834

2018

Note

RetainedSurpluses

$

EquityContribution

Reserve

$

PlannedMaintenance

Reserve(Department)

$

PlannedMaintenance

Reserve(RHL)

$

Total

$

Balance at 1 July 2017 7,425,263 447,664 743,050 - 8,615,977

Comprehensive income for the year

Surplus for the year 236,955 - - - 236,955

Total comprehensive income for the year 236,955 - - - 236,955

Net transfers from retained surplus toreserve

14(188,952) - 138,952 50,000 -

Balance at 30 June 2018 7,473,266 447,664 882,002 50,000 8,852,932



Statement of Cash FlowsFor the Year Ended 30 June 2019

Note

2019

$

2018

$

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and tenants 6,602,809 6,150,811

Payments to suppliers and employees (6,264,358) (5,435,185)

Interest received 9,151 6,241

Finance costs (9,154) (8,511)

Net cash provided by operating activities 338,448 713,356

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sale of property, plant and equipment 42,728 25,000

Purchase of property, plant and equipment and intangible assets 8 (451,881) (30,513)

Net cash used by investing activities (409,153) (5,513)

CASH FLOWS FROM FINANCING ACTIVITIES:

Payment of finance lease liabilities (53,665) (36,932)

Net cash used by financing activities (53,665) (36,932)

Net increase/(decrease) in cash and cash equivalents held (124,370) 670,911

Cash and cash equivalents at beginning of year 2,073,994 1,403,083

Cash and cash equivalents at end of financial year 5 1,949,624 2,073,994



Notes to the Financial StatementsFor the Year Ended 30 June 2019

The financial report covers Regional Housing Limited as an individual entity. Regional Housing Limited is a not-for-profitCompany limited by guarantee, incorporated and domiciled in Australia.

The functional and presentation currency of Regional Housing Limited is Australian dollars.

1 Summary of Significant Accounting Policies

Basis of Preparation

The financial statements are general purpose financial statements that have been prepared in accordance with therequirements of the Australian Charities and Not-For-Profit Commission Act 2012, Australian Accounting Standards -Reduced Disclosure Requirements, Accounting Interpretations and other authoritative pronouncements of theAustralian Accounting Standards Board.

Material accounting policies adopted in the preparation of these financial statements are presented below and havebeen consistently applied unless otherwise stated.

The financial statements, except for the cash flow information, have been prepared on an accruals basis and arebased on historical costs. The amounts presented in the financial statements have been rounded to the nearest dollar.

(a) Comparative Figures

Comparatives are consistent with prior years, unless otherwise stated.

(b) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost less, where applicable, any accumulateddepreciation and impairment. Cost includes purchase price, other directly attributable costs and the initialestimate of costs of dismantling and restoring the asset, where applicable

Items of property, plant and equipment acquired for nil or nominal consideration have been recorded at theacquisition date fair value.

Impairment of Assets

The carrying values of property, plant and equipment are reviewed for impairment at each reporting date, withthe recoverable amount being estimated when events or changes in circumstances indicate that the carryingvalue may be impaired.

The recoverable amount of property, plant and equipment is the higher of fair value less costs of disposal andvalue in use. Value in use for assets is a discounted cash flow calculation.

An impairment loss exists when the carrying value of an asset exceeds its estimated recoverable amount. Theasset is then written down to is recoverable amount.

For plant and equipment, impairment losses are recognised in the statement of profit or loss and othercomprehensive income.

15



1 Summary of Significant Accounting Policies (continued)

(b) Property, Plant and Equipment (continued)

Depreciation

Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assets'useful life to the Company, commencing when the asset is ready for use.

Leased assets and leasehold improvements are amortised over the shorter of either the unexpired period of thelease or their estimated useful life.

The depreciation rates used for each class of depreciable asset are shown below:

Fixed asset class Depreciation rate

Freehold Land Nil

Buildings 10 - 50 years

Plant and Equipment 3 - 10 years

Motor Vehicles 3 - 8 years

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

(c) Intangibles

Software

Software has a finite life and is carried at cost less any accumulated amortisation and impairment losses. It hasan estimated useful life of between three and five years.

Amortisation

Amortisation is recognised in the surplus or deficit on a straight-line basis over the estimated useful lives ofintangible 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 ifappropriate.

(d) Financial Instruments

Financial instruments are recognised initially on the date that the Company becomes party to the contractualprovisions of the instrument.

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

16




(d) Financial Instruments (continued)

Financial assets

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value,depending on the classification of the financial assets.

Classification

On initial recognition, the Company classifies its financial assets into the following categories, those measuredat:

amortised cost

fair value through profit or loss - FVTPL

fair value through other comprehensive income - equity instrument (FVOCI - equity)

fair value through other comprehensive income - debt investments (FVOCI - debt)

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes itsbusiness model for managing financial assets.

Of the above categories, the Company's financial assets only include those at amortised cost.

Amortised cost

Assets measured at amortised cost are financial assets where:

the business model is to hold assets to collect contractual cash flows; and

the contractual terms give rise on specified dates to cash flows are solely payments of principal and interest

on the principal amount outstanding.

The Company's financial assets measured at amortised cost comprise trade and other receivables and cashand cash equivalents in the statement of financial position.

Subsequent to initial recognition, these assets are carried at amortised cost using the effective interest ratemethod less provision for impairment.

Interest income and impairment are recognised in the surplus or deficit. Gain or loss on derecognition isrecognised in the surplus or deficit.

Impairment of financial assets

Impairment of financial assets is recognised on an expected credit loss (ECL) basis for the following assets:

financial assets measured at amortised cost

debt investments measured at FVOCI

When determining whether the credit risk of a financial assets has increased significant since initial recognitionand when estimating ECL, the Company considers reasonable and supportable information that is relevant andavailable without undue cost or effort. This includes both quantitative and qualitative information and analysisbased on the Company's historical experience and informed credit assessment and including forward lookinginformation.

17




(d) Financial Instruments (continued)

Financial assets (continued)

The Company uses the presumption that an asset which is more than 30 days past due has seen a significantincrease in credit risk.

The Company uses the presumption that a financial asset is in default when:

the other party is unlikely to pay its credit obligations to the Company in full, without recourse to the

Company to actions such as realising security (if any is held); or

the financial asset is more than 90 days past due.

Credit losses are measured as the present value of the difference between the cash flows due to the Companyin accordance with the contract and the cash flows expected to be received. This is applied using a probabilityweighted approach.

Trade receivables

Impairment of trade receivables have been determined using the simplified approach in AASB 9 which uses anestimation of lifetime expected credit losses. The Company has determined the probability of non-payment ofthe receivable and multiplied this by the amount of the expected loss arising from default.

The amount of the impairment is recorded in a separate allowance account with the loss being recognised inbad and doubtful debts expense. Once the receivable is determined to be uncollectable then the gross carryingamount is written off against the associated allowance.

Where the Company renegotiates the terms of trade receivables due from certain customers, the new expectedcash flows are discounted at the original effective interest rate and any resulting difference to the carrying valueis recognised in profit or loss.

Other financial assets measured at amortised cost

Impairment of other financial assets measured at amortised cost are determined using the expected credit lossmodel in AASB 9. On initial recognition of the asset, an estimate of the expected credit losses for the next 12months is recognised. Where the asset has experienced significant increase in credit risk then the lifetimelosses are estimated and recognised.

Financial liabilities

The Company measures all financial liabilities initially at fair value less transaction costs, subsequently financialliabilities are measured at amortised cost using the effective interest rate method.

The financial liabilities of the Company comprise trade payables, bank and other loans and finance leaseliabilities.

(e) Cash and Cash Equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which arereadily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

18




(f) Employee Benefits

Provision is made for the Company's liability for employee benefits arising from services rendered byemployees to the end of the reporting period. Employee benefits that are expected to be wholly settled withinone year have been measured at the amounts 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 beenmeasured at the present value of the estimated future cash outflows to be made for those benefits. Indetermining the liability, consideration is given to employee wage increases and the probability that theemployee may satisfy vesting requirements. Cashflows are discounted using market yields on high qualitycorporate bond rates incorporating bonds rated AAA or AA by credit agencies, with terms to maturity that matchthe expected timing of cashflows. Changes in the measurement of the liability are recognised in profit or loss.

(g) Trade and other payables

Trade and other payables represent the liability outstanding at the end of the reporting period for goods andservices received by the Company during the reporting period which remain unpaid. The balance is recognisedas a current liability with the amounts normally paid within 30 days of recognition of the liability.

(h) Income tax

No provision for income tax has been raised as the Company is exempt from income tax under Div 50 of theIncome Tax Assessment Act 1997.

(i) Revenue and Other Income

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

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

All revenue is stated net of the amount of goods and services tax (GST).

Grant revenue

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

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

19




(i) Revenue and Other Income (continued)

Grant revenue (continued)

Regional Housing Limited receives non-reciprocal contributions of assets from the government and otherparties for zero or a nominal value. These assets are recognised at fair value on the date of acquisition in thestatement of financial position, with a corresponding amount of income recognised in the statement of profit orloss and other comprehensive income.

Rental income

Rental property revenue is recognised on a straight-line basis over the period of the lease term.

Interest revenue

Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets isthe rate inherent in the instrument.

Rendering of services

Revenue in relation to rendering of services is recognised depending on whether the outcome of the servicescan be estimated reliably. If the outcome can be estimated reliably then the stage of completion of the servicesis used to determine the appropriate level of revenue to be recognised in the period.

If the outcome cannot be reliably estimated then revenue is recognised to the extent of expenses recognisedthat are recoverable.

Donations

Donations and bequests are recognised as revenue when received.

(j) Leases

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, butnot the legal ownership that 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 fairvalue of the leased property or the present value of the minimum lease payments, including any guaranteedresidual values. Lease payments are allocated between the reduction of the lease liability and the lease interestexpense for the period.

Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor,are charged as expenses in the periods in which they are incurred. The lease is not recognised in the statementof financial position.

20




(k) Goods and Services Tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), exceptwhere the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payable are stated inclusive of GST.

The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payablesin the statement of financial position.

Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flowsarising from investing and financing activities which is recoverable from, or payable to, the ATO is classified asoperating cash flows.

(l) Critical Accounting Estimates and Judgments

The preparation of financial statements requires management to make judgements, estimates and assumptionsthat affect the application of policies and reported amounts of assets, liabilities, income and expenses. Theestimates and associated assumptions are based on historical experience and other factors that are believed tobe reasonable under the circumstances, the results of which form the basis of making the judgements. Actualresults may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognised in the period in which the estimate is revised if the revision affects only that period orin the period of the revision and future periods if the revision affects both current and future periods.

The significant estimates and judgements made have been described below.

Key judgments - grants received

The Company has received a number of government grants during the year. Once the Company has beennotified of the successful outcome of a grant application, the terms and conditions of each grant are reviewed todetermine whether the funds relate to a reciprocal grant (i.e. payment for services rendered) in which case it isaccounted for under AASB 118 Revenue or a non-reciprocal grant in which case it is accounted for under AASB1004 Contributions.

Key judgments - provision for impairment of receivables

The value of the provision for impairment of receivables is estimated by considering the ageing of receivables,communication with the debtors and prior history.

Key estimates - property, plant and equipment residual values and useful lives

These assets are written down to their estimated residual value over their anticipated useful lives using thestraight-line basis. The Company reviews residual values annually considering market conditions and disposalvalues.

Key estimates - employee benefits

Provisions for employee benefits payable after 12 months from the reporting date are based on future wage andsalary levels, experience of employee departures and periods of service, as discussed in Note 1(f). The amountof these provisions would change should any of these factors change in the next 12 months.

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2 Change in Accounting Policy

Financial Instruments - Adoption of AASB 9

The Company has adopted AASB 9 Financial Instruments for the first time in the current year with a date of initialadoption of 1 July 2018.

As part of the adoption of AASB 9, the Company adopted consequential amendments to other accounting standardsarising from the issue of AASB 9 as follows:

AASB 101 Presentation of Financial Statements requires the impairment of financial assets to be presented in a

separate line item in the statement of profit or loss and other comprehensive income. In the comparative year, this

information was presented as part of other expenses.

AASB 7 Financial Instruments: Disclosures requires amended disclosures due to changes arising from AASB 9,

this disclosures have been provided for the current year.

The key changes to the Company's accounting policy and the impact on these financial statements from applyingAASB 9 are described below. There was no material impact to the financial statements as a result of applying AASB 9.

Changes in accounting policies resulting from the adoption of AASB 9 have been applied retrospectively except theCompany has not restated any amounts relating to classification and measurement requirements including impairmentwhich have been applied from 1 July 2018.

Classification of financial assets

The financial assets of the Company have been reclassified into one of the following categories on adoption of AASB 9based on primarily the business model in which a financial asset is managed and its contractual cash flowcharacteristics:

Measured at amortised cost

Fair value through profit or loss (FVTPL)

Fair value through other comprehensive income - debt instruments (FVOCI - debt)

Fair value through other comprehensive income - equity instruments (FVOCI - equity).

Impairment of financial assets

The incurred loss model from AASB 139 has been replaced with an expected credit loss model in AASB 9 for assetsmeasured at amortised cost, contract assets and fair value through other comprehensive income. This has resulted inthe earlier recognition of credit loss (bad debt provisions).

22



3 Revenue and Other Income

2019

$

2018

$

Revenue from (non-reciprocal)government grants and other grants

- Grants (Federal) - recurrent 54,258 34,176

- Grants (Federal) - non-recurrent 66,652 15,750

- Grants (State) - recurrent 1,626,748 1,620,416

- Grants (State) - non-recurrent 99,589 160,647

- Grants (State) - capital - 24,990

- Grants - other 103,354 45,728

1,950,601 1,901,707

Revenue from other sources

- Rental revenue 4,145,932 3,924,736

- Fees 24,475 23,048

- Interest revenue 9,151 6,241

- Donations 709 6,905

4,180,267 3,960,930

Total Revenue 6,130,868 5,862,637

Other Income

- Other income 282,946 106,132

- Net gain on disposal of property, plant and equipment 5,415 235

Total Other Income 288,361 106,367

Total Revenue and Other Income 6,419,229 5,969,004

4 Employee benefits expense

2019

$

2018

$

Wages and salaries 2,362,487 2,203,799

Defined contribution superannuation plan expense 213,433 198,876

Employee benefits leave and provision charges 33,496 15,415

2,609,416 2,418,090

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5 Cash and Cash Equivalents

2019

$

2018

$

Cash on hand 1,200 1,692

Cash at bank 1,948,424 2,072,302

1,949,624 2,073,994

6 Trade and Other Receivables

2019

$

2018

$

CURRENT

Trade receivables 166,259 104,122

Provision for impairment (139,056) (74,787)

27,203 29,335

Deposits 5,320 200

32,523 29,535

7 Other Assets

2019

$

2018

$

CURRENT

Prepayments 295,961 260,983

Accrued income - 45,728

295,961 306,711

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8 Property, Plant and Equipment

2019

$

2018

$

LAND AND BUILDINGS

Freehold land

At cost 1,867,012 1,867,012

Total Land 1,867,012 1,867,012

Buildings

At cost 6,048,011 6,031,811

Accumulated depreciation (766,820) (619,488)

Total buildings 5,281,191 5,412,323

Total land and buildings 7,148,203 7,279,335

Capital works in progress

At cost 380,851 -

Total capital works in progress 380,851 -

Plant and equipment

At cost 197,733 187,304


Total plant and equipment 12,705 6,872

Motor vehicles

At cost 260,845 198,058


Total motor vehicles 196,321 140,917

Leasehold Improvements

At cost 164,770 164,770


Total leasehold improvements - -

Total plant and equipment 589,877 147,789

7,738,080 7,427,124

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8 Property, Plant and Equipment (continued)

(a) Movements in Carrying Amounts

Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year:

Note

CapitalWorks inProgress

$

Land

$

Buildings

$

Plant andEquipment

$

MotorVehicles

$

LeaseholdImprovements

$

Total

$

Year ended 30 June 2019

Balance at the beginning of the year - 1,867,012 5,412,323 6,872 140,917 - 7,427,124

Additions (b) 380,851 - 16,199 7,879 132,309 - 537,238

Disposals - written down value - - - (271) (37,042) - (37,313)

Depreciation expense - - (147,331) (1,775) (39,863) - (188,969)

Balance at the end of the year 380,851 1,867,012 5,281,191 12,705 196,321 - 7,738,080

(b) Finance leases

The carrying value of property, plant and equipment held under finance leases at 30 June 2019 was $153,867 (2018: $112,616) relating to motor vehicles. Additions duringthe year include non-cash acquisitions of $93,523 (2018: $80,877) of property, plant and equipment financed under finance leases. Leased assets are pledged as securityfor the related finance lease liabilities.

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9 Intangible Assets

2019

$

2018

$

Computer software

At cost 331,509 323,343

Accumulated amortisation (302,668) (249,828)

28,841 73,515

(a) Movements in Carrying Amounts

2019

$

2018

$

Computer Software

Balance at the beginning of the year 73,515 125,114

Additions 8,166 1,100

Amortisation expense (52,840) (52,699)

Balance at the end of the year 28,841 73,515

10 Trade and Other Payables

2019

$

2018

$

CURRENT

Trade payables 328,181 262,320

GST (receivable) / payable (13,483) 10,664

Sundry payables and accrued expenses 251,041 252,614

565,739 525,598

Trade and other payables are unsecured, non-interest bearing and are normally settled within 30 days. The carryingvalue of trade and other payables is considered a reasonable approximation of fair value due to the short-term natureof the balances.

11 Borrowings

Note

2019

$

2018

$

CURRENT

Secured liabilities:

Finance lease obligation 16 47,578 29,421

47,578 29,421

NON-CURRENT

Secured liabilities:

Finance lease obligation 16 118,876 87,059

118,876 87,059

Total borrowings 16(a) 166,454 116,480

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12 Employee benefits

2019

$

2018

$

CURRENT

Long service leave 46,635 33,583

Annual leave 172,102 147,470

218,737 181,053

NON-CURRENT

Long service leave 111,582 96,705

111,582 96,705

13 Other Liabilities

2019

$

2018

$

CURRENT

Revenue received in advance 154,800 154,568

Unspent grants 24,310 24,310

179,110 178,878

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14 Reserves

2019

$

2018

$

Equity contribution reserve

Opening balance 447,664 447,664

447,664 447,664

Planned maintenance reserve (Department)

Opening balance 882,002 743,050

Transfers in 239,618 215,488

Transfers out (109,237) (76,536)

1,012,383 882,002

Planned maintenance reserve (RHL)

Opening balance 50,000 -

Transfers in 51,698 50,000

Transfers out (17,156) -

84,542 50,000

Total 1,544,589 1,379,666

(a) Equity contribution reserve

The Equity Contribution Reserve arises through the restructure of Bundaberg Housing Services Inc ('BHS') toRegional Housing Limited, a company limited by guarantee. The BHS board resolved to transfer the net assetsto Regional Housing Limited.

(b) Planned maintenance reserve (Department)

This reserve records funds set aside for future planned maintenance of rental properties leased by RegionalHousing Limited. The funds set aside are surpluses from Community-Housing Managed Studio Units (CMSU)and Long Term Community Housing Program (LTCHP) properties. Those surpluses are then transferred toRetained Surplus upon incurring maintenance expenditure for those properties.

(c) Planned maintenance reserve (RHL)

This reserve records funds set aside for future planned maintenance of properties owned by Regional HousingLimited.

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15 Related Parties

Transactions between related parties are on normal commercial terms and conditions no more favourable than thoseavailable to other parties unless otherwise stated. There were no other related party transactions other than KeyManagement Personnel Remuneration as noted below. Board members do not receive remuneration for their services.

The total remuneration paid to key management personnel of the Company was $308,050 (2018: $280,867). Due to achange in the organisational structure in March 2019, a third position was determined to be included as part of the keymanagement personnel in the 2019 year (2018: two positions for the whole year).

During the year, legal services were provided to the Company by an entity related to one of the Company's directors.No professional fees were charged for these services and only outlays of $773 were charged by the legal firm.

16 Contingencies and commitments

(a) Finance Leases

Note

2019

$

2018

$

Minimum lease payments:

- not later than one year 55,174 56,344

- between one year and five years 123,448 72,172

Minimum lease payments 178,622 128,516

Less: finance changes (12,168) (12,036)

Present value of minimum lease payments 11 166,454 116,480

Finance leases are in place for motor vehicles which have terms of between two and three years. The leaseshave terms of renewal and purchase options at the end of the term.

(b) Operating Leases

2019

$

2018

$

- not later than one year 180,315 156,846

- between one year and five years 74,705 198,080

255,020 354,926

The Company has entered into operating leases for certain items of plant and equipment and for officepremises. The Company has the option under some of its leases, to lease the assets for additional terms.Increase in lease commitments may occur in line with the Consumer Price Index (CPI).

(c) Committed funds

The Company has accumulated surpluses in relation to the Community-Managed Studio Unit (CMSU), SameHouse Different Landlord (SHDL), Long Term Community Housing (LTCHP) and Home Assist Secure (HAS)programs, amounting to $1,534,925 (2018: $1,859,167). Of the total accumulated surpluses, $1,012,383 (2018:$882,002) has been transferred to the planned maintenance reserve. The balance is committed to the futureadministration of the programs. The amounts have not been recognised as liabilities as there is no presentobligation and the Company has the ability to direct the funds. The Directors are committed to use the funds tomeet the objectives of the programs.

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16 Contingencies and commitments (continued)

(d) Contingent liabilities

Estimates of the potential financial effect of contingent liabilities that may become payable:

Granted properties

The Company has been granted 12 properties (2018: 12 properties) from the State of Queensland through theDepartment of Communities for use in providing accommodation under the Long Term Community HousingProgram. Should the Company wish to either sell the properties, have the State release its security or changetheir use, Regional Housing Limited is required, under the Capital Assistance Agreements with the State, to payan amount to the State. The amount is based on a fixed percentage of the market value of both the land andimprovements. Regional Housing Limited has no intention to dispose of or change the use of the properties.The properties are recorded at their historical cost1 of $4,384,837 (2018: $4,384,837). Based on the historicalcost, the State’s fixed percentage entitlement under the Capital Assistance Agreement is $3,336,648 (2018:$3,336,648).

1 Four properties acquired by the Company during the 2015 financial year as part of the gifted assets fromYouthcare Hervey Bay Inc were initially measured at fair value due to being received for no consideration.These initial values form the historical cost of the properties.

(e) Contingent assets

During the year, the Company entered into a deed with the State of Queensland and another communityhousing provider (the outgoing provider) to transfer leases of the State's owned properties from the outgoingprovider to the Company. As part of the deed, the outgoing provider is required to transfer to the company, anamount of cash equal to the accumulated surpluses in relation to the community housing properties. Thetransfer of the leases was affected in May 2019 however, the accumulated surplus funds have not been paid bythe outgoing provider to the Company to date. Due to the uncertainty of the amount of accumulated surplusesin relation to the transferred properties, the Company is unable to accurately measure and recognise an assetfor these expected funds.

17 Economic Dependency

Regional Housing Limited is dependent on the ongoing support provided by the State and Commonwealthgovernments to support the company's objectives. The State and Commonwealth government provide the companywith grants and the provision of properties from which Regional Housing Limited earns rental income.

At the date of this report, the Board of Directors has no reason to believe the Department will not continue to supportRegional Housing Limited.

18 Events Occurring After the Reporting Date

The financial report was authorised for issue on 16 September 2019 by the board of directors.

No matters or circumstances have arisen since the end of the financial year which significantly affected or maysignificantly affect the operations of the Company, the results of those operations, or the state of affairs of theCompany in future financial years.

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Directors' Declaration

The Directors declare that in their opinion:

there are reasonable grounds to believe that the Company is able to pay all of its debts, as and when they become due

and payable; and

the financial statements and notes satisfy the requirements of the Australian Charities and Not-for-profits Commission

Act 2012.

Signed in accordance with subsection 60.15(2) of the Australian Charities and Not-for-profit Commission Regulation 2013.

Director .............................................................. Director ...............................................................

Dated this 16th day of September 2019

32

Laura

Stamp

Laura

Stamp

Liability Limited by a scheme approved under Professional Standards Legislation.

UHY Haines Norton, a partnership[p in Brisbane (ABN 76 898 082 094) is an independentmember of UHY Haines Norton an association of independent firms in Australia and NewZealand and a member of UHY, an international association of independent accounting andconsulting firms.


INDEPENDENT AUDITOR’S REPORTTO THE MEMBERS OF REGIONAL HOUSING LIMITED

REPORT ON THE AUDIT OF THE FINANCIAL REPORT

OPINION

We have audited the financial report of Regional Housing Limited (the Company), whichcomprises the statement of financial position as at 30 June 2019, the statement ofcomprehensive income, the statement of changes in equity and the statement of cash flowsfor the year then ended, notes to the financial statements and the directors’ declaration.

In our opinion the financial report of Regional Housing Limited has been prepared in accordance withDivision 60 of the Australian Charities and Not-for-profits Commission Act 2012, including:

a. giving a true and fair view of the Company’s financial position as at 30 June 2019 and of itsfinancial performance the year ended; and

b. complying with Australian Accounting Standards – Reduced Disclosure Requirements andDivision 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.

BASIS FOR OPINION

We conducted our audit in accordance with Australian Auditing Standards. Ourresponsibilities under those standards are further described in the Auditor’s Responsibilitiesfor the Audit of the Financial Report section of our report. We are independent of theCompany in accordance with the auditor independence requirements of Division 60 of theAustralian Charities and Not-for-profits Commission Act 2012 and the ethical requirementsof the Accounting Professional and Ethical Standards Board’s APES 1100 Code of Ethics forProfessional Accountants (the Code) that are relevant to our audit of the financial report inAustralia. We have also fulfilled our other ethical responsibilities in accordance with theCode.

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

Level 11 | 42-60 Albert Street | Brisbane | QLD 4000GPO Box 2876 | Brisbane | QLD 4000

t: +61 7 3210 5500 | f: +61 7 3229 [email protected]

www.uhyhnbrisbane.com.auABN 76 898 082 094 | AFSL 483056


OTHER INFORMATION

The directors are responsible for the other information. The other information obtained at the dateof this auditor’s report is included in the Directors’ Report and the Company’s annual report for theyear ended 30 June 2019, but does not include the financial report and our auditors’ report thereon.

Our opinion on the financial report does not cover the other information, accordingly we do notexpress any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other informationand, in doing so, consider whether the other information is materially inconsistent with the financialreport or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information obtained prior to the date of thisauditor's report, we conclude that there is a material misstatement of this other information, we arerequired to report that fact. We have nothing to report in this regard.

RRESPONSIBILITIES OF THE DIRECTORS FOR THE FINANCIAL REPORT

The directors are responsible for the preparation and fair presentation of the financial report inaccordance with Australian Accounting Standards – Reduced Disclosure Requirements and Division 60of the Australian Charities and Not-for-profits Commission Act 2012, and for such internal control asthe directors determine is necessary to enable the preparation of the financial report that gives a trueand fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the Company's ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting unless the directors either intend to liquidate the Company or tocease operations, or have no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reportprocess.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL REPORT

Our objectives are to obtain reasonable assurance about whether the financial report as a whole isfree from material misstatement, whether due to fraud or error, and to issue an auditor’s report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit conducted in accordance with Australian Auditing Standards will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of the financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professionaljudgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. The riskof not detecting a material misstatement resulting from fraud is higher than for one resultingfrom 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 auditprocedures that are appropriate in the circumstances, but not for the purpose of expressingan opinion on the effectiveness of the Company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors’ use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the Company’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we arerequired to draw attention in our auditor’s report to the related disclosures in the financialreport or, if such disclosures are inadequate, to modify our opinion. Our conclusions arebased 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 thedisclosures, and whether the financial report represents the underlying transactions andevents in a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timingof the audit and significant audit findings, including any significant deficiencies in internal control thatwe identify during our audit.

UHY Haines Norton Reece JoryChartered Accountants Partner

Brisbane, 19 September 2019

Regional Housing Limited... · 2019-12-12 · Regional Housing Limited ABN: 14 139 284 647...

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Transcript of Regional Housing Limited... · 2019-12-12 · Regional Housing Limited ABN: 14 139 284 647...