AUSTRALIAN WOUND MANAGEMENT ASSOCIATION INCORPORATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2012

Transcription

1 AUSTRALIAN WOUND MANAGEMENT ASSOCIATION INCORPORATED FINANCIAL REPORT

2 CONTENTS Page No. Committee's Report 2 Income Statement 3 Balance Sheet 4 Statement of Recognised Income and Expense 5 Cash Flow Statement 6 Notes to the Financial Statements 7 Statement by Members of the Committee 12 Independent Audit Report 13 Detailed Profit And Loss Statement 15

3 COMMITTEE'S REPORT Your committee members submit the financial report of Australian Wound Management Association Incorporated for the financial year ended 30 June Committee Members The names of the committee members in office at anytime during or since the end of the year are: William McGuiness Donna Angel S DeVincentis Stephen Yelland Nicoletta Frescos L Thomas AnnMarie Dunk Gillian Butcher Paul Philcox Tabatha Rando Margo Asimus Terry Swanson Liz Howse Clarissa Young Michelle Gibb Jan Rice Carol Baines Judith Barker Suzanne Templeton D Williams Pam Morey Dianne Smith Allison Cowin C Brennan Jennifer Byrnes Julie Winter Significant Changes No significant change in the nature of these activities occurred during the financial year. Operating Result The loss after providing for income tax amounted to $49,498. Signed in accordance with a resolution of the members of the committee: William McGuiness Nicoletta Frescos 18 October 2012 Page 2

4 INCOME STATEMENT Note $ $ Revenue 184, ,728 Other revenue - 91 Depreciation and amortisation expenses (580) (1,156) Other expenses (233,115) (179,322) Profit (loss) from operations (49,498) 84,341 The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report. Page 3

5 ASSETS AUSTRALIAN WOUND MANAGEMENT ASSOCIATION INCORPORATED BALANCE SHEET AS AT 30 JUNE 2012 Note $ $ CURRENT ASSETS Cash and cash equivalents 2 368, ,474 Trade and other receivables ,079 Other current assets 4 1,522 3,761 TOTAL CURRENT ASSETS 370, ,314 NON-CURRENT ASSETS Property, plant and equipment TOTAL NON-CURRENT ASSETS TOTAL ASSETS 371, ,184 LIABILITIES CURRENT LIABILITIES Trade and other payables 6 40,977 5,914 Financial liabilities 7 24,742 - TOTAL CURRENT LIABILITIES 65,719 5,914 NON-CURRENT LIABILITIES Financial liabilities ,000 TOTAL NON-CURRENT LIABILITIES 575 5,000 TOTAL LIABILITIES 66,294 10,914 NET ASSETS 304, ,270 MEMBERS' FUNDS Retained profits 304, ,270 TOTAL EQUITY 304, ,270 The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report. Page 4

6 STATEMENT OF RECOGNISED INCOME AND EXPENSE AS AT 30 JUNE 2012 Retained Earnings Total $ $ Balance at 1 July , ,929 Profit attributable to members 84,341 84,341 Balance at 30 June , ,270 Profit attributable to members (49,498) (49,498) Balance at 30 June , ,772 The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report. Page 5

7 CASH FLOW STATEMENT Note $ $ Cash flows from operating activities Receipts from Membership and Activities 249, ,940 Payments to Suppliers (242,221) (160,784) Interest Received 13,556 9,248 Net cash provided by operating activities 8 20,900 66,404 Net increase in cash held 20,900 64,735 Cash at beginning of year 347, ,739 Cash at end of year 8 368, ,474 The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report. Page 6

8 NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES This financial report is a special purpose report prepared in order to satisfy the financial reporting requirements of the Associations Incorporations Act 1981 Victoria. The committee has determined that the association is not a reporting entity. No Australian Accounting Standards, Australian Accounting Interpretations Views or other authoritative pronouncements of the Australian Accounting Standards Board have been intentionally applied. The following material accounting policies, which are consistent with the previous period unless otherwise stated, have been adopted in the preparation of this report: Depreciation The depreciable amount of all fixed assets including buildings and capitalised leased assets are depreciated on a straight line basis over their estimated useful lives to the entity commencing from the time the asset is held ready for use. The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance 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 income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. (a) Financial Instruments Recognition and Initial Measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the instrument. For financial assets, this is equivalent to the date that the association commits itself to either purchase or sell the asset (ie trade date accounting is adopted). Financial instruments are initially measured at fair value plus transactions costs, where the instrument is classified 'at fair value through profit or loss' in which case transactions costs are expensed to profit or loss immediately. Classification and Subsequent Measurement (i) Financial assets at fair value through profit and loss Financial instruments are subsequently measured at either fair value, amortised cost using the effective interest rate method or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. These notes should be read in conjunction with the attached compilation report. Page 7

9 (ii) Loans and receivables NOTES TO THE FINANCIAL STATEMENTS Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. (iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the association's intention to hold these investments to maturity. They are subsequently measured at amortised cost. (iv) Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments. (v) Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Fair value Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm's length transactions, reference to similar instruments and option pricing models. Impairment At each reporting date, the association assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement. (b) Impairment of assets At each reporting date, the incorporated association reviews the carrying values 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 the 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 income statement. Where it is not possible to estimate the recoverable amount of an individual asset, the incorporated association estimates the recoverable amount of the cash-generating unit to which the asset belongs. These notes should be read in conjunction with the attached compilation report. Page 8

10 NOTES TO THE FINANCIAL STATEMENTS (c) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other shortterm highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet. (d) Revenue and Other Income Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. Any consideration deferred is treated as the provision of finance and is discounted as a rate of interest that is generally accepted in the market for similar arrangements. The difference between the amount initially recognised and the amount ultimately received is interest revenue. Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and the cessation of all involvement in those goods. Dividend revenue is recognised when the right to receive a dividend has been established. Revenue recognition relating to the provision of a service is determined with reference to the stage of completion of the transaction at reporting date and where outcome of the contract can be estimated reliably. Stage of completion is determined with reference to the services performed to date as a percentage of total anticipated services to be performed. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent that related expenditure is recoverable. All revenue is stated net of the amount of goods and services tax (GST). (e) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Tax 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 balance sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. (f) Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current year. Critical accounting estimates and adjustments The committee members evaluate estimates and judgements incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the association. These notes should be read in conjunction with the attached compilation report. Page 9

11 NOTES TO THE FINANCIAL STATEMENTS Note $ $ 2. CASH AND CASH EQUIVALENTS NAB Term Deposit , ,079 NAB Term Deposit ,139 88,810 Westpac Operating account 44,615 - Westpac Cash Saver account 25,071 - Cash at bank 54,549 86, , , TRADE AND OTHER RECEIVABLES CURRENT Debtors - 13,079 Loan - Unsecured - AWMA Trust , OTHER ASSETS CURRENT Prepayments - Other 1,522 3, PROPERTY, PLANT AND EQUIPMENT Office furniture and equipment 3,233 3,233 Less accumulated depreciation (2,943) (2,363) Total property, plant and equipment TRADE AND OTHER PAYABLES CURRENT Goods and services tax 448 4,482 Trade Creditors - 1,432 Unearned Income - Members' Capitation Fees 40,529-40,977 5, BORROWINGS CURRENT Amounts owing to branches 24,742 - NON-CURRENT Loan - Incorrect Deposit 575 5,000 These notes should be read in conjunction with the attached compilation report. Page 10

12 8. CASH FLOW INFORMATION NOTES TO THE FINANCIAL STATEMENTS (a) Reconciliation of Cash Cash at the end of financial year as shown in the Statement of Cash Flows is reconciled to the related items in the statement of financial position as follows: Note $ $ Cash at Bank 124,235 86,585 Deposits 244, , , ,474 (b) Reconciliation of cash flow from operations with profit from operations Profit from ordinary activities after income tax (49,498) 84,341 Non-cash flows in profit from ordinary activities: Depreciation 580 1,156 Changes in Assets & Liabilities: Decrease/(Increase) in Trade and other receivables 12,199 (11,869) Decrease/(Increase) in Prepayments 2,239 (179) Increase/(Decrease) in Creditors (5,466) (7,045) Increase/(Decrease) in Unearned Income 40,529 - Increase/(Decrease) in Loans 20,317 Net cash provided by operating activities 20,900 66,404 These notes should be read in conjunction with the attached compilation report. Page 11

13 STATEMENT BY MEMBERS OF THE COMMITTEE The committee has determined that the association is not a reporting entity and that this special purpose financial report should be prepared in accordance with the accounting policies outlined in Note 1 to the financial statements. In the opinion of the committee the financial report Presents a true and fair view of the financial position of Australian Wound Management Association Incorporated as at 30 June 2012 and its performance for the year ended on that date. At the date of this statement there are reasonable grounds to believe that Australian Wound Management Association Incorporated will be able to pay its debts as and when they fall due. This statement is made in accordance with a resolution of the Committee and is signed for and on behalf of the Committee by: President William McGuiness Treasurer Nicoletta Frescos 18 October 2012 Page 12

14 INDEPENDENT AUDITOR'S REPORT TO THE MEMBER OF AUSTRALIAN WOUND MANAGEMENT ASSOCIATION INCORPORATED Report on the Financial Report We have audited the accompanying financial report, being a special purpose financial report, of Australian Wound Management Association Incorporated which comprises the committee's report, the balance sheet as at 30 June 2012, the income statement for the year then ended, cash flow statement, notes comprising a summary of significant accounting policies and other explanatory notes and the statement by members of the committee. Committee's Responsibility for the Financial Report The committee of the association is responsible for the preparation of the financial report and has determined that the basis of preparation described in Note 1 is appropriate to meet the requirements of the Associations Incorporations Act 1981 Victoria and the needs of the members. The committee's responsibility also includes such internal control as the committee determines is necessary to enable the preparation of a financial report that is free of 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 have 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 whether the financial report is free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgment, including the assessment of the risks or 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 committee, 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 applicable independence requirements of Australian professional ethical pronouncements. Page 13

15 INDEPENDENT AUDITOR'S REPORT TO THE MEMBER OF AUSTRALIAN WOUND MANAGEMENT ASSOCIATION INCORPORATED Auditors Opinion In my opinion, the financial report presents fairly in all material respects the financial position of Australian Wound Management Association Incorporated as of 30 June 2012 and of its financial performance for the year then ended in accordance with the accounting policies described in Note 1 to the financial statements and the requirements of the Association Incorporations Act Victoria Basis of Accounting and Restriction on Distribution Without modifying our opinion, we draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared to assist Australian Wound Management Association Incorporated meet the requirements of the Associations Incorporations Act Victoria As a result, the financial report may not be suitable for another purpose. John F Watty 255 Whitehorse Road Balwyn, VIC, 3103 Registered Company Auditor: Balwyn 18 October 2012 Page 14

16 PROFIT AND LOSS STATEMENT Note $ $ INCOME Interest Received 13,556 9,248 Capitation Fees Received 2 88,523 49,436 Website Advertising Fees Profit Share from National Conference 55, ,429 Sale of Promotional Items 1,745 6,469 Seminar Income Royalties 4, Copyright Fees - 91 Sales - Journals & Guidelines 3 11,828 14,786 Membership - NT 900 4,532 Gross profit from trading 6, , ,819 LESS EXPENDITURE Accounting & Audit 6,470 1,300 Conference Expenses 21,779 44,852 Committe & Meeting Expenses 34,261 32,444 Depreciation 581 1,156 Editorial Costs 10,764 7,500 Guidelines Preparation and Publication 54,476 11,718 Insurance 6,128 5,656 Internet and Web Page Costs 5,341 3,303 WHAM Node - 10,000 Merchant Fees Postage Promotion 40,985 22,026 Printing & Stationery 1,341 3,521 Research and development costs 11,751 52,692 Restructure Costs 12,288 (18,991) Secretary's Costs 1,668 2,473 Secretariat Expenses 24,937 - Subscription & Memberships , ,478 NET OPERATING PROFIT (LOSS) (49,498) 84,341 Retained profits at the beginning of the financial year 354, ,929 TOTAL AVAILABLE FOR APPROPRIATION 304, ,270 RETAINED PROFITS AT THE END OF THE FINANCIAL YEAR 304, ,270 These statements should be read in conjunction with the attached compilation report. Page 15