INC Education Advisory & Support Service Co-op Ltd ABN 57 850 143 384

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Registered Office: Kensington Town Hall. 30 – 34 Bellair Street. Kensington, Vic, 3031

Prepared by: Craig Barry INC Education Advisory & Support Service Co-operative Limited

33

Contents Acknowledgements .................................................................................... 3

Statement of Comprehensive Income ........................................................ 4 Statement of Financial Position ................................................................ 5 Statement of Changes in Equity ............................................................... 6 Statement of Cash Flows ........................................................................ 7 Notes to the Financial Statements ............................................................ 8 NOTE

1.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES...............................................

8

NOTE

2.

GRANTS

NOTE

3.

EMPLOYEE BENEFITS

NOTE

4.

OTHER EXPENSES ...................................................................................... 11

NOTE

5.

CASH AND CASH EQUIVALENTS ....................................................................... 12

NOTE

6.

PREPAYMENTS

NOTE

7.

PROPERTY , PLANT AND EQUIPMENT

NOTE

8.

PAYABLES .............................................................................................

12

NOTE

9.

INCOME RECEIVED IN ADVANCE......................................................................

13

NOTE

10.

PROVISIONS ...........................................................................................

13

NOTE

11.

EQUITY AND RESERVES

NOTE

12.

CASH FLOW INFORMATION ..........................................................................

NOTE

13.

OPERATING LEASE COMMITMENTS

NOTE

14.

AUDITORS' REMUNERATION .........................................................................

14

NOTE

15.

DIRECTORS’ REMUNERATION AND ATTENDANCE ...................................................

14

NOTE

16.

SUBSEQUENT EVENTS

NOTE

17.

CO-OPERATIVE DETAILS .............................................................................

& OTHER INCOME ............................................................................ 11 .................................................................................. 11

& OTHER CURRENT ASSETS .......................................................... 12 ................................................................. 12

.............................................................................. 13 14

.................................................................. 14

............................................................................... 15 15

Declaration ......................................................................................... 16 Solvency Statement .............................................................................. 17 Independent Auditors Report .................................................................. 17

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About INC Established in 2014 the INC Education Advisory & Support Service Co-op Ltd is a non-distributing cooperative registered in Victoria (Registration no. G0003548S) under the Co-operatives National Law Application Act 2013. The Co-op is a benevolent ‘not for profit’ entity as are the organisations that comprise its membership. It provides services to members and other organisations that support program delivery. The co-op charges all clients fees for these services. Any surpluses generated by the Co-op may only be used for the furtherance of the Co-op’s activities or distributed as a charitable donation, in line with the Co-op’s rules and policies. Whenever possible the Co-op Board will make charitable distributions, with a preference for funding joint programs by members that focus on education and community development outcomes, which lead to increased opportunities and improvements in the lives of the most under privileged and vulnerable members of the communities with which they work. The Co-ops activities are overseen by a Board of Directors comprising the Managers / Directors of the organisations that founded the Cooperative. Board members receive no remuneration for being on the Board. The current Board Members are: 1. 2. 3. 4. 5. 6.

Ms. Cathy Connop (Chairperson) – Farnham Street Neighbourhood Learning Centre. Ms. Joanne Goodman – North Melbourne Language & Learning Mr. Michael Halls –The Centre, Connecting Community in North & West Melbourne Ms. Mary Parfrey – Carlton Neighbourhood Learning Centre Ms. Jan Thorpe (Deputy Chair) – Wingate Avenue Community Centre. Ms. Carolyn Webster (Public Officer) – Kensington Neighbourhood House.

The Board has delegated responsibility for the day to day operation of the Co-op to a full time General Manager. The current General Manager of the Co-op is Mr. Craig Barry.

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Acknowledgements Founding Members

Carlton Neighbourhood Learning Centre Farnham Street Neighbourhood Learning Centre

Kensington Neighbourhood House

North Melbourne Language & Learning The Centre – Connecting Community in North & West Melbourne

Wingate Avenue Community Centre.

Financial Supporters

Adult Community and Further Education Board

City of Melbourne

Auditor Mr Eugene Odachowski J.P. Hardwick & Associates Unit 7, 617-643 Spencer Street West Melbourne, VIC 3003

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INC Education Advisory & Support Service Co-op Ltd ABN 57 850 143 384

Statement of Comprehensive Income FOR THE YEAR ENDED 30 JUNE 2015

Note

2015

2014

$

$

109,555

-

INCOME Government and other grants - Department of Education and Early Childhood Development

2

- Other grants

2

-

-

Contribution – project balance

2

23,861

-

Service fees

2

57,965

Other income

2

2,849

-

194,230

-

(148,050)

-

Contractors

(20,179)

-

Advertising and promotion

(18,684)

-

(58)

-

(2,500)

-

TOTAL INCOME EXPENDITURE Employee benefits

3

Depreciation Office costs Project costs Other expenses

4

TOTAL EXPENDITURE NET RESULT FOR THE PERIOD

11

TOTAL COMPREHENSIVE INCOME (EXPENSE) FOR THE PERIOD

The accompanying notes form part of these financial statements.

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(550)

-

(3,970)

-

(193,991)

-

239

-

239

-

INC Education Advisory & Support Service Co-op Ltd ABN 57 850 143 384

Statement of Financial Position AS AT 30 JUNE 2015

Note

2015

2014

$

$

20,716

-

ASSETS Current assets Cash and cash equivalents

5

Receivables - debtors

31,177

Prepayments & other current assets

6

Total current assets

3,139

-

55,032

-

Non-current assets Property, plant and equipment

7

Total non-current assets TOTAL ASSETS

1,142

-

1,142

-

56,174

-

LIABILITIES Current liabilities Payables

8

15,304

-

Provisions

10

13,880

-

Income received in advance

9

22,778

-

51,962

-

Total current liabilities Non-current liabilities Provisions

10

Total non-current assets

2,773 2,773

TOTAL LIABILITIES NET ASSETS

54,736

-

1,439

-

EQUITY Current year earnings Members contributions TOTAL EQUITY

11

The accompanying notes form part of these financial statements.

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239

-

1,200

-

1,439

-

INC Education Advisory & Support Service Co-op Ltd ABN 57 850 143 384

Statement of Changes in Equity FOR THE YEAR ENDED 30 JUNE 2015

Note BALANCE AT 30 JUNE 2014

Retained Earnings

Reserves

TOTAL

$

$

$

-

-

-

1,200

1,200

Members contributions Comprehensive income (expense) for the year BALANCE AT 30 JUNE 2015

239 11

The accompanying notes form part of these financial statements.

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239

239 1,200

1,439

INC Education Advisory & Support Service Co-op Ltd ABN 57 850 143 384

Statement of Cash Flows FOR THE YEAR ENDED 30 JUNE 2015

Note

2015

2014

$

$

49,500

-

CASH FLOW FROM OPERATING ACTIVITIES Government and other grants Other receipts

2,603

-

(30,187)

-

21,916

-

Purchase of property, plant and equipment

(1,200)

-

NET CASH INFLOW (OUTFLOW) FROM INVESTING ACTIVITIES

(1,200)

-

Net interest received (paid)

-

-

Equity invested in non-current assets

-

-

Equity invested in operating activities

-

-

NET CASH INFLOW (OUTFLOW) FROM FINANCING ACTIVITIES

-

-

20,716

-

-

-

20,716

-

Payments to suppliers & employees NET CASH INFLOW (OUTFLOW) FROM OPERATING ACTIVITIES

12

CASH FLOW FROM INVESTING ACTIVITIES

CASH FLOW FROM FINANCING ACTIVITIES

NET INCREASE (DECREASE) IN CASH HELD CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR

5

The accompanying notes form part of these financial statements.

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INC Education Advisory & Support Service Co-op Ltd ABN 57 850 143 384

Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2015 NOTE 1.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements are special purpose financial statements prepared in order to satisfy the financial reporting requirements of the Co-operatives National Law Application Act 2013 The financial statements cover the INC Education Advisory & Support Service Co-op Ltd. (INC) as an individual entity. INC is a non-distributing co-operative registered in Victoria and operating pursuant to the Co-operatives National Law Application Act 2013. The Board of INC has determined that the co-operative is not a reporting entity. Basis of preparation The financial statements have been prepared in accordance with Australian Accounting Standards as required under the Co-operatives National Law Application Act 2013. The financial statements, apart from cash flow information, have been prepared on an accruals basis in accordance with the historical cost convention, except for the measurement at fair value of certain non-current assets and financial assets and liabilities where stated. All amounts shown in the financial statements are rounded to the nearest dollar. The following material accounting policies have been applied in preparing the financial statements for the year ended 30 June 2015.

(a)

Revenue Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entity and is measured at the fair value of the consideration received or receivable. Specific revenues are recognised as follows: Grants INC receives grants for project purposes. Where there are conditions attached to grants relating to the specific use and timing of funds and which may provide for economic value back to the grant contributor, grants are first recognised as a liability in the statement of financial position (income received in advance) until such obligations are met, then recognised as revenue in the statement of comprehensive income as performance occurs and grants are expended in accordance with grant requirements. Grants are otherwise recognised as revenue when control of the underlying assets received or receivable has been obtained.

Rendering of services Revenue from the rendering of a service is recognised upon the delivery of the service to the customer, and where delivery is in progress, by reference to the percentage stage of completion of the transaction. Sale of goods Revenue from the sale of goods is recognised upon the delivery of goods to customers. Interest revenue is recognised on a proportional basis taking into account the effective interest rates applicable to the financial assets. All revenue is stated net of the amount of Goods and Services Tax (GST).

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(b)

Property, plant and equipment Each class of fixed asset is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses. The carrying amount of physical assets is reviewed annually to ensure it is not materially in excess of the recoverable amount from these assets. Depreciation Fixed assets are capitalised and depreciated on a straight-line basis over their useful lives commencing from the time the assets are held ready for use. The depreciation rates used for each class of depreciable assets are: Depreciation rate

Class of fixed asset Office furniture and equipment: Furniture Office equipment excl. computers Computer equipment

15-20% 20-25% 25-40%

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

(c)

Operating leases Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the lease term. Any lease incentives received under operating leases are recognised initially as a liability and amortised on a straight-line basis over the life of the lease term.

(d)

Financial instruments INC’s financial instruments consist of cash and cash equivalents and non-interest-bearing trade and other short-term receivables and payables. Cash and cash equivalents comprise at-call and short term deposits held with financial institutions and cash on hand. Receivables comprise trade and other short-term amounts owing to INC and due for settlement. Payables represent liabilities in relation to goods and services provided to INC prior to the end of the financial year which are unpaid. Recognition and measurement INC recognises financial assets or liabilities on the date they are originated or when it becomes a party to the contractual provisions of the instrument. The instruments are initially measured at fair value plus any transaction costs. Subsequent measurement is either at fair value or amortised cost, less any impairment losses. Fair value Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. The fair values of INC’s financial instruments are based on cost. Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the co-operative no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired.

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(e)

Impairment INC assesses the carrying amounts of its financial and non-financial assets at the end of each reporting period for indications of impairment. If any such indication exists, the asset's recoverable amount is estimated, and any excess of the asset's carrying value over its recoverable amount is recognised as an impairment loss. Impairment losses are expensed to the statement of comprehensive income, unless an asset has previously been revalued, in which case the impairment loss is recognised as a reversal to the extent of that previous revaluation, with any excess recognised through the statement of comprehensive income. The recoverable amount for assets is recognised at either the present value of estimated future cash flows, fair value less costs to sell or depreciated replacement cost, depending on the asset. Impairment of the co-operative’s financial instruments is not recognised until objective evidence exists that a loss event has occurred. A provision for impairment losses is raised if there is an indicator that an impairment loss may be incurred. An impairment loss is reversed if a subsequent increase in the recoverable amount of the asset can be objectively related to an event occurring after the impairment loss was recognised.

(f)

Provisions Provisions are made when INC has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. The amounts recognised represent an estimate of the obligations as at the end of the reporting period.

(g)

Income received in advance Income received in advance represents liabilities for amounts received by INC in advance of the related delivery of goods or services, for which contractual obligations exist. Refer also Note 1 (a) Revenue.

(h)

Employee benefits Provision is made for INC’s liability for short and long-term employee benefits arising from services rendered by employees to balance date. These benefits include salaries and wages, annual and longservice leave and superannuation.

(i)

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 Australian 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 statement of financial position are shown inclusive of GST. The net amount of GST recoverable from, or payable to, the Australian Taxation Office is included as part of receivables or payables in the statement of financial position. Cash flows are presented in the statement of cash flows on a gross basis, except for investing and financing activities, the GST component of which is disclosed as part of operating cash flow.

(j)

Income tax INC is currently seeking registration with the Australian Charities and Not for Profit Commission (ACNC). The outcome of the registration will determine whether INC can seek endorsement as an income tax exempt charity under Income Tax Assessment Act 1997. The directors of INC have determined that they expect INC’s application for registration as a charity will be accepted and appropriate endorsement from the Australian Tax Office obtained. As such there has been no provision for Income Tax made in the accounts.

(k)

Comparative figures As this is the first year of operation for the Co-operative there are no comparative figures provided.

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(l)

Accounting judgments and estimates The preparation of the co-operative’s financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts in the financial statements. Estimates and assumptions are based on historical experience, best available current information and reasonable expectations of future events. Actual results may differ from estimates.

(m)

Adoption of new and revised accounting standards INC has adopted applicable accounting standards and interpretations that are mandatory for the current reporting period. All new and revised accounting standards and interpretations that have mandatory application for future reporting periods, and are relevant to the co-operative, have not been early-adopted.

NOTE 2.

GRANTS

& OTHER INCOME 2015 $

2014 $

Grants Department of Education and Early Childhood Development (ACFE Board)

109,555

-

Other grants

-

-

Total grants

109,555

-

Fees & charges

57,965

-

Contribution – CAIF 5 project balance

23,861

Trading & other income

Interest All other Total other income

-

-

2,849

-

84,675

-

194,230

-

2015 $

2014 $

124,337

-

Leave provisions

12,087

-

Superannuation

11,399

-

Total grants & other income

NOTE 3.

EMPLOYEE BENEFITS

Salaries and wages

Staff training & development

227

-

148,050

-

2015 $

2014 $

Audit fees

-

-

Bank charges

9

-

436

-

Total employee benefits

NOTE 4.

OTHER EXPENSES

Communications Cleaning consumables & supplies

2,281

-

Computer & software expenses

215

-

Stationery

800

-

All other expenses

229

-

3,970

-

Total other expenses

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NOTE 5.

CASH AND CASH EQUIVALENTS

Cash in bank accounts

2015 $

2014 $

20,682

-

34

-

20,716

-

2015 $

2014 $

2,250

-

Petty cash Total cash and cash equivalents

NOTE 6.

PREPAYMENTS

& OTHER CURRENT ASSETS

Accrued income Inventory – cleaning supplies

807

Prepayments

82

Total prepayments & other current assets

NOTE 7.

3,139

-

2015 $

2014 $

1,200

-

(58)

-

1,142

-

PROPERTY , PLANT AND EQUIPMENT

Office furniture and equipment: At cost Accumulated depreciation Total property, plant and equipment

(a) Movements in carrying amounts Movement in carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: OFFICE &

FURNITURE

EQUIPMENT

$ Balance at 30 June 2014 Additions Depreciation expense Carrying amount at 30 June 2015

NOTE

8.

TOTAL

$

-

-

1,200

1,200

(58)

(58)

1,142

1.142

PAYABLES 2015

2014

$

$

Trade and sundry creditors

5,112

-

Goods and services tax payable

5,631

-

Pay-as-you-go withholding tax payable

3,048

-

Superannuation payable

1,513

Total payables

15,304

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-

NOTE

9.

INCOME RECEIVED IN ADVANCE 2015

2014

$

$

Grants in advance Fees in advance

22,778

-

Total income received in advance

22,778

-

2015 $

2014 $

12,549 1,332

-

-

-

NOTE

10.

PROVISIONS

Current Employee benefits  annual leave  long-service leave Non-Current 

long-service leave

2,772

Total provisions

a)

16,653

-

Movements in carrying amounts TOTAL PROVISIONS $ 16,654

Balance at 30 June 2014 Net provisions made during year Balance at 30 June 2015

NOTE

11.

a)

Movements in equity

16,654

EQUITY AND RESERVES

MEMBERS CONTRIBUTIONS $ Balance at 30 June 2014

RETAINED

TOTAL

EARNINGS

EQUITY

$

`$

-

-

-

Increase (decrease) for year

1,200

239

1,439

Balance at 30 June 2015

1,200

239

1,439

b)

Nature and purpose of reserves

Retained earnings This represents the level of unrestricted funds available for general use in the future.

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NOTE

12.

CASH FLOW INFORMATION 2015 $

2014 $

Reconciliation of net result from statement of comprehensive income with cash flow from operating activities Net result for the period

239

-

Items in net result classified as investing activities Capital grants

-

Items in net result classified as financing activities Net interest received (paid)

-

-

Equity Invested in operating activities

-

-

Non-cash flows in net result Depreciation Net (gain) loss on disposal of non-current assets

58

-

-

-

Changes in operating assets and liabilities (Increase) decrease in receivables

(31,177)

-

(Increase) decrease in prepayments & other current assets

(3,139)

-

Increase (decrease) in payables

15,304

-

Increase (decrease) in provisions & other liabilities

39,431

-

20,716

-

Net cash inflow (outflow) from operating activities

NOTE

13.

OPERATING LEASE COMMITMENTS

INC was not committed to any non-cancellable operating lease payments not capitalized in the financial statements.

NOTE

14.

AUDITORS' REMUNERATION 2015

2014

$

$

1,000

-

1,000

-

Remuneration of the auditor of the co-operative 

Audit of the annual financial report

Total auditors' remuneration

NOTE

15.

DIRECTORS’ REMUNERATION AND ATTENDANCE

a) Directors’ remuneration Members the Board of the Co-operative do not receive any remuneration for being a Director. Directors are reimbursed for any reasonable expenses incurred that relate to their service as a Director or the furtherance of the activities of the Co-operative.

b) Attendance at meetings MEETINGS ATTENDED

MEETINGS HELD

Ms. Cathy Connop (Chairperson from 30 April 2015)

3

3

Ms. Joanne Goodman

3

3

Mr. Michael Halls (Chairperson 2 July 2014 – 30 April 2015)

3

3

Ms. Mary Parfrey

3

3

Ms. Jan Thorpe (Deputy Chairperson from 2 July 2014)

3

3

Ms. Carolyn Webster (Public Officer from 2 July 2014)

3

3

NOTE: Current incumbents in Chair, Deputy Chair & Public Officer positions are designated in Bold

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NOTE

16.

SUBSEQUENT EVENTS

As at the date that this report was signed the directors believed that there were no events subsequent to the balance date on 30 June 2015 that will have a material impact on the figures or other disclosures in this report.

NOTE

17.

CO-OPERATIVE DETAILS

The registered office and principal place of business of the co-operative is: 30-34 Bellair Street Kensington, Vic, 3031

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Declaration

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Solvency Statement

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Independent Auditors Report

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