a n n u a l r e p o r t 2 0 1 4 - cornerstone college – we love. … · 2016-03-08 · book...

A N N U A L R E P O R T 2 0 1 4C O R N E R S T O N E C O L L E G E

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College Overview for 2014 ...........................................................2

Annual Report 2014 .....................................................................9

A Tribute to the Chair of Council ................................................. 17

Report of the Council Members .................................................. 18

Statement of Profit or Loss and Other Comprehensive Income .... 19

Statement of Financial Position .................................................. 20

Statement of Changes in Equity ................................................. 21

Statement of Cash Flows ...........................................................22

Notes to the Financial Statements .............................................. 23

Statement by Council Members ..................................................33

Independent Auditors’ Report .....................................................35

C O N T E N T S

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COLLEGE OVERVIEW FOR 2014As a condition for receiving Australian Government funding we are required to ensure that a range of accountability requirements are published and made available to the College community. What follows is a collated version of this information under the headings specified by the Australian Government. The information relates to the 2014 school year.

If you have any questions regarding this information please direct them to Steve Sanders on (08) 8398 6005.

Reporting on the Performance MeasuresOur Mission StatementWe are a caring Christian community nurturing within students a growing relationship with Christ which promotes individual excellence, learning and responsibility, for life.

Why Parents have chosen Cornerstone CollegeIn a recent collation of enrolment data, the four key reasons for Year 7, 2015 families choosing Cornerstone were: 1. Caring environment; 2. Christian education; 3. Academic reputation; and 4. Curriculum choice.

It is noted that these have traditionally been the four key determinants of parental choice of Cornerstone College.

The StatisticsFor 2014 we started the year with 871 students which consisted of 413 girls and 459 boys. Throughout each year there is movement in student numbers, as families move out of and into the region and senior students take up apprenticeships and enter the workforce. By our August census we had increased to 875 students enrolled and of this complement we had three indigenous students and 14 students with disabilities.

Our students were supported by 81 energetic and professional teaching staff and 49 dedicated administrative and support personnel.

Value AddingCornerstone College exists to provide a quality education for our students and to add value to this educational experience. Value is added by extending beyond the statutory curriculum requirements imposed on schools through our ethos, culture and environment and by the co-curricular and extra-curricular activities provided by the school.

What follows is a range of examples of activities undertaken during 2014 that added value to the educational experience of students at Cornerstone College.

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• Student International Exchange Programs – Germany, China.

• Christian Living Program - Students have the opportunity to learn about the Christian faith and its impact and relevance in life. The Year 9 Journey program is unique and encompasses Christian Living.

• Christian Service – Chapel Band, Passion Meditation, Ministry Team, Prayer Group, Spiritual Support Group as well as Senior Choir, Junior Vocal Ensemble and Year 12 Christian Living visits to aged care facilities.

• Community Service – Australian Lutheran World Service, 40 Hour Famine, World Vision, Habitat for Humanity. This included two student service tours to Cambodia.

• Leadership – Student Representative Council, Middle and Senior School House Leadership and Student Leaders.

• Extension Activities – Tournament of the Minds, Mock Trial, Chess, Duke of Edinburgh.

• Public Speaking – Lions Youth of the Year, Rostrum Voice of Youth, Debating, Year 8 Lutheran School Public Speaking.

• Sports – Athletics, Swimming, Triathlon, Ekiden Relay and Tennis.

• Knockout Sports – Basketball, Australian Rules Football, Soccer, Volleyball, Netball, Cricket, Touch Football, Hockey.

• Sustainability – Recycling, Waterwatch, Student Environment Council, River Murray Youth Council / Health of River Forum, Working Towards Sustainability Group.

• Curriculum Related – Maths Quiz Night, Chemical Analysis Competition, Karneval, Music, Visiting Speakers, Arts Alive, Art Exhibition (SALA), Mock Interviews, Meet the Writers, MS Readathon, Operation

Flinders, Premiers Reading Challenge, Book Clubs, Photography Group.

• Music Program – Crescendo, Junior/Intermediate Vocal Ensemble, Music Camp, Hot House Band, Little Big Band, Music Cabaret, Concert Band, Senior Choir, Worship Bands.

• Special Curriculum Initiatives – Special programs for those with special learning needs. A new ‘STRETCH program’ for Gifted and Talented students.

• Health and Well Being – Drug Education, Healthy Eating Programme, Resiliency Program, Car Safety Awareness, Sexuality Education.

• Camp/Experiences – Year 8 Camp, Year 9 Journey Camp, Year 10 Experience, Year 11 Ski Trip, Outdoor Education and Physical Education Camps.

• Community Outreach - Australia’s Biggest Morning Tea, ALWS Fundraising, Tree Planting.

• School and Parent Community Links - Parent Information Evenings, Interviews, Sub-school transition occasions, Guest speakers for parents, Newsletters, Information Booklets.

• Special Occasions - Grandparents and Special Friends Day, College Fete (Food & Fun Fes), Old Scholar Reunions, Year 12 Formal.

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Teacher Standards and QualificationsAll of the teachers at Cornerstone satisfy the requirements of the Teachers Registration Board for registration.

A list of qualifications and the number of these held by teaching staff in the College are listed in the table below. In addition to these formal qualifications, all staff undergo training in Responding to Abuse and Neglect, First Aid and Valuing Safe Communities. They hold all the necessary qualifications for teacher registration in South Australia which includes a criminal history check.

Qualification Number Held

Certificate 5Certificate III 2Certificate IV 7Graduate Certificate 6Diploma 21Associate Diploma 1Graduate Diploma 24Bachelor of Applied Science 4Bachelor of Arts 17Bachelor of Design 1Bachelor of Education 51

Qualification Number Held

Bachelor of Mathematical Science 1Bachelor of Music 3Bachelor of Performing Arts 1Bachelor of Science 15Bachelor of Special Education 1Bachelor of Teaching 2Bachelor of Urban and Regional Planning 1Bachelor of Visual Communications 1Honours 12Masters 8

Furthermore we have many staff that hold Senior First Aid certificates, are qualified in special education and who hold counselling qualifications. A list of the Professional Learning Activities undertaken at the College includes:• College based professional learning teams

learning area and cross-curricula• Mentoring / coaching• External consultants / facilitators• Accredited courses• Assessment and moderation activities• Structured professional reading• Peer Observation

• In-school programs• External workshops / conferences• Practicums / school visits• Online learning• Teaching staff 2 year professional learning

cycle including a Personal Project in Year A of the cycle

• Meetings of professional associations

All teaching staff at Cornerstone College are required to be involved in Professional Learning Activities. These take a variety of forms from whole staff professional development, sub-school activities, specific curriculum focus activities for teams of teachers, and attendance at workshops, seminars and conferences for individuals or small groups of teachers.

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Workforce CompositionIn 2014 the College had the following composition of staff to support the students in their learning:

TeachersFemales: 21 Full Time and 21 Part Time, totalling 42 staff or 36.1 full time equivalents.Males: 31 Full Time and 8 Part Time, totalling 39 staff or 35.7 full time equivalents.

Non-TeachingFemales: 1 Full Time and 31 Part Time, totalling 32 staff or 21.2 full time equivalents.Males: 9 Full Time and 8 Part Time, totalling 17 staff or 11.7 full time equivalents.

In total the College had 130 staff which represented 104.7 full time equivalents. Currently Cornerstone has no indigenous staff members.

Teachers who are engaged as supervisors to replace teachers who are ill (TRTs) and those on replacement contracts to fill in for those on long service leave or maternity leave etc, are not included in the calculation. They do not form part of the permanent teaching staff and would be expected to leave when the teacher they are replacing returns from leave.

As at the August Census there were 71.8 full time equivalent teaching staff members employed at the College. During 2014 two teaching staff members retired from the College, giving us a retention rate of 98.5%.

Student AttendanceThe percentage figure for the average student attendance rate shows the proportion of days that each student, on average, attended College over the whole year. The larger the percentage, the smaller the number of days that students were absent from the College.

In 2014 the average student attendance rate was 94% and this is represented in the following table by year level:

# Days # School Possible Days @ Year Level Absent # Students Days Days School Attendance

Year 7 1,573 131 187 24,497 22,924 93.6% Year 8 1,434 151 187 28,237 26,803 94.9% Year 9 1,677 150 187 28,050 26,373 94.0% Year 10 1,888 160 187 29,920 28,032 93.7% Year 11 1,814 148 182 26,936 25,122 93.3% Year 12 1,333 136.2 157 21,383.4 20,050.4 93.8% Totals 9,719 876.2 159,023.4 149,304.4 93.9% The attendance roll is taken every morning at home group and parents are advised of their student’s absence by SMS text messaging thus allowing parents to respond should they have forgotten to advise the College of their Childs’ absence.

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Senior Secondary Outcomes134 students undertook Year 12 in 2014, some of those as part-time students. 129 planned to complete SACE. 98% successfully completed SACE requirements (compared to 94.4% for the State). Students studied from a range of 32 Stage 2 subjects.

13.5% of students received an ATAR of 90 or above while 35.1% of students achieved an ATAR of 80 or above.

The average ATAR was 70.44. The Dux of the College obtained an ATAR in 2014 of 98.3. 111 students had a combination of SACE subjects that entitled them to receive an ATAR.

In the grades, 19% of grades were As while 69% were As or Bs.

All Year 10 students successfully completed the Personal Learning Plan as the first component of their SACE.

Student Outcomes in Standardised National Literacy & Numeracy TestingIn May 2014, the National Assessment Program for Literacy and Numeracy (NAPLAN) tests were completed by students in Years 3, 5, 7 & 9. This is an annual Federal Government requirement. Students at Cornerstone in Year 7 and Year 9 completed five assessments in the areas of Numeracy, Reading, Writing, Spelling and Language Conventions. For the first time, Cornerstone College had a cohort of Year 7 students.

The table shows the percentage of students in Year 9 at Cornerstone in 2014 that performed at or above the National Standard:

Persuasive Grammar andYear 9 Reading Writing Spelling Punctuation Numeracy

Cornerstone 96% 90% 94% 96% 96%SA State 92.1 81.8 89.8 89.6 94.1

The table shows the mean NAPLAN results in Year 9 at Cornerstone in 2014 compared to SA and Australian mean scores.


Cornerstone 598.5 574.2 595.3 599.1 605.9South Australia 573.0 545.3 575.2 567.6 573.6Australia 580.4 550.3 582.0 573.5 587.8

The table shows the percentage of students in Year 7 that performed at or above the National Standard:


Cornerstone 98% 93% 97% 97% 100%SA State 94.9 88.5 92.4 93.0 95.1

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The Principal has significant responsibility and influence over the health of a school as the person ultimately responsible for the management and day to day operations. During a principal’s tenure their performance is assessed to provide personal feedback, and this process also provides information and data that helps assess the health of a school and the satisfaction levels of its staff, parents and students.

This year, Cornerstone’s Principal Craig Fielke, underwent a review where collectively one hundred and six staff, parents and council members reflected on Craig’s ability to deliver in certain key areas within the College. As a summary, the following is offered as a representation of the satisfaction levels experienced by the Cornerstone community:• Spiritual vision and leadership - School and

staff devotions are a highlight at Cornerstone and the College has excellent spiritual role models and leadership in this area.

• Visioning and strategic planning - The College vision is communicated, actively outworked through the Strategic Plan and progress is reported through to the College Council monthly and to the community via the Annual Report.

• Leading teaching and learning – Two of the College’s strategic goals relate to student learning and these have been strongly promoted throughout the College. Professional development for teachers is a priority and the outcomes of this investment are evident in the classroom.

• Developing leaders and staff – There is considerable support for the rigorous but enriching Development Program at the

College and staff are consistently encouraged to develop professionally as learners and leaders.

• Leading improvement – Feedback is regularly sought with regards the progress being made towards College goals and opportunity is regularly provided to be innovative, improve practices and adopt efficiencies.

• Building community – Engaging with the community is a priority at Cornerstone with several new initiatives being implemented to enhance relationships and create a strong culture of community.

• Management of the College – All elements of College management are well understood, resourced, controlled and reported. The College is well positioned and is delivering an excellent service to the Adelaide Hills community.

Areas within the review process that were identified as areas for development and opportunity include:• greater involvement and networking with the

parent community• more opportunity for staff to collaborate and

support College goals• strategic review and resolution of technology

issues• develop a mentoring program for students.

College leadership, under the direction of the Principal, will use the community feedback to improve the experience that the College community have when learning, teaching, working and or engaging with Cornerstone.

Parent, Student and Teacher Satisfaction with the College

The table shows the mean NAPLAN results in Year 7 at Cornerstone in 2014 compared to SA and Australian mean scores.


Cornerstone 557.3 535.7 554.3 573.7 568.8South Australia 541.1 509.2 539.6 536.7 533.9Australia 546.1 511.6 545.1 543.1 545.9

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Ninety-nine students applied for university courses. In the first round of offers, 69% were offered their first preference for university, while 85% were offered first or second choices.

Offers were made in many areas including Speech Pathology, Paramedics, Mathematics, Occupational Therapy, Law, Engineering, Visual Communications and Media degrees, Teaching, Nursing, Science, Business, Commerce, Languages, International Studies, Sports & Recreation and Arts. As part of their SACE, 37 students completed Vocational Certificates 3. This included certificates in Christian Ministry and Theology, Aged Care, and Sport and Recreation. Forty-nine students completed a vocational certificate

as part of completing SACE and a further 26 students undertook some VET units as part of their SACE course in 2014. These will be recognised as completed units at TAFE and other providers if the students pursue further study in that area. SATAC TAFE offers were made in areas such as Drama, Design, Outdoor Recreation, Children Services, Film Studies and Business Studies. The majority of SATAC applications were for university. Due to continuous enrolment processes at TAFE, students can apply for TAFE courses at any point in the year, hence the number of SATAC applications for TAFE was significantly reduced.

The College receives its income through several sources and these are represented under in order of value for 2014:

Post School Destinations

College Income Broken Down by Funding Source

Fees $6,898,733Commonwealth Grants $6,378,171State Grants $1,392,294Building Fund Donations $393,898Other Income $402,905Other Grants $46,257Facilities Hire/Fundraising $142,433Total Income 2014 $15,654,691

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As a community, we thank God for the inspiration he provides through the people and experiences at Cornerstone College. There are also many things for which we can be grateful, such as:

• Students who relish the chance to make the most of every opportunity to learn what is put before them. Students who demonstrate grit and determination towards their learning. Students who approach each day with hope, optimism and enthusiasm. Students who show each other kindness, understanding and respect.

• Parents who support their children’s education and put their trust and confidence in our staff. Parents who also offer their affirmation, encouragement and prayers.

• The outstanding staff of Cornerstone College, who give so much of themselves to provide the best learning and most supportive environment for the students entrusted to them. They deal optimistically with the challenges of their vocation and celebrate in the growth and development of our students.

2014 has been an incredible year of change and opportunity for our College. In simple terms, there have been three main factors; the expansion of our middle school, the introduction of Year 7s, and the many facets of outworking our strategic plan. This report goes on to explain in more detail the breadth and depth of these developments and how many other opportunities have been explored and taken. The strong partnership displayed between staff, students, families and the wider community has enabled our expectations to be exceeded and we are inspired by and grateful for the many more opportunities that lay ahead.

We have developed and grown as a learning community in 2014 and are looking forward to 2015 with energy and passion.

It is always a sad time at the end of each year when we farewell some of our amazing staff and this year, the College farewelled Dr Grant Schiller, Mrs Bronwyn Bell, Mrs Jillian Kuehne and Mrs Melissa Hutchesson.

• Grant Schiller resigned from his role as a Psychology / Science teacher

• Bronwyn Bell resigned from her role as an Adaptive Education Learning Support Officer

• Jillian Kuehne resigned from her role as a Music teacher

• Melissa Hutchesson has completed her contract as Adaptive Education Learning Support Officer.

The College community wished these staff every blessing as they were about to enter new phases within their lives. They were sincerely thanked for their dedication and service to the Cornerstone community and collectively we celebrated their individual gifts and talents. Cornerstone College entered its 25th year of partnering with families in the learning, growth and development of their children this year and will go on to celebrate this during 2015. There will be a number of events to mark the journey from 1990 and to share memories, stories and important times in our history. We look forward with great anticipation to everything that God has in store for us in 2015.

Cornerstone College continues to be part of a broad Lutheran educational community, nurturing young people of quality and character and providing them with an opportunity to have an ongoing connection with the life and love of Jesus. As you read this report, may you continue to be inspired and reminded of the learning that takes place at Cornerstone and the many ways this is displayed in and through our community.

Annual Report 2014

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Ministry and Care: (the expression of God’s love through the support, care and nurture of each individual within the College community (growth in faith/worship))

We are blessed in a community that acknowledges the presence and love of God and for the value this brings to our relationships with all those connected to the Cornerstone community.

The care and wellbeing of students is central to our mission at the College and in 2014 we welcomed Year 7 students for the first time. With this addition came the arrival of a distinct ‘Middle School’ (Years 7, 8 & 9) and ‘Senior School’ (Years 10, 11 & 12).

The four Houses (Aroona, Battunga, Moorak and Naturi) have been retained but with a different Home Group structure. The new format has six Middle School Home Groups and six Senior School Home Groups which are paired, e.g. Aroona 1 (Middle School) and Aroona 1 (Senior School). Leanne Filmer as Middle School Wellbeing Leader and Justin Kerber as Senior School Wellbeing Leader have been instrumental in developing an awareness of the differing needs of students in their sub schools, and creating rites of passage from Middle to Senior School. We are looking forward to consolidating in this area and reviewing different Pastoral Care methodologies and initiatives in 2015.

Efforts to further intertwine the ministry programme and care at the College has included a renewed focus in the area of Home Group devotions. In 2014, significant time and effort was committed to resourcing Home Groups with suitable devotional material, to ensure the word of God and Jesus’ love is the starting point for all students every day. Significant new direction was taken in 2014 in regard to the chapel programme. Middle School and Senior School chapels have been modified to engage students of the particular age group, including varied and innovative use of technology, diversity in seating plans and greater activity and involvement on the part of the student.

The Passion Meditation performance was again a significant ministry to the Year 12 students as

they presented to the wider student body, parents and the Adelaide Hills Lutheran Youth.

Fifteen students participated in the Vetamorphus program in 2014, slightly more than in the previous year. This has continued to be a great blessing to the individual students, the College and to the wider church. Staff and students participated in a number of congregational visits to churches in the Adelaide Hills, and Pastor Albert Gast continued to visit all LEAH schools, providing our LEAH primary students with the gospel message. Our chaplain, Adam Yeager also visited the Hills Christian Community School with the same purpose.

The preparation and formation of staff for teaching at Cornerstone is an ongoing ministry. In 2015, a number of new staff began this journey with enrolment in the Pathways Spiritual component, whilst others continued into the theological component, further providing them with knowledge and understanding of important theological constructs. The sessions led by the College’s Senior Leadership Team provided an excellent forum for personal reflection as well as group discussion. All staff participated in the mid-year spiritual development programme with a focus on a position paper that had been prepared by Pastor Albert, on the teaching of Creation at Cornerstone College. Dr Mark Worthing of the Australian Lutheran College was invited to speak as an expert on this topic. As we enter into a new year we look forward to furthering our endeavours to share and teach the message of the Gospel and the good news given through Christ into our community. We thank God for all that he has done and all that he continues to do for us, in us and through us.

Change and opportunity:

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Infrastructure: (the wider College infrastructure that provides the foundation and direction for all that transpires within the College)

Significant progress was made towards delivering upon the strategic tasks and activities recorded within the College Strategic Plan. The ‘goal champions’ have been guiding and directing their teams while recording their progress within a quarterly report which is summarised and delivered to College Council on a regular basis. A summary of the strategic goals are to:• enhance the levels of challenge and

achievement in student learning across all year levels

• champion best practice in professional learning

• strengthen our partnerships with community• lead in middle school teaching and learning• maintain sustainable and strong governance.

In delivering upon these goals the College aims to equip young people for time and eternity, by nurturing within them a growing relationship with Christ, and by developing the individual gifts and abilities God has given them.

Financial management is an important function within the College and after recently investing $10M into delivering infrastructure to accommodate for the introduction of a Year 7 cohort, it was prudent to establish some carefully considered financial goals and objectives.

With such a large investment it was important to ensure that the College was prepared and in a position to manage this investment and subsequently a financial plan was created that delivered financial targets and benchmarks for the College to achieve over the next five years.

The elements of highest priority that are being managed and monitored to ensure that Cornerstone met their financial commitments were categorised as follows:• enrolments• community engagement• maximise income potential• minimise expenditure• improve efficiencies• improve cashflow.

Each of these elements have a set of measurable targets that are closely assessed and reported

through to the Finance Committee and then to College Council. For 2014, the College exceeded its financial performance targets and is well positioned to continue to deliver on these measures into the future.

The College has commenced a process of reviewing the departments that collectively administer the business of Cornerstone and support the teaching and learning. It is a timely initiative considering the increased number of students at the College and the changes that have and are taking place in education delivery and student learning.

The first department to be reviewed was the Digital Technologies (DT) Department and the objective was to determine whether the department was delivering on its vision and mission statements, whether it is operating efficiently and effectively, and to identify opportunities for improvement.

The vision statement for the department which provides the DT team with a specific focus and underpins all that they do is as follows:

“We will provide effective Digital Technologies to facilitate a stimulating and challenging learning environment for students and that enable all users to enjoy efficient and functional digital resources.”

Following on from their vision statement is a list of points (mission) describing how they intend to achieve their vision:

“We will enhance the learning and operational environments of the College through:• understanding the needs of users• researching and testing existing and

innovative technologies• providing ‘best fit’ solutions that are

expansive and sustainable• implementing technologies that facilitate

stimulating and challenging education delivery

• providing training and support to others in relation to the use and management of digital resources

• maintaining quality service levels.”

The review included an internal assessment where the above statements were tested by interviewing each member of the DT team and other members of the College, including leaderships, teaching and administration staff,

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and students. The financial and resource performance of the department was also benchmarked against like schools within the Lutheran Schools system and similar sized independent schools via the Somerset Non-Government Schools’ Financial Performance Survey.

To complement the internal review the College engaged Reflex Technology Group (a technology consulting firm with considerable experience and proven performance in the education industry) to undertake an independent review of the DT Department. Their charter was to provide greater technical assessment and an unbiased overview of the performance of the department, benchmarking against their wealth of experience with like schools throughout Australia. The review highlighted many areas of celebration and identified opportunity where improvements could be made. One significant change was the College partnering with Reflex

Technology Group (RTG) to lead and navigate the department through the proposed changes. Their appointment commenced with the provision of several specialists in change management to lead and support the DT team and deliver on the major findings. This initial phase will progress to a vision, planning and budgeting stage in 2015 and then evolve into a consolidation phase where Cornerstone College will appoint a DT Director in consultation with RTG.

In an effort to address the opportunities identified by the Cornerstone community, the DT Department will undertake significant change throughout 2015, and the prayers and thoughts of the Cornerstone community would be appreciated as the College navigate their way through this very exciting and challenging time.

In 2015, the Property and Marketing Departments will be reviewed and a similar process will be undertaken as to the one adopted for the digital technologies department.

Learning: (the dynamic and innovative provision of quality education to grow and develop the individual giftedness of students)

Many years of planning came to fruition with the commencement of Year 7 students at Cornerstone College. As the first year of Middle School included the implementation of innovative structures to enhance learning, particularly with the restructuring of Year 8 core groups as well as further curriculum developments as the year progressed. Paideia, the Middle School building, was used for the first time. It has many flexible learning spaces that open up new approaches to learning for students. Students were regularly seen working in the learning common in small groups or across core groups, outside in the amphitheatre breakout space or on the wide verandas. The learning tree is a popular space for individuals as well as an alternative space for class activities and discussion. The Middle School began evolving and developing over the year with teachers seeing the potential and exploring new pedagogies with the new spaces; 2014 was a year for staff to explore different ways of teaching. This will continue to develop into the future.

An important and exciting aspect of Paideia’s flexible learning space was the high degree

of visibility of learning across all the classes in a particular level. This promoted collegial conversation as they watched each other teach, discussed ideas together and explored innovative and creative ways of teaching.

At Year 7, as well as core learning in the key Australian curriculum areas and Christian Living, students were able to experience an elective program that utilised the facilities of a high school context to enrich their experience. Students had term electives in the Arts and Technology areas as well as experiencing both German and Chinese and engaging in regular exercise through the PE programme. Their year included Inquiry Based Learning (IBL) units that culminated in events like Year 7 Heritage Day.

The learning finale for our new cohort involved a Year 7 Showcase where students presented their research to their parents and visitors at a formal evening. Each student took responsibility for explaining and demonstrating their learning through interactive displays.

Inquiry Based Learning units have also been developed for Year 8 students in Science with further developments planned for 2015. Connecting with Year 6 teachers from the Lutheran Education Adelaide Hills primary

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schools has also enhanced the development of IBL, as collectively they explored the concept of IBL and shared their expertise.

The year concluded with a special Middle School activities day to celebrate the first year of Middle School at Cornerstone College.

The Senior School is also establishing its own identity. The wide variety of specialist subjects ensures students can achieve their personal and career goals successfully. The Arts continue to be a strength in the College with many dramatic performances, musical events culminating in the College Cabaret as well as Art and Design exhibitions. Student work was again selected for the schools South Australian Living Artists Festival (SALA) exhibition in Mount Barker.

A foci across the school has been on creating a more consistent understanding of the language of assessment. New criteria were established in the reporting system, which weave in the concepts of Growth Mindsets from the work of psychologist, Carol Dweck. The two criteria of Approach to Learning and Learning Mindset provide greater clarity for students and staff on what is being assessed in terms of classroom involvement, learning and effort. With the students, an ongoing message promoting Growth Mindsets continued at assemblies utilising the Above and Beyond segment. An example of this is where current and old scholars who have reached above and beyond in their careers or community involvement were interviewed. A wide variety of careers were showcased by successful past students. The student body enjoyed these segments, and as a result, suggested names to leaders for further segments.

The Year 7 classes undertook a five session programme on Mindsets as the first step in establishing a College wide Thinking Curriculum focus. The Key Learning Leaders undertook further planning with the Habits of Mind with plans to embed these in the Year 8 curriculum in 2015.

As documentation was released by ACARA, the Australian Curriculum was further investigated and course development undertaken in the areas of PE, Technology, Chinese and the Arts.

Cornerstone continues to provide many flexible options for students. This provides alternative

ways for students to gain their SACE, undertake vocational training while at school and support students to achieve their career goals irrespective of their academic abilities. New programmes in 2014 included the introduction of the course Certificate 3 in Fitness for Cornerstone students, and a very successful regional Careers Expo, hosted at Cornerstone. Further networking for careers teachers was initiated from Cornerstone with the establishment of Edmodo Vocational Education Training (VET) and Careers Network Group online. A thankyou breakfast was hosted for the many community businesses that support our students in work experience and this was catered for by the Food and Hospitality students.

The Library Resource Centre continues to develop as an inviting and innovative learning centre for the students. During 2014, a new library management system, called AccessIt was installed. It provides students with 24/7 access from school or home to books, magazines, websites, multimedia and online databases. The new system allows students to reserve items on loan, write reviews, create bibliographies and self-manage loans and overdues.

The Middle School fiction area was reorganised by genre (adventure, fantasy, mystery, war, humour, etc.) to encourage and promote reading. As a result, loans have increased by thirty percent in this book category. In addition, Middle School students helped library staff select new titles from an array of titles on approval from Pulp Fiction Book Store to expand the graphic novel collection.

The magazine area was redesigned with new front facing shelving for popular magazines. More furniture has been added, comfortable tub chairs and a coffee table, to create another inviting learning space.

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Staff Professional LearningWith one College strategic goal relating to ‘championing professional learning’ the momentum to allow Cornerstone to be a leader in this area has grown. The impact of quality teaching in achieving quality learning is strongly acknowledged.

A focus on the Australian Professional Standards for Teachers has sharpened the focus on teaching as a profession. There are seven standards with thirty seven focus areas where teachers are required to self-assess their level of proficiency against four career stages: Graduate, Proficient, Highly Accomplished and Lead Teacher. Through Cornerstone having an expectation and process for teachers collecting evidence relating to the standards we hope to encourage our staff to consider applying to become Highly Accomplished or Lead Teachers in the national arena.

Cornerstone College, through the Human Resources Coordinator and the Deputy Principal, has continued to be major contributors to a Lutheran Schools system approach to growing our staff. Whilst this process has encountered some challenges from a technology perspective, many templates and processes developed have assisted many schools to engage with a process.

The Professional Learning program for teaching staff continued the two year cycle, with the Personal Project (a professional learning goal) being a key feature for the Year A group and now is embedded in the culture of our College. An expo of projects at the end of year was again embraced by staff with some presentations being recorded as videos. The presentation of projects:• enabled staff to engage in professional

learning and research relevant to their teaching

• provided staff with the opportunity to present professionally to their peers and to use pedagogies used in the classroom

• enabled staff to learn from each other.

This year, two members of staff embraced another College strategic goal related to connecting with community to present the findings of their personal project at parent forums. Both were of a high quality.

A component of the Professional Learning Program at Cornerstone which is becoming an embedded culture is that of a staff collaborative activity, usually in Term 2. In 2014, staff in groups of three worked together in a classroom observation process. Again the strength of collaboration as a professional learning tool is being increasingly acknowledged.

The use of student feedback to enable teachers to learn with the use of an online surveying tool to collect data centrally from students was again part of our practise. This is done both for learning and pastoral care experiences in our College.

Professional learning of all staff was targeted to their agreed learning goals and key performance indicators for the year.

For non-teaching staff, they all now have clear key performance indicators and their line managers are equipped to review their development and growth at an end of year review.

We applaud the staff at Cornerstone College for the positive way in which they approach their own professional learning and for the way that this translates into practise.

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Support Services: (the provision of relevant services that support the effective operation of the College in its focus as a place of learning)

As mentioned in the ‘Infrastructure’ section of this report, the College is undertaking a review of the departments that deliver the support functions to our community.

The support functions within the College consist of the following departments or areas:- Faculty Support - Marketing- Administration - Facilities- Student Services - Digital Technologies- Human Resources - Adaptive Education- Finance - Library- Canteen The reviews are designed to ensure that the strategic vision and direction of each department is aligned with the College goals and objectives and to ensure that they are operating effectively and efficiently. With the growth that the College has experienced in recent years and with the changing demands on education, it is important that we take the time to step back and have an in-depth look and assessment of how we are performing in these critical areas of educational support.

The support services team continue to innovate and improve the way they serve the Cornerstone community. A summary of the initiatives and achievements adopted in 2014 are detailed below:• Assessment and management of significant

trees• Slip lane introduced to improve student safety

during pick up and drop off• Sealed path linking Atelier and Kenntnis• Paved seating area adjacent the tennis courts• Landscaping of Paideia surrounds• New carpark created at front of the

maintenance shed• Increased demand on facilities for external

hire• Greater opportunity for parents to meet

through the establishment of ‘coffee connect’ • Six parent educational forums were held at

the College• Greater collaboration with schools through

the provision of marketing assistance • Relationships established with tertiary

institutions through the holding of a careers expo

• Improved advertising initiatives (PowerFM, new website, school stream app, targeted advertising in Stirling and Aldgate)

• Production of College honour boards• Financial targets achieved across all

elements• Implementation of large photovoltaic solar

system on the roof of Atelier has reduced the College’s carbon footprint and delivered savings in the consumption of electricity

• Other significant savings realised through contract negotiations

• Bring your own device fully implemented to students.

The support services team at Cornerstone are extremely dedicated towards delivering the best possible assistance to the staff, students and parents. Their achievements throughout 2014 can be commended as they have continued to enhance their service delivery while welcoming a further 125 Year 7 students and 12 staff.

The team continue to operate in unison, working together to achieve the best possible outcomes for the College.

From him the whole body, joined and held together by every

supporting ligament, grows and builds itself up in love, as each

part does its work.Ephesians 4:16

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At the end of this year the College said thank you and farewell to a long standing, very passionate and committed member of our community, Mr Eric Beames. Eric was the College Council Chair from 2003 to 2014 and during this period generously gave of his time, his skills and talents, as he led and directed the College Council. Furthermore, Eric has had a connection with Lutheran Education since 1984, when his children commenced their educational journey at St Mark’s Lutheran Primary and later graduating to attend Cornerstone College. During this time, Eric has volunteered his time and contributed to numerous strategic planning groups, service committees and governance boards.

Eric began his governance role at Cornerstone as a member of the Finance Committee in 1999, later becoming a member of the Cornerstone College Council in 2001 and Chair of Council in 2003. While on Council, Eric contributed further, being a member of several Committees including finance, property, planning, and executive.

In his role as Chair of Council, Eric attended numerous internal official and social functions and represented the College on numerous occasions to the greater community. Eric contributed to the wider educational community, continuously striving to improve his understanding and knowledge of education and the influencing factors for the benefit of the College. Eric was also a committee member of the Association of Independent Schools of South Australia Governance Advisory Board, he attended many Lutheran Schools Association seminars and Annual General Meetings, and participated in two National Lutheran Conferences.

During his position as Chair of Council, Eric has overseen significant growth within the College and has been instrumental in setting the strategic focus and direction. Eric has been involved in the on-site planning of numerous infrastructure developments including: Anakalypsi, cibo bello redevelopment, Morella Oval, Atelier, Plaza redevelopment, Purtinga Centre and Wetlands, Outdoor all weather sports field, refurbishment of inbarendi and most recently Paideia. Throughout Eric’s tenure, he has always made decisions that are true to the College mission and led by a focus on student learning and wellbeing.

We have been blessed to have had Eric Beames serve in our community; his dedication and stewardship of Cornerstone has enabled us to continue providing a quality learning experience for our students and partnerships with our families and community. Eric has been a key to the development, growth and sustained success of Cornerstone College.

Eric has been a true servant of God, sharing his faith and the love of Jesus in his governance of the College and in his interactions with staff, students and parents alike. We thank him for his service to Cornerstone College and wish him all the best into the future.

A Tribute to the Chair of Council

18

Report of the Council Members31 December 2014

Cornerstone College Inc.

The Council Members present their report on the financial statements of the College for the year ended 31 December 2014.

Council membersThe names of Council Members throughout the year and at the date of this report are:Anthony Klatt (Appointed March 2014) (Chairman) Eric Beames (Retired November 2014) Rob Zadow Brian Jaensch (Retired February 2014) Elizabeth Francis (Retired November 2014) Ron Hogg Michael ShearerAndre KleinigShane PatersonCameron Hawke (Appointed July 2014)Pastor Stephen Schultz (Appointed February 2014)

Advisory Members Craig Fielke (Principal) Carl Hollsten (Business Manager)Pastor Albert Gast (College Pastor) Observer Rob Rohde (Deputy Principal)

Principal activitiesThe principal continuing activities of the College are to provide secondary education for approximately 875 students. Significant changes in the state of affairsNo significant changes in the College’s state of affairs occurred during the financial year.

Operating resultThe surplus of the College for the year after non-operating income amounted to $633,163 (2013:$10,305).

Events subsequent to the end of the reporting periodNo matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the College, the results of those operations or the state of affairs of the College in future financial years.

Council Members benefitsIn accordance with section 35(5) of the Associations Incorporation Act 1985, the Council Members of Cornerstone College Inc. hereby state that during the financial year ended 31 December 2014:

(i) no officer of the College;(ii) no firm of which an officer is a member; and(iii) no body corporate in which an officer has a

substantial financial interest

has received or become entitled to receive a benefit as a result of a contract between the officer, firm or body corporate and the College and no officer has received either directly or indirectly from the College any payment of other benefit of a pecuniary value with the exception of Advisory Members to the Council who received a salary as employees of the College.

Signed in accordance with a resolution of Council Members:

Council Member:

Council Member:

Dated this 23rd day of March 2015

19The accompanying notes form part of these financial statements.

Statement of Profit or Loss and Other Comprehensive IncomeFor the Year Ended 31 December 2014


2014 2013

Note $ $

Revenue 2 15,229,799 13,014,537

Employee benefits expense (10,790,855) (9,607,903)

Depreciation and amortisation expense (660,337) (516,220)

Other expenses (2,790,645) (2,708,758)

Finance costs (779,693) (568,541)

Net surplus from ordinary activities attributable to the College 208,269 (386,885)

Non-operating income 2 424,894 397,190

Surplus after non-operating income 633,163 10,305

Other comprehensive income

Revaluation changes for property, plant and equipment 1,709,678

Other comprehensive income for the year 1,709,678

Total comprehensive income for the year 2,342,841 10,305

20 The accompanying notes form part of these financial statements.

Statement of Financial PositionAs at 31 December 2014


2014 2013Note $ $

ASSETSCURRENT ASSETSCash and cash equivalents 4 784,665 140,334Trade and other receivables 5 915,052 963,639Inventories 6 5,315 2,566Prepayments 7 69,359 49,164TOTAL CURRENT ASSETS 1,774,391 1,155,703NON CURRENT ASSETSProperty, plant and equipment 8 36,044,929 33,578,648TOTAL NON-CURRENT ASSETS 36,044,929 33,578,648TOTAL ASSETS 37,819,320 34,734,351LIABILITIESCURRENT LIABILITIESTrade and other payables 9 3,449,620 4,344,672Financial liabilities 10 1,664,872 1,716,379Employee benefits 11 2,017,869 1,901,169TOTAL CURRENT LIABILITIES 7,132,361 7,962,220NON-CURRENT LIABILITIESFinancial liabilities 10 13,835,715 12,191,764Employee benefits 11 81,528 153,492TOTAL NON-CURRENT LIABILITIES 13,917,243 12,345,256TOTAL LIABILITIES 21,049,604 20,307,476NET ASSETS 16,769,716 14,426,875

MEMBERS' FUNDSCapital reserve 12 2,130,774 2,130,774Asset revaluation reserve 12 7,370,473 5,660,795Accumulated surplus 7,268,469 6,635,306TOTAL MEMBERS' EQUITY 16,769,716 14,426,875

21The accompanying notes form part of these financial statements.

2013Accumulated

surplusCapital reserve

Asset revaluation

reserve Total$ $ $ $

Balance at 1 January 2013 6,625,001 2,130,774 5,660,795 14,416,570Surplus after non-operating income 10,305 - - 10,305Balance at 31 December 2013 6,635,306 2,130,774 5,660,795 14,426,875

Statement of Changes in EquityFor the Year Ended 31 December 2014


2014Accumulated

surplusCapital reserve

Asset revaluation

reserve Total$ $ $ $

Balance at 1 January 2014 6,635,306 2,130,774 5,660,795 14,426,875Other comprehensive income for the year

- - 1,709,678 1,709,678

Surplus after non-operating income 633,163 - - 633,163Balance at 31 December 2014 7,268,469 2,130,774 7,370,473 16,769,716

22 The accompanying notes form part of these financial statements.

Statement of Cash FlowsFor the Year Ended 31 December 2014


2014 2013Note $ $

CASH FLOWS FROM OPERATING ACTIVITIES:Government grants 7,836,985 6,566,469Tuition fees 5,619,804 4,845,504Building fund transfers 393,898 375,697Interest received 13,504 21,898Other receipts 1,811,426 1,235,210Payment to suppliers and employees (14,454,760) (10,256,997)Finance costs (779,693) (568,541)Net cash provided by operating activities 13(b) 441,164 2,219,240

CASH FLOWS FROM INVESTING ACTIVITIES:Proceeds from sale of plant and equipment 45,027 30,292Purchase of property, plant and equipment (1,434,304) (8,096,760)Net cash (used in) investing activities (1,389,277) (8,066,468)

CASH FLOWS FROM FINANCING ACTIVITIES:Proceeds from borrowings 1,590,348 6,047,119Proceeds from finance lease 129,480 144,043Repayment of finance lease (58,837) (50,985)Repayment of borrowings - (326,704)Net cash provided by financing activities 1,660,991 5,813,473

Net increase (decrease) in cash and cash equivalents held

712,878 (33,755)

Cash and cash equivalents at beginning of year 71,787 105,542Cash and cash equivalents at end of financial year 13(a) 784,665 71,787

23

Notes to the Financial StatementsFor the Year Ended 31 December 2014


1 Summary of Significant Accounting Policies Basis of Preparation

The financial statements are special purpose financial statements that have been prepared for distribution to the Council Members in order to satisfy the Council Members’ financial reporting requirements of the Associations Incorporation Act (SA) 1985 and the College’s Constitution. The Council Members have determined that the College is not a reporting entity.

The financial statements have been prepared on an accruals basis and are based on historic costs and do not take into account changing money values or, except where specifically stated, current valuations of non current assets.

The following significant accounting policies, which are consistent with the previous period unless otherwise stated, have been adopted in the preparation of these financial statements.

(a) InventoriesInventories consist of canteen and facility stocks and are measured at the lower of cost and net realisable value. Cost of inventory are assigned on a specific identification basis.

(b) Property, Plant and EquipmentEach class of property, plant and equipment is carried at cost or fair value, less where applicable, any accumulated depreciation.

Cost and ValuationProperty, furniture, plant and equipment are recorded at cost and where applicable at Council Members’ valuation. The College does not have a formal policy in respect of the timing of revaluations. Any surplus on revaluation is credited directly to the asset revaluation reserve and excluded from the Statement of Profit or Loss and Other Comprehensive Income.

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

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

Any gain or loss on the disposal of assets is determined as the difference between the carrying value of the asset at the time of disposal and the proceeds from disposal, and is included in the Statement of Profit or Loss and Other Comprehensive Income of the College in the year of disposal.

DepreciationThe depreciable amount of all assets, excluding freehold land and buildings, are depreciated over their useful lives to the College commencing from the time the asset is held ready for use. No depreciation has been charged against the buildings as the Council has assessed the written down value to be less than the residual value.

Depreciation value is provided on a straight line basis on all items of furniture, plant and equipment, library and teacher resources, at rates calculated to allocate the cost and/or fair value, less estimated residual value at the end of the useful lives of the assets, against revenue over those estimated useful lives.

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(b) Property, Plant and Equipment (Cont’d) Major depreciation periods are: Furniture, plant and equipment: 5 to 10 years Library books and teacher resources: 5 years Computers: 3 years Motor Vehicles: 5 years

Land and BuildingsThe Registered Proprietor of the land on which the College and its buildings and improvements are located is the Lutheran Church of Australia, South Australia District Inc. of Archer Street, North Adelaide SA 5006.

InsuranceAll property, plant and equipment is insured with LCA Property Provident Fund. The replacement cost for insurance purposes is $40,023,232 (2013 $34,624,338).

(c) Investments and other financial assetsInvestments held are originally recognised at cost, which includes transaction costs. They are subsequently measured at fair value which is equivalent to their market bid price at the end of the reporting period. Movements in fair value are recognised through an equity reserve.

(d) Cash and cash equivalentsCash and cash equivalents include cash on hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within short term borrowings in current liabilities on the balance sheet.

(e) Trade receivablesTrade and other receivables are carried at amounts due and non tuition fee receivables are generally settled within 30 days. Tuition fees are due for settlement within the school year. Bad debts are provided for or written off based on a review of collectability of amounts outstanding at balance date. Receivables expected to be collected within 12 months of the reporting period are classified as current assets. All other receivables are classified as non current assets.

(f) Employee benefitsProvision is made for the College’s liability for employee benefits arising from services rendered by employees to the end of the reporting year. Employee benefits have been measured at the amounts expected to be paid when the liability is settled.

Annual leave for teachers and other staff due at 31 December, where unpaid, is reflected in the financial statements as a provision.

Sick leave taken by employees is charged as an expense when incurred.

Provision is made for long service leave entitlements, estimated to be payable to employees on the basis of statutory and contractual requirements. Long service leave that is expected to be settled within one year has been measured at the amounts expected to be paid when the liability is settled. Long service leave later than one year has been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting requirements. Those cash outflows are discounted using market yields on national government bonds with terms to maturity that match the expected

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(f) Employee benefits (Cont’d)timing of cash flows attributable to employee benefits. Vested entitlements (employees with more than 5 years of service), are classified as current liabilities.

Under Clause 86 of the Lutheran Schools Enterprise Agreement 2012, an eligible employee, upon proceeding on maternity leave, shall be paid fourteen weeks’ salary at her substantive salary rate. Any liability for maternity leave, will be charged by the College as an expense in the year that it is paid.

The contributions made to superannuation funds by the College are charged as an expense.

Within the Lutheran Systems of Colleges and Schools, there is full portability of leave entitlements for employee’s transferring from one Lutheran College and/or School to another Lutheran College and/or School. The total amount of portable long service leave as at 31 December 2014 is $1,450,647 (2013: $1,268,343).

(g) Trade and other payablesTrade payables, including accruals not yet billed, are recognised when the College becomes obliged to make future payments as a result of a purchase of assets or services. These are generally settled within 30 days.

(h) Income TaxThe College is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

(i) LeasesLeases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that are transferred to the College are classified as finance leases.

Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for that period.

Leased assets are depreciated on a straight line basis over their estimated useful lives where it is likely that the College will obtain ownership of the asset or over the term of the lease.

Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses on a straight line basis over the life of the lease term.

(j) Revenue and other incomeRevenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the entity and specific criteria relating to the type of revenue as noted below, has been satisfied.

The nature of the College’s activities allows it to raise funds from operations, principally from fees, income on investments and government recurrent grants.

The College recognises tuition and other associated fees on an accrual basis. Under the accruals basis of accounting, fees represented by outstanding debts have been brought to account as trade debtors.



26



(j) Revenue and other income (Cont’d)Grant income is brought to account in the College’s Income Statement in the period to which the income relates.

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

(k) 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 ATO is included with other receivables or payables in the balance sheet.

(l) Critical accounting estimates and judgmentsThe Council 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 College.

(m) Working capital deficiencyAs at 31 December 2014, the College reported a deficiency in net current assets of $5,357,970 (2013: $6,806,517). As is the case with most Schools and Colleges, the College has a significant surplus of net assets. It is, however, reliant on the timing of positive cash flow, including receipt of Government funding to support its ongoing day to day cash flow requirements. Government funding has been secured for 2015.

(n) Comparative figuresComparative figures have been adjusted to conform to changes in presentation for the current financial year where required by accounting standards or as a result of changes in accounting policy.

(o) Economic dependenceThe future operations of the College are dependent upon achieving & maintaining appropriate student enrolment numbers, the continuation of adequate funding from the Australian & South Australian Governments in respect of operational and capital grants, the continued support of the Lutheran Schools Association and the achievement of operating surpluses and positive operating cash flows.

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3 Result for the YearThe result for the year includes the following specific expenses:Annual leave expense (126,963) 63,442Auditor's remuneration - Auditing- William Buck 8,750 8,500Bad debts written off/provision for impairment 24,000 24,000Depreciation 660,337 516,220Interest on bank overdraft 16,513 17,576Interest on borrowings and loans 763,180 550,965Long service leave expense 156,516 193,220Rental 19,119 12,167

4 Cash and cash equivalentsCash on hand 450 650Cash at bank - WPAC Building Fund 7,007 17,607Cash at Bank LLL 31717S1 571,130 122,077Cash at Bank Westpac 206,078 -

784,665 140,334



2014 2013 $ $

2 Revenue and Other IncomeRevenue- Fee income (net) 5,761,577 4,982,808- Government grants 7,843,041 6,560,956- Canteen income 196,794 173,702

13,801,412 11,717,466Other revenue- Interest 13,504 21,898- Hire of facilities 94,786 93,575- Other income 1,292,434 1,175,522- Profit on sale of plant and equipment 27,663 6,076

1,428,387 1,297,071Total Revenue 15,229,799 13,014,537

Non operating IncomeBuilding fund donations 393,898 375,697Donations & fundraising 30,996 21,493

424,894 397,190

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2014 2013 $ $

5 Trade and other receivablesCURRENTSundry debtors - Fees 963,273 797,500Provision for impairment (102,069) (78,069)

861,204 719,431GST receivable 47,792 244,208Sundry debtors - other debtors 6,056 -Total current trade and other receivables 915,052 963,639

6 InventoriesCURRENTInventories at cost 5,315 2,566

7 Other non-financial assetsCURRENTPrepayments 69,359 49,164

8 Property, plant and equipmentLAND AND BUILDINGSFreehold landAt independent valuation 31/12/2014 3,650,000 1,385,000BuildingsAt independent valuation 31/12/2014 17,884,653 18,558,664At cost 7,872,505 7,208,156

25,757,158 25,766,820ImprovementsAt independent valuation 31/12/2014 4,510,037 4,735,744Accumulated depreciation - (118,689)

4,510,037 4,617,055Total land, buildings and improvements 33,917,195 31,768,875PLANT AND EQUIPMENTFurniture and equipmentAt cost 5,373,228 4,806,016Accumulated depreciation (4,150,551) (3,706,048)

1,222,677 1,099,968

29



2014 2013 $ $

8 Property, plant and equipment (Cont’d)Plant and machineryAt cost 1,264,521 897,599Accumulated depreciation (513,211) (345,116)

751,310 552,483Motor vehicles 121,112At cost 377,188 347,611Accumulated depreciation (223,441) (190,289)

153,747 157,322Total plant and equipment 2,127,734 1,809,773Total property, plant and equipment 36,044,929 33,578,648

9 Trade and other payablesCURRENTUnsecured liabilitiesTrade payables 146,291 1,335,023Enrolment Deposit 434,250 366,450Fees in advance 2,558,379 2,370,776Other payables 310,700 272,423

3,449,620 4,344,672

10 BorrowingsCURRENTSecured liabilities:Bank overdraft - 68,547Lease liability secured 14 60,164 43,126Loans - LLL 1,604,708 1,604,706Total current financial borrowings 1,664,872 1,716,379NON CURRENTSecured liabilities:Lease liability secured 14 103,537 49,932Loans - LLL 13,732,178 12,141,832Total non current financial liabilities 13,835,715 12,191,764Total borrowings 15,500,587 13,908,143

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2014 2013 $ $

11 Employee BenefitsCURRENTLong service leave 1,369,119 1,114,851Annual leave 631,377 758,338Study leave 17,373 10,377Sick leave - 17,603

2,017,869 1,901,169NON CURRENTLong service leave 81,528 153,492

12 ReservesAsset revaluation reserveOpening balance 5,660,795 5,660,795Revaluation movement on land & buildings 1,709,678 -

7,370,473 5,660,795

Capital reserve 2,130,774 2,130,774Total reserves 9,501,247 7,791,569

Asset revaluation reserveThe most recent valuation of land and buildings amounting to $33,197,194, comprises an independent valuation conducted by Valcorp Australia Pty Ltd as at 31 December 2014.

The revaluation increment above the carrying value amounted to $1,709,678 and was credited to the asset revaluation reserve at 31 December 2014.

13 Cash Flow Information(a) Reconciliation of cash

Cash at the end of the financial year as shown in notes 4 and 10 is reconciled to items in the statement of financial position as follows:Cash and cash equivalents 784,665 140,334Bank overdraft - (68,547)

784,665 71,787

31



2014 2013 $ $

13 Cash Flow Information (Cont’d)(b) Reconciliation of result for the year to cashflows from operating activities

Reconciliation of cash flow from operations withSurplus for the year 633,163 10,305Non cash flows in profit:

- depreciation 660,337 516,220 - net gain on disposal of property, plant and equipment

(27,663) (6,076)

Changes in assets and liabilities: - decrease/(increase) in trade and other receivables 48,587 (360,873) - (increase)/decrease in inventories (2,749) 265 - (increase)/decrease) in other assets (20,195) 73,000 - (decrease)/increase in trade and other payables (895,052) 1,696,262 - increase in employee benefits 44,736 290,137Cashflow from operations 441,164 2,219,240

14 Capital Commitments

(a) Finance LeasesMinimum lease payments - not later than one year 69,295 47,881 - between one year and five years 116,394 51,834Minimum lease payments 185,689 99,715Less: future finance charges (21,988) (6,657)Present value of minimum lease payments 163,701 93,058

(b) Operating LeasesMinimum lease payments under non-cancellable operating leases:- not later than one year 30,550 61,099- between one year and five years - 30,550

30,550 91,649

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15 Contingencies

Contingent LiabilitiesThe College had the following contingent liabilities at the end of the reporting period:

Lutheran School AssociationThe Lutheran School’s Association Inc. (“LCA”) has undertaken to financially back the loans made by the Lutheran Laypeople’s League Inc. (“LLL”) to all Lutheran Colleges, Schools and Kindergartens, through either the SA/NT or WA District Church Councils, up to the net assets of all LSA Institutions.

The combined asset values of all LSA Institutions, including member Colleges, Schools and Kindergartens, are utilised by the LSA to guarantee the loans made by the LLL to LSA member Institutions.

It will be the responsibility of all member Colleges and Schools working together to discharge these LLL loan liabilities in the unlikely event of a College, School or Kindergarten failure. Colleges and Schools may be called upon for a special contribution or part of their future Commonwealth funding may be allocated to repaying LLL loans of a failed College, School or Kindergarten.

Commonwealth and State Capital GrantsPursuant to the conditions attached to Commonwealth and State capital grants, the College is contingently liable to repay, based on a formula, all or part of the grants received if the project to which the funds are applied ceases to be used for the purpose approved or is sold or otherwise disposed of within 20 years of completion of the project.

The maximum amount of contingency as at 31 December 2014 was $Nil (2013 $Nil). The College Council Members are of the opinion that the College will continue in its current capacity and therefore the liability is unlikely to materialise.

OtherThere were no other contingent liabilities as at 31 December 2014 (2013 $Nil).

16 Events Occurring After the Reporting DateNo matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the College, the results of those operations or the state of affairs of the College in future financial years.

17 Remuneration of Council MembersNo amounts were received or are due and receivable by the Council Members of Cornerstone College Inc. during the year ended 31 December 2014 (2013: Nil) with the exception of Advisory Members to the Council who received a salary as employees of the College.

18 College DetailsThe principal place of business of the college is:68 Adelaide RoadMount Barker SA 5251

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The Council Members of Cornerstone College Inc. have determined that the College 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 Council Members the financial report as set out on pages 3 to 16:

1. Presents fairly the financial position of Cornerstone College Inc. as at 31 December 2014 and of its performance for the year ended on that date.

2. At the date of this statement, there are reasonable grounds to believe that Cornerstone College Inc. will be able to pay its debts as and when they fall due.

This statement is made in accordance with a resolution of the School Council and is signed for and on behalf of the School Council by:

Council Member Council Member

Dated this 23rd day of March 2015

Statement by Council MembersCornerstone College Inc.

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