accounts 2009 montalvo

8/14/2019 Accounts 2009 Montalvo

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MONTALVO FAMILY TRUST

ABN 26 338 409 674

TRUSTEE’S REPORT

Continued:

No indemnities have been given or insurance premiums paid, during or since the end of thefinancial year, for any person who is or has been an officer or auditor of the trust.

No person has applied for leave of Court to bring proceedings on behalf of the trust or intervene in any proceedings to which the trust is a party for the purpose of takingresponsibility on behalf of the trust for all or any part of those proceedings.

The trust was not a party to any such proceedings during the year.

Signed in accordance with a resolution of the director of the trustee company:

Director

GUILLERMO MONTALVO

Dated this 7th December 2009

The accompanying notes form part of these financial statements.



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ABN 26 338 409 674

INDEPENDENT AUDIT REPORT TO

To the trustees of Montalvo Family Trust(ABN 26 338 409 674)

International Air Transport Association and the Trustees of the TravelCompensation Fund.

Report on the Financial Report

We have audited the accompanying financial report of Montalvo Family Trust, being aspecial purpose financial report which comprises the balance sheet as at 30th June 2009,and the statement of financial performance for the year then ended, a summary of significant accounting policies, other explanatory notes and the trustees’ declaration as

set out on pages 6 to 22.

Trustees’ Responsibility for the Financial Report

The trustees of the trust is responsible for the preparation and fair presentation of thefinancial report and have determined that the accounting policies described in Note 1 tothe financial statements, which form part of the financial report, are appropriate to meetthe requirements of the Corporations Act 2001 and are appropriate to meet the needs of the trustees, the Trustees of the Travel Compensation Fund and the International Air Transport Association (I.A.T.A.). The trustees responsibility also includes establishing

and maintaining internal control relevant to the preparation and fair presentation of thefinancial report that is free from material misstatement, whether due to fraud or error;selecting and applying appropriate accounting policies; and making accountingestimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. No opinion is expressed as to whether the accounting policies used, as described in Note1, are appropriate to meet the needs of the trustees, the Trustees of the TravelCompensation Fund and the International Air Transport Association (I.A.T.A.),. Weconducted our audit in accordance with Australian Auditing Standards. These AuditingStandards require that we comply with relevant ethical requirements relating to auditengagements and plan and perform the audit to obtain reasonable assurance whether thefinancial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial report. The procedures selected depend on the auditor’s

judgment, including the assessment of the risks of material misstatement of the financialreport, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the

financial report in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.




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ABN 26 338 409 674

CONTINUED:

An audit also includes evaluating the appropriateness of accounting policies used andthe reasonableness of accounting estimates made by the trustees, as well as evaluatingthe overall presentation of the financial report.

The financial report has been prepared for distribution to trustees of the entity, theTrustees of the Travel Compensation Fund and the International Air TransportAssociation (I.A.T.A.), for the purpose of fulfilling the trustees financial reporting under the Corporations Act 2001. We disclaim any assumption of responsibility for anyreliance on this report or on the financial report to which it relates to any person other than the trustees, the Trustees of the Travel Compensation Fund and the InternationalAir Transport Association (I.A.T.A.), or for any purpose other than that for which it was

prepared.

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

Independence

In conducting our audit, we have complied with the independence requirements of theCorporations Act 2001.

Auditor’s Opinion

In our opinion, the financial report of Montalvo Family Trust is in accordance with theCorporations Act 2001, including:

i. giving a true and fair view of the trust’s financial position as at 30th June2009 and of its performance for the year ended on that date in accordancewith Note 1; and

ii. present a view which is consistent with our understanding of the entity’s

financial position and the results of its operations; andiii. complying with Australian Accounting Standards to the extent described in

Note 1 and complying with the Corporation Regulations 2001.




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ABN 26 338 409 674

CONTINUED:

Qualifications

i. The Trusts 2008 financial report was not audited. This has an impact on our audit for 2009 by way of restricting our ability to form an unqualifiedopinion for 2009 due to not having sufficient audit evidence as to whether the 2008 comparatives are free from material misstatement,

ii. The liability amount for monies held in Trust as at 30 June 2009 was $7,702whereas the asset amount in the form of Cash at Bank was only $6,208. Itwas not practicable for us to identify the reason for this difference duringour audit review,

iii. The trust has to date been relying on the financial support of the beneficiary.In our opinion unless there is a significant increase in business operations inthe near future, this support will continue to be required in order for theTrust’s agency business to be considered a “Going Concern”.

Date: 7th December 2009 Reg No: 10450

Name of Partner: George Carydias

Name of Firm: Michael Harvey & Co Pty Ltd

Address: 49 Stanley Avenue, Mount Waverley, Vic 3149

Signature: .




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ABN 26 338 409 674

STATEMENT OF FINANCIAL PERFORMANCEFOR THE YEAR ENDED 30TH JUNE 2009

Note 2009$ 2008$

Revenues from ordinary activities 2 95,647 93,691

Depreciation and amortisation expenses 3 11,454 8,492

Other expenses from ordinary activities 96,337 89,972

Total available for distribution (12,144) (4,773)

Distribution to Beneficiaries - -

Retained Earnings & (Accumulated Losses) 12 (12,144) (4,773)




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ABN 26 338 409 674

STATEMENT OF FINANCIAL POSITIONAS AT 30TH JUNE 2009

Note 2009$

2008$

CURRENT ASSETS

Cash 5 15,863 74,186

Receivables 6 7,045 9,681

Directors Loan 58,361 -

TOTAL CURRENT ASSETS 81,269 83,867

NON-CURRENT ASSETS

Property, plant and equipment 7 45,008 50,371

Intangible assets 8 5,357 11,450

TOTAL NON-CURRENT ASSETS 50,365 61,821

TOTAL ASSETS 131,634 145,688

CURRENT LIABILITIES

Accounts Payable 9 13,289 60,246

Other Liabilities 10 - 64,449

Unpaid Beneficiary Entitlement 11 - 2,650

TOTAL CURRENT LIABILITIES 13,289 127,345

NON CURRENT LIABILITIES

Bank Overdraft 50,244 23,091

Bank Loan 84,993 -

TOTAL CURRENT LIABILITIES 135,237 23,091

TOTAL LIABILITIES 148,526 150,436

NET ASSETS (16,892) (4,748)

TRUST FUNDS

Settlement Funds 25 25

Retained profits(Loss) 12 (16,917) (4,773)

TOTAL TRUST FUNDS (16,892) (4,748)




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ABN 26 338 409 674

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30

TH

JUNE 2009

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The financial report is a special purpose financial report that has been prepared inaccordance with Australian Accounting Standards except for AASB 1026 and AAS28Statement of Cash Flows and AASB 112 income taxes (Tax Effect Accounting); inaccordance with Urgent Issues Group Consensus Views and other authoritative

pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001 as it applies to large proprietary companies.

The financial report is for Montalvo Family Trust as an individual entity. MontalvoFamily Trust is a discretionary trust, with a domiciled in Australia.

These Financial Statements have been prepared in order to satisfy the accountingrequirements, the trustees of the Travel Compensation, the International Air TransportAssociation (I.A.T.A.), and for the use by the trustees of the trust.

The financial report has been prepared on an accruals basis and is based on historicalcosts and does not take into account changing money values or, except where stated,current valuations of non-current assets. Cost is based on the fair values of theconsideration given in exchange for assets.

The following is a summary of the material accounting policies adopted by the trust inthe preparation of the financial report. The accounting policies have been consistentlyapplied, unless otherwise stated.

a. Property, Plant and Equipment

Each class of property, plant and equipment are carried at cost or fair value less,where applicable, any accumulated depreciation.

Plant and equipment are measured on the cost basis.

The carrying amount of plant and equipment is reviewed annually by directors toensure it is not in excess of the recoverable amount from those assets. Therecoverable amount is assessed on the basis of the expected net cash flows whichwill be received from the assets employment and subsequent disposal. Theexpected net cash flows have not been discounted to present values in determiningthe recoverable amount.




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ABN 26 338 409 674

NOTES TO THE FINANCIAL STATEMENTS FOR THE

YEAR ENDED 30TH

JUNE 2009


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

Class of Fixed Asset Depreciation Rate

Office Equipment 7.5% to 10% DVM

Furniture & Fittings 7.5% DVM

Motor Vehicle 22.5% DVM

b. Leases

Leases of fixed assets, where substantially all the risks and benefits incidental tothe ownership of the asset, but not legal ownership, are transferred to the trust areclassified as finance leases. Finance leases are capitalized recording an asset anda liability equal to the present value of the minimum lease payments, includingany guaranteed residual value. Leased assets are depreciated on a straight line

basis over their estimated useful lives where it is likely that the trust will obtainownership of the asset or over the term of the lease. Lease payments are allocated

between the reduction of the lease liability and the lease interest expense for the period.

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

c. Intangibles

Intangibles assets, including initial application fees and licenses are recorded atcosts. Intangible are amortised on a straight line basis over the period of 20 years.The balance is reviewed annually and any balance representing future benefits for which realisation is considered to be no longer probable is written off.




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ABN 26 338 409 674

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30TH JUNE 2008


d. Revenue

Commissions are recognized once the conditions of travel have been completedand the principle, on whose behalf money has been collected, and has been paid.

Volume incentives are recognized when target levels have been achieved or areanticipated to be achieved.

Interest revenue is recognized on a proportional basis taking in to account the

interest rates applicable to the financial assets.

Dividend revenue is recognised when the right to receive a dividend has beenestablished.

e. Goods and Services Tax (GST)

Revenues, expenses and assets are recognized net of the amount of GST, exceptwhere the amount of GST incurred is not recoverable from the Australian TaxOffice. In these circumstances the GST is recognized 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.




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ABN 26 338 409 674



f. Financial Assets and Liabilities

The accounting policies and terms and conditions of financial assets, liabilitiesand equity are as follows:-

Accounts ReceivableAccounts receivable are carried at nominal amounts due less any provision for doubtful debts. A provision for doubtful debts is recognised when collection of the full nominal amount is no longer considered probable. Accounts receivableare non-interest bearing.

Accounts Payable and AccrualsLiabilities are recognised for amounts to be paid in the future for goods andservices received, whether or not billed to the trust. Trade liabilities are normallysettled on terms ranging between 7 and 30 days. Accounts payable accruals arenon interest bearing.

Client DepositsLiabilities are recognised to clients upon receipt of funds on behalf of principles.

These funds are held in a separate client bank account, and are not available tomeet other obligations of the trust. Interest does not accrue to clients on depositsheld by the trust.




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ABN 26 338 409 674


NOTE 3: PROFIT FROM ORDINARY ACTIVITIES 2009

$

2008

$

Profit from ordinary activities has been determined after:

a. Expenses

Interest Paid to other persons 13,896 51

Depreciation of Office Equipment 5,363 5,534

Amortisation 6,091 2,958

11,454 8,492

Remuneration of auditor

—Audit or review 3,000 -

—Other services - -

Rental expense on operating leases

—Minimum lease payments 4,320 -

Contingent rentals on finance leases - -




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ABN 26 338 409 674


NOTE 4: REMUNERATION AND RETIREMENT BENEFITS 2009

$.

2008

$

a. Remuneration of directors of trustee

Remuneration received or receivable by all directors of the trusteecompany:

— from the trustee company or any related party in connectionwith the management of the trustee company

- -

Number of trustee company directors whose income from thetrustee company was within the following bands:-

$0,000 - $9,999 1 1

The name of the director of the trustee company who has heldoffice during the financial year:

GUILLERMO MONTALVO

b. Retirement Benefits

Amounts paid to a superannuation plan for the provision of retirement benefits by:

— the trustee or any related party for directors of the trusteecompany

-

________

-

_______




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ABN 26 338 409 674


NOTE 5: CASH 2009.

$.

2008.

$.

Cash on Hand 25 25

Cash at Bank – Westpac 5 5

Trust monies 6,208 64,531

Term Deposit 9,625 9,625

Total Cash 15,863 74,186

NOTE 6: RECEIVABLES

TFN Tax Paid - 262

Prepayments - 1,880

GST Receivable 7,045 7,539

Total Receivables 7,045 9,681




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ABN 26 338 409 674


NOTE 7: PROPERTY, PLANT AND EQUIPMENT 2009.

$.

2008.

$.

Office Equipment at cost 26,673 26,673

Less accumulated depreciation (4,673) (2,653)

22,000 24,020

Furniture & Fittings at cost 18,874 18,874


15,946 17,239

Motor vehicle at cost 11,039 11,039


7,062 9,112

Total Property, Plant & Equipment 45,008 50,371

a. Movements in Carrying Amounts

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

OfficeEquipment

$

Furniture &Fittings

$

Motor Vehicle

$

Total

$

Balance at the beginning of year 24,020 17,239 9,112 50,371

Additions - - - -

Disposals - - - -

Revaluation increments/(decrements) - - - -

Depreciation expense (2,020) (1,293) (2,050) (5,363)

Carrying amount at the end of year 22,000 15,946 7,062 45,008




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ABN 26 338 409 674


NOTE 8: INTANGIBLES 2009

$

2008

$

Incorporation Costs 926 926

Less: Accumulated amortisation (448) (262)

478 664

TCF Contributions 8,132 8,132

Less: Accumulated amortisation (3,253) (1,626)

4,879 6,506

Initial Franchise Fee 5,350 5,350

Less: Accumulated amortisation (5,350) (1,070)

- 4,280

Total Intangibles 5,357 11,450

NOTE 9: ACCOUNTS PAYABLE

Trust creditors 5,587 26,410

Monies Held in Trust 7,702 33,836

Total Accounts Payable 13,289 60,246




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ABN 26 338 409 674


NOTE 10: OTHER LIABILITIES/ (RECEIVABLES) 2009

$

2008

$

Directors Loan Account - 21,449

Loans Related Parties - 43,000

Total Other Liabilities (Other Receivables) - 64,449

NOTE 11: UNPAID BENEFICIARY ENTITLEMENT

Octavio Montalvo - 1,325

Olivia Montalvo - 1,325

- 2,650

NOTE 12: RETAINED PROFITS\(LOSS)

Retained profits (accumulated losses) at the beginning of the financial year

(4,773) -

Accumulated Profits (Losses) for year (12,144) (4,773)

Retained profits at the end of the financial year (16,917) (4,773)




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ABN 26 338 409 674


NOTE 13: CAPITAL AND LEASINGCOMMITMENTS

2009$

a. Finance Lease Commitments Payable

— not later than 1 year 4,320

— later than 1 year but not later than 5 years 12,960

— later than 5 years -

Minimum lease payments 17,280

b. Operating Lease Commitments

Non-cancellable operating leases contracted for but not capitalised in the financial statements

Payable

— not later than 1 year -

— later than 1 year but not later than 5 years -

— later than 5 years -

-

The property lease is a non-cancellable lease

with a 5 year term. It commenced on 1/4/2007An option exists to renew the lease at the end of the term for an additional 2 term of 5 years.




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ABN 26 338 409 674


NOTE 14: CONTINGENT LIABILITIES 2009.

$.

2008

$

Estimates of the maximum amounts of contingent liabilities that may become payable:

- -

NOTE 15: RELATED PARTY TRANSACTIONS

a. Sales of travel to related parties are on commercial terms andconditions no more and no less favourable than those available toother customers.

NOTE 17: SEGMENT REPORTING

The trust operates in one business and geographical segment, being the operation of aTravel Agency service in Australia.

NOTE 18: FINANCIAL INSTRUMENTS

a. Interest Rate Risk

The trust’s exposure to interest rate risk was minimal.

b. Credit Risk

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets is the carrying amountof those assets, net of any provisions for doubtful debts, as disclosed in thestatement of financial position and notes to the financial report.

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




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ABN 26 338 409 674

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30th JUNE 2009

c. Net Fair ValuesThe net fair values of listed investments have been valued at the quoted market

bid price at balance date adjusted for transaction costs expected to be incurred.For other assets and other liabilities net fair value approximates their carryingvalue. No financial assets and financial liabilities are readily traded on organisedmarkets in a standardised form other than listed investments. Financial assetswhere the carrying amount exceeds net fair values have not been written down asthe company intends to hold these assets to maturity.

The aggregate net fair values and carrying amounts of financial assets andfinancial liabilities are disclosed in the statement of financial position and in thenotes to the financial statements.

NOTE 19: TRUSTS DETAILS

The registered office of the trustee is:

La Raza Enterprises Pty Ltd ATF Montalvo Family Trust5 Everage Street,

Moonee Ponds VIC 3039

The principal place of business is:

Shop 2B Cairnlea Shopping Centre Furlong RoadCairnlea VIC 3023

The principal activity of the company is a Travel Agency.




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ABN 26 338 409 674

DIRECTORS’ DECLARATION

The director of the trustee company has determined that the trust is not a reportingentity. The director of the trustee has determined that this Special Purpose FinancialReport should be prepared in accordance with the accounting policies outlined in Note 1to the Financial Statements. The Director of the trustee company declares that:

1. The financial statements and notes, as set out on pages 6 to 21 are in accordancewith the Corporations Act 2001:

a. comply with Accounting Standards as detailed in Note 1 to the FinancialStatements and the Corporations Regulations 2001; and

b. give a true and fair view of the financial position as at 30th June 2009 andof the performance for the year ended on that date in accordance with the

accounting policies described in Note 1 to the Financial Statements.

2. In the directors opinion there are reasonable grounds to believe that the trust will be able to pay its debts as and when they become due and payable.

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

Director

GUILLERMO MONTALVO

Dated this 7th December 2009




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ABN 26 338 409 674

PRIVATE INFORMATION FOR THE DIRECTOR OF THE TRUSTEE

ON THE 2009 FINANCIAL ACCOUNTS

The Additional Financial Data presented in the following pages is in accordance withthe books and records of Montalvo Family Trust (our client) which have beensubjected to the auditing procedures applied in our Audit of the Trust the period ended30th June 2009.

It will be appreciated that our Statutory Audit did not cover all details of the AdditionalFinancial Data.

Accordingly, we do not express an opinion on such Financial Data and no warranty of accuracy or reliability is given.

Neither the firm, nor any member or employee of the firm, undertakes responsibility inany way whatsoever to any person (other than our client) in respect of such data,including any errors or omissions therein however caused.

Date: 5th December 2009

Name of Partner: George Carydias

Name of Firm: Michael Harvey & Co Pty Ltd

Address: 49 Stanley Avenue, Mount Waverley, Vic 3149

Signature: .




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ABN 26 338 409 674

Detailed Profit & Loss

For the year ending 30th June 2009

2009 2008

$ $

Income

Commissions 67,881 52,431

CRS Rebates - 1,164

Overrides 2,322 992

Rebates & Incentives - 3,463

Interest 427 570

Travel Insurace 24,157 32,873

Other Revenue 860 2,198

Total Income 95,647 93,691

Less Expenses

Accounting & Audit Fees 3,567 3,645

Advertising 12,918 18,602

Amortisation 6,091 2,958

Bank Charges 2,325 944

Bookkeeping 3,760 3,563

Borrowing Costs 736 -

Credit Card Fees 2,888 1,587

Conferences 600 1,201

Computer Reservation 4,654 5,382

Computer Supplies 142 -

Depreciation 5,363 5,534

Donations 160 110

Electricity 1,312 2,356

Filing Fees 212 212

Franchise Fees 5,500 6,000

General Expense 111 586

Hire of Equipment 240 -

Insurance 359 3,192

Interest Paid 13,896 51

Internet 808 1,440

Leasing Charges 4,320 -

Motor vehicle costs 1,144 1,787

Sub-Total 71,106 59,150




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ABN 26 338 409 674Continued-

B/Forward Balance 71,106 59,150

Postage 436 291

Printing & Stationary 357 1,880

Rates - 120

Rent 31,262 30,944

Staff Amenities 362 3,228

Training, Seminars and Educationals - 1,072

Subscriptions 604 601

Telephone 3,664 1,178

Total Expenses 107,791 98,464

Net Profit / (Loss) before income tax (12,144) (4,773)

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